The raising of fuel prices over the last weekend was greeted with customary anger. Cost of transportation fuels, especially diesel having a negative impact on the already high inflation are warranted. Inflation in India cannot be lowered without addressing the supply side issues.
Attacks by the opposition and allies of UPA notwithstanding, some of the subsidies are hard to justify.Cooking gas(LPG) is primarily used by the middle classes. In recent years, increasing number of diesel car models are offered in the market. Apart from being greener, these cars also take advantage of the subsidies that were never targeted at this sector.
With crude oil prices still remaining above $90 a barrel,such misuse of government funds is unsustainable.Incomes of middle class families have risen steadily through the last few years. They ought to take this increase on the chin and carry on.
Attacks by the opposition and allies of UPA notwithstanding, some of the subsidies are hard to justify.Cooking gas(LPG) is primarily used by the middle classes. In recent years, increasing number of diesel car models are offered in the market. Apart from being greener, these cars also take advantage of the subsidies that were never targeted at this sector.
With crude oil prices still remaining above $90 a barrel,such misuse of government funds is unsustainable.Incomes of middle class families have risen steadily through the last few years. They ought to take this increase on the chin and carry on.
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