Why taxpayers are better off with a fuel price hike ?
There is a lot being said about the fuel price hike, so here are my views on it. If you are a tax paying citizen of India (a very few in this country which at the moment is less than 10% of the population) you are better off with the fuel increase.
With the prices of crude going up around the world the cost of buying crude for the oil companies is going up. If the costs of the inputs go up the cost of the output too is bound to go up. With the government controlling the price of gasoline this increase in output is not being transferred to the consumer. This increase is being borne by the government that gets its money from the tax payers. Hence it is our tax money that is going into subsidizing the cost of gasoline in this country.
So if you are a tax paying person you are paying for the subsidy on the fuel that the citizens who are not paying tax are using (almost 90%). So if you are paying your taxes then you are better off with the prices going up.
The government should stop all subsidies on fuel and use the huge amount of money that it will save from this in improving the public transport infrastructure in our cities and also the infrastructure such as roads and railways so that we do not have to depend on individual transport. It should spend all this money in making CNG available which we have in abundance in the Krishna-Godavari basin in abundance available to all public transport such as busses and autos. This will reduce our dependence on crude oil and will also make our cities cleaner. Its time we took up some of these measures on a war footing.
This is a personal view and I would love to hear your take on this hot topic.