Thursday Aug 28, 2008

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Public oil cos proposal dangerous 

Public oil companies have put proposal of diesel price at Rs 57 per litre for industrial use. At present diesel is being sold at the price of Rs 34.80 per litre for industrial use. The premier three oil companies in this connection have sent their proposals to petroleum ministry. Actually these companies have not thought deeply on this issue or it may be possible that keeping in view their own interest they willfully have ignored the important role of industries. These companies desire to sell diesel to the direct consumers at market rates. Oil companies have sent proposal on fuel sale at subsidy limiting it to the transport and agriculture sectors only. It is noticeable that power production industrial units with the proposal of diesel supply on subsidy are consuming diesel in comparison to oil and naphtha. In this way the companies would have to be forced to import extra fuel. In this context may be said that in this era of development more burden is being put on industrial sector on the excuse of fuel. Question arises as to how much difference it would make by lifting subsidy from diesel for industries. Whereas the industrial sector is most helpful in giving earning and creating new dimension of development. Diesel is being used in transport sector and kerosene is light and fuel for poor. Lifting subsidy from it would not be justified at all. Products would become more dearer if diesel used in industries is made dearer and in this way the inflation would further increase. Cost of electricity would also go up. If this proposal is approved it would increase problems in the industrial development. So the proposal of public oil companies is not just. This proposal would affect negatively on industrial atmosphere, which is extremely dangerous.  

 
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