Let s look for energy options
Let s look for energy options
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An alternative pricing mechanism for transport fuel in India is currently being proposed by experts. The key benefits of the new methodology, Fuel Saver, comes from the checking of fuel adulteration and its unlawful use. It is possible to check adulteration by real-time monitoring of supply and off-take of fuel through the supply chain believe proponents. They suggest mandatory presentation of identity tags to help check spurious and unauthorised use of fuel.
Discontinuation of the unwanted diesel subsidy is also proposed as a measure. The government presently offers a subsidy, which is availed mostly by private cars and sports utility vehicles (suvs). This only happens because of the absence of an alternative method for consumers to pay the full price. This is likely to be done away with. Eight of the political parties currently supporting the United Progressive Alliance (upa) government are demanding the withdrawal of subsidy.
Fuel price hike The proposal suggests an increase in fuel price to keep it in tune with rising crude oil prices. This, they believe, is required to keep the oil companies in business and allow the government to raise fuel tax revenue as well as manage demand. All this, coupled with incentives for more fuel-efficient vehicles, shared occupancy and focus on fuel expenses per passenger can mitigate resistance to any increase in fuel prices. An increase in fuel tax revenue will become a necessity, once the forecast about decline in oil supplies (after