Petrol and Diesel Prices should not be reduced

In India, currently Govt regulates the price of most of the petroleum products. Some of them like petrol and diesel which were once subsidized by govt are now turning out to be profit source for the petroleum companies. As the crude oil prices in the international market is coming down(due to economic recession), so is the pressure on govt to decrease the fuel prices in India. If govt wants to decrease the fuel prices then it has to do it very soon before election commission announces the date for elections. After the announcement of the dates of election model code of conduct comes into existence. After model code of conduct comes into existence govt will not be able to reduce the petroleum prices.

If govt makes a major policy decision to deregulate the prices of petrol and diesel then again it has to do it very soon(I don't feel just before elections govt will take such a step). Deregulation of petrol and diesel price is possible and this is the right time to do it. Govt can control the price of cooking gas as deregulation of it is simply not possible in current scenario. Govt provides a subsidy of more than 150 rupees on each LPG cylinder. Deregulation of it will simply rocket hike the prices of LPG and will badly affect a common man. Keeping cooking gas and kerosene under direct govt control and liberating the prices of petrol and diesel is a possible option for govt.

If crude prices further fall in the international market or remain the same then govt will have to decrease the fuel price. I feel decreasing the fuel prices will have an adverse effect on the economy in a long run. Currently, vehicles are one of the major source of environmental pollution. Decreasing the price of fuel will directly increase the environmental pollution. If we look at the statistics then our emission of green house gases is going on much similar pattern as the industrial revolution(or development) phase of developed countries. Since then, developed countries have been a major source of environment pollution.

As some of the adverse effects of climate change are now directly visible, it is now no more a theory or mere assumption. If we also go on the same pattern as that of developed nation in terms of pollution than very soon it will be difficult to control the climate change as it is an irreversible process. Already most of the damage to environment cannot be repaired. Also one of the fact we should keep in mind is that the worst effect of environmental pollution will initially be on the sea coasts of these developing countries. Frequent cyclones, floods, loss of coral reefs, less fishes all are return gift of mother nature for the damage caused by us. The population density in coastal region of developing countries is very high due to the location of sea ports which are major trade centers of economy. A loss of these cannot be repaired in any way.

Along with the environmental pollution, it will also adversely effect our exposure to green technology. People would prefer to take a petrol car instead of a electric car if petrol prices are cheap. It will also demotivate the research and investment in the environment friendly technology, which is the need of hour.

One possible solution to this can be that the profit from petrol and diesel can be diverted towards green technology. This could be in terms of incentives like tax benefit or other similar profit for using the environment friendly technology. This will boost up the morale of these industries and motivate people to use green technology along with earning carbon credits for the nation.

If we dont try to save the environment now with the excuse of economic recession then we have to pay a very heavy price to pay in future. For example consider a scenario where people cuts down a complete forest for resources and boost up the GDP. The exports and domestic consumption for that time will surely be good but in long run will lead to a downfall of GDP. Also it is very expensive to recover a lost resource that to save it.If that forest would have been saved then it would have helped in cleaning the air and also reduced many heart related diseases in nearby areas which would save govt's expenditure on health care and boost up tourism and related activities along with earning carbon credits.

Global economic recession can be used as a turning point for world's economy. This is the time when people will adapt themselves to change then any other time.