Politics and economics rarely mix well. This has been highlighted in the case of energy pricing where good economics says fuel prices must be raised, but political will is clearly lacking.
The latest report of the Kirit S. Parikh committee on oil pricing -- one of the many on the subject -- has argued strongly in favour of market-driven prices of petrol and diesel, while cutting back on subsidies for kerosene and cooking gas. Prime Minister Manmohan Singh is reported to be in favour of implementing several of its recommendations, but the Congress party fears public outcry in case prices are raised in line with the committee's recommendations. Based on the Parikh committee report, the petroleum ministry had prepared a set of proposals for raising the prices of all products. These were discussed threadbare with the Congress party and its United Progressive Alliance (UPA) partners, who are reported to have strongly opposed any price hike plans.
Full Story: Oil pricing reforms essential to stabilise economy (Comment) - Little About (blog)
The latest report of the Kirit S. Parikh committee on oil pricing -- one of the many on the subject -- has argued strongly in favour of market-driven prices of petrol and diesel, while cutting back on subsidies for kerosene and cooking gas. Prime Minister Manmohan Singh is reported to be in favour of implementing several of its recommendations, but the Congress party fears public outcry in case prices are raised in line with the committee's recommendations. Based on the Parikh committee report, the petroleum ministry had prepared a set of proposals for raising the prices of all products. These were discussed threadbare with the Congress party and its United Progressive Alliance (UPA) partners, who are reported to have strongly opposed any price hike plans.
Full Story: Oil pricing reforms essential to stabilise economy (Comment) - Little About (blog)
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