India’s Congress party continues oil subsidy to gain votes – a move that will cripple India for the next fifty years and cause rationing and shortages
Kirit Chauhan
May 31, 2008

The Congress party and PM Manmohan Singh did it again. Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi discussed the Rs 225,040 crore revenue loss oil PSUs face without raising price of petrol, diesel, LPG and kerosene and duty cuts this fiscal on three occasions but failed to give a clear verdict.

India is bleeding its Petroleum companies $125 billion every year just to keep people happy till the next election. These state owned companies have no say other than getting bankrupt at the cost of political needs of the ruling party. They are losing Rs 16.34 a liter on petrol, Rs 23.49 on diesel, Rs 305.90 per LPG cylinder and Rs 28.72 per liter on kerosene.

The Indian Government run oil companies have already decided not to import any fuel even though domestic production of diesel was insufficient to meet a 20-22 per cent growth in consumption. This will end in rationing and shortages.

The long term effect is socialism that will encourage subsidized rationing instead of free market place. It will take India back to 1960s when the country depended on foreign aids.

India’s Congress party continues oil subsidy to gain votes – a move that will cripple India for the next fifty years and cause rationing and shortages
Kirit Chauhan
The long term effect is socialism that will encourage subsidized rationing instead of free market place. It will take India back to 1960s when the country depended on foreign aids.
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