Sunday, July 10, 2011

Proposal to Limit Cooking Gas Cylinders to Four – A Welcome Move

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The Indian Oil Ministry has proposed to the ministerial panel on fuels to limit the number of subsidized cooking gas cylinders to four per year per family and charge Rs 800 for usage over four cylinders including those below poverty line. Even though it is at the proposal stage only, this proposal has attracted criticism from so many corners. But I feel this is a move in the right direction. Let me tell you why.
An average household needs anywhere from five to eight gas cylinders per year. Assume all families need eight cylinders, which means every family has to buy four cylinders in the non-subsidized rate of eight hundred rupees (Rs 800). Now the people who may be affected the most by this plan falls under the category of Below Poverty Line (BPL). BPL people can ill afford to buy gas cylinders at this rate. But at the same time one has to remember that every BPL family is given over 10 to 15 liters (depending on the state) of kerosene at a very subsidized rate. With four gas cylinders at subsidized rate and 120 liters of kerosene per year – a BPL family should be able to survive without buying any more gas cylinders.
The subsidized kerosene that was supposed to be used by BPL people now reaches the black market thus enabling few to make so much money at the expense of government subsidy. Implement this rule and black market of kerosene will be a thing of the past.
Now coming to working class. – four cylinders at four hundred rupees (Rs 400) and another four at eight hundred rupees (Rs 800) will cost you one thousand six hundred rupees (Rs 1600) extra that works out to be less than five rupees per day per family. This may not be a substantial amount for a middle class family but when these subsidies adds up that will be a huge savings for government of India. Government in turn can use this money for developmental activities like constructing another golden quadrilateral or interconnecting of rivers or for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) that can really impact the life of each and every Indian.
We all must understand one thing – if we as a nation has to progress, subsidies of all forms must be phased out. I cannot understand the logic of providing subsidy to even those families who takes home a monthly pay check of over one lakh Indian rupees.
Like to know your views on this issue of providing subsidy to everyone without any plan in place to phase out these subsidies.
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10 Comments:

Blogger Jijo V.G said...

Well said Brijesh...
This is time to call of all sort of subsidies....

July 11, 2011 5:58 PM  
Blogger Karthikeyan said...

I am not sure if we can and should do away with subsidies of all kind. What we need is rationalization of subsidy. I am much more worried about people who earn 5000 or 6000 a month and live through this inflation, which is a bigger chunk than the families pulling in 1 lakh. Yes, remove every form of subsidy for these high income families and close every avenue where they misuse it, but to say that every form of subsidy should be removed, especially in energy sector in a poor country like ours, would be hurtful to the majority (read poor families). In a country like ours there is no simple solution (not saying we shouldn't try to solve these problems, but simplistic ones would only hurt the poor). my 2 cents.

July 11, 2011 10:38 PM  
Anonymous Ajay said...

another a self protraited pundit... man nobody saves 5 per day to buy a cylinder..they will have to shell out 800 rs on face on that day..your average do not count for the daily living accounted for a year. it holds good in business..

and govt constructing another golden quadilateral, is the most stupid comment ever..they did not complete the earlier one..instead wasted 1000 crores in removing Vajpayee's protrait..

The idea was to save some good disel and petrol by the Golden quadilateral to boom th growing economy.. Immagine a truck reaching Delhi to Bangalore in 24hrs travelling at 100-120 kmph for atleast 15 hours a day.. that was the proposed quality of the GQ. Immagine the quantity of fuel, time it would have saved.


Your idea is dam stupid and taxing on already burdened country. Instead think methods of boosting export, minimizing import so the earned and saved income can be realiseed in reducing the huge tax levied on petroleum.... so ppl can pay the market rate but still can buy it for a reduced amount..

Arent u ashamed to support this idea....of paying 800 Rs..

If the govt removes tax on petroleum, then they should earn it somewere else.. naturally it should be on enhanced export or reduced imports.. this is the basic idea.. not going on leving tax and surcharges

July 16, 2011 8:42 AM  
Blogger Ajay said...

another a self protraited pundit... man nobody saves 5 per day to buy a cylinder..they will have to shell out 800 rs on face on that day..your average do not count for the daily living accounted for a year. it holds good in business..

and govt constructing another golden quadilateral, is the most stupid comment ever..they did not complete the earlier one..instead wasted 1000 crores in removing Vajpayee's protrait..

The idea was to save some good disel and petrol by the Golden quadilateral to boom th growing economy.. Immagine a truck reaching Delhi to Bangalore in 24hrs travelling at 100-120 kmph for atleast 15 hours a day.. that was the proposed quality of the GQ. Immagine the quantity of fuel, time it would have saved.


Your idea is dam stupid and taxing on already burdened country. Instead think methods of boosting export, minimizing import so the earned and saved income can be realiseed in reducing the huge tax levied on petroleum.... so ppl can pay the market rate but still can buy it for a reduced amount..

Arent u ashamed to support this idea....of paying 800 Rs..

If the govt removes tax on petroleum, then they should earn it somewere else.. naturally it should be on enhanced export or reduced imports.. this is the basic idea.. not going on leving tax and surcharges..

July 16, 2011 8:50 AM  
Anonymous Anonymous said...

I have to agree with you. We Indian waste if we have more than what we need. It is a lack of discipline. Whether, water, electricity, gas or anything else. Water rates should also be steeply hiked and subsidized water should be given only in public taps. This would make people careful. Gas if used only for cooking will last at least 2 and a half months in a family of four. I know a family of four that finished gas in 20 days because of utter waste. Removing subsidy of certain commodities is the only way.

July 17, 2011 5:53 AM  
Blogger Ashish said...

"average household needs anywhere from five to eight gas cylinders???" Thats the most ridiculous thing i have ever heard. How many people are in ur family? ONE?? Go check ur basics first Mr. Brijesh.

As Mr. Karthik has said rightly, think about the people earning 5-6K PM. For them its not just Rs. 1600 ONLY, its HUGE. And mind u, they r not the ones who waste cooking gas or do black marketing of kerosene.

Why does the govt. need 2 save money by taking out subsidy on BASICS?? Arent we paying enough taxes?? Almost about a dozen taxes are levied on us. Where is the govt. putting all that money??

I feel disgusted 2 learn sum1 educated like U support such stupid move. No wonder our country is ruled by TOTAL idiots.

July 18, 2011 7:52 AM  
Blogger Brijesh Nair said...

Ashish
I am talking about 5 to 8 cylinders per year per family of four. I think it is a fair number. Don't you think so?

July 18, 2011 9:33 AM  
Blogger Ashish said...

NO sir. definitely not. On an average, a family of four needs one cylinder per month. Or we can say atleast 10 per year. Hence they'll have 2 shell out 2400/- EXTRA. Which is not a small amount for a family earning 6-7K PM considering the ever escalating inflation. Also as per my knowledge, a family having 1 gas connection gets only upto 4-5 litres of subsidised kerosene (depending on availability).

Another thing which troubles me is, WHY BASICS?? Why not increase taxes on Cigarette, Liquor, Multiplexes, Pubs, Cosmetics & Perfumes, fancy electronics items (mobile/LCD/LED TVs etc.) or even hi-end cars & bikes and all other sorts of luxuries??

July 18, 2011 3:48 PM  
Anonymous Anonymous said...

It looks like you are all set to support congress in whatever they do and say... just like any other congress man.. Your observation the 5-8 cylinders per 4 is very wrong. and "Rs 1600 ONLY" statement - can't believe it came form you ;-)

Binuraj,NSS junior

September 16, 2011 9:41 AM  
Blogger Brijesh Nair said...

Binu
I am against giving subsidies to people who acan afford to pay. If this idea was proposed by BJP govt or any other govt I could have supported it. Yes poor people should be taken care of but people like you or me should not be behind subsidies.
Brijesh

September 16, 2011 10:28 AM  

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