The Hindu Business Line : Oil price hike

This refers to the increase in prices of petrol and diesel. Instead of opposing the hike, the Left parties should suggest alternative ways to meet the effects of the global increase in oil prices.

There should be a gradual reduction in taxes on petroleum products and the government must take steps to reduce cost of petroleum products such as cutting down on ad spend and overheads.

Subhash C. Agarwal

New Delhi

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It is some relief that kerosene and LPG have been spared from the current oil price hike.

The hefty increase in petrol prices will undoubtedly have a cascading effect on other essential commodities and fuel inflation. The burden of the record rise in global oil prices is said to have been passed on to the consumers up to one-third only (33 per cent) to ensure equitable sharing among government, consumers and oil companies.

In such a case the consumer's share is 53.42 per cent, at Rs 2.50 per litre out of Rs 4.68 per litre for petrol, and 38.99 per cent, at Rs 2.00 per litre out of Rs. 5.13 per litre for diesel.

Therefore, the prices of petrol and diesel should be rolled back to the extent to which the present hike exceeds 33 per cent.

K.V. Seetharamaiah

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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