Should the fuel prices be deregulated in India?

Indian economy is growing day by day, so the demand of fuel will increase and if the fuel price is not deregulate now the burden of subsidy will increase and the loss of PSU's will aslo increase. The burden of subsidy finally passes on common man only indirectly. so its better to deregulate the fuel price then only we can control on usage of fuel

i won't like to say yes from general public point of view..but yes it should be deregulated, because it  will be controlled by the demand and supply gap...the Govt. need not provide the subsidies to the oil companies, which money can be used for other development works..also the oil companies will not be in loss...

I am always for deregulation of fuel prices. The problem being that it is just helping us to hold on to older inefficient technologies. This is a very dangerous situation, the government controls the price normally allowing us to grow inefficient transportation systems. One fine day the price of petroleum raises so much that our government losses projections turn high. On that day they will raise the price. Since our systems at that point is inefficient the costs raise gets multiplied down the line and gives raise to insane inflation.

Recently read an column in "Times of India". It was named as Swamionomics after the person who writes it.

This person reflected a similar view. Its only countries that are regulating the fuel prices that experience serious inflation on fuel price raise, as it is not expected. The countries that have de-regulated them actually see an average of just 1% inflation all round the year, thanks to the fact that they expect the raise. When the expect the raise they are prepared for it. More efficient forms of transportation takes priority.

Based on this I can surely say that the day we deregulate we will experience and inflation. Within 1-2 years the inflation will drop significantly adding more expend-ability to people's hands. My best guess is that this winter the first thing the government has to do is to de-regulate fuel prices as it is normally low in winter, which will lead to a apparent drop in prices. 

This is just a start. Once fuel prices are de-regulated we will first start to see good quality fuels and verity of fuels. We will automatically see 15 year old trucks disappearing off the roads. We will see increase in sales of automobiles. With good quality fuels better automobiles will follow behind. Then there is also a chance for competition, within fuel makers. Its a plus to every one, except for the people who dont want the above to happen. 

100% Instead of trying to spend huge amounts of our taxes in saving oil companies govt can spend that money more wisely in other things. Deregulation will also save huge amounts of fuel itself as we will be more conscious about their cost. This is also likely to open up market for Bio-Fuels and other fuel saving technologies, which are dire need for the nation.

The moment Deregulation happens  the prices of the goods are likely to go up but the overall cost will only go down as people are likely to find ways to reduce travel distance and costs. 

Absolutely,the fuel prices should be regulated. I believe, there should be a limit on the fuel prices.

The fuel price should be in the price range or the prescribed limit.

Hopefully, this will happen one day.

For now, the petrol prices are on the rise which is not too good.

Yes, the market forces should decide the price of the commodity, in the case of petroleum products a comparison is required with other countries on the Govt levies like ED,CST,VAT, road tax, educational tax and all types of charges booked on to this product. Subsidies are not required even to the unprivileged  below poverty level peoples if the tax structures are comparable.

I think we should allow the fuel prices to be decided based on the demand-supply position and international market rates.

We always have the fear that withl increase in fuel prices, the prices of comodities will go up thereby will increase the inflation. Let me tell you when the Sugar went from INR 15-18 / kg to INR 45 per kg there was not much of hue and cry as the demand-supply has balanced the equation somehow. At the same time the people are getting used to it / reducing their consumption. Similar things happened in other comodities also.

The imbalance in demand-supply and increase in prices always bring in more innovative products in the market and change in buying pattern. The same thing has happened in USA when the crude reached to USD 140 per barrel and Gasoline to USD 5 per gallon. This has made a dramatic change in the automobile R and D filed and consumption pattern of people. Now in USA there is intensified research on electric / hybrid cars also people are preferring the small cars. So it is a matter of time and finally the things will settle down at it own.

So there is no need to ask various panel to make the reports on oil. There is a time to implement. JUST DO IT ... REST WILL BE DONE AUTOMATICALLY.

Praveen
91-9324289504

Subsidy of any kind is a fraud perpetuated to promote misuse, adulteration, and corruption. It also promotes inefficiency. Earlier deregulated the better it would be. Competetion would bring down the prices by increasing competetion and consumer getting products at competetive import parity prices with no/little oligopolistic margines earned by all those in chain.

I have been LPG transporter for all three Oil corporates at Vizag for 8 years, have seen and brought to the notice of Vigilance and CBI on how LPG is misused. Subsidies in Kerosene / LPG end up in wrong hands and no policy maker was willing to look at this as it would effect vote bank, now with Recession least they are acknowledging. its high time we open mkts and let mkts drive price which will bring down wastage.

There are always mechanisms to help/guide if mkts fluctuate , we should come out now or never!!!

I think yes since a price hike of petrol and diesel is imminent unless finance ministry pays full cash compensation to state-owned oil companies for kerosene and cooking gas. Losses on petrol and diesel are to be compensated by state-owned upstream companies and I think in order to controll this, it is very much important to deregulate the suel prices.