Interesting use of the word 'deregulate', this when the prices are at an all time high and threatening to shoot further, they should have done this 'deregulation' when its was $65 a barrel.
Now of course they don't have a choice but to raise petrol prices but its just to sustain subsidy model not deregulate prices. But this is short term thinking because if the prices rise further you will find it impossible to keep on subsdising diesel like this without raising petrol prices much above the international deregulated prices via more taxes.
The taxes on petrol must be adding up to at least 40% if not more with excise, customs duty, sales tax and local taxes and I don't see why the financial ministry is so adamant. This is a temporary fix and it appears petrol users are in for the 'royal treatment'. |