Re: Petroleum Pricing in India ? Debate Quote:
Originally Posted by harishF1 tax car owners more than the truck owners?? They cant do too much on the initial prices as it would lead to a different issue altogether?? Any views on this? |
car owners already pay a lot more than truck owners(in terms of percentage of tax on diesel engines to the cost of vehicle. But yes it is an a viable alternative to increase taxes on diesel engines to offset the price difference. Further the tax exemption given to engines below 1.2L should be removed or atleast reduced. However the latest generation of diesel engines are far more efficient than petrol engines and hence have a very strong case for their use. Quote:
Originally Posted by zulfi hansi Otherwise on your first point the fact is that Brazil is actually the largest producer of sugar in the world, that wouldn't be possible if they used all the sugar cane only for ethanol (which actually they cannot).
Moreover both sugar and ethanol (molasses) are produced together inevitably, molasses (from which ethanol is made) is a byproduct of sugar manufacturing, I thought you should know this. |
Bio-fuels have been an alternative for many years now and will become even more attractive as the prices of traditional fuels increase. It is a simple case of customer choosing the least expensive option(and the market providing for it). But i doubt OPEC or our own government would let it happen. It is a short term fix because
1. The only option is to blend(which would not affect the prices by much) the diesel as having a higher concentration of bio-diesel would result in high pressure on the land usage. We may be a big country, but we are also a very densely populated nation. the average land holding is very very low. the forest lands are already facing pressure from human expansion and wastelands are not big enough to cater to need of the entire country. Bio-diesel in its present form is not as efficient as needed to fuel the hunger of this nation without sacrificing on other needs(most importantly food production). The effects were evident when US farmers started producing corn(George W Bush, term 2) for ethanol production and it lead to increase in prices of food items of all types across the globe.
2. To have a substantial reduction in costs, sugarcane production will have to increase several-fold, not to mention the pressure this particular crop has on nutrients in the soil and (as mentioned before) the water table of the soil in a country where the water table has fallen to dangerously low levels.
3. Brazil may be one of the largest growers of sugarcane and may have a good policy on ethanol & bio-diesel, it may be one of the fastest growing economies in the world, but it is still responsible and has been criticized for severely ruining the natural ecosystem of the area. thousands of acres of land has seen the removal of forests and natural habitat to replace the needs of humans. Brazil has that luxury, but do we?
4. It is inevitable that we would see(in our lifetime) a major shift in the way cars are run. Alternative/Eco-friendly fuels will be developed. Bio-diesel/Ethanol/Electric cars/Hydrogen right now are not viable but one of them or a new one will become in a few decades. We have entered a phase where the primary source AKA petroleum products are nearing the end, and as the crunch increases, so would the pressure on our wallets. |