West Bengal government declars further subsidy of Re.1 on a litre of diesel

West Bengal announces further diesel subsidy of Re.1


17 Aug 2010 PETROLEUM BAZAAR

Kolkata, Aug 16 – In a bid to deter transport operators from demanding a fare hike, the West Bengal government Monday declared a further subsidy of Re.1 on a litre of diesel meant for buses, mini buses and taxis, taking the total subsidy to Rs 2 per litre. However, transport operators said the concession was not enough.Making the announcement at the state secretariat here, Finance Minister Asim Dasgupta said the subsidy would entail an annual cost of Rs.280 crore.



Transport operators of the state are sceptical whether the raised subsidy will offset the entire increased expenditure on vehicles following the fuel price hike effected by the central government from late June.The state government had last month announced a subsidy of Re.1 per litre on diesel used for public transport, but the operators continued to clamour for a fare hike.This apparently forced the government to raise the subsidy Monday.



‘We welcome the state government’s decision of a further subsidy. But unfortunately this is not at all enough because in the last two years the prices of diesel have increased to a much larger extent.‘How will we be compensated for this remaining increased expenditure? We request the state government to increase the fares or compensate this increased expenditure,’ said Sadhan Das of the Joint Council of Bus Syndicate.



‘This subsidy is not at all enough in the wake of increased expenditure. But I can’t say anything more than this now,’ said Suman Guha, assistant secretary, Bengal Taxi Association.The central government has lifted controls on petroleum pricing and hiked the prices of diesel, kerosene, petrol and cooking gas, claiming the steps will help improve its fiscal position and release funds for other programmes. The central government has hiked the diesel price by Rs.2 a litre.Courtesy:India talkite


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