Socialism has many manifestations, and the underlying principle is that if anyone is benefiting too much from the existing policies of the state, then the state should be compelled to legislate or make rules so that those beneficiaries are penalized and a perceived part of those gains should be recouped to the state SOMEHOW.
Recently there has been a lot of debate about whether passenger Diesel car owners should be allowed to have the benefit of the subsidy granted to Diesel. A subsidy is a payment made by the State to the producer of the goods so as to sell the goods at a concessional rate to the public. In the case of Diesel, the refining companies are all State owned companies and therefore there is no specific allocation of funds for the losses incurred by the refining companies, instead the refining companies are showing their shortfall as UNDER RECOVERIES.
So what is the percentage consumption of such “subsidized” diesel by the passenger car segment? It is 15% of the total sale of such subsidized diesel. So if the passenger car owners are to bear the subsidy which causes the under recoveries, then the diesel car owners should be made to bear only 15% of the under recoveries. But the proposal seems to be to exact more from the diesel passenger car owners, as they CAN AFFORD TO PAY! This is the second LIE of SOCIALISM.
Socialism is nowhere defined in the constitution, yet the word has been inserted in the Preamble to our constitution without any debate. This word, SOCIALISM has assumed different meanings in the hands of different legislative interpretations. While this AMORPHOUSNESS is allowed to continue in the interpretation of SOCIALISM, various measures are being taken in its name which is beyond logic and reason.
The first point to be noted is what is the difference between the Central excise duty on Diesel engines for cars and Petrol engines? If there is an existing difference, what is the reason for such difference? I am sure the Excise on Diesel cars would be definitely higher as the cost of Diesel cars are higher. Consequently, at the time of registration, the State government collects more money from such diesel cars as the Road Tax leviable by most states, are Ad valorem. So the principle of SOCIALISM starts right from the production of Diesel engines.
Why is that so? Because, diesel is cheaper to produce (as the impurities are more compared to petrol) and diesel engines give a better mileage. So penalize people who buy diesel cars. That is the SKIMMING which takes place at the time of purchase of the car. This is CAPITAL ACCOUNT SKIMMING. Then comes the CURRENT ACCOUNT SKIMMING, after all the diesel vehicles need diesel to run, so take more money for a litre of diesel under the head of excise on diesel and the various levies which go towards it.
Leave the state, what do the garages of diesel engines do? They charge you more for the labour component which is the same for both petrol and diesel cars. The components are already over-priced as the excise is not on par with petrol engine components. The garage fellow (including volkswagen, skoda, maruti, mahindra & mahindras etc.) indexes the cost benefit of your owning a diesel car and he does his own fleecing!
How is all this justified? Because in the name of the omnibus SOCIALISM, everyone is having a field day!
Now let us look at who suffers the most because of dieselization of the Indian economy- as some prefer to call it? HONDA car company, as they produce no diesel cars in India. So i am sure HONDA must have taken the maximum hit, especially because of the hike in petrol prices. They do not have a mechanism to off-set the losses for falling sales of petrol cars, unlike Maruti, Volkawagen, Skoda etc..
And why should today’s TIMES OF INDIA (dt. 14/06/2012 Bangalore edition) suddenly bring a report of WHO and say that Diesel causes cancer? Have they done a comparative study study among the different fuels and arrived at it? I suppose not. It must be like one of those skewed surveys conducted by AC-Nielsen which went on to publish that WOMEN PREFER CLEAN SHAVEN MEN, for GILLETTE!
Marketing techniques have entered policy domain.
Democracy is all about doing the greater good to the greater number of people. If the diesel prices are kept low, then an average Indian family would be able to take the car out and travel the length and breadth of the country and get better integrated as a nation. Look at the states like Maharashtra, Gujarat, Tamil Nadu where there is a greater movement of people within the state. This is because of the subsidization of public transport, in the long run people should meet and interact so that their LIBERTY transforms into some profitable activity and development takes place in the long run.
As Margaret Thatcher once said, “THE PROBLEM WITH SOCIALISM IS THAT SOONER OR LATER THE OTHER PERSON RUNS OUT OF HIS MONEY!” We as a nation cannot find excuses for others to pay for our IDLENESS!