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Should state governments do anything to protect public transport from the vagaries of fuel price hikes?
Many private bus operators in Chennai have increased fares soon after the fuel price hike announced by the Union finance minister in the Budget 2010. Many regular travelers in Chennai complained that they were now paying Rs 10-30 extra for their travel and urged the authorities to ensure that private operators do not increase the fares according to their whims and fancies. One omni-bus operator in Egmore said the fuel price hike would cost Rs 1,000 to Rs 2,000 more per trip and said this had forced them to increase fares. Some operators said they would take a decision in a few days. The Tamil Nadu Omni Bus Owners Association treasurer strongly denied that operators had increased fares. |
- Yes, quite a no. of measures are available. 1) Go for forward/ futures contract with oil supply company.2)Institute mechanism for authorising the price to be charged by operators. 3) Educate the public on this; 4) Either provide for safe and cheap public transport to the required capacity or bring the operators under ESMA so that they don't resort to 'arm twisting' tactics, etc, etc. Posted by Srikanth Iyer, AGM - Warehouse at Nagarjuna Oil Corporation Limited | 07 May, 2010
- the economics of the price increase of fuel and the long term effects have to be seen in the proper perspective. no Govt will want to implement policies that r not voter friendly and as the PM said sometimes the govt is forced to take such measures so that the long term balance is maintained. one must realise that nobody complains or voices their protest over a wage hike but is quick to protest any other hike. the soviet union is a good example of how policies that r not propoerly planned and executed can wreck a nation. Posted by HD menon | 08 Mar, 2010
- certainlY State govt shuld intervene in order to protect the masses , The Need is For an appropriate mechanism/autority that shuld regulate the uneven increase in the fare of public transport System Posted by Utsav Jha, Assistant Manager- Internal Audit at PACL India Limited | 08 Mar, 2010
- Like TRAI for Phones, there should be an organisation regulating the fuel prices and should decide how much to hike. Then only the discipline will come. When we talk about fleet operators, are we able to control the Auto fellows in Chennai. All over the years the successive governments failed to regulate the autos. These are posing a very bad picture about Chennai. Posted by brahamanapalle Murthy, Manager Internal Audit at Ashok Leyland Ltd | 07 Mar, 2010
- when the centre thinks it can raise more money by way of increasing taxes on fuel ,ignoring the fact of fueling escalation in living expenses of masses ,how should we expect state govt. to be sensitive to the concerns of common man .they too might put some extra load on the back of this comman man . Posted by chandra pathak, secretary at upmsra | 07 Mar, 2010
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I don't think state government can do anything about it... despite the fact that, when oil prices came down at the world market few months back, central government did not reduce the fuel price in India.
One more thing... I don't think we have a proper regulation to fix the fares that needs to be collected by omni bus operators. Every transport company charge the passengers as they need. It would be great if state government can step in & regulate this.... Above all, we public get affect at last.... Posted by Vivek Venkitaraman, Team Lead - Procurement at Wipro BPO | 06 Mar, 2010
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India has headed for market economy. If any input cost rises you can\'t stop a rise in other commodities\' / services\' prices. It certainly is not in the hands of the state governments too though out of sheer politics some state govts may like to bear the difference and offer relief to its state. No, we can\'t say that state govts should accept the urden imposed by the centre. It should either be done by the centre itself or by the opposition parties.
http://vkmathur.tradepub.com/ Posted by Vijay Mathur, Deputy General Manager (Materials) at Steel Authority of India Limited | 05 Mar, 2010
- Obviously it is the duty of state government to look into the interest of public transport and should look into the details of the statistics and the individual cost factor and income of public transport as well as the profitability before accepting the logic of increase and as to whether the increase of fuel is going to end up in losses or an opportunity for them to call for increase under the disguise . Posted by kumar.subramanian. chandran, senior sales manager at First Flight Couriers Limited | 04 Mar, 2010
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Dear Rahul Parkhi
The contribution made by Transport to the economic and social life of a nation is vital.
In recent years the private cars and other private vehicles has abstracted traffic from Bus Transport.This has created financial difficulties to operators.Now it has started burdon on parking facilities and has detrimental effect on enviorment.
...See More Posted by Sanjay Bahal, Automobile Engineer & Transport Expert at Sanjay Bahal | 04 Mar, 2010
- First of all state govt should not allow private bus operators, taxis, lorry, auto riksha, owners / drivers / agencies to hike the price with out the permission of the govt. They should have a dialogue with the govt expert pannels before increasing the price and to find out exactly how much the difference and on what basis the increase be covered. Secondly state govt can reduce the tax on petrol / diesel / gas products to reduce the burden on public due to inexorbitant prices in other commodities. A small expendite deduction in govt expenses / ministers, MLA\'s expenses and other large amount spent on ceremonization / decoration / reception for various functions and to receiving the so called VIP can be curtailed if the govt ...See More Posted by SASHIDHARAN MUTHACHIKANDY, SENIOR MANAGER HR & ADMINISTRATION at RTFES | 04 Mar, 2010
- Definitely a positive approach should be taken by the government towards this hike as public using the available public transport / conveyance will be put to a great hardship. The Government should fix the rates and should ensure that no undue advantage is taken because of fuel price hike. Posted by radhakrishnan varadarajan, company secretary at sical logistics limited | 04 Mar, 2010
- In my opinion state govt.allow to transporter to hike the fare but in futer suppose fuel price is down that time state govt can tell tranporter.....? Posted by Kailash Sharma, manager accounts at Phoenix International | 04 Mar, 2010
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The world has to face the fact that oil is a finite resource, about half of this resource has been used by now, the world will never produce more oil per year then now (these years 2005 - 2010). This is known as "peak oil" after Hubbert's words.
Given this assumption, every action we could take that will tend to deny this reality and encourage energy consumption in anyway is a fundamental mistake that will act as a boomerang.
In this area, public money should be put it in any action that will relief the energy addiction.
...See More Posted by Pascal RODMACQ, IT consultant at Independent Consulting | 04 Mar, 2010
- Yes, of course, the State Govt is responsible to protect the interests of its citizen - and the transport operators too are one of them. As such, the govt has to keep a balance by a proper assessment of the hike in fare structure due to increase in diesel prices.Every govt has this mechanism and this should be invoked to control exorbitant rise in fare structure by the private operators. Posted by Kottakki Nehru Patnaik, Divisional Railway Manager(Mechanical)- Retired at Indian Railways | 03 Mar, 2010
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Sadly public transport even though it offers high cumulative benefit is not considered an essential service. There is an urgent need to declare “public transport as a right” to be provided in all major cities at an affordable service in every state.
In Vadodara (Gujarat) private service providers are running CNG run buses which charge about INR 5 for an 8-10 km distance cutting down and reducing two wheelers on the road. You can visit their website for more information http://new.vtcos.com.
One way would be for the central government to allot CNG at a nominal rate for all public transport.
Regards
Surendra Posted by Surendra Sharma, Shipping and logistics at Consultant | 03 Mar, 2010
- Are you expecting Govt State or central to do anything about price rise? Posted by Anurodh Sharma, SR. MARKETING MANAGER at PAN TELECOM PVT. LTD. | 03 Mar, 2010
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Transport Sector irrespective whether it is " Private or Public" are highly unorganized, and they do not have a cohesive plan.
They operate on simple logic:
...See More Posted by ranganathan ganapathy, COO at Varuna Integrated Logistics Pvt Ltd | 03 Mar, 2010
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In my opinion, every state government should stress on developing and using alternate fuels like Biodiesel, in fact Central govt. has always encouraged the usage of alternate energy sources.
We may or may not agree, but thinking differently at this point of time, is certainly going to help us in reducing or eliminating the dependency on Petro Products. Posted by Sameer Surnis, Sr. Manager-O&M at Cargotec India Pvt Ltd., | 03 Mar, 2010
- In my openion, we need to see other's shoes too, but the hike should be as per the % not by the lum-sum amount Posted by Rajesh Debnath, Deputy General Manager - Operations at Transport Corporation of India Limited | 03 Mar, 2010
- Biggest population in India travels through public transport which in addition to fuel cost carries many un wanted costs.I feel with proper management and cost reduction techniques impact of fuel price increase can be neutralized.State Governments rather blaming Central Government must think seriously the other ways. Posted by R K | 03 Mar, 2010
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Yes. State Govt Authorities should Audit the Fares charged by the Private Bus operators whether their is Fuel price increase or not. Diesel price increase will be rolled back , I am sure about it. Once this happens Bus operators who have increased fares will not reduce the fares. We have learned to live with all sorts of vagaries by all service providers like, Auto Rickshaws, Buses, Merchants , Govt Authorities, Politicians etc. Common Public are always the sufferers. We can only exchange notes like this .
Brahmayya Posted by BRAHMAYYA NOOTHANAPATI, Sr.Manager-Procurement-Powertrain at Chrylser LLC Global Sourcing | 03 Mar, 2010
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In fact the price rise by central govt.can not be opposed by state govt.
However in my opinion state govt. must allow to transporters to increased the transportation charges to the proportion of hike of fuel only. Posted by Dinesh Pande, Manager Stores at Greaves Cotton Ltd | 03 Mar, 2010
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Dear Mr. Parkhi,
Now this is the time to give thoughts on every angle. Now we must see the new design that how we can transport more peole, then we must make compalsary to hae CNG fuel and it will be defenetly cheeper than Diesel and have more Km. per gall. Reg. potdar Posted by Potdar Ramachandra | 03 Mar, 2010
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