CB BureauAfter starting a heated debate earlier this month with his remark on use of sports utility vehicles (SUVs) being criminal, environment minister Jairam Ramesh renewed his attack on the use of diesel for luxury cars and shrugged off protests by some manufacturers of SUVs.
‘The diesel subsidy was introduced for a certain economic purpose, but it has ended up with a wholly different purpose. They (SUV owners) should pay full market price of diesel. Why should they get subsidized fuel meant for farmers?’ Ramesh said at the 5th Sustainability Summit: Asia 2010, being held in New Delhi.
It may be noted that the government does earn tax revenue from diesel sales, but subsidizes its retail price to help farmers who use it to fuel tractors and irrigation. Diesel price rise can also have a cascading effect on the price of most goods and commodities as it would increase transportation cost.
The minister clarified that he had nothing against the automobile sector, but people buying SUVs should not drive on subsidized diesel.
The auto industry had retaliated stating the technology that used diesel technology of today was not only very clean, but also extremely fuel-efficient.
The oil ministry is trying to evolve a system that will ensure that cheap fuel is provided only to the people who need it most.