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The charade of deregulation

Know why petrol prices are up? Or why intelligence agencies fail in India? Well, its the same reason why we have pathetic roads, tripping power, dry pipes, the misery list is endless.

The reason? Government and regulation.

When there's zero accountability, and tax payer money in plenty, what else is to be expected? Of course, the defence of government is their tom-toming deregulation in the oil industry, but tell you what, that's just a charade. For example, the price hike from tomorrow according to the government is in response to the weakening rupee leading to a higher import bill. Really? Where are the figures? Tell us the actual increase in cost to government, and then tell us how you arrived at a price increase of three rupees. Also, if its real deregulation, why aren't prices moving up and down everyday, based on global demand and supply? In the US, prices even change morning to evening.

Truth is, deregulation isn't real deregulation in India. It is regulation in disguise. Plus there's zero transparency. For the consumers in India (add the poor too), the only way out is to let the markets dictate efficiencies and prices. But for that we'll need lesser government and greater deregulation.

Pipe dream, I guess.

Comments

Yes, I agree that it is disguised regulation and the govt increases it as per its whims. The 53% tax (various taxes,cess,duties)is the main problem.

We have private players like Reliance, Shell, Essar who offer competitive prices (some times marginally lower than Govt prices) due to their efficiencies.

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