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Mumbai gets its seventh fuel price hike in less than two years.

Talk about getting ripped off in the name of good health and a long life. That’s exactly what’s happened to Mumbaikars who, last month, faced their seventh fuel price hike in less than two years. The oil industry has conveniently passed on to the consumer the cost of producing environmentally friendly fuel, which has lower levels of sulphur and benzene. Mumbai is now by far the most expensive place in the country to tank up your car.

No doubt, the effect of clean fuel on air quality will be immediate as all vehicles, old and new, will stand to benefit. But should we be paying for clean air? Isn’t it a basic right that every citizen should have? In fact, when unleaded fuel was first introduced in Europe it was cheaper than leaded fuel, the idea being to encourage its use. In this case, where clean fuel is now Rs 1.12 paise more expensive in the metropolis, it will encourage car owners who drive beyond city limits to top their tanks on the outskirts and bring dirty fuel back into town to burn.

It’s all too easy to blame the rise in fuel prices to additional cost in refining better fuel (a claimed Rs 1500 crore) but as I write this, our state-owned oil companies are making thumping profits by selling cleaner fuel they should have given us in the first place. Even when international prices of crude oil go down substantially, fuel prices continue to rise in India. Fuel prices will never come down if the oil companies have a say.And governments don’t stand up against oil companies because they own them. Until we get a free market in fuel prices, to replace administered ones, this will not be corrected.

The truth is that even the ‘green’ fuel that is currently being sold is a chemical cocktail that remains toxic. Each additive (with the exception of ethanol) that has been tried to replace lead continues to be a cause for medical alarm. Meanwhile, alternative fuels like LPG and CNG, which promise to be a quick-fix solution to emission woes, are thwarted by oil companies who simply haven’t bothered to put in place the necessary infrastructure and network to make their use widespread. The reason? CNG and LPG are heavily subsidised fuels, which just don’t help their bottom line.

Hormazd Sorabjee Source February 2001
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