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Fall in crude prices help in oil sector reform

With the steep fall, of over 25 per cent, in the crude prices, Government of India is taking up much needed reforms. These include de-control of pricing diesel, an increase in excise duty on petrol and diesel as also fixing a cap of Rs 20 per kg on domestic gas; the steps initiated to credit through cash transfer, the subsidy element on domestic LPG supply using the Aadhar cards as also to weigh seriously excluding income tax payers and high net worth individuals from subsidised gas should also help. State governments on their part would do well to eliminate the bogus ration cards. Such steps taken in Tamil Nadu helped weed out 3.5 lakh such cards saving substantial amount on subsidised supplies of gas, kerosene, free rice, pulses, sugars etc.  Despite opposition from the usual antagonist, such reforms should be continued.


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