There has been a lot of news lately speaking of the expected hike in diesel prices in India. The reasons being given is the government is under pressure from Oil Marketing Companies who are facing the burden of political games. Diesel being a regulated commodity, the OMCs are made to sell diesel at government set prices; thereby hitting OMCs’ margins.
The subsidies on diesel is also further hurting the country budget with India’s fiscal deficit expected to be 5.1% of the gross domestic product (GDP) in this fiscal 2012-13.
One way of decreasing the fiscal budget has been removing subsidies on diesel as also recommended by Economic Advisory Council to the Prime Minister (PMEAC) in its Economic Outlook report for 2012-13.
At the same time, the country understands the political importance of playing with diesel’s price. Inflation already at an uncomfortable level could increase further; making life difficult for common people; thereby pushing the current central government on the brink of suicide.
Inspite of the unfavorable consequences, its a question of time now; the diesel prices seem all set for a hike with the current condition.
Meanwhile, came across an interesting technology called hydrogen fuel which can work with diesel engines to reduce emissions and also consumption of fuels. The product has been tried and tested and selling in USA and was currently used for transportation during London Olympics.
The company is looking to install the technology at industries/complexes with very high usage of diesel gensets. To saveguard interests, the product is not for sale; but on rental basis.
The rental is a % of the savings achieved– for example if the technology saves Rs.1,00,000 of consumption every month; then the rental will be Rs.50,000 or so (case to case dependent).
The company is looking at joining hands with Malls/Factories facing high diesel costs.