The debate on subsidy on diesel price never seems to reach a consensus. On one hand, diesel subsidies are important to keep food prices and transport prices under check, while on the other hand, this subsidy is being exploited by luxury car owners and owners of commercial hubs. In simple words, tax paid by the aam adami which is meant for societal development is latently being directed as subsidies to industrialists and rich business houses! Thus it becomes far more important for the government to either come up with a differential pricing system or some other model which categorises these two different set of users under two different price bands.
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