Why The Government Should Not Stop Plan To Reduce Kerosene Subsidies

Why The Government Should Not Stop Plan To Reduce Kerosene Subsidies

If the government goes ahead with its plan to reduce kerosene subsidies every month, as it has in the case of LPG, chances are Opposition MPs will once again raise a hue and cry in Parliament on how the poor are being affected. The MPs would do well to read the latest report by the Health and Environment Alliance (HEAL), a European not-for-profit advocacy organisation, which uses data from the International Monetary Fund, the Oil Development Institute (ODI) and the Oil Change International. The HEAL study shows how major economies subsidising fossil fuels extracts a health cost many times larger than the actual amount given in subsidies. And this is even when health costs are just taken to mean those resulting from premature deaths due to heart-, lung- and respiratory diseases caused due to pollution, and not costs under other overheads such as morbidity, lost productivity, etc, that can be ascribed to exposure to air pollution. According to HEAL, G20 governments paid out $444 billion in subsidies for fossil fuel—both to producers and consumers—in 2014 while their use imposed a $2.76 trillion cost on health the same year. Read More…

 

Credit By : The Financial Express

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