OIL SUBSIDY- Boon or Bane..?? BOON: The unpopularity of govt.

coupled with the civil unrest about inflation has made it clear that to maintain the market and customer cordiality, it is good to quench the dissatisfaction and instability through subsidies. For the people who are incapable of easy purchase deserve to maintain their livelihood even in the times of economic weakness of the nation. Subsidies ensure this. This also cushions frequent and undesired market fluctuations presenting us a more permanent market scenario to work on and plan for.

BANE: A sense of irresponsibility in citizens regarding these non-renewable resources because they are saved from rising international prices. The NOCS E&P activities take a hit because the financial risk and their share in subsidy doesnt leave them with many options. Proper standIt would be foolish to remove subsidy due to its gains but a full-fledged subsidy is dangerous considering its banes. So it is proper to introduce subsidy in the form of steps leading to deregulation