Increase of fuel prices - what is its impact on safety?

From y'day, the increased prices of fuels came into effect. Many are opposing the increase. I thought, okay, it will make a hole in my pocket, but what is its impact in my field, i.e., safety and environment. I think that the increased prices may reduce consumption of fuel to some extent thus contribute to the reduction in environment damage. When something is available cheap, it will loose its value / importance.

Many people use vehicles, particularly 4-wheelers for joy rides. Two advertisements which I am seeing in TV channels for last few months depict the same. In one advertisement, a child is sad because he did not get good marks or so, so his father takes him on a ride and the child asks for one more ride. In another advertisement, I think a couple or would-be couple will be on a ride to come out of their moodiness. Actually, it appears many persons don't have any work and therefore wander aimlessly in bikes, cars, etc. Subsidising fuel for such people is a crime. Similarly, supplying subisidised fuel for cars and sports cars whose mileage is very less is also waste of public money which could have been sent on providing education to poor children. In fact, subsidies are becoming a headache for the governments in the long run and they are finding it difficult to come out of this expenditure.

My suggestion is to eliminate fuel subsidies totally. Government should subsidise only public transport to such an extent that people of all categories should feel it economical to travel in public transport than using their own transport. All students can be allowed to travel without paying during their college hours. A pass should be issued to each student and should be punched for one trip to college per day so that wandering by students for timepass can be avoided.

Like issuing licence for driving, governments can issue permits for private transport at a price. This will reduce traffic congestion, reduce pollution, leading to better environment and good health of people. Then, to take care of emergency requirements, government should strengthen ambulance services for medical care and run public transport throughout 24x7 so that people will not be at disadvantage.

Similarly, government should increase excise duty / sales tax on vehicles equivalent to the cost of the vehicle or more. Today, I read in the newspaper that in Nepal, 300% tax is levied on imported cars and thus the cost of Nano car at Nepal works out to INR 4.5 lac. We should tax at these hight rates for all vehicles that are made within the country also.

The decrease in vehicles on the road will also reduce road accidents also and will save many elders and dependents caused by deaths.

The money spent on fuel subsidies can be better used for providing education and public health care which are becoming costly. Though the oil companies claim huge losses on account of subsidies, I am unable to understand why their shares value somuch. The share value of any loss making company will not even quote at its face value but all oil shares trade at multiples of their face value. I have to understand why it is so. After freeing the fuel prices from control, by how much their shares will go up will tell the extent of losses suffered due to subsidies.

Nothing lasts forever. It is obvious that if not now, in another 25-50 years fossil fuels will not be available. As the reserves comedown, oil producing countries will increase their prices and atleast next generation has to pay higher prices because no government can subsidise forever. Instead of using recklessly the valuable resources, let us use them judiciously and increasing the prices is a forceful method for conserving the fuel resources.