Will have to remove subsidies on Petrol And Diesel

Asian and African countries to reduce subsidies to reduce its budget deficit is under increasing pressure.
Many countries in these areas most of the population live on less than two dollars a day. This is nearly seven billion world population. With the increase of oil prices has also created conditions for riots in some countries. Nigeria and Indonesia are examples of this.
But such growth in developing countries have the greatest impact on poor people. Because many of the difficulties they face.
The heat, food and fuel for transportation, etc. are required. Poor people can not do without fuel its economic growth.
Increasing the subsidy on oil consumption, which is a great strain on government finances and the environment is polluted. They say the money is being wasted on subsidizing oil use and education to improve health services. But it is not.
Eliminate subsidies on oil, its consumption will not decrease at all.
The government buys fuel on the market price and sells at low cost to people. There are other means of revenue in countries where the oil can be subsidized.
But India, Sri Lanka and Vietnam, countries where the budget deficit has reached a high on the oil subsidy is provided only for political reasons.At present, India is giving a subsidy of Rs two lakh crore. Some time ago, as India's unpopular decision to increase gas prices.
This step has been taken to reduce the burden of subsidies. According to the 2010 International Energy Agency world oil subsidies in developing countries are offering subsidies of $ 400 billion.
Developing countries is higher than the GDP of these countries.And it has no effect on their purchasing power.Although the agreement is the way it is banned in most developed countries.
It is considered very poor. About the general opinion is that these illegal practices by companies is a game of bargaining. Indirectly to the fuel subsidy payment is a way citizens.
Monetri Fund and other international institutions are asking to reduce the subsidy. But if these countries want to reduce oil subsidies for them to take several steps. The oil in the world do not have a strong option. Whether rich or poor country, all countries need oil.
Reduce subsidies are being taken to some place. Alaska's government passed a new law in this direction.On the one hand, while increasing the share of resources they will share in profits. Also it will help reduce the burden of government subsidies.