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Pricing Petrol based on usage/vehicles

Hi,

My idea is we should remove the fixed price mechanism for petrol and bring in a system where the vehicle's mileage should be considered for the price in which petrol is filled. We should divide vehicles on basis of their mileage. Say Class A vehicles should be the one getting petrol for lowest price. Also Buses should be included in this class as they are public transport. Class B can contain vehicles used for transporting Food materials. Class C can be Taxis. The last class who should give very high petrol price should be the Luxury car owners. They can afford the luxury and hence can contribute more to consume more. This will help people to understand the value of non-renewable resources and hence the usage will come down to a great extent.

Regards,
Sreejith

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  • Oct 5 2013: The system sounds much too easy to game. What's to stop one driver that can buy cheep from buying fuel at a premium only to sell it off to someone else for whom the fuel is more expensive at a profit?

    Attaching extra cost to wasteful vehicles rather than the fuel itself seems like a better method of getting the same thing done.
    • Oct 5 2013: A "gas guzzler" tax was applied to US cars that consumed less than 12 miles to the gallon in the eighties. It didn't have much effect. It just made mid-size cars smaller. The large luxury cars and sports cars had very little effect.

      The fair system is he who consumes the most pays the most. Example: A person of modest means, has a luxury car to ferry wealthy people. He isn't wealthy and cannot afford a higher price. He could raise his price to cover these costs , but there is only so much price increase the market can stand. In the end he can't afford to work because his margins are to thin.

      In rural America large SUVs are pretty standard as opposed to urban areas. We travel farther, we haul more. If we use more fuel , we pay more tax. if we use less, we pay less than our urban counterparts. Trying to achieve "fairness" screws up the fairness of the market more. The more prices are standardized the easier it is for everyone to budget for their needs and not game the system.

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