Q.3 What was the rationale of the deregulation of the fuel prices in India? Discuss the issues with the policy and suggest the way forward. (10 Marks)

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https://www.thehindu.com/opinion/op-ed/is-the-fuel-pricing-policy-problematic/article65278617.ece
In the intro, mention the rising fuel prices amid the Ukraine-Russia war.
In the body describe the rationale behind deregulation like reducing the subsidy burden and bringing the cost in line with the international prices. In the issues mention the issue of intervention for political economy reasons, the need for intervention for economic reasons, impact on the economy, growing dependence of the governments on fuel tax revenue etc. In the suggestion mention need for an independent body for determining fuel prices.

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