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Originally Posted by deep_bang  I think hybrids need to be subsidised substantially by the government. In fact, what ever pay for the fuel actually hurts the country since we import most of what we use. Every rupee utilised more translates to less expenditure. |
Actually it only hurts the oil companies, for the government its a double edged sword. They spend about 17-21%(of what you pay for fuel) in buying and filtering the actual fuel. nearly 65% of the money you spend on fuel is going to the govenment as taxes. So if they reduce the amount of fuel used they loose a lot of money as taxes but will reduce our expenditure.
The second entity is overcome by the fact that we can be exporting goods worth almost the government spent on importing fuel.