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Originally Posted by arunmur  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. |
Well. I dont see how it hurts the oil companies. There is always going to be demand for oil. The way oil prices are going up (globaly), we have to think of alternatives, if not now, then later. Why wait till the americans pioneer the technology and sell it to us? Why not encourage it within India?
The second point about taxes. Yes, the goverment is getting a lot more than 65% of fuel price as taxes. But then, fuel consumtion is rising every year. So the goevrment is just making more and more money every year right? And also, remember that dependence on fuel is always going to be a risky thing. Any wars around oil conuntries, Indian economy is going to suffer.