Quote:
Originally Posted by ddd08 People at times can be really ignorant. Crude Oil is $130 a barrel (1 barrel = 42 US gallons = 34.972 Imperial gallons = 158.987 litres) that means its $ 0.8177 per litre which is Rs. 35.12 (42.945 Rs = 1$ Yahoo currency conversion). That would mean that the increase in price we from crude to refined oil is roughly Rs 15.38. In that there has to be
1) Refinement cost
2) Transportation cost
3) Profit Margin
4) Govt Tax
I guess people are just too consumed by paying more. I have never heard people complain when they get a raise in their salaries. So why complain when prises rise. Ignorance is a major factor. And all of us want to buy bigger cars, add turbo, bigger engines, etc. They don't mind paying excess for that but if something like fuel price increase its a problem.
I feel the price rise for fuel is a convincing move to curb people's usage. Nothing else seems to work. Awareness is for noobs. Only when people can't afford it, will they start to respect it more. And I'm sure once prices reach Rs 150/litre, there will be a lot of people who would suddenly prefer walking smaller distances rather than use vehicles. And then many would like smaller engine cars.
I know may get a lot of resentment for what I have written. But I speak my opinion and the world has always had problems with those who think different. |
What we dont like is the fact that after paying a lot of income tax, we still have to pay a lot of tax in the form of fuel.
Figure out this: The great indian government gives 10Rs/ltr subsidy, if we remove that the cost of normal fuel will be 60rs. Now out of that 60 rs. we have to pay 35 rs as tax to government wheather we bought from Reliance or shell or IOC/BP/HP.
The point is that reducing the government tax part. Rather than just increasing 5 rs/ltr, they can easily reduce the tax. The government is usually in for 3 year bonds and for those 3 years, we have to pay a predecided price and not the present rate. We always get the barrel of oil cheaper than those developed nations. The things end here that government can reduce the tax. If the argurment is about transportation, then
Suppose Reliance is buying crude indepedent of government, then why tax them when they are selling fuel. The transportation,etc should be left to reliance.
And slightly off topic, but we dont get the quality and quantity we deserve after paying the high price of fuel in India.
But our governmnet wont believe in this and they just give improper/incomplete information and then say, we have to increase prices. Quote:
Originally Posted by chncar No offense, but that just doesnt make sense. Do you have any links or sources to prove it?
The PSU oil companies are running at a heavy loss due to being unable to hike the price, which is the reason the govt is thinking of upping the price anyway. If the real cost of petrol was 25 Rs and the rest taxes and margins, the private petrol bunks would not have to shut down and close business because of the high cost and inability to match the govt prices.
At some point in time the taxes were perhaps high, but right now the situation is that the govt is heavily subsidising the PSU oil companies and they are still making huge losses, and even that is becoming ubearable to both the govt and the oil companes which is why they are forced to consider raising prices even in an election year. |
The government has till now provided 10rs./ltr subsidy ( I am residing in Vadodara, my father works in Reliance and I know many who are in IOC )
when the cost of fuel was 50 rs/ltr. The fact is that out of the total cost of petrol, 70% was in the form of government tax. it can be reduced.
The private parties shut down because they were not subsidized by government. This is another partiality from government. The private parties gave us quality and quantity unlike IOC/BP/HP.
Last edited by aaggoswami : 23rd May 2008 at 09:08.
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