This is the 3rd price increase in the last 4 months. At this rate, we will have to go back to riding bicycles for daily commute and have cars for once-in-a-while outings. Does the govt not realize that the prices of petrol and diesel have a direct cascading effect on a lot of other things?
I have the Wagon R Dio for City drives. LPG is aound Rs 40/- per kg, translates much cheaper than Petrol which is Rs 63/- per ltr in Pune city. So soon petrol will rev up to Rs 67/-, bad news for my New Honda City. Thank God I have not yet sold my Bajaj Pulsar 220, which I use for short rides in the city.
Hybrids are just too expensive though very economical.
On the very day the election date is announced! DMK would like all bike riders to vote for them now I guess. Nice try.
TN govt announces three per cent cut on ST on petrol
Chennai, Mar 1 (PTI) DMK government in poll-bound Tamil Nadu today announced a three per cent cut in sales tax on petrol that would make it cheaper by Rs 1.38 a litre. Chief Minister M Karunanidhi made the announcement a day after the presentation of the Union budget which skirted the demand for reduction of customs duty and sales tax on fuel prices amidst soaring global crude rates. "The government has decided to levy only 27 per cent as against 30 per cent as sales tax on petrol. This will result in a loss of Rs 210 crore for the exchequer annually but will bring down the price of petrol by Rs 1.38 per litre," he said in a statement here. He said the tax cut would be with immediate effect and the new rate of 27 per cent was the lowest among southern states. Explaining the rationale behind the tax cut, that comes ahead of state Assembly election due in April-May, Karunanidhi said it was done to ensure that two-wheeler users did not feel the pinch of 'frequent' hike of fuel prices by oil companies. "Since global crude rates are on the upswing, oil companies also revise the prices accordingly which affect middle-classes to a large extent," and this was the reason the government slashed sales tax on fuel on different occasions, Karunanidhi said. He recalled that his government had slashed sales tax on diesel and petrol on previous occasions also when fuel prices were hiked.
Wish other State governments could do something similar, since the central government continues to believe that petrol is a luxury item. A few months ago, the difference of petrol and diesel was Rs 12 here in Goa. The difference is now nearly Rs 20.
Its raining Petrol in TN. Obviously they are going to increase it soon after the elections if they win (most likely not) and if they do not the next government will have to raise it as it is eating into Government revenue and the new govt will get the bad name.