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|30th May 2009, 22:40||#1|
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Economic Times: Govt may end fuel subsidies by July!
Original source: Govt may end fuel subsidies as reform push begins- Policy-Economy-News-The Economic Times
I do not have numbers to support this, but I'am sure the amount of subsidy they give is much less than the indirect taxes they collect from oil.
And then they claim to be running a deficit because of fuel prices?
Last edited by SLK : 30th May 2009 at 22:42.
|30th May 2009, 22:54||#2|
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This could also lead to Diesel pricing to be either on par or higher than Petrol. I think the subsidy on Diesel is higher than that in case of Petrol.
Last edited by goldsun : 30th May 2009 at 22:55. Reason: grammatical errors.
|30th May 2009, 23:31||#3|
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@goldsun: I think the taxation on diesel is lower. They must do away with subsidies on LPG and (most important) Kerosene or as Lalu calls it 'Mati ka tel'. Maybe then we can expect less pollution on the road, and far higher diesel sales!
|30th May 2009, 23:31||#4|
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Well! This had to happen one day! But then, if we were to see open pricing of oil, maybe it will be win some loose some,as when oil prices fall.
A level playing field for private players might also bring in positive changes for the consumers!
|30th May 2009, 23:57||#5|
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|31st May 2009, 03:54||#6|
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WikiAnswers - What products do you get out of a barrel of crude oil
72.5 liters gasoline (petrol) x Rs.44 = 3190
35 liters diesel x rs.33 = 1155
6.6 heating oil x rs.100 ? = 660
6.6 liters reseduo x rs.100? = 660
14.5 jet fuel x rs.100? = 1450
6.5 lpg x 25 = 162.5
27.5 liters other products x 50? = 1375
total income = approx rs.8652.5
total cost = approx 3120
= 278% profit / tax?
WOW. huge profit! so we are paying nearly 3 times for petrol?
Last edited by Max : 31st May 2009 at 03:57.
|31st May 2009, 06:11||#7|
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And there is the small matter of actually building an oil refinery, which isn't factored into your equation. Who pays for the time and huge capital investment?
Btw, I have a disclosure to make: my share portfolio is filled with refinery stock. So my views may be biased
Mods note: Please do not use full quote. Use specific lines from quote if you want to highlight.
Last edited by Rudra Sen : 31st May 2009 at 07:26.
|31st May 2009, 11:04||#8|
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Yes, we are paying a lot for fuel. And this ultimately increases our cost of living also.
We even pay more for car and a good percentage of what we spend to buy cars goes to government.
Yes, there is some capital cost involved, but then dont we pay income tax that is also quite high ? And then we pay more for fuel.
Rather than working on lifting subsidy, they should first concentrate on quality of fuel sold all over the country.
Diesel is heavily subsidized. Once this is lifted, the overall cost of living will again go up. We first need better quality of fuel and infrastructure, then quality fuel at not so high cost.
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