Petrol costlier by Rs 7.50; Oppn demands rollback

[pt1982]

The govt has to stop giving tax exemptions for corporates, plug the holes in the welfare system, stop grains getting spoiled in FCI godowns, stop unwanted subsidies, kill off white elephants like Air India, decrease corruption and above all get their act together than treat petrol as their favorite cash cow.

This is the tax breakdown when the petrol was Rs 58.90 (Correct me if I am wrong)

Basic Price: Rs 28.93
Excise duty: Rs 14.35
Education Tax: Rs 0.43
Dealer commission: Rs 1.05
VAT: Rs 5.5
Crude Oil Custom duty: Rs 1.1
Petrol Custom: Rs 1.54
Transportation Charge: Rs 6.00
Total price: Rs 58.90

No you might be right. But u have not given the state-centre wise tax breakdown. More over this is a old data. Need to see the prevailing crude price then.

Regarding, plugging loop hole in welfare schemes, many steps have been taken. Like transfering money directly into the beneficiary's bank account, using Adhar infrastructure to target subsidy (Pilot going on in Alwar district, Rajasthan). I think govt. is doing something, but needs to do much more as you have suggested.

 

[Zeeshan360]

deregulating diesel prices and giving subsidy to taxi/trucks/buses will be a tough thing to implement. heavily tax new diesel cars especially the luxury cars Audi,BMW,Merc etc.

Then, It is not alone in India that Diesel is getting popular. , European countries,India all have diesel car market growing. exception is America.
recently, Maruti Swift surpasses Alto in Sales. and I'm sure 9/10 of Swifts are Diesels.

As I have said diesel cars are already taxed heavily ..
Especially the SUVs which face the most heat

 

[CaptainJackSparrow]

I don't I'll ever go to office on my Thunderbird ever again.

It's Delhi metro for me, baby.

 

[Zeeshan360]

I don't I'll ever go to office on my Thunderbird ever again.

It's Delhi metro for me, baby.

I hope U get place to stand in the train

 

[harpoon]

No you might be right. But u have not given the state-centre wise tax breakdown. More over this is a old data. Need to see the prevailing crude price then.

Regarding, plugging loop hole in welfare schemes, many steps have been taken. Like transfering money directly into the beneficiary's bank account, using Adhar infrastructure to target subsidy (Pilot going on in Alwar district, Rajasthan). I think govt. is doing something, but needs to do much more as you have suggested.

I am just frustrated at the inverted economic policy of the Govt where you give 40,000 crores to a white elephant called Air India but will not allow a slight increase in the passenger fares of Indian Railway which is essential for the modernization of the railways. The reason given is that it will affect the aam aadhmi, but from where will the 40,000 crores come from? Ofcourse from the pockets of aam aadhmi.

And also why should an aam aadhmi riding a splendor subsidize a man driving a Merc Diesel.

 

[CaptainJackSparrow]

I hope U get place to stand in the train

So do I.

P.S. Do you know of anyone wou fits CNG kits on bikes?

 

[harpoon]

As I have said diesel cars are already taxed heavily ..
Especially the SUVs which face the most heat

Are you sure? Even in the last budget there was no proposal for additional tax on Diesel Vehicles.

 

[Zeeshan360]

Are you sure? Even in the last budget there was no proposal for additional tax on Diesel Vehicles.

Yep .. I am sure
That's the reason why car makers are against double pricing of diesel

Initially in early 2000s taxes on diesel cars were hiked because the emission of diesel vehicles was more
But now the technology powering diesel engines produces same emission of that petrol

And the higher pricing was still not removed .. After Petrol was deregulated the government justified the higher taxes on diesel cars by keeping diesel subsidized

 

[harpoon]

Yep .. I am sure
That's the reason why car makers are against double pricing of diesel

Initially in early 2000s taxes on diesel cars were hiked because the emission of diesel vehicles was more
But now the technology powering diesel engines produces same emission of that petrol

And the higher pricing was still not removed .. After Petrol was deregulated the government justified the higher taxes on diesel cars by keeping diesel subsidized

Even then the taxes are not high to warrant access to subsidized fuel for eternity.

 

[Screambowl]

Stop talking from lame pics shared on Facebook ..
And give a source for your claim or better calculate it according to the international prices

my cousin is in ministry of petroleum and natural gas. happy?

the current exchange rate is 55 . The Minsitry buys it at Rs. 5862.58 per 117.35 liters(again without subsidy), one liter costs Rs. 42 without subsidy. If you add subsidy the cost goes down to Rs. 25 per liter.

Dollar up.
At currents exchange rate we have to pay more money in Rupees against same quantity of oil. more than 800 crore rupees due on Air India to pay back to the ministry of Petroleum, isliye air india loss main hai. bheek main de de paisa, kahin se to compensate karna hai ya nahi?


congresss and its mismanagement!!!

 

[jha]

Be prepared for hike in Diesel price also..The difference in price is unsustainable...
And what is all BS of congress that Petrol prices have been de regulated..? Why not deregulate the whole Petroleum sector..
Bloody scavengers..

 

[Zeeshan360]

^^ They can't deregulate diesel .. Inflation will skyrocket as commercial vehicles use diesel ..

Goi should deregulate LPG cylinders though

The difference between diesel and petrol is almost near to twice .. Lol

 

[StingRoy]

All subsidies should be deregulated... pay the market price. Removing diesel subsidy will help us reduce the fiscal deficit, which in turn will prop up the rupee, and this should counter balance the effect of diesel price hike on inflation to some extent.

Tax gold/diamonds like hell, I don't care... people are just piling up on gold like there is no tomorrow. All that money is sitting idle doing nothing for our economy, only lifting one's personal assets and helping stash away black money.

 

[deckingraj]

All subsidies should be deregulated... pay the market price. Removing diesel subsidy will help us reduce the fiscal deficit, which in turn will prop up the rupee, and this should counter balance the effect of diesel price hike on inflation to some extent.

Tax gold/diamonds like hell, I don't care... people are just piling up on gold like there is no tomorrow. All that money is sitting idle doing nothing for our economy, only lifting one's personal assets and helping stash away black money.

Always keep in mind one thing - there are always two aspects in any monetary/discretionary move...i.e. short term effect and long term effect....Inflation is already high...in case you deregulate diesel then only god can save you...Currency will depreciate like hell and inflation will eat up everything...Further devaluation means imports getting more costly especially petroleum products further leading to inflation...On the positive side fiscal consolidation will happen but the current turmoil is not because of the fiscal deficit...The real reason is the policy paralysis due to which we are not able to contain the fiscal deficit...Unless and until we plug that nothing can help us....

 

[StingRoy]

^^^ I agree that coalition politics driven by a weaker majority partner is to blame, but plugging in the fiscal deficit is also the need of the hour. As we go oil hungry and yearn for tons of gold with an ever increasing YoY growth on the demand, fuel subsidies are nothing but adding to the grievous situation.

The fuel costs are often overhyped. Typically the fuel expense adds up between 1-5% of a product costs and an increase of around 30% on the diesel prices is going to impact around 0.3-2% to the overall costs of a product. I feel for the longer run, this is something which needs to be absorbed into the economy. Longer term, it will help us rely more on railways (and in turn on electricity) to drive our transportation needs and wane away from diesel. Time to make the system efficient rather than expect the govt to keep subsidizing fuel.