Petroleum Price Rise – The untold side

via Sanesh C K published on June 26, 2010

The central government has forgotten the “for the people” term in the famous quote “for the people, by the people”. The irresponsible central government has increased the misery of people by increasing the prices of petrol and plan to increase the price of diesel and cooking gas in the following months.

One question arises, why do we need a petroleum ministry, if petroleum companies
can decide the price of petroleum products at their will. The reason for price hike as per the government, petroleum companies are running into losses and government cannot afford to have petroleum companies running into losses, even if it is at the cost of crushing the common man in this country.

The other reason is about the fiscal deficit in India, but there are multiple other ways to bring down the fiscal deficit. Why don’t you tax more on the liquor and tobacco business here?

Now, look at the cost structure of petrol when it was at Rs. 58.90 few months ago, the break up was as below, as per the calculation of government itself.

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

Approximately 22.92 is charged as tax. That is 38% of the total price. It is clear that the large chunk of the price is due to taxes and if government decides to get rid of the taxes by 50%, the petroleum companies will not be running into losses. So with this price hike, government is the biggest gainer as they will get added tax revenue and that can be spent on Hajj Sabsidies, Jammu Kashmir packages, Salary for Madrasa teachers, arranging special planes for Andersons and feeding the terrorists like Afsal and Kasab etc.

Rather than acting on plans  which could bring down the inflation and price hike to help the common people of this country, this government is keen on pestering the people by doing everything against the will of the people in this country. The so called economist prime minister of this country keeps telling that inflation will come down by this month and by that month etc. How many times did we hear from the Prime minister regarding this? But did we hear of any time bound action plan from the government to bring down the price and inflation?

I believe this price hike as a ploy to divert the attention from people regarding the Bhopal tragedy and congress role in escorting Anderson out of India. Now for another 2 weeks all the main stream media will talk about the price hike and everyone will forget Anderson and Rajeev Gandhi links.

As expected GOM on Bhopal tragedy did not cover the Anderson episode and congress hand behind it. This congress government has become burden to the people of India, they make the life of common man miserable day by day. The current congress government is thinking that they got the mandate to do anything in this country because the elections are still 4 years away.

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