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  • Category: Miscellaneous

    What are the compulsions for the Government to not to reduce the prices of petrol and diesel?

    The prices of petrol and diesel are at an all-time high. There is a likelihood of crude oil price going up in the international market and this may further hike the domestic prices of petrol and diesel. The hike in petrol and diesel will have a direct and indirect impact on the essential commodities. The Government is making it very clear that the prices will not be reduced. Any Government will think of the adverse effects on its popularity in case of hike in prices of essential commodities but not this Government. Are there any compulsions or obligations for the Government to not to reduce the prices? The Government can easily reduce the excise duty it raised and give relief to the common man. It can bring the petrol and diesel under GST bring the prices to a realistic level. The consumers of petrol and diesel are paying more than half the price in taxes? What is preventing this Government to do so?
  • #647758
    The actual cost of petrol is half the price what we are actually paying. The remaining are all taxes only. Some taxes are imposed by the Central government and some are by the state governments. That is why the prices of these products are not equal in all states. The majority of the taxes are by the state governments, I understand. The best solution is to bring these commodities also into GST scope. This will make both the governments to lose some money collections. Many of the development programmes that are being taken up may stop. Many of the subsidies and other encouragements in the form of cash given by the governments for the people may be stopped due to lack of money and the governments may lose sympathy from those people.
    The parties want votes. So they have to give so many free items and pension and so and so forth for getting votes. Even though they charge more on the petroleum products, the consumption may not come down. But if they lose votes they can't come to power again. I think this may be the reason many State Governments and Central government are not keen on decreasing taxes on petroleum products.

    drrao
    always confident

  • #647759
    Govt has certain tax structures and other regulations with which it maintains it's revenue.

    Sometimes they go for popular measures and reduce the taxes arbitrarily. It affects the Govt receipts and they have to go for deficit financing which is not a desirable thing.

    People are very sensitive for some items in their daily lives. It includes cereals, vegetables, milk and petrol. Any increase in them creates a public outcry.

    Govt can not arbitrary reduce the petrol or diesel prices. It has to consider many economic and financial aspects before doing that.

    Knowledge is power.

  • #647762
    In the past if any small increase in hike of petrol and Diesel there is a lot hue and cry from political parties and public. The ruling parties used to give a lot of consideration for public opion and used to show some mercy on price hike. But the present government so stubborn on this issue even though there is lot of dissent from public.
    Yesterday through news item I come to know India is exporting purified petrol for very few countries like USA, Singapore, Malaysia, UAE etc. for Rs.37 per litre. what is this double standard of Indian government to sell purified petrol for Rs.37 and selling with all time high price of Rs.86 per litre to its own country people. Government activities should not harm the interests of common people but have to support them. Is government making business with people?

    India export petrol news:https://www-indiatoday-in.cdn.ampproject.org/v/s/www.indiatoday.in/amp/india/story/why-indian-government-exports-petrol-at-half-the-price-we-pay-1321786-2018-08-23?

  • #647764
    Government makes money through liquids. Central Government earns lot through Fuels, while the state governments earn through liquors. Yet we don't stop running our vehicles and don't stop drinking liquors. We should stop plying our vehicles and stop drinking liquors once or twice in a week. Use bicycles to commute and drink milk or juices to boost. Then see the loss to the government. They might wake up to reduce the fuel prizes and the liquor cost.

    @ Our government should fix one standard all time price for petrol and diesel. This price should be increased only when pay commission is announced once in ten years.

    No life without Sun

  • #647770
    What I feel that negative impact of petrol pricing being revised daily by oil companies having bad effect and reputation of the government and in fact opposition parties have called for Bharath Bandh on 10th of this month on petrol price hike. Hither too the government was heavily subsidizing the the petrol and only few years back the pricing authorities given to four oil companies. The government may contemplate to take over pricing authority once again and heavily subsidize the four companies but that would be up to the elections and after which there would be steep increase.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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