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  • Category: Central Government

    Does hike in Petrol and Diesel Prices show a reckless,and insensitive Central Govt?

    At the time of installation of the BJP government in the centre, there was a bombastic talk of good governance, transparency, participation of people from all walks and what not. With time the government started showing that this party is no different from any other political party. They are even worse than their predecessors. At present, as we are seeing that retail selling price of Petrol has crossed Rs. 80 in most of the city headquarters of Maharashtra. The price of Diesel has crossed Rs 65. The situation in other parts of the country is more or less the same. Prices of Petrol & Diesel have always been an important factor in inflation. Now this is very clear from the data shared by the government itself that the reason of the price rise is the imposition of excise duty on petrol and diesel. The excise duty on diesel increased by over 380% and over 120% in the case of petrol since the BJP came to power.

    Excise duty has been revised almost 11-12 times during the last 3 years. Some time the increase was more than Rs. 2 per litre. This was done without any mention of it in budget or elsewhere. What a transparency! The logic of this insensitive and reckless government was that consumers had got accustomed to paying high prices for these fuels and would be psychologically able to bear the burden. The price of diesel has been kept lower by the previous government as it also used in the politically sensitive farm sector. This government had seen an opportunity to raise funds from this lucrative source keeping aside the interests of farmers and under privileged farm workers. This shows double-speak of the government boasting 'sabka sath sabaka vikas'.

    Petrol & Diesel were put out of the ambit of GST on the pretext of the demand from the states. GST, a so called big achievement of the government, would tie hands of the government from increasing the duty and the consumer would get the advantage of lowering the prices of crude petroleum in the world market. On the top, the government implemented daily price revision which has created confusion and added fuel to souring prices.

    The government response to this is reckless and blatant. The government refused to lower excise duty and to roll back on daily revision of prices. One minister asking opposition party ruled states to lower their vat on petrol and diesel and the other minister shocked all by saying "we are going to tax people who can afford to pay. Somebody who has a car, bike; certainly he is not starving. Somebody who can afford to pay, has to pay," He conveniently forgot the majority of needy people who use motorcycles and farmers who use agricultural equipments need these fuels.
    Please opine
  • #609472
    We voted for development and that cannot happen if the government does not have funds. As a Union Minister stated, if people can afford cars and bikes, they can definitely afford to pay more taxes. The Government is being very pragmatic about it and is taxing only those who can afford to pay higher taxes. There is definitely a lot of thought gone into it.

    Consider the all-round development and the benefits that come with it. We will have a Bullet Train and we can be proud of it. The poor will get houses and live a life of dignity. LPG will reach everyone. I mean we as a people must look for the betterment of the nation. To come to think of it, we will be instrumental in wiping out poverty from the nation, because the higher taxes we pay will be used for the poor.

    There will be better infrastructure which future generations can enjoy.

    We should not look at it from an individual perspective but must look at the bigger picture. And yes, be ready to pay our taxes and a higher price for fuel and other commodities.

    "A love affair with knowledge will never end in heartbreak." -Michael Garrett Marino

  • #609475
    This tread does not carry any individual perspective. This a concern of farmers and the people who are suffering because of the hike especially of diesel. What is the percentage of people using vehicles for luxury? Majority of people need motorcycles for their employment and farmers need diesel for tractors and other accessories. They have to pay under compulsion. Diesel is an important factor of public transport. This has a negative impact on inflation. If the government is really serious for development, they should bring foreign capital and raise employment. The GDP is dropping owing to wrong economic policies of the government. The government should curtail the bombastic government funded inaugural ceremonies and the expenditure on advertisements of fake propaganda if they are serious on the issues. Only imposing excise duty shows failure of the government on economic front.

  • #609477
    Petrol and Diesel prices are increasing. But consumption is not coming down. Day by day it is increasing. If really the rate is a concern for the people how they are going for it? In my childhood days, all people were using cycles for short distance and within the village travels. But now nobody is using a cycle. At least one example where they stopped purchasing petrol, I have not seen.
    We have a lot of unemployment. To create jobs industry and service sectors has to grow. We require foreign investment in those areas. If the infrastructure is not created, how we can expect development? So government need funds. So taxes are increased, people we can afford to pay only will use. In a way it is good. Cycles are not polluting the atmosphere but bikes are causing pollution. Lesse the usage of petroleum products better the environment.
    The tree will not give fruits on the day you have planted. It requires time to grow and give fruits. We have to water the plant till that time. Otherwise, the plant will die and no chance of fruits forever.

    always confident

  • #609481
    Whenever the cost of an item increases, middle-class, lower-middle-class and poor people try to consume that item less. If the price of the petroleum products is costly to a person, he/she must try to consume it less. The people in major cities of India can easily consume petrol and diesel less by availing public transport.

    If we prepare a comparative chart of present price of petrol & diesel with the price of these items five years or three years ago, we don't find much change in price of these items. As for example, price of petrol in Delhi was Rs. 68.50/- per litre in Sept. 2012. The present petrol price is around Rs. 70.50/- per litre.

    So far as tax is concerned, like every other person, I also dream that there would be no tax to be paid by anybody for anything. But I also know that no country can survive in the so-called no-tax regime.

    Criticism for the sake of criticism, nothing else.

    Beware! I question everything and everybody.

  • #609483
    I completely agree with the author. Government gradually removed the subsidy from petroleum products saying that the rate will be decided by market conditions. But when market conditions are in favour of the consumer, the Government is taking advantage by increasing taxes. When there is excess production and when the farmer is not even getting production costs, does the Government do anything for them. It will say the prices are varying according to market conditions. The Minimum Support Price (MSP) will be on papers only. When the farmers are not getting production costs, the Government will say that we have controlled inflation.
    Because of rise in petrol prices, oil marketing companies are making huge profits, which again goes to the Government as it is the major stake holder in these companies. Development and welfare should go hand in hand.

  • #609501
    This has reference to comment no.609481. The comparative figures are from a time when the international price of crude petrol was all time high in 2012. I remember the "jail bharo" and other protests by BJP at that time. Even the then govt. was called mafia by some leaders. The same leaders are silent when they are in power. Present figures are the figures when the price of crude petrol is the minimum. The present rates are owing to reckless excise duty as explained in the thread. Sorry the figures of sep. 2012 cannot be compared with figures of sep.2017. The govt. is hiding post demonetisation loss of economy by refusing to levy GST on petrol and diesel. The govt. is lucky that no large scale agitation has started yet.

    Blind justification for the sake of justification.

  • #609502
    The main issue with the present central government is not of a seasonal hike in price but of an irony and unexplained reason as to why fuel prices did not come down even when the price of base crude oil came down more than half i the international market. On the contrary, the price were hiked the moment there was a small increase.

    Unlike other items which have possible cheaper alternatives for consumption, fuel(especially petroleum products) do not have economical alternatives available to people now. Moreover unlike pulse or grains even a small increase in fuel price will have cascading price increase in all areas where fuel is used. That is why price increase of petrol and diesel is taken seriously.

    To say that people should consume less is not a proper reaction or response. It is only adamancy and impudence like the queen related to French Revolution. If not bread then cake. Tomorrow if the price of wheat and rice goes beyond affordability what will be advised?
    What about LPG? It is rumoured that LPG subsidy is going to be removed. So you wil advise not to cook? Very bad remark in response.

    A feeling has now crept in is that this government is not sensitive to the middle class and poor, but is in favour and bias to big corporates only. If this continues, then 2019 may give a different result.
    The only solace to the ruling party is the lack of cohesion and direction with the opposition parties.

  • #609503
    Have you noticed, after some protest in the social media for three to four days the prices of petrol is stable and not increasing , why I am saying it because , I shall pour petrol for 150 rupees dally and get maximum up to 2.33 liters when the prices were slashed. Slowly that has bee increased marginally daily and now I get 2.01 liters per daily That means all these days the oil companies are fooling the public and the reason was hike cited on International pricing crude barrel. But there seems to be lesser price further of a barrel and that is not passed to us and instead they are maintaining the prices.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #609518
    I fully agree with the view expressed by the author in this thread. In general at present many of the people expressing vociferously whatever the government is doing is best for the people and for India. Any body rising their voice against government they are considering them as anti-nationals. It is true that International oil prices even though gone down government is levying heavy taxes per liter. The basic cost of refined Petrol is Rs.29.53 and Diesel is Rs.29.12 per liter. The remaining whatever we pay above them is all different type of taxes which go to the Center and State governments. Petrol and Diesel are essential commodities which run all business activities of the country. If Petrol bunks are closed for one day the whole India becomes standstill. Every individual of the country will be affected by one way or the other way. By citing the words uttered by a minister of BJP government many are going to a wrong impression that Petrol and Diesel are meant only for rich people and it is nothing to do with middle class and poor people. Some are arguing that by increasing its cost to any extent the consumption levels will be cut down. If you stop utilizing electricity from thermal power station in our country we can conserve coal and also we can check pollution levels. Can we do that? BJP government completely ignoring common man, middle class people and poor and are fully supporting corporate sectors. As said by Bhuvan above development and welfare should go hand in hand then only people will appreciate.

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