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  • Category: Miscellaneous

    Why all the opposition parties are not uniting against the Government over petroleum prices?

    Both petrol and diesel prices are on the verge of all time highs. If the Central Government is asked about it, it is putting the blame on the states saying that they are not ready to reduce their VAT. True, why they will reduce their VAT if the Central Government increased the excise duty exponentially. If the same Central Government is again asked about non-inclusion of petrol under GST, it is again putting the blame on the states saying that they are not ready to lose their income. If 70- 75 percent of states are ruled by BJP or its allies, is it that difficult to convince their own Governments? On many occasions, all opposition parties are coming together, including contesting the elections, but I don't understand why all the opposition parties are not uniting against the Government over petroleum prices?
  • #636842
    No party or no politician is thinking about a common man. They are very busy in their acts and counteracts in getting the power or money. They never look beyond these two. So why the will be worried about Petrol or diesel rates. They will remember only to blame the ruling party during elections and they say that we will reduce the rates if we were given a chance. So expecting something from opposition parties is also of no use.

    No party in India is really having any responsibility or concern for a common man' s life. I heard that the politicians spent crores of rupees in Karnataka elections and they even paid up to 10,000/- rupees per vote. So with that their responsibility ceases. No one questions them. That is why I say a common man has to change and a voter has to change. Then only something good may happen to the society.

    always confident

  • #636843
    Govt is always in a fix when the price of essential commodities rise especially due to global reasons. At that time we all demand to contain the prices and if Govt wants to do it then a lot of revenue will go in subsidizing it.

    This is a catch 22 situation for any Govt. The solution is also not so simple. Even for domestic products like onions and pulses we have witnessed the unusual price rise in the past and Govt was in a dilemma as how to correct that.

    So opposition parties can pressurise the Govt to contain the petrol and diesel prices but Govt has not much options on this issue.

    Knowledge is power.

  • #636845
    Government is definitely having an option if it reduces excise duty. When crude oil prices were decreasing, Government increased excise duty heavily, so that it may not lose its income. Government got more than what it was getting previously. Now crude oil prices started increasing but the Government stagnated its excise duty. Now again Government is getting more money than what it was getting previously. More the crude oil price, more will be the tax revenue. In either way, Government is capitalising it.

  • #636847
    What can the opposition parties do? It is for the GOI to do anything. This Government did not show any inclination to take action. I personally feel that the GOI will take a decision to bring it under GST just before the general elections of 2019.
    " Be Good and Do Good "

  • #636848
    Sirs, please do understand that everyday, the price is being increased by thirty or forty paise. This increase was kept on hold till the elections in Karnataka were over. So, it is basically a political game, shamelessly played out by the Central Government.

    The Government has eaten its own words. Why did it not decrease the excise duty, even when the international prices were on the decline? How is that the Government shamelessly talks about the States, whereas it can do it at least in the States where it is in power?

    The simple truth is that the profits are being used to control the fiscal deficit. In the very first place, this deficit can be controlled only when the Government controls its own expenditure. On the one hand, the sarkari baabus who control the government departments and teach all dirty tricks to the ministers, are paid so well, what with all the seventh pay commission salaries and all that.

    On the other hand, the BJP Government has systematically reduced the subsidies on the social front. One can quote statistics here, but that is not the intent. The simple truth is very clear: agriculture, the farmers and the common man, defined as one who earns less than seven thousand rupees in the metros, six thousand in the urban areas and even less in the semi urban and rural areas, is always at the receiving end. Those who cheat the banks to over ten thousand rupees, have escaped abroad.

    After the ridiculous demonetization experiment, the Government has done nothing for the social sector. Even the so-called pension scheme for Senior citizens carries an interest of eight percent, which is ridiculous, given the fact that the retail inflation, in real terms, is so huge, and much more than eight per cent. And this Government has had a puppet RBI Governor, who is spineless and toes the Government line. Compare this fellow with Dr Raghuram Rajan, and the difference become even more clear.

    The common man has to silently suffer. There does not seem to be any respite at all.

  • #636850
    As far as I know, the government is needed funds for different projects throughout country. So this is nothing but the ways through which the government is raising funds so as to continue with existing as well as upcoming projects. The increased fuel prices is critical for the individuals for below poverty levels as this will also resulting in the increased prices for other consumer commodities & this whole will effect the budgets of any family.

    This remains a concern & I do feel that the government should have the considerations on this on priority basis.

  • #636864
    Petrol prices are very fluid, it varies based on the crude oil price, the strength of the rupee and perhaps the most important that fuel is one of the key commodity that contributes to the state and central money kitty.

    Anyone trying to meddle with it will have to face the backlash. If you try to help the common man, you need to find money to plug the gap. Where is the money? In Karnataka, for 19 days, the fuel price hike was not announced to keep the voters happy but the loss was around Rs 380 crores for just 19 days. So any decision made by any Government will have to find the sources of money consistently day after day first before they can help the people.
    So, even if the parties unite nothing much will be the outcome, only a think tank of the central government, the ministry and the state finance departments can first work out how to save and divert money to the fuel sector so that these can be used as subsidy, like the LPG subsidy has borne by the government, only difference is that it should be for all non-commercial users.

  • #636865
    Nowadays petrol and diesel prices are completely market-linked. When it starts increasing every week, we start protesting. It is quite natural. When the prices go down, we remain silent. That is also quite natural.
    Beware! I question everything and everybody.

  • #636869
    Partha sir, we can't say petrol and diesel prices are completely market-linked because Government withheld the prices when the Karnataka elections were being held. If Government interferes in price control, how can we say it is market linked.
    #636850, I agree that Government needs funds. What the Government would have done if the crude prices did not come down, had it gone bankrupt? It might have mobilised the funds in some other way. Why the Government is not thinking in that way?
    #636864, Government has amassed extra 100000 lakh crores in 4 years because of increase in excise duty. So, losing Rs 380 crores in 19 days is a peanut amount.

    Edit: it is 1000000 crores and not 100000 lakh crores

  • #636875
    They have got many more cards under their sleeve which can impress the people and which can make sensational news and fetch more votes in the end. Fuel price rise is no more a vote catcher factor.

  • #636877
    Earnings on petrol and diesel is the God sent arrangement for the state governments which can expect a wind fall even with small increase in prices. Ever since the oil companies are given the wide hand to decide the prices on daily basis , the common man has lost the grip on the daily raise and even opposition parties who used to raise hue and cry for every increase previously are keeping mum because, the raise is just in paisas which is meager. But when the same is calculated on weekly basis it runs into two to three rupees and that is very hard hit on common man. Why the parties, if the people stop putting petrol for at least one week, the government has to bend.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #636887
    The petrol price today at our place is Rs 82.60/litre. It is likely to increase. Let us not complain. Let us cooperate as the Government is taxing us for our welfare only.
    " Be Good and Do Good "

  • #636976
    The petrol and diesel prices are climbing up. Let us not forget the Bullock cart opposition by the BJP. They say that the prices will be adjusted as is the case of gold. But, have we ever seen a decrease in the price? Another slogan from Modi (not at all practical), nothing else!
    'It is the mark of an educated mind to be able to entertain a thought without accepting it'. - Aristotle.

  • #637018
    KVVR Sir, I really wonder what welfare the Government will do for the common man.

    Even if part of this amount is spent on helping the terminally cancer patients in various Government or private hospitals, that would be fine. Even if part of this goes towards rural infrastructure, fine. At least the earlier Government brought in the Rajiv Gandhi rural improvement scheme, where I have seen huge water tanks installed in several villages. Obviously this was a Central Government scheme, executed by State Governments.

    Please do tell me, where is the money going, Sir. The same BJP blamed the Congress Government when it was in the Opposition, It is doing the same thing, The aim is to reduce the fiscal deficit.

    The additional money is being spent on useless schemes like subsidy to buy scooters for women, in Tamil Nadu.

    I really do not understand what welfare will come out of the huge increases in prices of petrol and diesel. Sir, please do note, the prices of every single commodity that goes inside our kitchens has gone through the roof. But the Government is so proud and claims an inflation figure of something like four percent.

    Retail inflation, Sir, is actually over eight percent. And what about reduction in Government expenditure, Sir?

    If the Union Ministers stop going to their States so regularly on our expense, we can live far better lives. But this if, is a big -- or very big "if"-- Sir.

  • #637025
    One of the major source of Income for the state governments is through petroleum products. And so, it's not possible for the state governments to reduce the prices on their end but to keep on doing the nuisance & blame the central government.

    It's my personal experience that for any bikers the rise in Rs. 2/kg, doesn't impact the life in a harsh way. The maximum petrol needed for a bike in a Month would be around 50 ltrs. So 2*50 = 100.

    Our problem is that we want the facility but doesn't carry the intentions of paying for it. There is a tax deduction from our salary as well as through other means. Like, if we purchase any commodity then the burden of the manufacturers have been carry forwarded on to the final consumers like us. But we are so limited to ourselves that we don't find growth around us. There are new & wide roads & flyovers too but we are ignored of these. Have we ever thought of that we eat up the pizzas worth Rs. 1000/I in a Month.

  • #637040
    #637025, not everyone in India eats Pizza but almost every Indian uses petrol or diesel for transportation either directly or indirectly. According to a Daily News paper, the daily per capita income of an Indian is $6. According to your theory, if a person travels 50 KM per day he will consume 1 litre of petrol a day and that would cost him $1.19, which is 20% of his income. Will it not hurt the average Indian even if there is Rs. 2 rise in petrol prices?

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