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  • Category: Miscellaneous

    Points That Were Undermind For Increased Fuel Prices...

    While going through the various posts on the Facebook, I also came to know about the unpaid petrol bills to the Iran. Pl. let us read the below details,

    ABP News … PM Modi paid an installment of the debt piled up in the UPA government's regime. The UPA government paid just 55 percent of the oil bill to Iran. The money is not just 43 thousand crore rupees as Iran wants payment in the current value of Euros. India paid Rs 5000 crore back to Iran. And so the high prices of oil in India is the gift by UPA Government that we are suffering.

    Although, the rupee is still on the higher side against the US dollar, macro-economic factors such as inflation and fiscal deficit are well within controllable levels. Hence, it is safe to say that the Modi government made a wise decision to not lower the petrol prices. Had they done so, it might have seriously damaged the Indian economy. The crude oil prices, which is said to be at its 12-year lows in dollar terms, have helped our economy as it has helped the Indian government revive three things which are critically important to the economy -- inflation, interest rates and fiscal deficit. And it was these very factors that almost derailed the Indian economy.

    If we want to explore more then we can find out in the Internet & through Google.com. The experts are requested for more enlightenment in this context.
  • #637491
    This news I have also read in newspapers. It is true that the Modi government has not decreased the price of fuels. But the fact is that it is to help the Indian economy. This was told by many finance managers many times. The wrought caused by the previous government has to be cleared by this government and the pressure is on the present government. Every one of us is criticising the present government for the price increase of these products.
    Why Modi government is not coming out with these problems what they are facing so that a common man also will appreciate the work that is being done by this government. As pointed out by the author the inflation rate and fiscal deficit are under control because of these actions by the central government.

    drrao
    always confident

  • #637497
    Why the government is not coming 'saaf-saaf' about the oil prices? If they are using the money extra priced to some real god purpose for the good of the nation, then why can't they come out with it in open? What are the secrets the citizen of this country should not know that is hidden by the government?
    If the government is doing some positive things let them come out openly with a white paper on that.
    The government should understand that where there is lack of transparency, rumours and gossips arise and fake news spreads. That is real detrimental. It is high time that the central government comes open and clear in everything done for the last four years. Ordinary people do not have any vested interests. If things are done sincerely, honestly and transparently, people will understand and support, unlike the political leaders and parties.

    The nation wants to now......

  • #637502
    I read another report, asking the question why are petrol and diesel NOT under GST? At present, the centre collects the excise and the states collect VAT, why this double taxation burden to the consumers.

    It is difficult to believe what we read in the papers. If BJP is really paying the huge debts piled up so far from the UPA regimen, there is no harm in declaring this to the people of India. We would understand.

    I think, there is more than what meets the eye here

  • #637503
    About bringing under GST, I have read it during the GST parleys, that state governments are nor agreeing for that.
    I feel that both the states and centre are not fully transparent in the matter of oil pricing. Even all the political parties hide a lot and say only whatever is beneficial to them. The whole things loos like a big something involving politics, business and administration.
    Only if some retired bureaucrat writes a book we may get to know something in this regard.

  • #637522
    Mr. Ved Prakash: The first part of the content is a misrepresentation of the facts. "ABP News … PM Modi paid an installment of the debt piled up in the UPA government's regime. The UPA government paid just 55 percent of the oil bill to Iran. The money is not just 43 thousand crore rupees as Iran wants payment in the current value of Euros. India paid Rs 5000 crore back to Iran. And so the high prices of oil in India is the gift by UPA Government that we are suffering."

    The payments for the crude oil imported from Iran had to be stopped due to the sanctions imposed on Iran. There was no gateway to pay to Iran due to the sanctions. The payments were pending since February 2013. The money was owed by the refineries. The sanctions were lifted in early 2016. Mr. Modi visited Iran in 2016 and before he left for Iran first payment was made by the refineries. The Port of Chabahar is important to India and Mr. Modi wanted to enter into certain agreements regarding this. The payments were made by the refineries in this backdrop.
    The National Iranian Oil Company(NIOC) was shipping oil to India free of transportation cost to the storage facilities in Visakhapatnam(Andhra Pradesh), Mangalore, and Padur(Karnataka). These are all underground storage facilities for Strategic Petroleum Reserve of India in case of emergency. Half of the crude oil stored by Iran in this storage facilities is for use by India free of cost. The other half belongs to Iran to be traded later. Now, after lifting of the sanctions in 2016, this arrangement came to stop.

    United Arab Emirates(UAE) national oil company Abu Dhabi National Oil Company (ADNOC) has shown interest to store crude oil in India's strategic storage facility at Mangalore and to give two-thirds of the oil to India for free. ADNOC wants to stock 0.75 million tons of oil in one compartment of Mangalore facility. Of this, 0.5 million tons will belong to India free of cost and it can be used in emergencies. ADNOC will use the facility as a warehouse for trading its oil.

    The NDA Government was very lucky as far as petroleum imports were concerned. The crude oil prices in the international markets plummeted. The NDA Government took full advantage of it to boost the revenue. The advantage which is supposed to be passed on to the consumers was taken back in the shape of enhanced excise duty from time to time. The free oil from Iran was another boost. Now the UAE offer is another boost. Having received so much of advantage, there is no point in not reducing the prices of petrol and diesel.

    I can understand your unhappiness with UPA Government. That does not mean propagating false allegations. The Government says inflation is under control. The prices of essential commodities are skyrocketing. The fiscal deficit is under control. Good but what for when the people are burdened with high taxation and made to suffer. The NDA Government does not think about consequences before taking a decision. This is very well proved in case of demonetisation and GST with so many changes of goal posts and amendments. The Government without thinking wanted to have a free ride with a drop in crude oil prices. Now that the crude oil prices are increasing, it finds itself in trouble as it cannot control them. Only during elections, it steps in to stop the price rise.

    " Be Good and Do Good "

  • #637524
    If the mentions made by the author is true, then what is preventing the government and oil companies coming up with awareness campaign as to how the UPA government has not paid the oil money to the Iran and the burden was passed on to NDA government and that to with Euro price ride. It was a great burden for the country and surely the Modi government has no other go but to raise the money through fuel price rise. But irks the common man that daily revision of price is paise is already getting rounded off and when it comes to actual pricing for customer it is more than what the government wants to collect.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #637529
    Mr. Mohan, I really appreciate your level of understanding. This is how you understood or misunderstood my response. I may have to make it more clear to you. The refineries were to pay the dues. There was no gateway to pay since February 2013 due to sanctions on Iran. After the sanctions were lifted in 2016, the payments are made by the refineries. It is not the question of UPA not paying or NDA being burdened. False propaganda is not good. What people will think of us and the ISC if comments are made without checking the facts and writing whatever we feel.
    " Be Good and Do Good "

  • #637544
    Our Oil demand is 4% of the Global demand.
    This is estimated to increase 150% that is 10 % of the Global demand in 2040.

  • #637547
    I would like to clarify that I am not in favor of any of the political parties but for sure I am not in agreement with few in terms of the selective politics.

    Adding, that I very well appreciate Mr. KVRR for his counter arguments & is now understood that It wasn't the bad operation on behalf of the UPA government but a misconception raised against the UPA regime by their opponents. But this also needs to be understood that in either of the ruling parties no one would be interested in lowering the tax rate or keeping the import of crude oils under GST regime as this forms the major part of their revenue generation because still we having the Congress ruled states but there hasn't been any deductions so far nor seems to be in the future as well.

  • #637548
    The crude oil cannot be brought under GST. The crude oil is imported. India imports nearly 90% of its crude oil demand. The petrol and diesel can be brought under GST. Recently Modiji claimed that 20 State Governments are under BJP. Why not start from the BJP ruled States? Once they start, the others have to follow the suit. First, the Central Government can start by reducing the excise duty which it has increased.
    " Be Good and Do Good "

  • #637554
    We got either of the two options here. Means,

    Should we get rid of the on going & new projects meant to improve the infrastructure like the roads including the world's biggest healthcare program, National Health Protection Scheme under which a health coverage of up to Rs 5 lakh per family will offered for secondary and tertiary care hospitalization.

    Or,

    to continue with the reduced prices wherein for sure there would be some comfort in the short run but in the long run this wouldn't be any meaning for any of us because we have a bad habit of complaining. I want everyone to take a note here that even the fuel prices are reduced to 50 % of the current price, the commodity prices wouldn't be cut down accordingly because each one of us into business in order to maximize the profit. So the vegetable prices may get an effect but this is already low as myself have purchased the tomato of Rs. 15/Kg. & this remains the price in Delhi.

    But for branded products the prices will continue to rise irrespective of how far the fuel prices have been subsidized.

  • #637557
    @KVRR,
    I think, bringing Petrol/Diesel under GST is impractical. I am having serious doubt about it.

    Sales tax on petrol varies from 6% to 40% across various states and Sales Tax on Diesel varies from 6% to 29% across various states. In addition to that Centre charges Rs 19.48 per Littre on petrol and Rs 15.33 per litter on Diesel. If Central levies and dealer's commission are added, the price will go up to 100% of the basic price. If Petrol/Diesel prices are put under GST, the states with lowest sales tax will be having exorbitant price rise and state will high sales tax will be at lower increase. This may not be practical. This will be political suicide for some states.
    This may be the reason the UPA Government too, had not included the Petroleum in the GST constitutional amendment when they were in power.Moreover,Govt has to keep the Fiscal deficit as 3.2 % of the GDP.

  • #637562
    As there is almost no production of petroleum in our country, it is very important to create storage facility in case of any unforeseen emergency. The present Government is precisely doing that. Energy security is very important from the long-term perspective.
    Beware! I question everything and everybody.

  • #637564
    Our oil import bills are huge and require a large part of Govt revenue. Whichever Govt is in power it becomes helpless when it comes to problems associated with rising import bills and containing the domestic Petrol or diesel prices.

    The BJP will blame UPA and opposition will project it as weakness of BJP but the fact is it is the global scenario which is creating havoc in domestic market.

    GST is yet to be implemented for this commodity but that is only a simplification of taxation process and nothing much.

    Knowledge is power.

  • #637578
    @Neeraj: There should not be any other taxes if petrol and diesel are brought under GST. Assuming the cost of petrol @ Rs 40/ Lt. with GST @ 28%, the price comes to Rs 51.20/lt.
    " Be Good and Do Good "

  • #637579
    @Ved Prakash: The projects whether infra or any other are not a recent phenomenon. So many projects were executed before. The taxes on the petrol and diesel are not the only source of income.
    " Be Good and Do Good "

  • #637582
    @ KVRR : That's the point here that we don't have enough infrastructure in order to lure the biggest of the investors to our country. This creates the lack of resources in terms of funds to carry out the biggest of the projects being into pipeline. This is not just a project but a set of mechanisms in which manpower & machineries are involved & in case of delayed projects there would be consequences of unemployment as well as increased overheads.

    We have to admit that we had the most complicated tax structures in our country along with the red tape system which has restricted the possibilities of investment in our country. If the earlier government had worked in this area then perhaps we would have stronger basis of more funds allocation.

  • #637601
    "If the earlier government had worked in this area then perhaps we would have stronger basis of more funds allocation." Unfortunately, the BJP which was in opposition during UPA tenure did not allow the implementation of GST and FDI. The 'Flip Flop NDA Government' is implementing all the policies which it opposed vehemently during UPA.
    " Be Good and Do Good "


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