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  • Category: Miscellaneous

    Andhra Pradesh government reduced the petrol rate by Rs.2/- per litre.

    Yesterday we had a Bharath Bundh sponsored by Congress and other political parties. The response was not as expected. Except for schools and colleges, all other institutions worked normally and roads were crowdy as usual in the afternoon and evening. This was the situation in Hyderabad. Many other places also same was the response I understand.
    The Central government has not taken this seriously and there was no positive reaction from them. It was stated that bringing down the prices of these products are not possible. But the Chief Minister of Andhra Pradesh announced a decrease of Rs.2/- per litre from yesterday. This is the benefit to the AP people. I think earlier Kerala government also announced some decrease in the prices of these items and now AP.
  • #648117
    Now the doubt is - Who controls the fuel prices? Is it the Centre or the State. What will be the implication if a State government brings down the prices of Petrol and Diesel? Is it a loss to the State government? Can you explain? Rs.2/-per litre is a big amount of reduction to satisfy the protesting public.
    No life without Sun

  • #648118
    The petrol and diesel are having many taxes. The actual cost is less but the added value of taxes is very high. Some of these taxes are by the Central government and some by the state government. That is the reason why these prices vary a lot from state to state. Both the governments are responsible for this price hike. The decreased price will go from the taxes added by the state government in this particular case as the decrease is announced bt the state. So it is a loss to state government only.
    always confident

  • #648120
    I understand that there is no GST for petrol and diesel. I think GST on petrol and diesel will help the public. As governments are likely to lose their revenue through diesel and petrol sale, they are not interested to levy GST on petrol and diesel. Why not we protest to have GST for petrol and diesel?
    No life without Sun

  • #648131
    We must appreciate the Rajasthan and AP government for forgoing their profit margins by reducing taxes on petrol and diesel. While Rajasthan government has reduced 8 percent tax, Chandrababu Naidu government has reduced two rupees and thus AP is going to loose 1100 crores yearly on reducing the tax. It has been clearly mentioned elsewhere that the original cost of the petrol is around 40 rupees only and the taxes levied by central and state works out to 45 rupees and thus it is not the oil companies to be cursed, it is the central and state governments looting us day and night.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #648135
    Mr.Subramanya Swamy of BJP told that Mr.Modi should keep fuel rates to around Rs.40 otherwise at some time or the other people will revolt as its cost decides the fate of common man.

  • #648150
    The fuel price rise is not an event of one day's sudden making. It was there always, and we were regularly discussing the same. However the political parties make it an issue only when it suits them.

    The ruling and opposition parties are very much aware about the reasons for fuel price rise and each of them are responsible either as silent or active participants in the matter. As the wheel rotated, now it is the BJP who is in the receiving end. The government as well as the opposition know well that political protest like what we had last day are only a formal ritual to show their presence. Now that there are no other sensational issues, the opposition took this as a test for their own unity before the coming elections.

    In May this year in this thread we had asked why the opposition was not united against fuel price rise.
    My response then was "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.". Now there is no other issue more sensational and the opposition parties want to deflect some negative news about them. So they took the fuel price matter now. Don't worry they will forget and eave it again.

    Let us also know that petrol price was high even in 2011. It was Rs 70 in September 2011(.Please red this GD in this forum).
    I also invite your attention to my article"What Is A Falling Rupee And How It Affects The People

    What the state governments like Andhra or Rajasthan had done is just a cosmetic namesake gesture to deflect the people's anger against them and turn it against the central government in view of the ensuing elections.

    None of the state governments wanted petrol and diesel under GST during GST deliberations. In fact some of them said that in that case the central government should compensate them for the deficiency. The situation is still same. The central government does not want to take up such huge burden on them. Liquor and oil fuels are the cash cows for states as well as central government. Both sides will not let it go. All the talks otherwise is just eyewash to mislead people.

    In this forum discussion I wondered and stated ....." 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. " .

    I still hold that view.

  • #648154
    Only yesterday I came across the news from Minister Nitin Gadkari that five plants producing alternate fuel has been set up by the center and soon bio fuel produced from ethanol plants would drastically reduce the dependence on diesel and the price would be cut. He envisaged that in near future with the Petroleum Ministry setting up five plants to produce ethanol through paddy straw, wheat straw, sugar cane waste and municipal waste, there are every chance of producing good quantity of alternate fuel and hence in near future the petrol will cost 55 rupees only and the diesel at 50 ?
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #648159
    The crude oil price in 2011 was $116.26 and the petrol price was around Rs 70/. In 2014 when the NDA came to power it was around $105. Subsequently, it came down to less than $30. The Government instead of passing on the benefit of falling crude oil price to the customers started to increase the excise duty. The excise duty on petrol and diesel were Rs 9.48 and Rs 3.56 respectively when the NDA came into power. In three years time, the excise duty was raised to Rs 21.48 and Rs 15.33 to mop up the benefit that should have gone to the consumer. In 2017, the government reduces the excise duty by Rs 2/ liter. Some of the State Governments reduced the VAT on these two items. It is the time for the Government of India to reduce the excise duty to 2014 levels or bring them under GST. The GOI made it clear that it is not going to reduce the excise duty. Now the Government says they have nothing to do with the increase in fuel prices and it is all due to rising crude price and falling rupee value against the dollar. When it was able to raise the excise duty, why not decrease it now? Why the common man subjected to such harsh measures?
    Some of our members justified the rise in fuel prices saying that it is to develop infrastructure and reduce fiscal deficit. in the country. Is this the only income for the government? It is high time the Government publishes a white paper giving details of the projects it initiated and the money spent on them.
    When the prices of petrol and diesel were decontrolled, why the Government is interfering from time to time by increasing the excise duty? Had the benefit of falling crude price was passed on to the consumer there would not have any discussion on this now. The Government is mopping up the benefit and passing on the burden to the consumers. It interferes only when there are elections.

    " Be Good and Do Good "

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