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  • Category: Miscellaneous

    A fantastic record by a fabulous Government!

    2014. The air was thick. Around 86 months later, we have a fantastic record. One hundred rupees for a litre of petrol. It was the same man at the helm of affairs now, who as the Chief Minister of Gujarat at that point of time, shouted from rooftops to stop the increase in the price of petrol, that was around Rs.70/-.

    In the aftermath of the global financial crisis, the then Congress Government did a good job of keeping the GDP growth at a decent rate. Even pre-Covid figures of GDP by the Modi Government was pathetic, to say the least. Today, the humble employee who fills up my car tank said that within ten days the century mark will be reached and I will get much less and so I better fill the tank today!

    A fantastic record of a fabulous Government!

    {Author to note- Edited}
  • #723079
    After reading the post I split into laughter for various reasons that the author chose to have a dig at the govt citing increased petrol price either out of ignorance or wantedly created this thread to defame. Firstly petrol is not produced by the govt and influenced by the international fuel price. secondly the four oil companies are managing the pricing to which govt ceased to be the responsible for their hike or meager reduce of prices. And the covid has taken the toll of economy world wide and even the oil markets are playing the game with India. Therefore we have to face the brunt.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #723082
    Whether it is innocence or ignorance, I do not know, but the response above is naive. The Government of India is levying excise duty at Rs 32.98/ litre on petrol and Rs 31.83/litre on diesel. Is this excise duty going to Oil Marketing Companies(OMC)? Is it decided by the OMCs?
    Before the excise duty, and VAT by State Governments, the price of petrol after refinery processing and ready to be sent to the petrol pump is Rs 27.74/litre , and the price of diesel is Rs 28.66/litre . These statistics are as of 01-01-2021 in Delhi. The VAT by the Government of Delhi @ 30% is Rs 19.32 0n petrol and @ 16.75% on diesel is Rs 10.85/litre. Since there are people blind to the facts, the people of India are suffering due to the indifference of the Government to public suffering.
    The petro and diesel rates are to be enhanced or lowered by the fluctuations in the international market. Whenever there is an increase in the crude oil price, it is passed on to the consumers. When there is a decrease in the crude oil price in the international market, the benefit is not passed on to the consumers but mopped up by the Government of India by increasing the excise duty.

    " Be Good and Do Good "

  • #723085
    I really do not support the author who is behind the present government. I would like to say that every Tom, Dick and Harry has got a vehicle to move. Even to go for a short distance of less than 1/4 kilometer, they use their bike or scotter or scooty or moped. While they can afford to buy a vehicle costing many lakhs and thousands, can't they pay for the fuel in tens and hundreds? They could save the fuel cost by resorting to walking or cycling the distance.

    Only the affordable class owns a vehicle, Only the affordable class hires a taxi or auto. Else they would move by government buses.

    There is nothing to feel about and cry about the fuel price increase. Use plan B to overcome the fuel price hikes. If the demand is more, the cost would increase. Let us not use and waste fuels.

    No life without Sun

  • #723086
    As a consumer of petroleum products, even I don't like seeing hike in petroleum prices. But we have to accept some facts. If the government increases the fiscal deficit in the budget, we blame the government that it is not managing the Economy well and at the same time if the government tries to control the fiscal deficit by increasing the taxes on different commodities, we blame the same government. In this process we are contradicting ourselves. We don't want the government to borrow money or increase taxes. Then how will the government get its funds?

    In any Economy, in addition to GDP growth rate, there should be some minimum inflation, otherwise, no investor will invest in any Economy. Any person, who understands Economics, will surely know this.

    According to the author, if the petrol prices were at Rs. 70 in 2014, then if we take an annual inflation rate of 5%, then after 7 years, the petrol price should be at Rs. 98.5, which almost coincides with the current prevailing rates.
    We cannot expect the petroleum prices to stay at the same price even after 7 years.

  • #723089
    Perhaps SuN Sir does not know that the so-called Mann Ki Bhat tamasha of the PM costs several crores of rupees. He has no guts to even address a single press conference. The only way to reduce the fiscal deficit is by encouraging exports in every possible manner. The entire ecosystem should encourage fabulous companies like ZOHO corp, that makes billions of dollars through world class IT products through R&D efforts and with home-grown products.

    For example, we have a superb self-help group movement in Tamil Nadu. The trick is to train thousands of rural folks in making products of materials like jute and exporting such products with active support of NGOs.

    The present Government cannot reduce fiscal deficit in this fashion. It is ridiculous to argue that people should spend more on petrol. SuN Sir and Mohan Sir would soon even spend Rs120 on a single litre of petrol. The horrible effects of such increase will mean increase in price of every commodity. The taxi operators immediately hike the per kilometer cost. We shell out so much money to the driver too.

    It is one thing to praise good things. If you have a Finance Minister who does not understand what demand means in economics and also fails to understand that by squeezing the middle classes ( anyone who earns Rs45,000 as take-home or less today) , she can never ever achieve anything. Real estate is down. The urban centers have thousands of houses available for rent, but since guys have gone to their villages and small towns, the demand for rental houses is very less today. Everywhere there is a squeeze.

    Am sorry to note that some Members blindly support such an incompetent Government.

  • #723092
    If we export more, we can reduce the Trade Deficit and not the Fiscal Deficit. If the exports are more, we get more foreign exchange reserves, for which RBI acts as the custodian and uses them when there is any depreciation in Rupee value or when there is crisis in Balance of Payments position. Trade Surplus (Deficit) is added to National Income (= GDP + Trade Surplus + Remittances) not to the Budget.

    The author is mixing the Budget and the GDP. I think the author should clarify himself the Economics fundamentals.

    Here, nobody blindly supports the Government without knowing the Economics fundamentals.

  • #723093
    The rising prices of petroleum products will have a cascading effect on the price of all commodities. Diesel is required to transport the commodities all around the country. The rise in diesel prices will have a direct bearing on consumer products. A high-cost economy is not good for the country.
    Petrol and diesel are not luxury items. They are daily essentials for transportation. Unlike in the olden days, employees have to commute long distances to reach their place of work. Time is money and everyone has to use a means of transportation to travel fast. The workers are going to nearby places to work and a vehicle is important for them.
    Fiscal deficit will be there for a developing country. So far it is within manageable limits except for this year due to the pandemic. No one is blaming the Government for the fiscal deficit. Our country has the resources to reduce the deficit.
    The crude oil price in 2004 was around $ 150. Now it is around $ 53. One year back it was around $ 25. The excise duty on petrol in 2004, just before the NDA came into power was Rs 9.20/litre. On diesel, it was Rs 3.46/litre. Now in 2021, it is Rs 32.98/litre on petrol and Rs 31.83/litre on diesel.

    " Be Good and Do Good "

  • #723096
    Mr. ABS, You are looking at only one side like RG speaks about only Adani and Ambani. The leader knows nothing but Adani and Ambani. In his every speech, he never fails to take the name of Adani and Ambani while there are many industrialists and entrepreneurs like Adani and Ambani who are helping to improve the economy of the country. While you talk about the increase in fuel prices, why not you talk about the government caring for the public with free rations (20 kilos rice free of cost, other commodities like wheat, sugar dal, oil at subsidy rates through PDS). Thus the poor enjoy it, and the little affordable class pays for it. How about the MGNREGA that provides employment for many people, and paying for work that has not been done. It is a silent earning by the Indian public. Medical Insurance cover for all. And many areas to quote where the government spends.
    While it is so, why do you cry for the rise in fuel costs.

    Fuel helps for many to earn, for many to enjoy the riding pleasure. So, no harm if the fuel price goes up.

    Mr. ABS, Just think about the salary of a person in the past decades, and compare it with the present salary. As rightly pointed out by Bhuvan that the petrol was costing Rs. 70/-, and after 7 years, it is Rs. 90/-. A 5 percent increase per annum should be acceptable.

    Why are we not worried about the Gold price rise that has reached the sky height? Think well to understand well. Stop blaming the government, if you don't like the party in government.

    Don't expect Modi to behave like an immature guy RG. Modi can effectively manage this country without appearing in any TV or interview to any media. 3/4th Indians like Modi and his governance. He is a silent performer.

    No life without Sun

  • #723097
    If the petrol price is increasing it is wise to use the public transport and also go for the car pooling so that the coat of reaching office and home can be divided by four. This way the hike in cost of petrol can be adjusted to our budget. When the austerity starts at our home, surely the demand for the petrol and other fuel products would come down and the thought process within the oil companies would make them for rejig. But who is ready to try these ideas as every wants to be selfish and visit the places and works with one car one person and that is huge burden on the national economy. Because one car occupies lots of place on the roads and four two wheeler can go on that space.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #723101
    I would suggest that there is no point in talking in an anti-establishment mode as that would not be giving any solution to the problem. There are many reasons for increase in the cost of petrol and diesel and Govt must be examining the ways to curb it. Unfortunately when we go for a free economy and privatisation then such problems come in our ways and then some of the consumable product prices would erupt in this fashion. Even the items like onion and potato which are available in plenty are sometimes showing these trends. Even in earlier regimes these things happened frequently.
    Knowledge is power.

  • #723112
    @SuN: I don't reject your assessment though, but I would like you to ponder these facts also.

    During UPA II international price of crude oil remained more than $100 per barrel but petrol price remained more or less Rs 70 per litre.

    When NDA came in power price of crude oil came down sharply. Mostly it remained below $50 per barrel. e.g. in April 2020, $21.04 per barrel was the price of crude oil but Petrol was sold at Rs 69.59 per litre in Delhi, Rs 76.31 per litre in Mumbai and in Chennai Rs 72.35 per litre.
    But on other side in 2011, crude oil price was $112 per barrel but petrol was sold at Rs 65.76 per litre.

    At present (on February 9, 2021) price of crude oil is $ 58.36 per barrel but price of petrol is touching Rs 100 per litre.

    Do you know total consumption of petroleum in India is : approximately 3 million barrel per day. if it's changed into litre, it comes more or less 48 crore litre per day. It means that Rs 1/- price hike results in Rs 48 crore profit for government.
    Now ponder over it that in 2014 excise duty was Rs 9.48 per litre but in 2021 this tax has been increased upto Rs 32.98 per litre.It means our government earns Rs 1128/- crore per day from excise duty only, let alone other taxes.

  • #723114
    The government needs money to cater to all the welfare requirements of its citizens. The government cannot print and mint money to meet their expenditure. They need to improve their source of income. It can be done only by levying taxes. If the government doesn't care, the public would cry. If the government imposes additional taxes, the public would cry. The country needs lakhs of crores to meet their expenditure on nonprofitable sources like defence and paramilitary forces. Free distribution of food items through PDS and to the government employees. And pension to the retired employees.
    Therefore, I do not think that the fuel hike is a major problem. The government has managed during the pandemic by caring for the COVID-affected patients. They are helping other countries supplying free vaccines on humanitarian grounds. Despite all this, they have managed to present an excellent budget.

    In fact, no common man is worried about the hike in fuel price, but the politicians, especially the opposition leaders worry much about the fuel price hike.

    No life without Sun

  • #723123
    I will like to add one important aspect in this discussion that we should not assess or view a Govt on one parameter. That would be too much unrealistic if we do so. There are hundreds of parameters on which a true assessment can be made and critics and scholars do that time to time and give heir verdict in the matter. We should do that based on the true data and not on the fake news and gossips in the media. As a responsible citizen it is our duty to assess a Govt on a wide data base and comparing with it with the earlier regimes and then only we will get a correct picture. Just an increase in one item does not entitle us to dismiss the Govt as useless. No Govt is perfect. We have to see their overall performance and if it is acceptable the Govt is acceptable otherwise people will go for a change as always had happened in the past.
    Knowledge is power.

  • #723131
    I remember, in the year 2000, the days when a cup/glass of coffee/tea used to cost only Rs. 3/- in an ordinary hotel/restaurant, and the petrol was costing only Rs. 35/-. per liter. Now the same cup/glass of coffee/tea is costing Rs. 10/- and the fuel is costing Rs. 90/- per liter. And the salary we were drawing has doubled or tripled.

    The price of liquor has also gone high. A 750 ml beer bottle costs Rs. 150/-. Is there anyone to worry and question the increase in liquor prices? There would be none. Why?

    What is the problem and where is the problem? Let us not look at fuel only. Look at other things also, and be satisfied with the fuel price. It is not the fuel cost, but the tax levied by the state government is high. Moreover, India is not a small country. The transportation charges also matters a lot.

    No life without Sun

  • #723132
    SuN sir and thousands like you will obviously form the core of those who blindly support the PM. The reality is that he has done nothing. Nothing other than Squeezing the middle class. Even PF income is now sought to be taxed. Crony capitalism is horrible. Look at how Adani has cornered most of the ports. And then we have Anil Ambani.

    Do you know that for a sick firm like Reliance Communications, just over 28 months ago, a loan of Rs13000 crores was given? What happened? It went belly up. This wilful defaulter is now bankrupt.

    The great Essar group was similarly given crores. Nothing of it will come back. The great FM gave away Rs141000 crores to the selected capitalists. Not a pie has come back. The incompetent doctors do not know how to manage banks. It is the same NPAs that are hurting the banks. The so-called wealth creators are wealth destroyers. Since no one knows any economics, the basics are never understood.

    At least they should listen to professionals like Dr Manmohan Singh. Those who have knowledge of economics not crossing the tenth standard level have no choice.

    "Excellent budget" SuN sir? This is the biggest joke of this year. Do you know that social security spending has declined year on year? There is nothing for the migrants. No real reforms for farmers. And even after almost one hundred days, the PM does not talk to farmers who are agitating. Totally neglect the poor. Totally favour the rich. Yes, the directed investment will be cornered by two guys and this will happily encourage only contractual employment. Can you deny the fact that only contractual employment has increased by leaps and bounds? Suppose you are in regular employment and suddenly someone comes and says, " you will henceforth be only on a contract job." What will you feel and do?

    Millions of people today are in such insecure jobs. Please Google for all facts. And yet you say, " excellent budget".

    God save this country.

    {Edited- Author is advised to limit his affection for adjectives.}

  • #723134
    Mr. ABS,
    Do you want to discuss about the central government or the state government? Your thread subject is hike in fuel price. The Centre has a great responsibility to care its vast citizens of 1.3 billion(130 crores). Where as the state of Tamilnadu is only for 4 crores Indians. Every state government is doing its best for its own state. Tamilnadu must be performing well. In Tamilnadu, the Congress government under K Kamaraj had done its best to its people. He brought many good schemes. Built dams and bridges, Took care of education, and started the midday meal scheme in schools. Karunanidhi government followed it well. AIADMK started with freebies for its survival.

    It seems that you are a sincere follower of RG who did not talk about the budget in the parliament, while the whole house was discussing the budget. And he preferred to talk about the three farm laws with Adani and Ambani. Why because, he could not find anything wrong in the budget, to speak about. He knows nothing about budget, but know the words farmer, Adani and Ambani only. Please don't be a follower of a party that has lost its reputation after the Congress supremos Nehru, Indira and Rajiv who were highly matured leaders. The present top leaders SG, RG and PG are immature and cannot hold the party, but destroy.

    No life without Sun

  • #723138
    "The government needs money to cater to all the welfare requirements of its citizens. The government cannot print and mint money to meet its expenditure. They need to improve their source of income. It can be done only by levying taxes"

    Point is when crude oil international price was high before 2014 government did not raise the internal price but after 2014 when crude oil came down government increased price for local people whereas it has to be reduced proportionately.

  • #723151
    Adani and Ambani and the chapter over!!!!!!
    Why not listing the other Industrialists and entrepreneurs?

    The criticism of the current government by the author is not new and creates an impression that nothing going good in our country. I appreciate the author for his writing skills but what its use if this does not show the positive aspects and about what needs to be done.

    Do you have to comment on the JNU type institutions with huge subsidies? Where the hell the money is coming from?

    I am wondering about when the author is so confident of his knowledge and expertise base than why do not, he prepares a presentation and then arrange to fix an appointment with some representative of the government and do the needful.

    In the current thread, the author has only shown the concern of rise in fuel prices but whether he would also like to list all the welfare schemes which the government is doing free of cost. The present government is probably processing the payment of Rs. 3000/- to all the listed farmers on a quarterly basis directly to their bank account. There are other areas like the defense, infrastructure, and other welfare schemes but the author, I would say “intensely" never got interested in these.

    Have a sense and think on about why he came to power even with more numbers of seats.

  • #723157
    Our main interest is to generate money to run the country. Our Government find it easy to fetch money through fuel which doesn't affect the poor and lower middle class. It is the clever planning, I must say. The people affected (not really) would be the rich and the upper middle class who possess their own vehicles. And they can afford the price increase. This would be like a peanut expenditure to many.
    According to me, the fuel prices are increasing at a very slow pace of Rs. 1 or 2 and should be acceptable. Any reduction in fuel price would tend the people to misuse their vehicles without any purpose. And no business establishment would reduce the cost of their products, if the fuel price is reduced. The prices of goods never comes down, once the price is increased. The price curve never come down.

    My question is - Why no politician or the public raise objection to the increase in liquor price? Even the unaffordable public never cries and hold bandh or strike against the government? Don't they know that the government earns a lot through the sale of liquor which severely affects the health of the public?

    No life without Sun

  • #723166
    Sun, I seriously doubt whether you are serious with your arguments. I was amused by your suggestion (and Mohan's too) to walk down or to get back to bicycles if one cannot afford the rising petrol prices. Thank God you didn't say that we must start using bullock-carts. Please note that it is not the question of affordability, it is the question of logic behind such a high rate of increase. I am not touching upon all your utopian ideas but would certainly like to remind you that the price rise might be gradual, say 50 paise to one or two rupees at a time, but why are you acting ignorant about the regularity with which it is being imposed. Just look at the recent hikes and you will notice that there has been an increase on a daily basis. The government cannot wash its hands off because it certainly has the power to control and regulate the petroleum companies. It can at least interfere by managing the taxes it collects. And are you serious when you say that the price hike won't affect the common man? It seems you have been blinded by veneration and that has numbed your logical senses to some extent.
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #723172
    @SuN: I disagree with you that oil price hike doesn't affect common people. It increases freight charges also. Like transportation charges for carrying commodities or goods is also increased by transport companies which obviously affect price hike of different items used by common people. Bus fare is also increased which carry common people.

  • #723176
    Saji & Arafattuzzafar,
    I really mean that the fuel price hike doesn't affect the common man. But it is the fuel using vehicles like Taxi and Auto who make an abnormal increase in their fares when the fuel price is increased a bit. Therefore, we need to blame the service providers than the oil corporations or the government. A little increase of one or two rupees doesn't affect the vehicle owners.
    Why don't the public go on a strike against the fuel price hike? Why not block the road and take a vehicle rally to Delhi. They won't. Because it did not affect the common public, as you think.

    No life without Sun

  • #723177
    Oil rates are increasing. The reason is not the increase in the cost of production. But the taxes that are levied on these products. Both State governments, as well as the central government, are having their shares in the taxes for these products.
    The total cost of the product, in this case, is having 4 segments. The product cost, taxes by state governments, taxes by the central government and the transportation charges. As the basic cost increases as the taxes are some percentage of the original cost, they will also increase. The only way to bring down the cost of these products is to reduce the taxes both from states and central government.
    The government has to generate revenue for the administration. The government will have some fixed expenditure and some variable expenditure. How they can get it. In the form of taxes only. We criticise them if they increase taxes. we criticise them if they try to plug the holes where the money is getting drained.
    An overall review of the system is very much needed.

    always confident

  • #723181
    Sun, your arguments and the varying stand you take on different issues are indeed amusing. Are you the same person who was vehemently objecting to the roadblock announced by the agitating farmers who is now, with the same ease, exhorting/ challenging the common man to block the roads or to take a vehicle rally to Delhi? Funny are the ways of people who stand by a government just because they are attracted by an ideology and is floored by individual show-offs.

    Whatever it may be, your contention that the hike in petrol and diesel prices will not affect the common man is an argument that will not go down well with even a child who has minimum common knowledge.

    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #723184
    What I mean is - People are not against the fuel price hike. If it really affected the common public, the public would have raised against the government and gone for a severe protest. There is no politician to back the common public. I study the situation of our country well and write accordingly. Like you support the farmers' protest, and I stand against the protest, You are against the fuel price hike, and I am with the fuel price hike.

    No life without Sun

  • #723188
    Dear Members,
    Whatever is being done by our government intentionally or intentionally, helps the public directly or indirectly. A healthy and wealthy country is one where people remain physically fit to remain happy. There are healthy countries in the world where people walk and cycle to remain healthy and happy. India has become a lazy country where the vehicles have outnumbered the population, and everyone has become lazy to walk or cycle. Everyone, from a child to a very old want to use a vehicle for their conveyance, even for a very short distance. Most Indians are suffering from physical ailments and diseases earned by themselves without any attention to their physical fitness. The reduction in fuel cost would not encourage them to walk or cycle, whereas an increase in fuel cost would discourage them from using automobiles, and keep them physically fit. Every house has a car and bike for all the family members(exempting lady members)

    I won't ask them to go back to the olden days memory and use a bullock cart (As said by Saji) which is now very expensive to possess one or two bulls to pull the cart. Maintaining the bulls would cost more than the fuel cost. We all must understand this and reduce consumption of fuel and fuel products.

    No life without Sun

  • #723313
    Currently I am working in a manufacturing unit based at Gurgaon. Earlier I was associated with a trading company. In both the companies we hardly talked of fuel prices i.e., petrol and diesel. A slight increase in the fuel prices does not impact the functioning of an organization or decide the turnover or speaks of the net profit. When an organization set up a business, pricing plays an essential part and the same is decided after keeping in mind of the expected changes that may occur in the coming times.

    Any of you have ever heard of like the commodity prices was reduced by the company when there is a reduction in the fuel prices? This never happens but instead depends on the numbers of other factors including the competitiveness of the product or the services that one is providing. If a product or the services performs well then instead of whatsoever the price would continue to soar but in the otherwise scenario the prices would continue to drop. Any of the entrepreneurs does not need a common logic to calculate that they always have competitors playing by their side.

    Yes, there are consequences but till the impacts are huge this is not going to impact anyone.

    I belong to a medium income group and when I do feel that when there is an increase in expenses on one side then I instantly go on reducing the other expenses.

    During Covid times, for 5-7 Months, the commercial activities were almost shut reducing the revenue generation for the government but even after this, the prices of the essential commodities remained the same. Free of cost essentials were supplied to the poor and we never heard of something like any of the infrastructure or defense projects got stuck due to lack of finance.

    My humble request is that when we have such a huge expectation from the government then what do we feel about what our responsibilities are during the difficult times?

  • #723315
    It is easy to criticize the govt but it is fact that the working is subjected to market behavior.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #723318
    Ved Prakash, what do you mean by slight increase? Slight increase occasionally is surely different from a slight increase on a daily basis. And why do we have to look at whether prices of commodities are reduced when prices of fuel are reduced when we are talking of frequent price rise of petrol/ diesel? And, do they actually adjust the fuel prices according to the fluctuations in the price of crude oil? I doubt. It is a dangerous trend when the common man starts speaking like politicians.
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #723320
    Mr. Mohan, why do you not talk about the excise duty levied by the Central Government? It is more than the price of crude and processing. Do not try to mislead that it is subject to market behavior. Why the petrol and diesel prices are not lowered when there is a drop in the crude price in the international market?
    " Be Good and Do Good "

  • #723323
    Saji Ganesh, taking one aspect would not be ideal to judge the actions and intentions of any government. If the prices of essential commodities remain the same, expenses on means of commuting remains the same, vegetable prices in the market are down then this should not be a too much worrying for us. The expenses can be adjustable at this stage. And there are times wherein we have to face these types of trends but hope so the current government is monitoring this closely and this whole would not get too much unpleasant for the common people.

  • #723329
    I had been saying and still saying that our government needs money to run the government and to take care of the public, especially the downtrodden, and also for the progress and development of the country. Our government is proceeding in the right direction. We all are worried about the fuel price hike. I said that the common man doesn't suffer much due to hike in fuel price. The price of commodities is increased excessively by the traders.

    Look at this and understand it.
    A lorry has a capacity of 15 tons (15000 Kg) carries goods worth Rs. 1,50,000 from place A to destination B covering a distance of 1500 kilometers. To cover the distance, the fuel required is 300 litres of diesel ( with an average of 5 kmpl). It works out to 300 x Rs. 80/- = Rs.24000. Add Rs. 6000 as loading and unloading charges. (Rs. 30,000). Now the goods worth is only Rs. 1,80,000. Say, the trader is selling it with a profit of Rs. 20,000(about 10 percent) One Kg would cost 2,00,000/15000 = Rs. 13 per Kg.

    After the diesel rate is hiked by Rs. 2/-.

    The diesel required would be 300x82 = 24600/- just an increase of 600 rupees. Now the total cost increase is only just Rs. 600. It is only an increase of Rs.600/15000 kg= 4 paise.
    The increase per kg is only 4 paise. Is it a big increase? No, But the trader would raise the price of the product by Rs. 4/- (100 times) and sell it for Rs. 17 or more per kg which is a huge profit for the seller.

    We are always cheated by the traders in the name of fuel hike, not by the government.

    Another example to prove that the common man is not affected. Common man earns beneficially.

    Yesterday, In Bengaluru, I went to replace my ALTO K10s headlight bulbs. The bulbs (2 in no.) costs only Rs. 200/-. I bought the bulbs from a reputed Maruthi spares shop, and when I went to an auto electrical shop, he replaced the bulbs within 2 minutes, and he charged me Rs. 100/- for the job done. Is it justifiable to replace a part costing Rs. 200/- with a time spent for 2 minutes? If it was in Tirunelveli, the electrician would have charged me only Rs. 20/-

    It is not the government looting the public by hiking the fuel rates, but the common man cheating the other common man and making money without any due justification.

    Don't blame the government for the fuel hike. The amount earned by the government is returned to the public in a different form to the poor public and for the development of our country.

    No life without Sun

  • #723330
    Let us look at another example.

    A petrol auto(three wheeler) can make 25 kmpl. If the petrol costs "Rs. 75/-, the charge per Km would be Rs. 3/-. With the maintenance and driver charges, it would be just double of that. The minimum auto fare is Rs. 25/- in the city to cover a distance of 2.4 Km. And the auto meter increases further by Rs. 1 for every 100 meter. Thus, a kilometer fare is Rs. 10/-.

    If the Petrol price is hiked by Rs. 2/- , what would be the effect? It is nothing but a peanut paise. Whereas, the auto driver would cry and try to loot the passengers with abnormal fare quoting the price hike. Same thing applicable to Taxi also.

    Study this in detail. You all will understand that it is not the government but the common man who loots another common man in the name of the price hike.

    Let me add something more to prove that the common man doesn't suffer from a fuel price hike.

    Look at a government servant. All the government servants get their DA(Dearness Allowance) increased once every six months. Similarly, the employees in private organizations also get their increment to commensurate with the government employees.

    Mr. Bravo a government employee is drawing a basic salary of Rs. 20,000/- with allowances as applicable, including conveyance/transport allowance. His monthly petrol consumption is 10 ltrs. If the petrol rate is Rs. 80/- per ltr, he would spend Rs. 800/-.

    On 1st January or 1st July, he gets a minimum of 2 percent DA. This increase in DA is Rs. 400/-.

    And if the government hikes the petrol price from Rs. 80/- to Rs. 82/-. Mr. Bravo has to spend Rs.820/- for his 10 litres of petrol. Does this Rs. 20/- increase from Rs.800/-make any difference while his pay is hiked by Rs. 400/- ?

    The above is to prove that the salaried class doesn't suffer due to hike in fuel price.

    No life without Sun

  • #723370
    I am off from this thread. As I had said a few times before, one can wake up a person who is sleeping but it is not possible to wake up someone who is pretending to be asleep. Sun and all those who are in support of the frequent price hike on petrol and diesel, you may keep on arguing your point, citing varying reasons and arguments, without any logic or cohesiveness. Adieu!
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #723372
    Even after proving with good examples that a common man doesn't suffer from a fuel price hike, you are also adamant to agree with the justification given by me. What you said is much applicable to you. Since you cannot counter my argument and prove it as false, there can be nothing better than saying Adieu. It is like running back from the battlefield. I can take you to a pond and show you the clean water, but cannot make you drink.

    If you are right, say how a common man is affected by the fuel hike?

    No life without Sun

  • #723381
    Getting back just to suggest Sun to go through his responses at #723329 and #723330 once again and verify facts before coming up with such refracted calculations which are devoid of any merit. Enjoy yourself being blindfolded.
    'Mastering others is strength. Mastering yourself is true power'. -Lao Tzu

  • #723388
    Kindly go through my responses with examples that bring out the fact that a common man is not suffering due to the government but of the common man like traders and businessmen who hike the prices of the commodities abnormally. In any case, no ordinary man suffers greatly from the little increase in fuel prices.

    While the common man is affected by a few paise (not dangerous to living) the government earns a lot to meet the requirement of the poor and for the development of the country.

    I want other members to go through this thread, especially my last two responses, and confirm whether my justification is right or wrong. If wrong, please state how the hike in fuel price affects the government, to blame the government.

    I would request the author of this thread Mr. ABS (Missing) to respond.

    No life without Sun

  • #723433
    Price hike is definitely a concern for all of us. But it depends on so many factors and we cannot attribute all of this to the ruling regime. Earlier also we had steep price hike in the prices of onions and other such items but Govt interfered and got it imported on emergency. The petrol and diesel price is also related to many international factors and I hope that Govt will soon find a solution for this problem.
    Thoughts exchanged is knowledge gained.

  • #723445
    @SuN: You said,
    "What I sincerely suggest is - Let the diesel price go up to any height, but don't let the petrol and gas price go up, and fix one standard rate for petrol and gas with GST."

    What you have opined above, if it is carried out then rate of petrol, diesel and gas will come down and on the other side, you think that the government increases rates of oil to bear expenses to run the country.

    #723329 (in this thread)
    "I had been saying and still saying that our government needs money to run the government and to take care of the public, especially the downtrodden, and also for the progress and development of the country. Our government is proceeding in the right direction. We all are worried about the fuel price hike."

    What is your correct stand?

  • #723451
    My stand is - Diesel is the fuel that is mainly used for commercial vehicles. An increase in diesel price doestn't affect the common man, as explained in my example about a lorry carrying goods. But petrol is being used by common man, and by Taxis and auto. A common lower-middle-class guy uses only a petrol vehicle like a bike or scooter or moped. And the slight increase pinches these common men. In fact, it should not pinch the common man as I explained it with an example of a government employee drawing salary with an increase in DA half-yearly.

    If you read all my examples and understand my explanation, you will not worry about the fuel price hike. Government is not responsible, but we citizens are responsible. Our own people play with the fuel price hike for their advantage. The common man should not misuse fuel unnecessarily without any purpose.

    My question is - When a common man can pay and waste Rs. 150/- and drink a 750 ml bottle of beer (just water)for nothing, why should they grip and cry for a slight increase in petrol cost that is really useful to meet some purpose.

    I would also add to say that our government had lost its revenue heavily during the lockdown. There was no revenue through the sale of fuel. On a day, the government receives many thousands of crores through the sale of fuel. To recoup the loss, it is essential to increase the fuel prices. Therefore, I justify the fuel price hike at this juncture.

    The loss to an individual is a peanut size, but the profit to the government is an elephant size.

    No life without Sun

  • #723453
    @SuN: Perhaps you have not understood what you have written. In a post, you justify the oil price hike because you think that government needs money to run the country and implement welfare schemes for the people but in another post, you are emphasising that you are saying that the government should not increase the price of petrol and gas.
    Your two statements are self-contradictory. You are refuting your own claim.

  • #723457
    @SuN: You wrote:
    "I remember, in the year 2000, the days when a cup/glass of coffee/tea used to cost only Rs. 3/- in an ordinary hotel/restaurant and the petrol was costing only Rs. 35/-. per litre. Now the same cup/glass of coffee/tea is costing Rs. 10/- and the fuel is costing Rs. 90/- per litre. And the salary we were drawing has doubled or tripled."

    You are right that the salary of government employees has been increased and they are not affected by price hike but what about others? If you remember what happened after the 2008 recession when thousands of people lost their jobs and some of them were re-employed on reduced salary?
    The same happens now after the pandemic. More or less 12 crore people lost their jobs in the private sector. Some of them were reinstated on a lower salary. Those who were drawing Rs 30k now are withdrawing more or fewer Rs 10k. Will the price hike of essential commodities do not affect them?

    You further wrote:
    "The price of liquor has also gone high. A 750 ml beer bottle costs Rs. 150/-. Is there anyone to worry about and question the increase in liquor prices? There would be none. Why?"
    Everyone does not consume liquor. Those who consume it can bear a price hike at any cost.

    In another post you claimed:
    "Why don't the public go on a strike against the fuel price hike? Why not block the road and take a vehicle rally to Delhi. They won't. Because it did not affect the common public, as you think."
    You mean to say that peoplee should come to protest and disturb the country?
    Are you sure?
    Your logic is illogical.
    If people don't protest it does not mean that they are not against the price hike. Do you know the crime rate is increasing in our country, but people never come on the street against crime hike? Do you think if people support crime hike? Do you think crime hike does not affect people?

    Perhaps, you are ultra rich and this us why you are not affected by price hike but as a common man I appeal to government to control price hike as it affects all common people like me.

  • #723458
    Yes. I said the government should not try to increase the price of petrol and gas heavily, it should be marginally. If the diesel price goes up by two rupees, petrol price should go up only 50 percent of that. If a common man can get an increase in his salary/earning, nothing wrong if the fuel price is hiked. I repeat, "The loss to an individual is a peanut size, but the profit to the government is an elephant size."

    I think, we will come to a stand still without any further increase. The price may not go to a three figure.

    No life without Sun

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