Petrol prices up again. Nothing else can disappoint Indians more than this news. It’s a plight for common man. An Individual’s monthly allocation for petrol from his meager earnings has gone up by 12 %. When 30% of Indian still live below 28 Rs in cites and 18 Rs in rural India how can they recover from this petro SHOCK?? With sky rocketing inflation can a common handle this additional load on his broken back?
Opposition is blaming government for being insensitive on this issue. They also blame government for letting OIL COMPANIES to increase the price . Is government being really insensitive on the issue?? Is it really not concerned??
Here are some facts which main stream media and oppositions ignore to educate the people
1. Petrol is not covered under subsidy as earlier. Government deregulated petrol price in 2010, to reduce the subsidy burden of this nation.(fiscal deficient )
2. Ever low rupee value. This makes crude imports more costly.
3. Oil companies are not state companies any more they are public limited and their stocks are traded in stock exchanges.
4. Government is not Hiking LPG and Diesel prices as it have direct impact on prices.
The question you have in your head is why cant government reduces excise and customs duty on petrol??
1. First of all petrol is a natural non renewable resource and there is a steep increase in its demand in the past decade due to mammoth growth of automobile industry. If we continue at this pace we will surely deplete all the resources of petrol very soon.
2. To quench our nations thirst for Crude Oil, we import Oil from other nations. This drains our foreign exchange. So we need to careful import Oil. Irresponsible usage will lead to more import and fill further push us into Balance of Payments crisis again (BOP).
3. Government imposes tax to regulate the usage or production of certain good. Decreasing tax may lead to sudden spike in usage of good. (demand goes up when prices are brought down)
4. Taxes are the only way which government has to discourage people to waste resources and wisely use them. How many of us seriously think of using public transport systems.
Rise in petrol prices will lead to inflation. Its Common myth. The entire nation runs on Diesel and mind you government did not de regulate diesel and LPG they are still covered under subsidy basket. Hiking these prices may lead to HYPER Inflation. Government is subsidizing the diesel from the taxes collected on petrol. Petrol is a luxury and we can survive even with out it (public transport, pooling). 30% of population who are below poverty line wont be effected by this petrol hike .The problem with this nation is they expect government enterprises to subsidize if its not some Bharat perto corp. or Indian oil and some private player people would have not even said a word. How can public limited company deliberately make loses?? It has share holders who invested in it with a profit motive.
Finally I want to conclude by saying the petrol hike was inevitable in the present economic status.
Opposition is blaming government for being insensitive on this issue. They also blame government for letting OIL COMPANIES to increase the price . Is government being really insensitive on the issue?? Is it really not concerned??
Here are some facts which main stream media and oppositions ignore to educate the people
1. Petrol is not covered under subsidy as earlier. Government deregulated petrol price in 2010, to reduce the subsidy burden of this nation.(fiscal deficient )
2. Ever low rupee value. This makes crude imports more costly.
3. Oil companies are not state companies any more they are public limited and their stocks are traded in stock exchanges.
4. Government is not Hiking LPG and Diesel prices as it have direct impact on prices.
The question you have in your head is why cant government reduces excise and customs duty on petrol??
1. First of all petrol is a natural non renewable resource and there is a steep increase in its demand in the past decade due to mammoth growth of automobile industry. If we continue at this pace we will surely deplete all the resources of petrol very soon.
2. To quench our nations thirst for Crude Oil, we import Oil from other nations. This drains our foreign exchange. So we need to careful import Oil. Irresponsible usage will lead to more import and fill further push us into Balance of Payments crisis again (BOP).
3. Government imposes tax to regulate the usage or production of certain good. Decreasing tax may lead to sudden spike in usage of good. (demand goes up when prices are brought down)
4. Taxes are the only way which government has to discourage people to waste resources and wisely use them. How many of us seriously think of using public transport systems.
Rise in petrol prices will lead to inflation. Its Common myth. The entire nation runs on Diesel and mind you government did not de regulate diesel and LPG they are still covered under subsidy basket. Hiking these prices may lead to HYPER Inflation. Government is subsidizing the diesel from the taxes collected on petrol. Petrol is a luxury and we can survive even with out it (public transport, pooling). 30% of population who are below poverty line wont be effected by this petrol hike .The problem with this nation is they expect government enterprises to subsidize if its not some Bharat perto corp. or Indian oil and some private player people would have not even said a word. How can public limited company deliberately make loses?? It has share holders who invested in it with a profit motive.
Finally I want to conclude by saying the petrol hike was inevitable in the present economic status.
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