Petrol up by 7.5 per litre

nrj

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wtf dude. whose money do you think the govt is running on? :frusty:
Rich & middle class should face the market rates. Why do they need to be protected by Govt subsidies when they clearly have earning capacity?

Thats wasting Govt revenue which can be used in other projects.
 

Galaxy

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State wise sales tax charged on petrol

1) Andhra Pradesh - 33%
2) Kerala - 29.3
3) MP - 28.75%
4) Rajasthan - 28%
5) Assam - 27.5%
6) Tamil Nadu - 27%
7) UP - 26.55%
8) Punjab - 27.5%
9) Maharashtra - 26%
10) Uttrakhand - 25%

Most of these states are ruled by Congress including 4 out of top 5. Why not decrease sale tax ? Recently, BJP Goa CM, Parrikar, announced a reduction of Rs. 11 per litre of petrol. BJP ruled states like Gujarat, Bihar, Chattisgarh, Jharkhand, HP Karnataka have sales tax between 20% and 25%. 10%-20% makes lots of difference.
 

pmaitra

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In an ideal scenario:
  • Build enough public transport system that run on electricity, so that people rarely have the need to drive. This should be in the form of suburban trains, metros and subways, trams, trolley-buses, mono-rails.
  • Encourage using induction coil stoves at households that run on electricity. Additionally, encourage people to use the microwave, although there is a debate whether microwaved food is healthy or not.
  • Restrict the use the fossil fuels where absolutely necessary. For example, one cannot run a tractor-trailer, or a tank, or a plane, using electricity.
  • Ramp up electricity production and build nuclear power stations.


Long haul, I know. However, today or tomorrow, it has to happen.
 

H.A.

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State wise sales tax charged on petrol

1) Andhra Pradesh - 33%
2) Kerala - 29.3
3) MP - 28.75%
4) Rajasthan - 28%
5) Assam - 27.5%
6) Tamil Nadu - 27%
7) UP - 26.55%
8) Punjab - 27.5%
9) Maharashtra - 26%
10) Uttrakhand - 25%

Most of these states are ruled by Congress including 4 out of top 5. Why not decrease sale tax ? Recently, BJP Goa CM, Parrikar, announced a reduction of Rs. 11 per litre of petrol. BJP ruled states like Gujarat, Bihar, Chattisgarh, Jharkhand, HP Karnataka have sales tax between 20% and 25%. 10%-20% makes lots of difference.
AP has 33 % the highest....:why:
 

H.A.

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Rich & middle class should face the market rates. Why do they need to be protected by Govt subsidies when they clearly have earning capacity?

Thats wasting Govt revenue which can be used in other projects.
Rich people own Diesel SUV's...Middle class settle with a Petrol Maruthi....the cheapest....
 

Galaxy

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subsidy -> socialistic move
In Last 8 years, UPA government gave subsidies worth 10+ lakh crores. More than 220 Billion USD. (Average Rs 45 in last 8 years). More than GDP of Pak.

They increased the subsidy double before 2009 election. 1,29,708 and 1,41,351 crores in 2008-09 and 2009-10 respectively. It was 70,926 crores in 2007-08. After that, It was always 1.5 lak crores and more. Right now, It's close to 2 lakh crores. Going forward, They will increase even more in 2012-13 and 13-14 just for the sake of winning election.

So much expenditure that fiscal deficit is close to 6%. In addition, Negative sentiments among investors + High interest rate + High inflation + incompetent government. Therefore, Currency de-valuation.

More subsidy means More expenditure which translate into High Fiscal deficit + De-valuation of currency + impact on growth.

However, Poor people remained poor and farmers are still dying :sad: and not all subsidy is for poor people.
 
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pmaitra

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Rich people own Diesel SUV's...Middle class settle with a Petrol Maruthi....the cheapest....
Good observation.

Personally, I'd like all subsidies removed. Just because it is subsidized, does not mean it comes cheap. The government raises that money by taxing us anyway. Let's do away with regulations, one by one, and gradually.
 

smanekshaw

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Rich & middle class should face the market rates. Why do they need to be protected by Govt subsidies when they clearly have earning capacity?

Thats wasting Govt revenue which can be used in other projects.
What other projects? Adding to Sonia's Swiss bank account?
 

H.A.

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I wonder what will be the situation on the sensex side tomorrow...:scared:
 

nrj

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In an ideal scenario:

  • Build enough public transport system that run on electricity, so that people rarely have the need to drive. This should be in the form of suburban trains, metros and subways, trams, trolley-buses, mono-rails.


  • <sarcasam>No, I got a job which pays just enough so I will buy a 4 wheeler and then crib about fuel prices. Public transport is for poor people.</sarcasm>


    Encourage using induction coil stoves at households that run on electricity. Additionally, encourage people to use the microwave, although there is a debate whether microwaved food is healthy or not.
    No, we want subsidy on LPG which was devised zillion years ago to discourage people from burning wood. Urban class wants that cost protection from Govt since they can not stop themselves from cutting 'n burning wood in today's cement jungles.

    Ramp up electricity production and build nuclear power stations.
You just witnessed Kundakulam drama. Now wait for Jaitapur which is going to be Kundakulam part -2. In the meantime, coal mining projects will not go through because we are still running on literally a century old land acquisition laws.
 

Galaxy

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At Rs. 56 per USD (All time worst), this works out to Rs. 5600 per barrel ( 101 as per current bent price and 6% discount)

A barrel of Crude produces approx. 150 litres of Petrol or its equivalent.

The total of all other costs involved in converting crude to Petrol – which includes transport of crude and refined products, cost of refining, reasonable refining margin for the refinery, fuel used by the refinery, dealer commission, etc. – is approx. USD 12, which works out to Rs. 672 per barrel.

Now, this totals up to a final cost of petrol, at your nearest petrol bunk, at Rs. 42 per litre!

This morphs to Rs. 77 – 81 per litre, adding taxes at different levels under various heads – Basic Excise duty, Additional Duty, Special Additional duty, Cess, Additional Cess and lastly, the exorbitant State Sales Tax – adding up to Rs. 35-40 per litre of Petrol.
 

The Messiah

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In Last 8 years, UPA government gave subsidies worth 10+ lakh crores. More than 220 Billion USD. (Average Rs 45 in last 8 years). More than GDP of Pak.

They increased the subsidy double before 2009 election. 1,29,708 and 1,41,351 crores in 2008-09 and 2009-10 respectively. It was 70,926 crores in 2007-08. After that, It was always 1.5 lak crores and more. Right now, It's close to 2 lakh crores. Going forward, They will increase even more in 2012-13 and 13-14 just for the sake of winning election.

So much expenditure that fiscal deficit is close to 6%. In addition, Negative sentiments among investors + High interest rate + High inflation + incompetent government. Therefore, Currency de-valuation.

More subsidy means More expenditure which translate into High Fiscal deficit + De-valuation of currency + impact on growth.

However, Poor people remained poor and farmers are still dying :sad: and not all subsidy is for poor people.
These subsidies although in good nature would have reduced poverty significantly but due to corruption at every level and general inefficiency of the babus at the grassroot level throughout India it has become a burden on the middle class.

subsidies are only good on paper...in reality they give nagative effect due to above cited reasons.
 

nrj

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Nation is heading for bankruptcy. This Govt's second term started out on logical economic plans on paper. They put more energy in expenditure on populist schemes (which are way too poorly implemented) and then they neglected planned revenue generation measures which faced delays, paralysis.

You can justify expenditure only if you have capability to raise the scheduled revenue.

Now every kind of deficit is all out of control. Government has totally failed on its popular reformist economic mandate. It must be replaced with new majority Govt as soon as possible.
 

Galaxy

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These subsidies although in good nature would have reduced poverty significantly but due to corruption at every level and general inefficiency of the babus at the grassroot level throughout India it has become a burden on the middle class.

subsidies are only good on paper...in reality they give nagative effect due to above cited reasons.
Do you understand what 220 Billion USD means ? It's huge. Almost 15% of our GDP which is standing at USD 1.5 trillion, thanks to currency valuation. :frusty:

No previous government gave so much subsidy. It was limited and that also necessary. The huge increase was all started in 2008-2009 period just before election. Currently it's close to 2 Lakhs crores which is equal to our whole defence budget. it might increase to 2.5-3 lakh soon before 2013-14 election. Where are we heading ? Congress has started this extremely regressive trend just to BUY votes.

Everyone knows Money will be wasted still, government wasted so much tax payer money. Shame!!
 
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Mad Indian

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subsidy -> socialistic move
Rich & middle class should face the market rates. Why do they need to be protected by Govt subsidies when they clearly have earning capacity?

Thats wasting Govt revenue which can be used in other projects.
whose money is being used here for the subsidizing of the rich and middle class again:rolleyes:

this time try answering the question straight.:dude:
 

nrj

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whose money is being used here for the subsidizing of the rich and middle class again:rolleyes:

this time try answering the question straight.:dude:
If you are implying logic that tax payers should be protected by subsidies since they contribute to revenue then I am afraid its a bad cycle one can not get out of, leaving a bad governance precedence of unequal growth.
 

Mad Indian

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diesel subsody------joke. use math Nd the price of diesel is 45+/L. read sehwag's post on the price of petrol and price of oil in the first page for further reference:rolleyes:
 

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