Petrol up by 7.5 per litre

[Mad Indian]

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 cycles one can not get out of, leaving a bad governance precedence of unequal growth.

no I am saying that there won't be a need for the subsidy in the first place if the taxes are not this oppressive

 

[nrj]

Tax regime reforms? Good luck, hope my children enjoy it before their retirement when I am writing a book which narrates historical tax structure.

 

[Mad Indian]

won't it be easier if Indians evolved into Homo sapiens and voted with their brain for once in the election instead of electing clowns like TMC , SP . et al

 

[Galaxy]

won't it be easier if Indians evolved into Homo sapiens and voted with their brain for once in the election instead of electing clowns like TMC , SP . et al

That is because our democracy is not perfect. Indians are fool.

Although, If not TMC then it would be Communist. If not SP, then it would be BSP. Difference is not significant between these parties as far as regressive policy is concerned. BSP and Communist ruled the state for 10 years and 34 years respectively. They did nothing. Both national parties are weak in these two states, fighting for 3rd and 4th position. Although backward states like Bihar, Chattisgarh, Odissa doing quite well due to good governance. Unfortunately, most of the times, people don't vote on the basis of development and performance until it's clearly visible on ground like Gujarat, Bihar.

You see your own state. It's one time, DMK and next time, AIADMK. It's going on for last 3 decades. Sometime i wonder, Even if any government performs, It will lose. Even if corrupt like DMK last time, Again it lost. So, performance is not the criteria or all government were bad? The difference between winner and loser is always huge in T.N., So clearly people change their mind every time irrespective of performance.

 

[rock127]

Every News Channel is ranting about the petrol hike... got ammo for few days and opposition parties would start strike/dharna etc soon.

 

[smanekshaw]

So what does Govt. do of the tax money ?

Gift it to the Italian barmaid turned queen and her son Calligula*(aka Rahul)

 

[rock127]

in 2009 it was about 40/L and now 72/L in Delhi.

Also when crude oil price has come down from 125 to 108 barrel.... then how come this massive hike??? This chor govt is pickpocketing common man.

 

[Zebra]

 

[panduranghari]

in 2009 it was about 40/L and now 72/L in Delhi.

Also when crude oil price has come down from 125 to 108 barrel.... then how come this massive hike??? This chor govt is pickpocketing common man.

Without trying to detail the topic I should add if it was not for the govt the price of petrol would be double of what you are paying .

Think about it. Govt spends max forex on oil if they reduce the oil imports the BAlance of payments will automatically improve. This will mean shortage of oil which itself will push the price of oil up.

The govt decides to make rupee strong, the exchange rate improves vid a via dollar. Oil become cheap relatively. It will however make exports more expensive for the foreigner. It will also attract hot money from FII's into India. More dollars coming in to be converted into rupees. The forex reserves improve but the nation feels the pinch as everything is getting expensive as logistics which support the supply chain will have to pay more to afford the oil.

Its a difficult balance to achieve.

Oil is the engine of the economy. No wonder USA is in Iraq.

 

[Yusuf]

this hike is not due to oil prices but more due to currency devaluation

 

[ejazr]

crude oil price today = $108.41
1$ = Rs 56
1 barrel =158.5 litres
Cost of 1 litre = Rs 38.30
Refining margin = Rs 4
Cost in Delhi = Rs 73.14

Tax per litre =Rs 30.84

Keep voting khangress

They need money for Lahul to be elected as PM

Well here is a more accurate break down of the pricing structure more or less

http://defenceforumindia.com/forum/...cates-further-deregulation-fuel-prices-2.html

On the taxation side of things. Approximately half of what we pay per liter is taxes. Here is a really good paper on the taxation and fuel subsidies in India by the IEA. http://www.iea.org/papers/2009/petroleum_pricing.pdf

For those who don't have the time. The main points are:
(1) The Centre has a fixed taxation system where around Rs14.5 per litre is charged as part of central taxes. About 1/3 of this is then given to the states while 2/3 is retained by the centre. In otherwords, even if the price of petrol increases, the tax / litre will remain the same.

(2) The states charge a percentage of the price which is aroun 25%. So as the price increases, so does the tax you pay to the state. This is on top of the Rs5 / litre fixed tax that they get from the Centre.

(3) In percentage terms for a Rs 70/liter price. You are paying about 16% to the centre and 33% to the state as taxes bringing it to a total of 49%. In this scenario, its the states that can make the biggest difference by cutting down on taxes or atleast moving to a fixed price like the centre so that the tax we pay does not increase with a hike in price.

These are all rough back of the envelope calculations but more or less accurate.

More details with a pretty graph here
http://defenceforumindia.com/forum/...er-deregulation-fuel-prices-2.html#post343996

If Congress was smart, they would apply the Goa model or some part of it by cutting down the their state taxes in Delhi, AP, Maharashtra e.t.c rather than just say that this is because of deregulation. Congress-ruled AP has one of the highest (percentage based) VAT taxes in the country at 33%.
You bring down the price by atleast Rs5-6 by just halving the VAT tax rates in the states.The best possible outcome would be for the DTC and GST to come in place so that the state govt. have the revenue they need and getting rid of any VAT. Just a standard 10-12% tax across the board, but it would still possibly be 2-3 years from full implementation.

States add to price of petrol with taxes - Times Of India

 

[Ray]

This is basically to find funds for populist schemes like the Food Security and things.

But as it goes, soon no one will buy petrol cars and instead will go for diesel. This will lead to greater pollution.

Robbing Peter to pay Paul.

 

[pmaitra]

This is basically to find funds for populist schemes like the Food Security and things.

But as it goes, soon no one will buy petrol cars and instead will go for diesel. This will lead to greater pollution.

Robbing Peter to pay Paul.

That is changing. Here is a nice discussion that might interest you: Diesel is cleaner than petrol ! - TDIClub Forums

 

[Ray]

Not to worry, there will be a roll back and the hike will be around :inr: 5.

This is the psyops that is being played.

Anger and then relief which is actually cosmetic but very satisfying.

 

[Tronic]

Time for one of the Indian car makers to propose a cheaper Hybrid. Tata? Mahindra? Anyone?

 

[SPIEZ]

B@stards, with their petrol price hike. I m not willing to may more for the already hiked up cost of petrol. Also add the rising inflation to the list, inflation is just meant to grow even more now.

 

[Mad Indian]

<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>

Did you wonder to think why would a middle class want to travel by the car in spite the traffic Sir? Tell me which public transport in the country is in a state which can be used without any hesitation?

Take me for instance , I own a bike not because it is a status symbol, but because it helps me get to the places I need to go for routine. If I travel by Bus, I have to brace my self for travelling in a Bus, whose capacity is only 50-60, but is holding 80+ people, in foot boards. Not mention the aweful inadequacy in their frequency.

And what about the suburbs trains? Are they even in a condition to be used? First Blame the ------- govts which have not provided adequate infrastructure in the form of Public transport instead of blaming the rich---->>>

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.

This is seriously new to me? Can you or somme one else please explain how the prices of LPG is being subsidised ?

Even if it is subsidised, we have to keep in mind that the subsidy comes from the pockets of the muddle class and the rich, but anyway, can some one please give the technicalities of the subsidy?

 

[arya]

they can reduce tax and salary to the higher class

we have lots of lots oil here but govt not allowing them to find because its all about commission

why not we are looking inside india

 

[Mad Indian]

You see your own state. It's one time, DMK and next time, AIADMK. It's going on for last 3 decades. Sometime i wonder, Even if any government performs, It will lose. Even if corrupt like DMK last time, Again it lost. So, performance is not the criteria or all government were bad? The difference between winner and loser is always huge in T.N., So clearly people change their mind every time irrespective of performance.

Not entirely true mate. JJ would have won the 2006 elections if not for that pig- Vijayakanth. Actually, in TN both parties have their respective vote shares, DMK has some and ADMK has some. The fate is decided by the middle grounders, who vote on the basis of development governance etc. IT was bad timing of the JJ(and Tamil Nadu of course) that made her lose the election. For instance, at that time, That moron Vijayakanth opened a new party and people of TN wanted to see a new face, and the people who vote for development and governance voted for the new face instead. His vote share was 8% (approx.). Also, the margin by which the ADMK lost in the state was only 500-1000 votes in most constituencies. Despite having so many alliance partners, DMK got only 22% vote share while ADMK got 26% vote share in the election. Now figure out the rest, if that pig Vijayakanth was not there, it would have been history with JJ coming back to power in TN(thus breaking the cycle)

This was the reason JJ made an alliance with that Drunkard Vijayakanth(he never comes to the assembly without getting Drunk and he is the opposition leader in TN- Speaks volumes on the voters of TN), so that the anti-incumbency votes were not fractured.

I am hoping that, If JJ manages a good PR, she has a very good chance of coming back to power in 2016:thumb:

Anyway, thats OT

 

[Bangalorean]

Mad Indian:

Pardon me, but you are the typical example of a middle class Indian who has no idea of what he is talking about. I've been reading your posts - you rant and rave about the "Congrass" in every post, but you don't understand that the petrol hike is because of the depreciation of the rupee.

On the other thread, you were arguing that the rupee depreciation is a very good thing, weren't you? Then, keep mum and pay the additional petrol charge. After all, it is a good thing.

Wait, what did you say - high tax on petrol? Why don't we just get rid of all taxes, income tax, sales tax, fuel tax - after all, the "government does not deserve our taxes"!

This is just silly - on the one hand, you vehemently argue for currency depreciation, and then start screaming and shouting when the petrol price increases. Make up your mind.