After announcing the de-regularization of petrol, the petrol/diesel prices all over india have been increased. The government says due to price control, the oil companies incur major losses. We would have believed but considering the Cost of barrel at this point of time is around $70 per barrel. It is hard to understand as to why it is true?
Consider this :
1 barrel = 158.99 Litres = $70 = Rs.3500(approx) per barrel, which means
1 litre of crude oil costs us Rs. 22 approx.
Now lets look at the taxes.Petrol before reaching the consumer goes through following taxes:
- Excise duty = Rs 14.35
- Education Tax = Rs 0.43
- Dealer commission = Rs 1.05
- VAT = Rs 5.5
- Crude Oil Custom duty = Rs 1.1
- Petrol Custom = Rs 1.54
- Transportation Charge = Rs 6.00
- Total price = Rs 51.90
So even after charging us almost 45% in taxes , the government says there PSU’s are incurring losses?
If the government is so concerned about the losses that the Oil companies are making, then why can't our government reduce the taxes instead of hiking the price of petrol and emptying the common man's pocket.
Imagine How much petrol/diesel is consumed daily in india ...and they earn almost 45% of that and still they cry and hue about the loosing OIL PSU's.
ReplyDeleteI read it someother blogs that taxes in US and other developed nations is much less. Petrol in US costs around Rs.23/litre .
Idon't care much about this thing, i think people are spending and government is earning.
ReplyDeleteExpensive petrol ..should encourage people not use it much isnted ? and in turn saving our environment ?
Everywhere we see, any infrastructure we develop costs us thousands of crore ...where is that money coming from ? its easy to point at governemnt earning so much but what about the development ? even if they are scamming money from this.. am sure some part of it is used for development as well...
No matter how much the petrol cost rises.. the consumption is only growing, so i think you are wrong when u say its helping our environment.
ReplyDeleteThe taxes are ok but the government shld absorb the cost whenever the crude oil price rises.
Some interesting data there. To tell you the truth i had no idea about govt. charging us so much in taxes itself. I always thought it was the international rates. Well now i know.
ReplyDeletethat is the price of crude oil
ReplyDeleteyou have to process that crude into petrol
where is that price
cost of crude to petrol shld cost around 2-3 Rs liter.. from wht i found by googling. doesn't make much diff... the taxes are still v hefty
ReplyDelete