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Fixing Disel Price Goes to Petrolium Companies - Does afftect disel car sales?

Discussion in 'Non FIAT Cars and two wheelers' started by PranavOne, Apr 24, 2012.

  1. Arryan

    Arryan Regolare

    Linea 1.3
    Theoritically the economists will say that this is necessary for the economic growth of the country. Remember the RBI Governor, giving a similar recommendation to the FM about a week or so back. But personally I believe that this is not going to happen in another four /five years. Petrol is already deregulated in India, but the decision to raise the price is, without fail, taken in the GOM (group of ministers) meeting of the Cabinet and not by the individual boards. This, I personally feel, is an eyewash by the goverment, where any adverse effect/reaction is shifted to the PSU's and the actual power of decision making is enjoyed by the Ministers and their Secretariats.
    Almost 60% of the petrol and Diesel prices that we pay comprises of taxes collected by the Central and State governments. On one side the government collects tax on fuel and spends the same on subsidy. Why don't someone set-off both the sides-the subsidy against the tax levied. I had read somewhere in the financial newspapers that before the 2012 budget the government had studied in details the idea of having seperate categories of diesel - subsidised for the agri and transport sector and market driven for all others. But it was realised that this is not feasible in our country and so the idea was dropped. From my knowledge I can tell you that the government does not just levies any tax before it doing a detail study on the method of collection and also the control measures in case of a tax evasion.
    Then someone came up with the idea of leviing additional tax at the point-of-sale of diesel cars. This was easy for the tax authorities to collect and control, but the government had to bow to the intense pressure from SIAM and the business houses. This in all probability may be implemented in the future, once the auto sector picks up its normal growth levels.
    Lastly if the government is willing to deregulate the oil sector, why not allow foreign companies into India? Why do the public pay for the inefficieny of the PSU's. After the lubricant sector has been opened up many people opt for SHELL, MOBIL,CASTROL and others. Likewise if any foreign company is willing to sell fuel below the price fixed by the government, let them do it.
    Last edited: Apr 25, 2012
  2. pioneeraaron

    pioneeraaron Superiore

    Just read the next hike on petrol would be Rs4-5 and diesel would be Rs3-4.What on earth are these people upto?? Prices are never seem to be coming down only.On what basis are these oil companies suffereing losses every year?? I need to know their calculations.
  3. amit

    amit Superiore

    Navi Mumbai
    How much would prices of essential commodities rise due to diesel prices going up? Nobody has any concrete details on that, all we get is this huge hype & chaos that even a minor increase in diesel prices will result in increase of prices of everything. This is the problem in India, everything gets pulled into chaos and a lot of noise about what MAY happen. Even with no increase in diesel prices, essential commodities prices are shooting through the roof. How is that happening?! The answer may well lie with a certain Mr.Sharad Pawar. Everytime this guy becomes the minister of any department prices of that sector just shoot through the roof.
    1 person likes this.

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