What is the significance of proposd change in Govt of India price policy on petroleum products?

Bala sir, when new industrial policy was declared in 92-93 the idea was to make most of the govt. organisations a profitable entity by disinvestment and public - private partnership.

Today, GOI feels that only way to be profitable is to tax differently and heavily. We have multi layer of heavy taxation, but this doesn't stop here. Decontrolling of petro products is going to make a heavy toll on common man's pocket in future. Excessive tax on import of crude is unjust, even, Pakistan , Bangladesh and Nepal have cheaper petrol. GOI has no explanation for this.

For me, most of the ministries have gone nondescript as either they lack brain or brainless r sitting there for nothing.

In our mytholgy it was said ' A King is person who provides comfort and peace to the citizens and for this he charges tax in such away as sun takes the water from the surface of the earth' I hope GOI has no idea about this.

The deregulation of prices on petroleum products is the government's first step towards ending the subsidy raj.The fuel price hike has always been a hard decision for any government to take with all opposition parties crying foul,and condemning the government of the day at the center.These very same opposition parties would never brook a protest from the people when the latter ask these

parties to reduce the state taxes where they rule.They want only the center to foot the bill but they will never consider any reduction in taxes.And so they divert the people's attention by calling for "Bandhs".

They are not prepared to accept the fact that the public sector oil companies are operating at huge losses because of price regulation.These opposition parties want to have the cake and eat it too.

Either way the man on the street continues to pay through the nose,blaming the center when actually the price rise is a universal trend affecting the people across the world and is not specific to India alone.It is only the oil producing countries who are unaffected by the price rise of oil.On the contrary,they are hard pressed when the price of oil drops.Have a Good Day.

Shifting to market regime has its own advantages & disadvantages. In a country like of ours it would definitely push up inflation fiercely . RBI would intervene more frequently. Loans would be costly with the result, industrial progress would suffer.We would become more incompetative for exports outside & would find it all the more difficult to match cheaper imports from china etc. It could result in a slow down unless govt intervenes to achieve more liberal economic laws and open out investment climate.

Let the principle of market regime ( Pure Clean Logical working ) apply on areas under govt ....like of tax administration,or the government spending , Execution of infrastructure projects or Electing the Leaders who converge to the govt formation. Legislate every one TO VOTE instead of just 30-40% participation.

On the positive side, Govt may argue .... it could, although I have serious doubts, make every one aware of the Fuel Consumption , thereby reducing the consumption , thereby decreasing the prices to some affect . This might help the industrial growth & also encourage the research into Alternate Source Of Energy.

##################

Edit :Bala sir , Paradoxical to some answers , all Petrol Companies are rolling in money. Their annual profits range from minimum 1500 cr to 5000 cr .

Let me also add that , TODAY , there is NO GOVT SUBSIDY on Petrol or Diesel in India .

Only LPG & Kerosene are subsidized , but the import subsidies & Exremely high Taxation on Petrol & Diesel results in quiet high revenue in the final balance.

It is ,definitely, fair to conclude that It is a clever way to maximise the Govt Revenue.

An Indirect way to tax the public.

The thieves can not fix prices for stolen goods. Crude oil supplied by arab countries. Private companies are refining it. Why the government apply tax on it ?

The American and Britsh companies refine crude oil and sell it in retail for INR 12 in the middle east market. They make huge profit from it. How the price in India goes above Rs. 50. ? Any logic ? Crude oil has international price. How Pakistan and Bangladesh can sell petrol at throw away prices ? They also get crude from the same sources. Indians are taken for a ride. If petrol becomes cheap, the whole scenario of Indian economy will change. Everything becomes cheaper.

Our politicians get the cream from hardwork of poor Indians. The more you work the more you suffer.

India is the highest taxer for petroleum products. It is a money machine to the govt why to loose a golden kitty. It ll lead to Price rise of essential commodities. In future One litre of Petrol will be costlier than liquor. yaar ketta

The majority of the names I use don't have any significance; I just pick them at random from names I think the parents would have named them. The only times characters have meaningful names are when the characters call themselves by names of their own choosing.

When you hand over the Government to business people then time is not far away that we will be ruled by another East India Company. This time it will be US inc.

Sir, Aryan and his like are the hope for the future. We need not add anything more to the answer given by Aryan.

We need the nation to progress and not these disgruntled political outfits.

In India 70% of oil demand is met by importing oil. The oil companies are already selling oil below their Cost Price costing thousands of crores to the company. This loss is shared by govt and the oil companies. The govt earlier used to issue bonds but now it is giving money directly to the company.Thus the taxpayer's money is going this way to the company. by this way both the govt as well as company are at loss and bad financial health of govt is not good for any nation.

Now deregulating oil prices means that the fuel is going to get costlier. This will certainly add to the woes of common man who is already under pressure due to high inflation. The CPI for this week was almost 13% and WPI was 11% and the latest increase which is third time this year means that inflation will go up by 90 basic point which means the thing which earlier cost us Re 1 will now come at Rs. 1.9 and in coming days as the govt phases out subsidy the things are going to get much more tougher but Sir all these are short term effects. See the long term effect of this, the national debt and fiscal deficit are going to come down which means better health of govt's finances. Now this money can be utilised in development work, creating better infrastructure, investment in infrastructure means creation of jobs on a large scale.

So Sir, I support this deregulation of oil prices because I want the next generation to take their first breath in a Developed India.

EDIT :

@TO WHOM IT MAY CONCERN

Get ur facts correct. Its time for reality check.

1) Before the present price hike, the 4 petroleum products were sold at loss.

Petrol - Sold at loss of Rs. 6.07/lt

Diesel - Sold at loss of Rs. 6.38/lt

Kerosene - Sold at loss of Rs. 19.74/lt

Gas - Sold at loss of Rs. 254.37 per cylinder (14.2 kg)

http://www.deccanherald.com/content/73725/petrol-d...

Now after hiking price

Petrol - Sold at loss of Rs. 2.57/lt

Diesel - Sold at loss of Rs. 4.38/lt

Kerosene - Sold at loss of Rs. 16.74/lt

Gas - Sold at loss of Rs. 219.37/cylinder.

Although the prices have been increased but still the govt will have to bear unrecovery burden, which according to Mr. Murli Deora is Rs. 52,000 crore.

&

How this loss is going to be covered, I have already explained that.

2) According to a report published in The Times of India, Chandigarh Edition dated 11 June 2010, "Revenue Losses for the govt owned oil companies (OMCs) on four petroleum products between 2003-2004 and 2009-2010 (till 31 March 2010) is Rs. 3.5 lakh crore. Every month, these OMCs lose close to Rs. 5000 crore"

3) What about the meeting between Petroleum Minister and Finance Minister in which Mr Deora had demanded Rs 45000 crore to cover up the losses of State Owned Petroleum Companies caused by selling petroleum products below their imported price but he got only 12000 crore

@ Vijay Sir - Sir thanks for appreciation . Ur comments are always welcomed.

More debt.

more hunger.

more corruption.

this is the truth.