Now Centre increased Diesel prices by Rs.3/-,Kerosene by Rs.2/?-&LPG by Rs.50/- How you take these prices rise?

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Best kept secrets are the ones that are hidden openly.

Effect of Taxes and Levies on Petrol and Diesel Prices

More than 50% of the petrol prices consist of excise component, state sales tax/Vat/ customs duty and dealer commission. If these are reduced, to that extend State and Central Government would lose revenue

Simply put, the Government gets good revenue from the levies on diesel and petrol from which it gives back a slice of the pie to the refiners. While states collect taxes, they do not contribute towards the subsidy burden.

The debate over taxes on fuels is a never-ending one.

How the Oil Companies face the deficits?

The better option is to reduce these duties so that the Finance Ministry's compensation burden comes down too but this is unlikely given the revenue constraints. In the process, oil refiners have been the worst hit especially with petrol which, like aviation turbine fuel, is a deregulated fuel but reality is something else. Even the recent Rs. 5/litre hike was inadequate and IOC, HPCL and BPCL are projected to lose Rs. 8,000 crore on petrol this fiscal. For 2010-11, it is estimated that contribution to the Central exchequer from the petroleum sector would be Rs. 135,433 crore, while the State (exchequer) would pocket a cool Rs. 90,000 crore. In 2009-10, the corresponding figures were Rs. 111,779 crore and Rs. 72,082 crore.

What are the possible solutions?

There is no immediate solution.

India would do well to take a leaf out of the US’ and Canada’s tax book and extend its tax net. Generating higher revenues by getting more people and organizations under the tax net will help the government lower taxes.

About 40 percentage of the world’s oil supply is governed by the Organization of Petrol Exporting Countries or OPEC. Out of all the countries in the world, only 13 are a part of it. Since we Indians rank at number 23 in the list of oil producing countries and hence we are out of OPEC. All the 13 nations are the ones who control the price of fuel as also its supply and production all over the world. So due to this, the prices of fuel coming down in India is next to impossible and that is until India itself finds suitable reserves of oil deep down somewhere in the Arabian Ocean.

The situation doesn’t look to change in the near future and by the end of 2015, we would be paying approximately Rs 100 per liter of petrol with diesel coming in at Rs 60 per liter or more.

Solar Energy which is abundantly available in the country should be used, and Government should take steps to encourage the use of solar powered equipments in every sphere of life.

For this, the price of solar powered equipments should be in the reach of common man.

In short, high oil prices have become a pain and at the end of the day, it is the aam aadmi who feels the pinch, be it while filling petrol or diesel in his vehicle or paying bus or auto fare or buying vegetables.

In India, we have seen that once the prices are up, they never come down even when the oil prices are down.

Government should stop/ reverse the increase in prices of Diesel, kerosene, and Gas so that middle and lower income and poor people are spared from this pain.

Will the State Governments force the Centre/ oil companies to take back the increased prices?

If we will fast our fate will be like Swami Nigamanda, no camera and end entire world knows. We ought to have some professionals who have sell us well in media and create some sensation before we fast. -:)

I just answered this question to someone other user, I want to copy paste the same answer:

I really don't care if Petrol price goes up but diesel and LPG price up concerns me. I clearly understand what is going on, and I also understand that we are going in wrong direction. First thing, price should have gone up before 6 months, and at this time price should have been reduced on the basis of crude oil rates but that did not happen. When the crude oil rate was above 120 government did not increase the price because of state elections and now when crude oil has come down to 90 government has not only increased price but also reduce 6% taxes and duty for oil companies to compensate for those loses. Now why doesn't government reduce direct taxes on petroleum products so that common man like you and me also get benefited? Major portion of what we pay goes in taxes.

Also we know for decades that we have dependency on other nations for petroleum products, why is government not moving towards alternate energy sources? Why is government not finding some solution to that?

Last but not the least, government should not be in the business of deciding these price, government should be regulating these price but oil companies should decide the price on daily basis based on the international market crude oil price. This petroleum business should not be a vote bank politics as this is directly connected to our pockets and stomach.

The Britishers came for doing business and we handed the country to them on a plate . They ( the east India COMPANY) ruled over us for some time and the company being is sensible that governance was not the business of a company , gave the right to rule India to their Government in England ..

But we secured freedom from the British, only to let the political parties to form a Limited company without investment to do business with the people .This is what the government does in respect of the supply of petroleum products to the people of India .

The government itself imports the crude and levies an import duty on itself , processes the crude in its own refineries and levies an excise duty on itself in respect of each product and distributes to the retailers with a margin for itself and the traders .Thus the Government , if it were good and interested in the welfare of the people should do these activities on a no loss and no gain basis .But they make an enormous profit from the sale of the petroleum products and resort to a window dressing and perform a jugglery stating that the any reduction in the price of the petroleum product will result in loss to them.Any drastic reduction in the prices of petroleum products will only reduce the income through levy of taxes by themselves on themselves on essential products which the government should be dealing in a no loss and no gain basis .

The rise in the cost of petroleum products on false and imaginary grounds pushes up the cost of all products in the country as everything depends on transportation and on many bye products of petroleum crude.

The enormous profit the government makes is also wasted on projects on which the politicians make huge cuts and stash away the black monies so created, in foreign banks.

The people of this country can be peaceful and comfortable only when they are freed from the grips of corrupt politicians and get a real welfare government interested in the welfare of the people.

No government that does business with the people for profit would ever be able to do anything good to the people .

Nothing will be lost to the government if th cost of petroleum products are reduced to the full extent of the levies that the Government impose on the petroleum products .On the contrary the prices of all commodities would come down drastically for the benefit of the people .

We,Indians have gotten so much used to subsidy in every aspect of life that we can't seem to come to terms with reality.I know that my comments here will fetch me a whole slew of TDs.But,what the hell ! We are not prepared to accept the

world economic situation or face the harsh truth.Our Government is mainly to be blamed for this situation because of the vote bank politics followed by our poltical parties who are fully aware that such molly coddling is detrimental to the nation.It should be remembered that even with the present hike in petro-products prices,

cost of these commodities are still lower than in nost other countries in the world.Have a Nice Day.

Another Burden. Whenever the prices rise, govt will point fingers to rising prices in international market,

but even when the prices comes down in latter, our country will still be burdened with price rise.

THIS GOVT IS NOT FOR AAM ADMI. BUT FOR AMBANI and other corporates. worst, corrupt administration ever.

The so called Government is brazenly cheating people. From the government side there is hardly any effort to control the price rise. People can of course think of the guillotine.

Lack of application of mind in pricing is there.

They have been taxing more than 50% in a welfare state and disbursing the subsidy to the rich community at the cost of welfare of needy section[s].

I think there will be rise in people using cycles and electric/solar vehicles.Only the rich will not be affected much.I absolutely oppose it.Many people will have to cut their expenses in order to accomodate the rise in price of fuels.

Pranab Da says :

Shonia Ji ees deeply conshorned about koman main. She ees waarking day and night four italian....oops !! indian koman main.

Theee increashed prishez won't afact only u, day ouil afact aas as veil. Aavar electrish!ty bill, paitrol bill & other bills ouil alsho gate increashed. How-avad oe ouil pay that froam uad maaney.

Nobody asked why saravana bhavan limited meals cost 150, so the same way we have to accept this