Petrol Unendable Price Rise

   In spite of decontrol of petrol price by Government of India last June, Indian oil companies are not independent and setting price of petrol as per international markets but works behest of Indian government, it appears as if subsidies on to other petroleum products like Kerosene, diesel is absorbing by petrol as always other petroleum products  untouched but without any second thought petrol price increase by government, since June last when petrol price comes out from government control, it is tenth times that price are increase and in rupees terms it is 19 rupees but when price falls then instead of reducing price of petrol statement issued that oil companies are still bearing loss of some paisa on to sale of petrol per liter and when price will further fall then it will pass on to consumers as recently price of crude oil falls from 105 dollars to 70 dollars. It has seen that while government made mind to increase price then they come up with different excuses’ like- rising price of crude in the International markets, middle east crisis’ or this time government said due to weakening of rupees against dollar price of petrol has been increase.

   At midnight of 14^th September,2011 oil companies increase the price of petrol by 3.14 rupees per liter, but its worth mentioning here that price of petrol in the international markets are falling, and Indian consumers are paying highest money on to purchase of petrol which is self explanatory compare to international markets –

·        America – 42.85 rupees per liter

·        Bangladesh – 44.80 rupees per liter

·        India – 68.84 rupees per liter in capital

·        Nepal – 63.24 rupees per liter

·        Pakistan – 41.81 rupees per liter

·        Sri Lanka – 50.30 rupees per liter

with increase of petrol price it will help state governments to inflate their exchequers without imposing any taxes and facing the wrath of public, every state has different tax on to petrol products, like –

·        Haryana – 20 percent

·        Himachal Pradesh – 24 percent

·        Chandigarh – 22 percent

·        Punjab – 27.5 percent VAT, 10 percent surcharge, 1 rupees development cess & 1.5 

                      percent octroi( total 32.75 percent)

increase in the price of petrol by 3.14 rupees per liter as per rough estimates it will add 5 billion rupees to the exchequer of Punjab state without any new tax, but ruling party leaders don’t miss the opportunity by blaming central government for inflation and price increasing and not acting to reduce the taxes on petrol, now price of petrol in Punjab’s major cities are –

·        Jalandhar -  74.30 rupees per liter

·        Amritsar -  74.07 rupees per liter

·        Ludhiana – 74.03 rupees per liter

·        Patiala – 74.00 rupees per liter

shockingly Punjab is the second highest as far petrol price are concern after Karnataka. Along with it is worth mentioning here that minister of Government of India are releasing statements that soon inflation will be control but on other hand it is taking care of its employees as on same page there was news of increase of dearness allowance(DA) by 7 percent from present 51 percent to 58 percent plus increase of Dearness relief(DR) to pensioners, it will benefit 5 millions employees and 4 millions pensioners, but effect of revise petrol price will pinch deep to other Indians. That is not all even government of India is thinking to implement new policy on to subsidies LPG by putting cap of 4 to 6 cylinder in a year and rest if required then they have to pay full amount around 700 to 800 rupees per month.

   UPA government in its second edition trying to squeeze Indians with its harsh policies but taking full care of central government employees, pensioners and oil companies; perhaps for UPA their world start and end with these categories and rest of Indians are not in the list of their priorities of policies, schemes and benefits.