Fuel price: Govt, states gain more than oil firms

This is a copy paste of a news item from TOI, Delhi, 12th june 2006. It is not my article but the red colouring is. It is probably because of wrong policies of this country which is why we are all suffering- the oil companies and the citizens. I have nothing more to say.

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Are petrol and diesel priced lower in India than in the international market? Not if we are looking at retail selling prices. For instance, the price of petrol in the US is about $2.90 per gallon today, which is equivalent to about Rs 34.50 per litre, way below the retail price for petrol anywhere in India. Diesel too costs about the same amount in the US, which is quite similar to the price of diesel in India.

Then why does the government complain of oil companies making losses on these products? The price we pay for petrol or diesel is not the price the oil companies get for them. In fact, less than half of what we pay for petrol actually goes to the oil companies. Calculation done by the petroleum ministry before the latest increase in prices, the oil companies net realisation on a litre of petrol sold at Rs 47 was merely Rs 20, while on a litre of diesel sold at Rs 33.4 their realisation was Rs 20.9. The estimated cost of crude alone to produce a litre of petrol or diesel without adding any levies would be about Rs 23. Hence the situation of oil companies having to suffer losses even on petrol and diesel.

Where does the rest of the money go? The bulk of the remaining part of the price of petrol goes to the central and state governments in the form of various levies. In the case of petrol, for instance, the calculations showed that the Centre imposed various kinds of excise duties that totalled up to about Rs 15 per litre. The states, in turn, imposed sales tax that worked out to an average of just under Rs 10 per litre. Other costs like dealer commissions, freight and marketing costs between themselves accounted for barely Rs 2.20 per litre. In the case of diesel, which is taxed relatively modestly by both the Centre and states, the total amount of levies per litre was about Rs 11 per litre.

If so much of the price is in the form of taxes, why can’t they be cut? This argument has been made by many. The argument is that since tax rates include an ad valorem component — that is a component fixed as a percentage of the pre-tax price — the Centre and states gain windfall revenues when prices go up. Hence, it should be possible for them to moderate the price increase by forgoing some of this supernormal revenues. In fact, even the Rangarajan Committee — which was set up to examine the entire gamut of issues relating to petroleum product pricing in India — had suggested that the government fix specific duties — that is, duties spelt out in rupees per litre — so that the tax component of the retail price does not go up as prices do. The same Committee had also recommended that state governments agree on a uniform rate of sales tax. At the moment, the rates vary widely across states, which explains to a large extent why retail prices are so different in different parts of the country. On petrol, for instance, the sales tax rate varies from 20% to 34% and on diesel from 12% to almost 29%. The latest decision by Maharashtra to forgo additional tax revenues on the increased price is a small step in the direction and there are indications that other states, particularly Congress-ruled states, might follow suit.

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Assam plans to cash in on bird suicide village

There is a news item in Times of India Delhi, on 12th june 2006. It says "Assam plans to cash in on bird suicide village"

Is it the end of innovativeness that we cannot think of other means to get some money for a poor state or village that we have to resort to such paths. Instead of showing a concern for the deaths of the Migratory Birds, mankind is now going to earn money?

Where are the enironmentalists and Greenpeace and the rest? Are you there? I am sure the birds are NOT COMMITTING SUICIDE!! It is only humans who can think and so can feel pain and sorrow.Surely it is a scientific pheonomena that needs to be investigated by the world scientific fraternity and lovers of this world

PASSION AND THE EFFECT OF FEELING IN WORK

Do you see REMIX on star one? I see. This Banerjee Girl is so tomboyish! Such a fighter!! She is tough!! She is a rebel. Any youngster reading my blog will know what I mean when I call a girl tomboyish and more if he or she has seen TV SERIAL CALLED “REMIX”.

And yet in the last episode Yuvaraj her erstwhile boyfriend (Oh I know the serial will have a happy ending.. and he will come back to her!!) has attacked her thinking she has stolen his cassette without which he cannot rehearse because he thought she wanted to show her spite on him for not agreeing to perform for the charity show she was interested in. Now folks it seems that this chap did not know the purpose of the charity show being organized by Banerjee Girl (what was her first name? hmm Anwesha!!). So there was a split in the BAND CALLED “REMIX” and So yuvi thought She wanted to take revengce and so has stolen his cassette. So he comes and shouts and fights and TEARS UP THE POSTERS CREATED BY ANWESHA !! AND YOU KNOW WHAT THE TOMBOY DID!! After all THE EPISODES OF TOMBOYISHNES AND BRAVERY AND MISCHIEF.. AND HAVING HER BACK AT BOYS.. SHE THIS TIME BROKE DOWN!!
SHE CRIED!!

Now Like any LITERATURE CRITIC I will tell you what it conveyed.. (I feel like writing my literature exam answering questions on some para from Shakespeare!!)

When a person is passionate about something he or she gives his or her whole life and mind on that subject and so when they see their dreams being thrashed they feel miserable REAL MISERABLE.
When someone cries. THE WORLD STANDS STILL. That is the way it should happen. Because in that cry and the tears that flow are the shreds of humanity that most of us have forgotten. In that cry and tears we should hear our own death knells because WHEN WE (YUVRAJ type of guys who does not understand the intentions of the other person) BREAK THE DREAMS OF THE PERSON WHO HAS A PASSION THEN WE ARE ONLY SEEKING OUR END (because the person or persons in this HEARTLESS World WHO RUN after some goal WITH A PASSION is only helping the world progress- be it in medical research or be it in Narmada Bachao Andolan or be it in waking up Society.. .. and so many more..
Some how The cry of the TOM BOY that night on the TV made me realize that IF WE ARE PASSIONATE ENOUGH IN OUR ATTEMPTS.. THE WORLD HAS TO STAND STILL TO MAKE WAY.. – Yuvaraj too stood still!!!! And joined hands with her!!!