Saturday, June 05, 2010
The government has decided to increase the price of petrol and diesel by around Rs. 3.50 a liter. This is apparently being done so that losses being incurred by oil companies because of ' subsidies ' on petroleum products can be erased. The government increased the tax on petrol by Rs. 2.50 in the budget which means that the money went straight into the pockets of criminal politicians. As on May 31 the price of petrol per gallon in the US was between $ 2.644 on the Gulf Coast and $ 3.024 in California. This works out to around Rs. 30 per liter of which 69% is the price of crude oil, 9% for Refining, 8% for Distribution and Marketing and 14% for Taxes. There is NO subsidy on petrol in the US. Thus excluding about Rs. 4 for taxes the price of petrol at the pump works out to around Rs. 26 per liter. We are already paying Rs. 50 in India and this is set to go upto around Rs. 53 shortly. Where is the ' subsidy'? Why do the criminal politicians and thieving uncivil servants keep on repeating the same lie all the time? The recent auction of 3G mobile and broadband licenses netted the government around Rs. 700 billion and has reduced the fiscal deficit from 6% to 4.5%. Why is the government so desperate for money that it is willing to increase food inflation, which is running at 16.7%, and hurt the aam aadmi for whom it bleeds and who will form the vote bank in next year's assembly elections? Why is the Reserve Bank waiting to increase interest rates to control inflation? Is the Reserve Bank really independent as we are told or is it another lie? All these questions can only be answered by honorable journalists but sadly our lot are just begging freeloaders.
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