08 Jun 08 Fuel Price Hike – Petrol, Diesel and LPG to cost higher
The Indian Government has gone ahead with the proposed hike in fuel prices of Petrol, Diesel and LPG in India. The fuel price hike came amidst strong protest from opposition as well as some of the alliance parties of the Congress led UPA government. Though, it is made to believe that the price of fuel in India is highly subsidised, the fact is that the fuel prices in India are amongst the highest in the world, especially in democratic countries. After the hike in prices, petrol costs Rs. 55 in Chennai whereas the price of petrol in Caracas, Venezuela is just Rs. 2.12. 1 Litre petrol costs Rs. 5 in Saudi, Rs. 31 in China and Rs. 24 in Malaysia. Even in Pakistan and USA, the price of 1 litre petrol is less than Rs. 45. Taxes on petroleum products in India is huge. Taxing a product heavily and then subsidising it makes no sense at all to me. Its like having a Rs. 50 tax on a Rs. 100 product and subsidising Rs. 25 from the post tax price of Rs. 150. Though the price comes down to Rs. 125, the actual price without the subsidy as well as the tax, should have been just 100. Hope common sense prevails and taxes on petroleum products is removed entirely.
Related Posts
Leave a Comment
