From: Maulik Zaveri, Ahmedabad (Mobile:9898002186) Why Rate per Ltr. of petrol is same for vehicle giving averae of 2,4 or 8 per ltr and 40,60 or 80 per Ltr?
Example: If we take base Rs. 30/- per ltr of petrol and 40 Km. per Ltr. as standard then Vehcile giving average of 2, 4 or 8 Km. per ltr. are onsuming 20, 10 or 5 times more that vehicle giving average of 40 per ltr.
So that if price for ltr. of petrol is Rs. 30/- for vehicle giving average of 40 Km. per liter then prices for vehicle giving average of 2, 4 or 8 per lt. will be Rs. 600/- (20*30), Rs. 300/- (10*30) and Rs. 150/- (5*30) per ltr. respectively.
Suppose Mr. X runs car having Avg. of 2Km/Ltr daily for 20 Km., he uses 10 Ltr petrol per day. If we take Rs. 30/- per ltr. of petrol and 40 Km per ltr. as a base his car is using 20 times more petrol than standard so he would be charged Rs. 600/- per ltr. of petrol (20*300). He has to pay Rs. 6000/- per day for use of 10 ltr. petrol in fact he is paying Rs. 300/- only so Rs. 5700/- per day is subsidy to him and for year Rs. 20,80,500/- (Rs. 5700*365. If their are 10000 users of car giving avg. of 2 km/ltr than subsidy to him is 2080,5000000 (Apprx. Rs. 2080/- Crore)!!!!!!.
1)Don't you think that at present governemt is giving subsidy to a purcahse of petrol whose vehicle are giving average of 2, 4 or 8 per Km ltr. and burden of same is passing on the vehicle owner whose vehicle is giving averae of 40, 60 or 80 per ltr. ?
RE:Innovative suggestion for Fixing of Petrol Prices
by Duffer on May 13, 2008 02:17 PM
you are not considering the optimum capacity of the vehicle to transport the number of people in the vehicle. Eg: Two wheeeler can carry 2 people but if only one is riding it the 40km/ltr will come down to 20 per person, similarly cars can carry 5 people and so on...
Being influenced by CPM and Madam, they want central rule over anything that they an lay their hands on. Prasar Bharti was supposed to be autonomous, now a Ex-IAS, Ms.Gandhi's boy has been appointed its chairman. The guards are going to sleep, wake up my dear frnds.
60,000 crores as loan waiver for farmers, 4,500 crores worth subsidies on oil every month. Where is the money.Can somebody please explain whether these loan waivers are necessary upto that extent.Instead of waiving of loans the govt should have asked the banks to forego interest on the loan and delay repayment of the loan for 12-15 months, which would give relief both to the farmers and the exchequer. So we say Cidambram and MMS are smart economically. Whats the proof...
RE:Where Will The Money Come From
by deadly boy on May 13, 2008 01:52 PM
that was the impression that every one got but the fine print is that the current govt is only taking care of 20% of the loan waiver burden... the loan waiver burden is distributed for next 5 years and hence the remaining burden of waiver would have to be madatorily added as an expense in the next budget... This is a normal accounting practice in companies but the FM used it to gain browny points before he steps down from the ministry... his successor would have to take care of the left over mess...
RE:Where Will The Money Come From
by sanjay khetan on May 13, 2008 01:53 PM
these 60000 crores waiver would be enjoyed by politicians and their relatives as most of them are farmers
RE:Where Will The Money Come From
by ashok madan on May 13, 2008 01:59 PM
are u aware how much this sonia govt is giving tocapatilist?lakhs of crores are being given tothem.one sez in vizag means 10000crores of duty waives in the shape of cheap land/excise/vat etc cuts.how many sezs are coming up?tax holiday for IT cos.backward area rebates?rajsekhar reddy reducedvat on ATF from 30% to 4% which means 1150 crore subsidy to airlines.120 aircrafts per day at hyd are taking fuel .120*365*2.80lakhs.this not even 0.00001% of the benefits being given to capatilists.otherwise how cos are doubling profits every 2 years.subsidy to farmers is peanuts .only publicity. this will be cornered by congress chamchas ashok madan
Inspite of the high Crude price,Govt is not reducing the taxes so that the final Consumer price is not affected.We do not understand why Govt wants to make more money from high oil price,perhaps they are funding the oil bonds from these taxes. Second point is that in Countier like Brazil,ethanol blending is upto 50% which would have reduced the consumption of imported crude drastically.Govt is sleeping over this. The Govt should answer why they are sleeping
RE:Govt is crooked
by Anand Penat on May 13, 2008 01:40 PM
Its precisely this ethanol blending that has now taken land away from foodgarin cultivation and led to a global shortage in food products that is further driving global inflation. There are no easy soilutions since every thing is interlinked
This is a political tool and the govt has now put itself in a situation of damned if they do and damned if they dont. Far from being realistic all are using it to instigate any kind of protests. Govt.is not willing to look at applicable taxes and state govts. leving varying rates of taxes. No doubt it is a huge revenue earner- ultimately who pays ? No sooner that the objective is met the price rise happens. Better would be to be transparent and inform the people of rising international prices and be realistic on prices rather than whimsical.
Every time, for any thing the supporters of the BJP and congrees ppl blamed the left.Now i want to see how many are there who wud accept reforms in petro sector
RE:where are they
by Harischandra Rao on May 13, 2008 01:29 PM
Let's not blame either BJP, or Congress, or Left Parties. Crude price rise was an global phenomenon, which affects all crude imp[orting countries. Insteadly childishly resorting to blame game, let us use our inventive intelligence to suggest appropriate slutions to the present crisis. By the way, what do we mean by the term 'petro reform?' Some wise guy should clearly explain what exactly it means. -- HKR-
RE:where are they
by rasputin on May 13, 2008 01:39 PM
it is same in the line of market economy. Prices are controlled by supply and demand.They are driven with only motto of profit.As always suggested by the "economist" man mohan,doind away with the subsidies and giving tax holidays to the MNCs
We would have called it roll back had the policy of fixing the prices of Petroleum product would have been given to the oil marketing companies even for a day.
We are getting petrol at 50 rs even when crude is at 120 $ /barrel.Imagine the profits this company would have made when crude was 21$ a bareel 3 years back.Even now price of petrol in other countries like bangladeshpakistan is much cheaper.Had they done reform price of petrol would have been like steel and cement prices.Thank go reforms have no been done.
RE:What Reforms is needed?
by Vishy on May 13, 2008 01:18 PM
all the oil majors are making losses dear. They were in profit to an extent 3 yrs back, but the market was too volatil then as well, if they made profit in Q1 they went for losses in Q2. Now its losses all the way, govt. is trying to compensate for this loss. For ur info Bangladesh gets the oil at a subsidised rate of 30% from Saudi Arabia - this on the basis of its muslim CEDENTIALS, not too sure of PAK but I am sure being influential in muslim world they must be getting a better deal than India. Lets accept that we failed miserably in 80s and 90s when our policymakers didnt think enough abt future independence for oil. ONGC and other Indian cos. are movng well in this direction now, we'l see the results in another 3 years. And lastly we gotto reduce the usage than blaming the govt.
RE:RE:What Reforms is needed?
by Breeze on May 13, 2008 01:37 PM
Its not loss .They say its under-recovery .To compensate these so called losses Govt issued oil bonds.The U-R for 2007-08 was 77,000 Crores and subsidies to the oil gaints was 11,000 crores and oil bonds of 20000 crores was issued by the govt.
RE:What Reforms is needed?
by NDS sanjay on May 13, 2008 01:37 PM
Do you know that refineries are having gross refining margin even today.if you check the annual accounts of MRPL or reliance or for that matter PSU oil companies they are all saying they have gross refining margin eventoday.How do you think RPL share price is at 180 even before production started. Their is huge profits only because of other ovcerheads they might suffer losses .Even today if u calculate output prices of petroleum products against input crude cost( 1bareel of crude= how much petrolem Prodcuts) their is profit understand my dear friend.
