One of the biggest problems in India is that people who themselves do not have to bear any of the effects of policies, they manage, are the one who actually decide on them. Now, in this case, what would it matter to Dr. Kelkar? After all, as a bureaucrat he was entitled to lots of benefits in which conveyance was included. The Tax Payers paid for him. Besides, he was also bestowed with a handsome salary and retirement benefits suiting his status in the Govt. But, the policies that he has prescribed affects a whole lot of people.
Now, one does not know the status of the Author of this post. But, it is probably a reasonable guess that he is well to do and also probably a big time supporter of the Congress/UPA. It is therefore unlikely that the prices of petrol would affect him.
The question comes to the common man, the Aam Aadmi about whom the Congress continuously sheds crocodile tears. The cost of living has tremendously increased, Salaries have not kept pace, Food items' prices have dramatically increased. Just this morning, there was a news that Dhal is costing around 120 to 140 per kg. The worst thing that a Govt can do to the common man would be to increase the cost of Petrol/Diesel, for this would certainly have a cascading effect on all the prices. So, how does the Govt expect the Common Man to bear this burden?
Economic logic is not always right. A little bit of heart and emotions also need to be attached to economic consideration
Re: Why India had no choice but to hike fuel prices
by Kool Guy on Jun 28, 2010 03:27 PM
The easiest solution is, if Political parties are true from their heart then FOREGO all FREE benefits that are in practical offered to them. Then oly they would come to reality.
It is a very bold decision that should have been taken long back.Petrol ,disel & LPG are constituting more than 50% of our imports & unless we recover the cost may cause serious payment imbalane.How would a car owner be adversely affected by another Rs.500 per month/car or Rs.35 more on a cylinder.The govt actually should have jacked LPG by Rs,100 & should have deregulated disel to discourgae pollution inducing private vehicles inundating roads run on disel.
Re: Deregulating petrol is correct
by Dinesh RSingh on Jun 28, 2010 03:30 PM
Diesel is used by Vehicles, which transports basically everything in INdia... right from medicines to LPG to food to cloths... Impact of raising or de subsidizing diesel will have catastrophic effect on middle class family, who have to adjust even 500/- rs raise in their monthly budget...
DEREGULARIZATION WAS NEEDED a long term back, when prices were actually within the grasp... People would have slowly adapted to it... now its like cloud burst...
Re: Re: Deregulating petrol is correct
by pradeep agarwal on Jun 28, 2010 03:40 PM
I agree with your views in inflation ,however it has more to do with poor management of food policy by UPA & inability of MMs to control excessive money flow in commodities through speculation.He has failed as PM & continues to run the show by proxy which is showing in lack of sensitivity in decision making affecting people of country.
If the Govt. is so concerned abt the nation and feels that it is the only solution then so be it coz they claim that it is not in their control .....But they must go back to the table and see how if it can help the citizens to over come this burden ! In hyderabad (and I m sure in other places in INDIA too) the roads are so pathetic with so many bottle necks that we spend 20-30mins in 1st gear literally BURNING away the fuel in our cars/scooters..I think we burn twice the fuel that is really needed to travel certain distance..!HEY GOVT GUYS if any body of U are reading this plz!! work on alleviating our burden in this way which is well in your control!!!! - (Bottleneck reference to the SP road near Shopper Stop (Alladin Building!))
Re: Govt. Can reduce the Burden! thru' other means!
by anirban chakraborty on Jun 28, 2010 03:19 PM
solution is simple: walk or cycle? Non-renewable and pollution generating resources MUST be taxed higher. The govt should work on effective and efficient public transport, promote alternate travel means and keep petrol prices high.
If this Govt. is so keen to deregulate the prices of petro product then why Kerosene, LPG and too some extent Diesel has been left out..Are they still trying to please lower class???seems to be dual policy???
Re: Why subsidy on Kerosene and LPG
by AK on Jun 28, 2010 03:28 PM
Kerosene for the “lower class” is a "need" for their basic survival and not a "want"!
Politicians you will be now on the 7th world... Fuel price increase mean take handsome amount of money from AAM AADMI's pocket to yours.. And nations get THAN THAN GOPALA....
I have been promoting this concept for the last 15 years , pl read and give your comments. Today $ is Rs 46.5 and partially controlled by Govt(90%) . Our import bill for Crude every month is 27 Bn USD ( 130,000 crore) and our exports is only 17 Bn $ (85000 Cr)at present,last year export was only 150 Bn USD. I have a solution, Let MSsing /FM readjust the currency from 46.5 to Rs 25. Now see the magic , our Oil import bill come down to Rs 73000 Cr , a saving of Rs 58000 Cr per month or Rs 600,000 Cr per year. Now the question is how will we export. Answer is , just do not pass on the benefit to Janta ( people) but give this as a special currency rates to exporters.Now the export will not be hurt but Petrol and diesel will cost only Rs 25 per litre. Remove all subsidies and see the magic , the cost of everything linked with transport in India will come down be it commodities , food or construction material. If everything is so logical and seems easy then why Govt is acting as fool and not adjusting the Rs rate....Now think of yourself as a politicial family (CHOR only) who has put Rs 100000 crore in swiss bank, moment Rs is at 25 a dollar , their investment will reduce to 56000 crore. So my dear friends see the logic given by me and comment. This is 100 % true. If you think any correction is required pl comment.Lets make everyone aware of this and bring prosperity to India. Dont call me a fool , you may not know me or my qualifications>......Jai Hind a true Indian.
Re: Pl join me in spreading the truth!!!
by kanak basu on Jun 28, 2010 03:31 PM
Dear Raj, your point is good one. And i do agree that our political leaders are CHOR , no doubt about it. But my point is whatever price we are paying from our pocket is much much more than the production cost of ex refinery. Its the taxes levied which is almost same as the cpst of production. And the political parties who are showing how much they care for the countrymen are ruling in different states. So those states can give a breather to the people by reducing the tax on the petroleum products. Your opinion of devaluation of rupee is a bigger leap, why not take at least this small step to reduce the burden of the aam admi.
Re: Re: Pl join me in spreading the truth!!!
by Anup Joshi on Jun 28, 2010 03:36 PM
Real CRAP...Adjusting curriencies is not that easy.....Think abt the impact on economy....The exports ...Rise in unemployment etc.....I think Singh PC montex are smarter than us so only they r wat they r....
Re: Pl join me in spreading the truth!!!
by lokik waghmare on Jun 28, 2010 03:18 PM
dear mr raj, i appreciate your view kindly contact lokbolatobola@rediff
Re: Pl join me in spreading the truth!!!
by Kool Guy on Jun 28, 2010 03:24 PM
RAJ : Perfectly explained. People would come in foul mouth for your explanation because we people love to oil our politicians and furthermore who knows whether they actually belong to CHOR family :-)
Re: Pl join me in spreading the truth!!!
by Indian on Jun 28, 2010 03:18 PM
if so sure publish your concept to some news paper.. they make it bold and beautiful.... Redif kind of site are useless.. These are written/seen by people who have no influence.
Re: Pl join me in spreading the truth!!!
by Michael DSa on Jun 28, 2010 03:23 PM
Mad man you.... can any Govt simple readjust its currency??? Then Zimbabwe and Iraq could do it.
Re: Pl join me in spreading the truth!!!
by asad hgjkf on Jun 28, 2010 03:20 PM
And what will happen to exports? For IT companies, contracts are in USD. For them, the earning will come down drastically because of the strengthening of rupee. Similarly, exports of clothes, jewellery, diamonds etc will become more expensive, and they will lose out in the global market.
If things were so easy, it would have been done long time ago. The export industry is worried abput rupee appreciating from 50rs/ $ to 46rupees/ $, and u are talking about appreciating rupee to 25 rupee/$.
Re: Re: Pl join me in spreading the truth!!!
by RAJ on Jun 28, 2010 03:22 PM
Pl read the whole message , your total export was 150 Bn ( 750000 cr) last year and saving is Rs 600000 crore). Give this savings as a spl rate to all exporters.They will not lose but their cost will come down with cheap fuel and input costs. Even true for IT. Sill in doubt get this verified from C Rangarajan( EX RBI governorO. Jai Hind.
Re: Re: Re: Pl join me in spreading the truth!!!
by asad hgjkf on Jun 28, 2010 03:30 PM
Are u sure having special currency rates is possible? And what administrative reforms would be required for the same? If u can give me one example of a country doing this, I would be able to relate to it.
Re: Pl join me in spreading the truth!!!
by New Blogger on Jun 28, 2010 03:20 PM
Don't you think giving special currency rates to exporter is giving a subsidy?
Govt will buy Dollars from Exporters at Rs 50 and sell these dollars to Oil companies at Rs 25.. Who is funding the difference between the two??? Tax Payers??
why the author (i assume some one with economic background) ignored the' futile cycle'. When petrol/diesel prices increase, all other dependent things like transport, food and vegetable prices, and almost everything will sky rocket.to cover this they give more salary again from govt pocket....or DA again from govt pocket...it is just funny
The decontrol of petrol will help only private players...though competition is required it could have been done in a better way than just putting the weight on common man.
inflation will also skyrocket...
The mere statement that India is import dependent and hence it cannot subsidize petrol is simply for the sake of argument at best.
Re: typical paid news
by New Blogger on Jun 28, 2010 03:14 PM
I assume that you are an economic expert to make this comment on the author.
However for whatever economics I have learnt, I know for sure that Inflationary impact of Fuel Prices is limited... whereas subsidizing leads to higher govt borrowing which has greater inflationary impact
Re: Re: typical paid news
by Kool Guy on Jun 28, 2010 03:18 PM
New Blogger : Would you please xplain what kind of subsidising the Govt is doing whaen in fact the petrol price should not be more than Rs 25 - 27 ? If you have read economics think in the other way the pull factor of inflation. Increase in fuel price would only aggravate other dependant products and hence rise in inflation.
Re: Re: typical paid news
by ratheesh raman on Jun 28, 2010 04:04 PM
no i am not an economic expert, but some times common sense prevails over experts!...common man is least concerned on the effect of India canada free trade, but the inflation in food prices.
The price of petrol in U.S.A. is $2.463 per gallon.Gallon is equal to 3.786 liters.Dollar is Rs 46.13. Converting cost of 1 gallon of petrol in Rs is 2.463 X 46.13= 113.62
Converting gallons to liters in RS for Rs 113.62 you get 3.786 liters of petrol.
113.62 divided by 3.786 = Rs30.010 Cost of petrol in U.S. is Rs 30.010 per litre. Then why is petrol costing us 71.16% more. Any body has any views?//
Re: Price
by rohit singh on Jun 28, 2010 03:37 PM
tax paid by commn man and rest goes in name of party fund in politicians pocket!! they just see the fiscal deficit nos, for them poor people are just vote banks!!
Re: Price
by Kool Guy on Jun 28, 2010 03:15 PM
Yes very easy. Rest goes to politicians pockets and we are fools to pay them from our hard earned money. We only promoted them and make them survive by feeding them with our blood. What do you say?
The increase in prices was not required. The government should reduce the taxes and duties which comprise of around 50% of the petro prices. For years the governments have been crying about the deficit in the oil pool account and the losses incurred to oil marketing companies in the sale of petro products without even mentioning the gain in taxes and duties. If the government is giving subsidy on the sale of gas cylinders and kerosene then it is definitely charging a hefty duty on other petro products. This way we have no deficit and no oil pool account is required.
Re: Not Needed
by Indian on Jun 28, 2010 03:12 PM
u've made to point which government don't want to listen.... :) they are greedy/rotten dog and will danger to people at large until shoot dead.
