Why Oil Prices are more in India

(This write-up has been taken from the NBPDA News Bulletin, June-July 2011 Volume 2, Issue: 8)

As per the report submitted by the Rangarajan Committee, Central and state Governments are jointly earning revenue from taxes @ 55% on petrol and 34% on diesel.

Central Government does not impose tax on LPG and Kerosene, but state Governments taxes are 11% and 4% respectively.

Revenue earned against taxes on POL products by Central Government is Rs.1,11,779 crore and that by the state Government is Rs.72,081 crore according to 2009-2010 financial year report of Petroleum Planning and Analysis Cell.

As per statement of the Government of India in media, Oil companies are incurring losses in tune of many thousand crores, then on what basis are we negotiating Oil Mines in the Middle East, Africa and Russia.

As per the report of the Government of India, Petroleum Products Pricing and Taxation Committee, taxes on POL products of USA and neighbouring SAARC  countries are as follows:

COUNTRY                            PETROL                                 DIESEL

USA                                        17%                                        19%

Pakistan                                 42%                                        20%

Nepal                                     31%                                        22%

Bangladesh                            24%                                        24%

Sri Lanka                              37%                                        05%

The relief in case of India can only be achieved through-

1)      1) To reduce percentage of tax and withdrawal of CESS, Entry Tax and other taxes by Central and State Governments.

2)      2) To minimise the internal expenses by the oil companies.

3)      3) To maintain fair percentage of profit.

Note from editor:

This is the scenario for the whole of India. For places like North Bengal and Northeast India, the cost of distributing all the above products are very high (the price of reaching the end user). Hence, a subsidized tariff (propose no Central or State taxes) should be offered. Even we need to create community kitchens and distribute free LPG to all forest fringe villagers against confirmation that they would not use firewood or wood for fuel under ant circumstances. This is a very long standing issue which needs to be addressed.

Air India Pilots Pollutes India's Air

In an attempt to meet their selfish ends, Air India pilots puts 10,000 valued customers to extreme trouble and pushes 10,00,000 more customers to uncertainty for the next few days. This is not the first time that the pilots are on strike in India, but immediately this circus of any kind of strikes needs to ban in India. A handful of people, who do not even form 5% of the population, put the rest 90% common people in trouble to influence other 5% policy makers in this country.

It is this 10,000 troubled people who have contributed to the salaries of the pilots, administration of Air India, running of the Airport Authority of India and taxes for development of this country. These are the people who have to be given priority as they contribute to the country’s National Strength and image. All problems between the pilots and policy makers could have been sorted out without holding these 10,000 valued customers at ransom. There was enough opportunity to announce their strike earlier as this is not an abrupt problem, but the pilots decided to do it at the cost of the people who solely contribute to their bread and butter.

Mahatma Gandhi had started the non-cooperation movement against the British, who were outside people ruling India. Now it is our own people who are responsible for making this country and taking it forward. Imagine the day our agriculturists will go on a strike and will only produce for themselves and not for non-agriculturists. What has happened to this country, where strike/bandh seems to be the only solution. A small travel association, EHTTOA in the northeast corner of India has started the movement ‘Say no to Bandhs’. With the travel fraternity of the North of West Bengal and Sikkim, they have been able to form a forum named FACE. They are going door to door to the politicians to convince them not to take to Bandhs in this tourism priority area, which effects hundreds and thousands of livelihoods in the region.

If anyone who wants to see India prosper has to come forward and ‘SAY NO TO BANDHS’.