If someone is accusing High prices of Fuel is due to MMS Government's opening Petroleum sector to open market, they are shutting their eyes & propagating inconvenient truths.
A #thread on what lead to such a decision
A #thread on what lead to such a decision
Due to volatility of the markets, the very subsidies provided by the Government of keeping the fuel prices to check became unsustainable!
actual under-recovery in 2012-13 was ₹ 1,61,029 crore, out of which Diesel alone accounted for ₹ 92,061 crores (57%).
actual under-recovery in 2012-13 was ₹ 1,61,029 crore, out of which Diesel alone accounted for ₹ 92,061 crores (57%).
2012-13 Government provided cash compensation of ₹ 1 Lakh crore while upstream companies (ONGC/OIL/ GAIL) contributed ₹ 60,000 crore.
₹ 1029 crore was absorbed by the OMCs.
₹ 1029 crore was absorbed by the OMCs.
The actual under recovery for 2013 -14 is ₹ 1,39,869 crore.
The Government provided cash assistance of ₹ 70,772 crore while upstream oil companies contributed ₹ 67,021 crore.
₹ 2076 crore was absorbed by the OMCs themselves.
The Government provided cash assistance of ₹ 70,772 crore while upstream oil companies contributed ₹ 67,021 crore.
₹ 2076 crore was absorbed by the OMCs themselves.
Motor Spirit (Petrol) has been regulated wef 25 June 2010 and High Speed Diesel from 19.10.2014.
Look at this extract from the CAG report
Look at this extract from the CAG report
Look at these statistics once again, if there is an argument that MMS Government should have burnt the volatility, yep through other taxation, the same is applicable to the very proponents of the theory too.
Modi successfully used the blink bhakti to get rid of all subsidies and found that the fuel is one of the biggest contributors of indirect tax, considering its efficiency and started to squeeze every bit of blood from us
NDA regime continuously increased the Excise Duty on Petrol from Rs.9.48 on 14.09.2012 to an exorbitant Rs.19.98 on 06.07.2018.
They have no shame to increase that to Rs.32.98 in 06.06.2020 but reduced just 8 paise to adjust some cesses in 03.02.2021 (Rs.32.90)
They have no shame to increase that to Rs.32.98 in 06.06.2020 but reduced just 8 paise to adjust some cesses in 03.02.2021 (Rs.32.90)
Similary, they have increased the Excise Duty on Diesel, which was just Rs.3.56 on 14.09.2012 to an exorbitant Rs.17.00 on 06.07.2018.
As we are conditioned like the frog in the boiling pot, it increased to Rs.31.50 in 03.02.2021
The price we paid for blind bhakti & hatred
As we are conditioned like the frog in the boiling pot, it increased to Rs.31.50 in 03.02.2021
The price we paid for blind bhakti & hatred
Understand that Fuel taxation is the most efficient and easy taxation.
All the taxes, Union as well as most States, levied it at the source itself, ie, at oil companies themselves.
So it is easy to keep the revenue deficit, when u fail in Governance, by increasing fuel tax!
All the taxes, Union as well as most States, levied it at the source itself, ie, at oil companies themselves.
So it is easy to keep the revenue deficit, when u fail in Governance, by increasing fuel tax!
A heavily subsidised fuel in a volatile global oil market was deregulated because subsidy shall be met from other taxation or heavy borrowing. That is what MMS done!
Modi made it as a short cut for his opulence & compensating corporate tax cuts!
That is it
END.
Modi made it as a short cut for his opulence & compensating corporate tax cuts!
That is it
END.
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