23 Nov 2011
PETROL PRICES : LET THESE RISE !
When petrol prices are raised, a few million car – owners bear that burden.
When petrol prices are artificially kept low, hundreds of millions of middle class people end-up subsidizing those rich car owners !
Because oil companies / refining companies are mostly owned by Government of India
If they make losses, Central Govt subsidizes them – by raising taxes on everybody !
If in doubt , look at the following figures for FY 2011 ( as reported in Economic Times / 22 Sept 2011 ) :
- Total Under-recoveries ………………………………. Rs. 78,190 Crores
Burden sharing :
- Oil Bonds / Cash from Govt ………………………….Rs. 41,000 Crores
- Discount by Upstream Companies………………..Rs. 30,297 Crores
- Burden on Oil Marketing Companies…………….Rs. 6,893 Crores
Do politicians realize that, ultimately , it is the middle class and poor people who bear the entire burden of “ Under-recoveries “ – whichever way you look at it !
Coming to think of it , “ Under-recoveries “ are nothing but “ Inefficiencies “ of the oil companies !
As long as we try to keep alive these oil companies , poor will continue to bear the burden of this “ Life Support System “ !
Just pull the plug – or stop protesting .
With regards
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