[Reader-list] [issuesonline_worldwide] Economics of Oil Prices

[A. Mani]

I am not saying that. Please read the whole long article at the site
before replying :)
Even the last para in the quoted portion it is mentioned that "This
note attempts to call the bluff of the government by presenting both
the factual picture and the vacuous economic logic behind these
arguments"

Best

A. Mani


--
A. Mani
ASL, CLC,  AMS, CMS
http://www.logicamani.co.cc



On Wed, Jul 13, 2011 at 9:13 PM, S kumar <kumar_8134 at yahoo.com> wrote:
>
> Are you not aware that prices of petroleum product prices in India have no relevvance to international crude prices, but an easy way to fill the exchequer by taxing the common man to the maximum?
>
> 1. When the crude was ruling around US$ 140 per barrel, petrol was retailed @Rs.45 per litre. When the crude went down to US$-70 per barrel, UPA Govt. raised the petrol prices to Rs.55 and now when the crude is ruling around80-90$, petrol is retailed at Rs.75 and still increases are expected. Why this anomaly?
>
> 2. The Customs duty was originally based on "per barrel basis". The Congress Govts. earlier changed this to ad valorem and found a fortune coming into exchequer by this change as the crude at international markets were rising from US$-10 to 70 per barrel within a few years, increasing the income through Customs by 7 times or more.
>
> 3. When Pranab Mukherjee became the FM and the crude prices fell from US$ 140 to 70, he found the receipts oin this account reduced by 50% and raised the Customs duty by 100%. By increasing Govt. levies on inputs like this, Govt. shows that the Oil Co-s are losing and starts increasing the prices of petrol, diesel..etc.
>
> 4. Is anybody aware that petrol is mixed with 3% to 6% of ethyl alcohol by the Oil Co-s now? Govt. has not informed the public and cost calculations do not take this into account and the burden is placed on the consumer.
>
> 5. When it is convenient Govt. refers to neighbouring Countries pricing, only in case of LPG, as if our neighbours are charging much higher than we!! Why not apply the same norms to petrol and diesel which are selling at almost 50% of the prices in India?
>
> 6. Govt. should reduce the customs duty rolling back to the earlier levels (reduce by 50%), athe States should be asked to charge uniform VAT, so that petrol or diesel of CNG are available at the same rates in any part of India.
>
> MANI YOU ARE ABSOLUTELY WRONG TO SAY THAT PRICES HAVE MOVED IN TANDEM WITH INTERNATIONAL PRICES AS DETAILED ABOVE. UPA HAS FOUND THAT PEOPLE COULD BE FLEECED FOR THE ESSENTIAL ITEMS TO FILL THE EXCHEQUER WITHOUT ANY RHYME OR REASON.
> From: A. Mani <a.mani.cms at gmail.com>
> To: sarai list <reader-list at sarai.net>; The Moderates <the-moderates at googlegroups.com>; issuesonline_worldwide at yahoogroups.com
> Sent: Wednesday, July 13, 2011 8:09 PM
> Subject: [issuesonline_worldwide] Economics of Oil Prices
>
>
> http://www.pragoti.in/node/4452
>
> "Even as the entire country, particularly the poor people, are reeling
> under heavy pressure of inflation, the UPA government has hiked the
> prices of diesel, kerosene and LPG by Rs 3 per litre, Rs 2 per litre
> and Rs 50 per cylinder respectively. The reasons given for this move
> can be broadly categorised as follows:
>
> The prices have merely moved in tandem with the international prices.
>
> The government could not take the burden for it more than what it
> already takes in the form of heavy subsidies for various petroleum
> products.
>
> There is a case for deregulation of prices of these three products
> on the lines of petrol as it is becoming unsustainable for the
> exchequer and the public sector oil companies who are facing
> 'under-recoveries' for a long time. This step is a forward movement in
> that direction.
>
> In a period of inflation, such increase in prices would bring the
> demand down and, hence, would put a downward pressure on inflation.
>
> This note attempts to call the bluff of the government by presenting
> both the factual picture and the vacuous economic logic behind these
> arguments. "
>
> Best
>
> A. Mani
>
> --
> A. Mani
> ASL, CLC,  AMS, CMS
> http://www.logicamani.co.cc