Saturday, February 24, 2007

Gold : PETROL : Platinum

Platinum : Gold : PETROL

The title says it all... but still there are finer aspects to this. The prices of fuel have now hit a mind blowing Rs 49.81 here in Chennai and an excess of Rs 51 in bangalore.
I happened to notice the breakup of fuel prices in NIC some time back.47.32 (petrol price in Chennai in INR)=19.64 (value at supply point) +14.86 (excise duty + edu. cess - Central Govt.) +11.91 (States sales tax) +0.77 (dealer commission) +0.14 (other charges)
Now i can understand the value at supply point but the other charges seem to make no sense to me. The biggest question to me is to where this money is going? I still am negotiating potholes (and all the other inherent aspects of Indian roads), i still am riding in badly lit roads w/o road dividers, I still am running on standard 87 octane fuel (sub standard in many other countries) …

I am beginning to wonder whether paying taxes is day light robbery. I have always heard that problems need to be addressed at the grass root level. But here its way below that: HELL, I would say.

1 comment:

Vettipaiyan said...

The price of liquid platinum at the supply point, the Rs.19.64 per liter is true, but, I tend to think, that is only about 50% true by numbers. I worked out the numbers for gas prices at the US and found that the value at supply point, ie., gasoline's share price in a barrel of crude oil + cost of refining + cost of distribution + cost of marketing + dealer's commission adds up close to Rs. 20 per liter. I come to think that with such vast resources and the latest in petroleum engineering, if the US manage to produce gasoline at Rs.20 per liter it should at least be twice as much with the Indian Companies. I would like to think that the taxes (Central only !!) we pay is feeded back into those oil companies. But I wonder why the Indian oil companies still bleed a lot. No comments about the state taxes. It goes into the treasury but not the state's one.