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Retail Oil prices are Deregulated in India - a myth

(4/2/2015 India-as-superpower) - Government of India is rejoicing falling crude oil prices due to oversupply in global market by US shale oil, I have already explained in detail about falling oil prices and US link to it on this post.Falling Oil prices and US link to it. Indian government
and cabinet minister have got golden chance of filling their coffins by increasing the excise duty on petrol and diesel. In the last six months since the prices of crude oil are falling globally, Indian government has increased excise duty on petrol by 8.95 INR per litre and excise duty hike for diesel has been at INR 7.96 /litre , Had Modi led Govt of India stick to it's words that oil prices are linked to global market prices and they would not hike excise duties for regulation of retail prices and their own advantage, only then it would have been correct to say that Indian retail oil prices show correct picture of global oil prices.

Had Ministers of Indian government decided not to raise excise duty on petrol and diesel. Petrol price in Delhi would have been at [56.49 - 7.75(excise duty hike) = 48.74 /litre and Diesel price would be at [46.01 - 6.50 (excise duty hike)] = 39.51/litre . Actual diesel price in delhi (if the govt wanted to curtain inflation really by not hiking diesel prices) would be 39.51/litre and petrol at 48.74/litre. This is actual price at which petrol and diesel should be sold today if government wants to say that Petrol and Diesel prices are deregulated in India.

Indian citizen should now know that when any minister in government of India says that "Petrol and diesel prices are deregulated and government has no control on it" Then he is uttering a simple White lie and this method of fooling people of India doesnot work any more, as common man of India is well aware of government using such methods of sucking hard earned money of stupid common man in names of taxes/duties providing them nothing in return. Argument on 'nothing in return' can continue for weeks without any outcome.

Currently Government of India uses excise duty route to regulate the retail oil prices in India. Imagine had the retail oil prices really deregulated completely without any external controlling by Government and Diesel would have been retailing at 41.76/litre instead of 48.26 per litre then inflation would have certainly be lowered and seriousness of government about controlling retail inflation would have been proved working.

Anyways since ministeries have power to fill their coffins with money and with virtually no say of common man in whole indian political system. These day robberies would continue to happen until the citizens become well aware of these all malpractices. This would take time though.

This post first appeared on Himanshu Sharma's Blog | My Views, My Space, please read the originial post: here

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Retail Oil prices are Deregulated in India - a myth


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