This is surely going to shoot up the prices of everything as the price of diesel is also going up .
The oil companies have surely taken up the chance to see to it that they dont face any loss in their production and the central government is happy that it is getting heavy taxes owing to the rising prices .
Is this price hike indeed required ?
It is said that the other expenses of the oil companies such as the luxury and guest handling etc. are very high . If the companies concentrate more on production nad less on other things the price can be kept low . The central government which should be advising them about this , instead gave them the helm of all the affairs . Why should such a basic thing like petrol require advertising ?
The companies should not spend anything off the limits , then they will see how well they can tame the prices .
I am satisfied with you. I think it is the case of Politics that after the finishing of election period, they have at once incresed the price of Petrol. It is not good for the general public. It is right that Now it is the time to increase the prices of Diesel and Cooking gas also.
If the price of petrol only, it may not affect us much.On the contrary it will indirectly a good thing. If we go to any place even a small town we will find traffic jams. The number of vehicles being introduced on the roads everywhere is alarming. The increase in petrol price my slightly reduce the rate of increase in petrol vehicles.
If the cost of diesel is increased it will affect the majority as the public transport cost will go up and the commodity prices will go up as the transportation cost will go up and the same will be passed on to us. The maximum effect will on the middle class who are employees who cannot hide their income like the professionals and have to pay the income tax also.
The Government's argument is that the oil companies are on loss because of the subsidy of the oil prices. The Government at least can remove the tax on such item. The tax on petroleum products is around 25%. They may tax 5% and remove the 20% so that part of the increase in price is cushioned.
Ramanathan A R
Gold Member, SPK