From: Surinderjit [email protected]
Subject: Govt raises OIL prices again…Punjab wins again with highest VAT/TAX
To: [email protected]
Cc: “Johann Hari”
Date: Saturday, June 25, 2011, 1:56 AM

As indicated earlier the high prices are due to HIGH VAT IMPOSED by government/s, PUNJAB claims victory yet again by passing HIGHER VAT to punjabi citizens again! The total taxes amount to 45 percent of the final cost of the petrol/oil.    Oil on international trade has been falling down since last 3 weeks+ by more than 15%. Will punjabi citizens protest, NOT LIKELY!    They are accustomed to remain obedient and non-concerned.  Prices before Rs.5 price increase, Punjab with HIGHEST VAT/TAX.   For those involved in corruption/bribery ANY PRICE increase in OIL/LPG  should not matter.    However for rest hard working FARMERS and workers,   this means higher inflation for punjab.    FARMERS should subsequently    RAISE   PRICE of WHEAT and RICE  PRODUCE      IMMEDIATELY!   Govt raises diesel prices to ease subsidy burden - Reuters On Saturday 25 June 2011, 12:18 AM   By Abhijit Neogy and Nidhi Verma NEW DELHI (Reuters) – India raised diesel prices about 9 percent on Friday after months of delay, a politically unpopular move that will add to inflationary pressure but also eases the government’s subsidy burden and could bolster its image among wary investors. “This is the only window they have for any cutting of subsidies. By the end of the year they will be in (state) election mode,” political analyst Mahesh Rangarajan said. Since it was first elected in 2004, Prime Minister Manmohan Singh’s government has often refrained from pushing through tough reforms in favour of pleasing its predominantly rural voter base. Persistently high inflation as well as the government’s handling of a spate of corruption scandals has led to what many critics describe as policy paralysis in New Delhi. With galloping spending and slowing growth, New Delhi must reassure investors fretting over political and bureaucratic delays for major projects that it can run the economy and keep voter support. Diesel will now cost just over 41 rupees per litre in the capital after the government panel raised prices by a record 3.4 rupees (7.6 U.S. cents) per litre including local taxes. It also raised kerosene and cooking gas prices. “The inflationary implications of the diesel price hike are unavoidable. Broadly, with inflation currently at around 9 percent, the hike in prices should take the WPI (wholesale price index) into double digits again and keep it there for a while,” said Rupa Rege Nitsure, chief economist at Bank of Baroda. The increases, announced by Oil Minister S. Jaipal Reddy, were roughly in line with expectations. Taken together, they will directly add about 55 basis points to headline inflation, said Yes Bank economist Shubhada Rao in Mumbai, who expects another 25-50 basis points of interest rate increases by the RBI, which has already raised rates 10 times since March 2010 despite the risk to growth. PRICES AND POLITICS Diesel accounts for 40 percent of petroleum product demand in India and is the most widely used transport fuel. It powers tractors and irrigation pumps for farmers in one of the world’s biggest producers and consumers of grains and sugar. Lifting prices is politically fraught. “I am sandwiched between economists on the one hand and populists on the other hand,” said Reddy, an advocate of price rises, following the meeting. “Political problems will always be there and economic problems do not wait for solution of so-called political crises.” Since the government agreed in principle to lift fuel costs a year ago, international crude prices have soared 33 percent, swelling the money spent on subsidising fuel prices to a country with 500 million people living in poverty. However, world oil prices fell 6 percent on Thursday after major consuming countries announced an emergency release of stocks, only the third time ever, and dropped further on Friday. With inflation in India above 9 percent and domestic fuel costs up nearly 13 percent on the year, raising fuel prices will immediately hit the fractious coalition’s core voters among the poor who live on less than the cost of 2 litres of diesel a day. “This is a completely inhuman gesture on the part of the government to increase prices with food and overall inflation being what it is,” Nirmala Sitharaman, a spokeswoman for the main opposition Bharatiya Janata Party, told Reuters. Petrol prices, which largely affect more affluent Indians, have gone up about 23 percent since they were freed a year ago. “This is quite a bold step on their part when the government is getting attacked from all directions,” said N.R. Bhanumurthy, economist at the National Institute of Public Finance and Policy “It makes a lot of economic sense. Ultimately, if you want to control inflation, stabilise growth, it is imperative you pass on the hike in international prices,” he said. FISCAL BURDEN J.P. Morgan this week cut its forecast for benchmark Brent oil for the third quarter to $100 a barrel from $130 but on Friday global crude prices paused from losses. “As this remains a one-off price hike we do not expect demand to take a major hit,” said Praveen Kumar, senior consultant at FACTS Global Energy in Singapore. The longer-term benefit to the country’s finances comes from reducing massive spending on subsidies and boosting revenues for state-run fuel retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp. Private oil refiners Reliance Industries, owner of the world’s biggest refining complex, and Essar Oil could now find it attractive to sell in the local market instead of relying on exports. Revenue losses for oil companies will shrink to about 1.2 trillion rupees ($26.7 billion) in the current financial year from 1.7 trillion rupees estimated before the hike, Reddy said. Cutting customs duty on crude and petrol products and reducing excise duty on diesel will result in a total revenue loss to the government of about 490 billion rupees this year. Ahead of the decision, shares in Bharat Petroleum and Hindustan Petroleum rose 2.8 percent and 6.1 percent respectively in market that ended 2.9 percent higher. — On Thu, 6/23/11, Surinderjit [email protected]  wrote: From: Surinderjit [email protected] Subject: Is HIGH PETROL PRICE JUSTIFIED?, or its another form of CORRUPTION? To: [email protected] Date: Thursday, June 23, 2011, 12:16 PM Is HIGH PETROL PRICE JUSTIFIED, or its another form of corruption? /story/635/470/Petrol_price_hike_angers_city_residents.html Government should work out to REDUCE TAXES and ensure they keep check on this form of corruption. No one seem to be talking regarding this form of corruption however this impacts every person. Last article enclosed below, highlights the plight on OIL TAXES and extortion/corruption and leaders are sleeping over this grave issue. — On Sun, 5/15/11, Surinderjit [email protected]  wrote: From: Surinderjit [email protected] Subject: Fw: Petrol price hike angers city residents To: [email protected] Cc: “J.Hari” Date: Sunday, May 15, 2011, 1:08 PM For those looking for answers regarding why cost of Petrol is so high, may want to read below educative article:,   http://asiancorrespondent.com/36913/what-is-the-real-cost-of-petrol-in-india/ COMMENTS: Good comparison, when compared india is amongst the highest charging for petrol, compare it with US for example, they sell it for $4.25 per gallon or 3.79 litres which is approx $1.15 per litre or Rs50 per liter at most, however india with recent increase is averaging around Rs65/litres, however look at punjab that has been paying the highest rate EVER-SINCE, right now it isRs70/litre, it’s like  GAS selling for $6/gallon! Price before recent PETROL HIKE of Rs.5/liter   Therefore, india ought to check it’s HUGE TAXES on PETROL to safeguard middle-class from being grilled by not only highest PETROL price but next comes inflation, combine this with CORRUPTION/FRAUDS/SCAMS ONSLAUGHT that again is paid by middle-class!  So get ready for some tough times ahead! BTW, I failed to mention Rich class will still keep getting RICHER and corrupt ministers are let loose!   /story/635/470/Petrol_price_hike_angers_city_residents.html   Excerpt from: http://asiancorrespondent.com/36913/what-is-the-real-cost-of-petrol-in-india/ Here is the breakdown of the taxes charged by the government in various forms. From the time it is refined to the time it reaches the consumers. Excise duty  : 14.35 rupees per liter  Customs duty : 7.5 percent Sales tax or VAT  : 20 percent. (PIB) The total taxes amount to 45 percent of the final cost of the petrol.  With a 26.34 rupees per liter of petrol if we add all of the taxes it comes to 47.93 rupees per liter, the cost of petrol in Delhi before the recent hike. However the fact of the matter is that PUNJAB get’s the beating for paying HIGHEST price of PETROL EVER-SINCE, BJP and SAD are quite and so are other minister or contending people party minsters.   There has been more than 6 increase in past 12 months, means its going to add to distress to FARMERS who keep paying higher price to PRODUCE but in exchange still does not the RIGHT PRICE for their WHEAT or RICE produce etc.   Punjab citizens are the most taxed on PETROL, highest amongst india ever-since. Price before recent PETROL HIKE of Rs.5/ltr Therefore, FARMERS and middle-class must get ready to face the HEAT this SUMMER! /story/635/470/Petrol_price_hike_angers_city_residents.html /story/635/470/Petrol_price_hike_angers_city_residents.html     — On Sat, 5/14/11, Surinderjit [email protected]  wrote: From: Surinderjit [email protected] Subject: Petrol price hike angers city residents To: [email protected] Date: Saturday, May 14, 2011, 1:33 PM Here we go again, next round of PETROL price HIKE, 14 MAY, 2011, 09.54PM IST,IANS  Petrol price hike angers city residents -  NEW DELHI: The hike in petrol prices Saturday — the steepest ever — has been greeted by anger and disappointment by people in the national capital, who worried about their household budget going awry and feared inflation .. …. …………. The revised price list of petrol per litre in the four metros following the price hike effective Saturday midnight:  Delhi – Rs.63.37  Kolkata – Rs.67.71  Mumbai – Rs.68.33  Chennai – Rs.67.22 ——————————————–> PUNJAB - ~Rs.70   and 10% extra POWER TAX, special to PUNJAB citizens only! ———————————–> http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/petrol-price-hike-angers-city-residents/articleshow/8324539.cms While Punjab Government is busy  installing new ministers in-place of CORRUPT ministers investigated by CBI, despite this, old corrupt minsters are still RICHER than ever! Yes, they wont touch their ill-gotten money thru corruption – that’s the way democracy works. Corruption/scams/frauds are kind of norm and democracy only catches communist NOT corrupt!     For those involved in corruption/scams/frauds,  any increase in PETROL price should not MATTER!  NewsX State firms to raise petrol price by 5 rupees from Sunday‎ - IBNLive.com Oil companies to hike petrol prices by Rs 5/litre‎ - Zee News   /story/361/176/KILLING_PUNJAB_65_LTR_PETROL_HIGHEST_AMONGST_INDIA_OR_call-it_special_package_for_PUNJAB.html     But look at PUNJAB citizens, they are bearing and tolerating of HIGHEST PETROL price amongst INDIA peacefully! KILLING PUNJAB @ 65/LTR PETROL? “HIGHEST AMONGST INDIA” OR call-it “special package” for PUNJAB — On Thu, 5/12/11, Surinderjit [email protected]  wrote: From: Surinderjit [email protected] Subject: TERROR-RISING citizens DEMOCRATICALLY To: [email protected] Cc: “J.Hari” , [email protected], [email protected] Date: Thursday, May 12, 2011, 3:34 AM TERROR-RISING citizens DEMOCRATICALLY   /story/629/170/TERROR-RISING_citizens_DEMOCRATICALLY.html   http://in.news.yahoo.com/air-india-victims-echo-judges-remarks-sikh-radicals-035759765.html#   TERROR-RISING citizens DEMOCRATICALLY   — On Thu, 5/12/11, Surinderjit [email protected]  wrote: From: Surinderjit [email protected] Subject: Looting citizens DEMOCRATICALLY To: “J.Hari” Cc: [email protected] Date: Thursday, May 12, 2011, 12:57 AM Looting citizens DEMOCRATICALLY, BJP announces formula to deal with BJP Ministers /story/628/722/BJP_announces_formula_to_deal_with_BJP_Ministers.html