PET rolium Products
PET- We the people
rolium- We are crying
Products- The money is produced in front of the Govt.
The prices of petrol are Rs 55\lt.
My only question after the deregulation of the petroleum prices is please elabrote me the Rs 55/ lt.
Rs 55= Crude oil cost + TAX on crude oil + refinery cost + TAX on refined products + Standard margins maintained by companies like ONGC, RELIANCE + Marketing companies charges like transportation + Ads charges + VAT by state govt + TAX again in form of sale of good.
These are my approximation of the Rs55, and that has 3 terms saying about the TAX applied on the product.
Now coming to the 1st part. The crude oil which is imported 80% of total consumption, then what about the rest 20% ?
can't it be used to reduce the prices ? Yes it can be, but no one will do that.
There should be only one TAX regime adopted through out.
Why to advertise for a product that is a requirement in itself, it doesn't require any sort of marketing. And it also doesn't make a difference whether the petrol is from IOC, BPCL or HPCL. But they will do the marketing and gather the money from us.
Refining margins for Reliance is way above the international standards of the Singapore refinery, but why to take account of them, as they provide funds for elections. Some deductions can help the cause of reducing the petrochemical prices.
But why to do the accounting ? Please do it now, else a major portion of population will die rolium in wait of reduced prices of food products. We are not PET, its because we are, thats why you are.
High food inflation can't be handled for long. And INDIA doesn't have any measures for handling that. Its good to deregulate the prices but the regime used for pricing should be changed and a justified price should be charged. If a reduction in petrochemical prices is done then the food inflation will come down and the prices as well.
Bring down the prices of diesel to Rs20/lt and in 2 months the prices will come down. But the govt i don't know what it wants. How can they know, they neither have to pay for petrol nor for food.
Hello readers,
A news that is making headlines is that Inflation has come down to 9.59% and it will drop drastically from June. This same pattern was observed last year also, when the inflation had climbed to levels of 14% and then it came to the negative zone. But again it started its upward journey and reached these levels, and again the govt is saying that it will come down.
These things or statements might fool a common man but we should understand one thing that the prices are not coming down, the rate of inflation is just fooling us all.
Lets us assume that we have a 100 rupee note with us, and assume the rate of inflation is the addition it will have per year. When the rate of inflation is 14% then the value it will have after a year is 114, and if the inflation dips to let say -1% then the value will just decrease by 1 to 113rs .And again when the inflation jumps to 10% then it shows a increase of 13rs to the total, making it 126rs.
Actually what is happening is that the prices are building on their base prices day by day, stopping for a bit and then again marching forward.
The 126rs total which we got is the price of a good that has increased by 26% in 2 years time.
Now see one more factor, the deposit rate of banks, it is just 3.5% per annum. What it does is that, when we have a 100rs with us we are getting 103.5rs at the end of the year. And according to the cross examination with inflation we are actually in a situation of loss by 10% or so, as we are losing money on one hand as the prices of goods are increasing but our money is growing at a rate of 3.5% which is lesser then the inflation.
This is just the case with the developing nations like INDIA. In the European countries we have the rate of inflation at a discount to the bank deposit rate. If their Inflation grows above the bank deposit rate then a havoc will be created. Their will be financial crises and lots of news will be made out of it, but in India, we are assuming the fact that we are a developing nation and we can't do any thing.
Its should not be the case, steps should be taking to crub this inflation. People in Europe also eat food, their is no such food inflation and all. I think that Indians have failed to control this Inflation Monster.
