Car owners to pay more for Diesel

Discussion in 'Indian Automotive Scene' started by Dhillon, Aug 4, 2011.

  1. Dhillon

    Dhillon Administrator Staff Member

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    With passenger cars consuming about 15 per cent of the diesel, the government on Thursday indicated that it might do away with the subsidy enjoyed by such vehicle owners.

    "...we can accept your (Opposition) suggestion and try to work out what mechanism could be found out so that this section (diesel car owners) are not subsidised," finance minister Pranab Mukherjee said replying to a debate on price rise in the Lok Sabha.

    The government gives a subsidy of Rs 6.08 per litre on diesel.

    While the prices of petrol are linked to market rates, the government directly and indirectly compensates the oil marketing companies for losses on account of sale of diesel, kerosene and LPG through subsidies and oil bonds.

    Under pressure to keep its finances under control the government has already indicated that it was keen on freeing prices of diesel and cooking gas (LPG) but retaining subsidy on kerosene which was used by poor.

    In June, while increasing prices of kerosene, diesel and LPG, the government had slashed customs and excise duties on petroleum products to mitigate the impact of price hike on common man. It took a revenue hit of Rs 49,000 core per annum.

    India imports about 75 per cent of its total crude oil requirement.

    Mukherjee said out of total consumption of diesel, 10 per cent is used by industry, 6 per cent by railways, 12 per cent by the agriculture sector and 15 per cent by car owners.

    As much as 8 per cent is used for power generation, he said, adding buses and trucks consume 12 per cent and 37 per cent respectively.

    Mukherjee said that despite price increase of petroleum products in the recent past, the under recoveries of state owned oil companies was still around Rs 1.22 lakh crore.

    JD-U leader and NDA convenor Sharad Yadav had questioned the government's policy of providing subsidised diesel for consumption by luxury car owners, telecom tower companies, malls and restaurants.
     
  2. Dhillon

    Dhillon Administrator Staff Member

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    Makes sense ! Its silly that owners of 20+ Lakh Cars getting subsidized fuel.
     
  3. Dhhawal

    Dhhawal New Member

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    that does make sense...what doesn't is the fact that first they apply value added tax to it..and then subsidise it, the simple fact is...that they should have kept a cap on how many cars are being sold everyday in our country..and they didn't...but here's the secret, the government earns more from the sale of fuel and cars from one state than all of the states direct taxes collection put together...why do you think they don't repair roads..? because if you are stuck in a traffic jam..you are just burning fuel up...wasting it, and that money you waste standing at one place only serves the purpose of going into the pockets of the govt..! thats why they are raising taxes..and not capping the sales..! if they were really concerned about fuel conservation, they could have rationed the sales per month..! they say higher taxes will curb people from taking out their cars...s...i don't take out my car in delhi for a liesure drive..i do it because i have to commute from one place to another..they just want more money to go to their kitty!
     
  4. EldweinSemon

    EldweinSemon New Member

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    Diesel vehicle technology has sophisticated tremendously over the past decade. Today's diesel vehicles are clean, quiet, and perfected enough for any person driving. They offer large fuel economy, environmental advantages, and all the motor power you could want. But recently diesel price are increased so car owner pay more money to drive a car. From last some year crude price are become a high and that's live up major effect to world economics.
     

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