Readers Opinion. 1) If you take any product, there is excise duty or customs duty. This is not the sole problem of petrol. Governments need money for its developmental activities. For this Central Govt Collect Excise and customs duties. It is not possible to avoid such taxes. It is the duty of every citizen to pay taxes. Major portion of tax revenue is used for defence and for giving various subsidies.( Ofcourse (I agree) , some of the developmental activities are not reaching the common man. It is going to the pockets of our dirty politicians (including the left) and the bureaucrats.)
2) From the above table itself it is clear that extra amount of Rs.28/- is paid towards taxes and transportation. It does not "just generating more profits for the oil marketing companies". Cost of crude oil per barrel is $ 130, that means, Rs. 5460/- per barrel. One barrel is equal to 42 gallons .1 gallon=3.7854liters. That means one barrel =159 litres. Thus cost per litre of crude oil is Rs.34.34. Thus oil companies are losing Rs.12.40 per litre. Please note that apart from the cost of $130/- per barrel, there is transportation, handling and insurance charges. Apart from this Rs.5.98 per litre is to be incurred for processing crude oil. Thus basic price of petrol, after considering processing gain and other by- products, is around Rs 41.23 per litre. Now, where is the question of generating more profits for the oil marketing companies?
