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Innovative Suggestion For Fixing of Petrol Prices
by maulik zaveri on May 27, 2008 06:42 PM   Permalink | Hide replies

From: Maulik Zaveri, Ahmedabad (Mobile:9898002186)
Why Rate per Ltr. of petrol is same for vehicle giving averae of 2,4 or 8 per ltr and 40,60 or 80 per Ltr?

Example:
If we take base Rs. 30/- per ltr of petrol and 40 Km. per Ltr. as standard then Vehcile giving average of 2, 4 or 8 Km. per ltr. are consuming 20, 10 or 5 times more that vehicle giving average of 40 per ltr.

So that if price for ltr. of petrol is Rs. 30/- for vehicle giving average of 40 Km. per liter then prices for vehicle giving average of 2, 4 or 8 per lt. will be Rs. 600/- (20*30), Rs. 300/- (10*30) and Rs. 150/- (5*30) per ltr. respectively.

Suppose Mr. X runs car having Avg. of 2Km/Ltr daily for 20 Km., he uses 10 Ltr petrol per day. If we take Rs. 30/- per ltr. of petrol and 40 Km per ltr. as a base his car is using 20 times more petrol than standard so he would be charged Rs. 600/- per ltr. of petrol (20* Rs.30/-). He has to pay Rs. 6000/- per day for use of 10 ltr. petrol in fact he is paying Rs. 300/- only so Rs. 5700/- per day is subsidy to him and for year Rs. 20,80,500/- (Rs. 5700*365. If their are 10000 users of car giving avg. of 2 km/ltr than subsidy to him is 2080,5000000 (Apprx. Rs. 2080/- Crore)!!!!!!.

1)Don't you think that at present governemt is giving subsidy to a purcahse of petrol whose vehicle are giving average of 2, 4 or 8 per Km
ltr. and burden of same is passing on the vehicle owner whose vehicle is giving averae of 40, 60 or 80 per ltr. ?



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  RE:Innovative Suggestion For Fixing of Petrol Prices
by ASHOK on May 28, 2008 04:41 PM   Permalink
Start taking annual tax on the type of Vehicle some one is holding.
If it is Gas guzzler than demand high tax per year. Similarly introduce a cess on INSURANCE Premium of the vehicle depending upon the mileage it gives..

Maulik you have taken up a very valid point.
We should support it and heavily tax Gas guzzlers.


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  RE:Innovative Suggestion For Fixing of Petrol Prices
by Balasubramaniam R on May 29, 2008 03:31 PM   Permalink
so we can for sometime ban usage of large cars or charge hefty usage tax (Rs 10000 per day) on these cars to be paid at at police stns everyday that will deter many from using them.

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  RE:Innovative Suggestion For Fixing of Petrol Prices
by crazyguy on Jun 03, 2008 02:12 PM   Permalink
Mr.Zaveri while calculating so called subsidy we are forgetting a fact that there is NO SUBSIDY actually. Govt of India is buying petrol @23/- per liter and selling @51/- per liter adding a whooping 52% tax on it. So while calculating your 2080 crore subsidy on some cars please mention how much tax the same carwalas are paying to Govt of India. You will have a heart attack. Please note most of our politicians king like expenditure is met by taxes on petrol, which if stops they will die.
Subsidy on petrol is a eyewash and worst hypocrisy.

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  RE:Innovative Suggestion For Fixing of Petrol Prices
by N T on May 27, 2008 11:02 PM   Permalink
Hi Maulik,
well ur point is that subsidy is Rs. X per litre. Hence more the consumption more the subsidy availed in absolute terms. But do u think a differential pricing is feasible?
E.g. I will fill my car using my bike's petrol and avail the petrol for bike only....Or do u want us to go back to the days of rationing?

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  RE:Innovative Suggestion For Fixing of Petrol Prices
by Sahadevan KK on May 31, 2008 11:57 AM   Permalink
BJP led NDA govt was anti-people. It increased ad-valorem tax on fuel. Now we pay 60% of the charge of fuel is tax. BJP has no way to say about price-rise. It is an opportunistic party.

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  RE:Innovative Suggestion For Fixing of Petrol Prices
by M H Kisan on May 31, 2008 07:46 AM   Permalink
Dear Maulik,
your statements do not seem to make sense.

1) Rate will depend on production cost, taxes, duties, cess, and distribution costs.
and not wether you burn it or just throw it away, once you have purchased it.

Just as the mango that you purchased cost the same whether you eat one mango per day or 7 mangoes per day,
or just throw them away.

2) A person using a vehicle x giving an average of 2 KM per litre of petrol at Rs 30 (your base)
will travel 1 KM by spending Rs 15

Another person using vehicle y giving an average of 40 KM per litre of petrol will travel 1 KM
by spending Rs 0.75 paise.

The person using an inefficient vehicle will always pay more.


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http://specials.rediff.com/money/2008/may/26oil1.htm