Uncertainty looms large as ministries disagree over proposed tax on diesel cars

Dear sir, For want every thing please dont blame ANNA team. They are making their effort to make india free of Corruption. Please comment on the concerned issues so that views can be shared by all.Thanking you sir,

I agree with Sam. Now all diesel consumers are enjoying at the cost of price hike burdened on petrol users whenever the Oil Co wish. It leads to a situation that the entire petrol users will switch over to diesel which increase the subsidy bag to many fold. TheGovt. Should have commitment to reduce the subsidy business on diesel. Diesel price should be at par with production output cost. Why the great team anna group have no comments on such issues and build pressure on Govt. The motive is not known ..........

Kudos to you Manjunath...!Most specifically on the issue of -"I personally opine that the government is cashing on the situation to swell the coffers so that their inefficiencies and extravagant expenditures can be subsidized."NO BUREAUCRAT OR POLITICIAN WOULD VENTURE DEBATING ON THE AFORESAID EXTREMELY RELEVANT POINT OF NATIONAL CONCERN...!!!Which is why the only banter that is made resonant is that of "subsidy on Fuel specifically Diesel"They want to penalize the struggling Middle Class who's only indulgence is a cost cutting remedy in the purchase of a small Hatch Back Diesel car, whilst our eminent Bureaucrats & Politicos lavish not just themselves but so also their entourage of so called security in Big Buck Diesel Dazzlers and at whose expense...??? NEVER THEIRS AS ITS THE TAX PAYER THAT FUNDS THESE PLAYBOYS WITH THEIR TOYS THROUGH ONE SCAM OR ANOTHER..Is it any wonder then that we have the maximum No. of Rags to Riches story, especially over those that are directly or indirectly related to Politicians & their brood...!!!

World over the prices of Diesel and Petrol are not widely differing as in India. If this is entirely due to subsidies it is not fair to say that personal diesel cars will increase the deficit largely. Please look at the consumption of Diesel by the Indian Railways, the bus and lorry transports plying on the much touted road network and the Golden Quadrilateral, which was improved only to better the facility of transports of goods and people across India to facilitate trade and commerce. Now if trade and commerce have improved by way of better accessibility to markets and vice versa, it would be a retrograde step to jack up the price of diesel solely on the plea that passenger cars are increasing the deficit as the detrimental effects would be far more than what Mr. Jaipal Reddy can Hhandle or the Finance Minister Mr Pranab Mukherjee can handle. Before any opinion can be formed it would however be prudent for the Petroleum ministry try to accurately assess the consumption pattern before considering any levies or deterrent measures. I personally opine that the government is cashing on the situation to swell the coffers so that their inefficiencies and extravagant expenditures can be subsidised.May I ask a thought provoking question to all the State owned oil companies who claim that their losses are due to the price control- PLEASE COME CLEAN ON THE AMOUNT OF MONEY SPENT ON ADVERTISING- CONSIDER THIS A WASTEFUL EXPENDITURE AS THE OILS AND FUELS WILL SELL WITHOUT ANY ADVERTISING AND YOU WOULD HAVE REDUCED OUTFLOWS AND YOUR MARGINS WILL DEFINITELY IMPROVE ! WHAT ARE THE COST CUTTING MEASURES ADOPTED BY ANY STATE OWNED OIL COMPANIES IN THE LAST FEW YEARS AND WHAT HAVE BEEN THE RESULTS?

Diesel is a subsidized fuel for the public utility purposes like buses, goods transportation by heavy duty trucks, locomotives, irrigation and other agricultural machinery. If the government continues the present policy of subsidized diesel to be used in luxury cars including 6 cylinder posh cars, all cars in India will gradually change to diesel engines resulting in shortage of diesel. This will increase the deficit in oil pool account and will affect the national economy as 80% of crude oil is imported by India. In developed countries diesel is costlier than petrol because there is no subsidy. India as a developing country will have to continue subsidy on diesel to continue for cheap transportation of goods and to aid agricultural production. The government should act fast and increase either excise duty or add surcharge for fuel subsidy on diesel cars. The decision should be taken fast so that automobile manufacturers will be able to plan and decide production of engines. The decision has unduly delayed and people are eagerly waiting to change petrol cars to diesel cars.