Trying To Understand The Mumbo Jumbo Of Petrol Prices In India !

-I am trying to understand this stupid arithmetic of Petrol Prices in India !!!

Majority of petrol, diesel, kerosene, lubricants business in the country is carried out by Government Companies like ONGC, HP, BP etc.

This includes the oil business of importing, exploration, rigging, processing, retailing etc.

These Government owned companies are inefficient, mammoth in size, badly managed.

Majority of the Crude Oil is Imported by these companies and Government charges Import Duty over it. Ultimately the consumer pays for this.

When the Crude Oil is processed or whatever, Government levies Excise Duty, which obviously comes to the Government coffers and in the end is on the consumers wallets.

Now on the transportation of the same finished products, the Transporters are charged Service Tax. Goes to the Government. Ultimately the consumer pays.

Now at the Retail level on every Sales of Petrol Products, Sales Tax is charged by the Government. same result.

There is an Educational Cess too.

These retailers are Corrupt to the core. Consumer gets only 75% value of his money. Consumer pays.


From the Tax Payers Money, to keep these White Elephants floating with merry & retain their NAVRATNA tag; the Government subsidizes these companies Lakhs of Crores annually. This is we Public's money only.

Subsidies lead to Fiscal Deficit and hence overall Inflation.

Government subsidizes Kerosene in the name of poor. Kerosene is distributed through Public Distribution System ( PDS ). PDS in India is all Fucked Up. The subsidies are eaten up by Company Employees & Middlemen. Consumer Pays & Poor do not get Kerosene.

Now, these companies shout that they are incurring losses so increase the Prices or they will be in trouble.

The Private Players are unable to come & compete as the NAVRATNA's are heavily subsidized & corrupt. Consumer has got restricted choice.

Government jacks up the prices. Then Government Jacks up the prices again & again & again !!!!!!


Why the fuck ?????? or What the fuck???

These are Government companies. Government is charging and keeping the money as Import Duty, Excise Duty, Sales Tax, Service Tax etc etc.

Then why the hell is Government Jacking Up the Prices to help its own Mismanaged companies???? Haven't we paid enough already to the Government as various taxes???

I do not understand this. Some economist friend will have to come to my help to explain this Mumbo Jumbo.

Anyone???