Saturday, March 10, 2012


Ann APPEAL

Abolish petro taxes
(As urged by Standing Committee on Energy of Parliament In 2005)

Fuel prices are going up and up every month resulting in 41% increase in the last one year. These hikes mainly affect two-wheeler riders and small car users directly and not the rich. Besides, these hikes are leading to increased inflation, particularly food inflation, because fuels form an essential factor for production of all goods and services. These result in increased suffering to millions of disadvantaged people. Because of higher costs of production and transportation, development is retarded resulting in loss of revenue and our exports have declined, being less competitive. Civil aviation industry is suffering huge losses due to high fuel price. Governments are not only closing their eyes to all these pitfalls but also continuously increasing fuel taxes ignoring Parliament Committee recommendation and bluffing that they have no role in the pricing of fuel.

The facts are:

1. Central and state governments have been taxing fuels (about 50% in some states) and making huge profits at the  expense of people from sale of petroleum products.

2. They have been earning about Rs.1,50,000 crores from the sale of petroleum products,  mostly extorted from unwilling but helpless aam admi. One could even doubt whether governments have developed a vested interest in increasing fuel prices because some part of the tax is a percentage of the price – higher the price higher the revenue (profit) in absolute terms.

3. The central subsidy paid this year is likely to be around Rs.23,000 crores only, leaving a huge profit of Rs.1,27,000 crores. Hence subsidy is not a real reason for high prices.

4. A basic defect of these taxes is that they burden both rich and poor alike, both directly and indirectly by the spiraling cost of everything including essential things needed by the lower and middle classes already suffering from inequitable development.

5. Lack of an ethics of care for aam admi is crystal clear on the part of governments which go on merrily making profits from sale of fuels while aam admi, have been forced repeatedly to increasingly struggle against inflation and badly hurting food inflation, that too continuously for a long time.

6. Prevention of budget deficit is not a proper justification because it can be achieved much better by (1) preventing misuse and wastage of public funds due to inefficiency, grave irregularities and corruption in the system and (2) postponing funding of projects with comparatively lower priority.
7. Current domestic price of fuel on account of international price will be about Rs. 30 only as against about Rs.75+. Fuel price in India is double of that in China and many times higher than in USA.  Hence increase in international price is not a real reason for high prices.

8. In 2005, Standing Committee on Energy of Parliament had urged government to reduce its reliance on petro-taxes. Ignoring this, revenue from petro-taxes was repeatedly increased, showing scant respect for Parliament which is repeatedly stated as supreme (whenever it suits!).

[Please see attached article “Need to rethink and act urgently on fuel prices” for more details.]

To bring down fuel prices we have to put pressure on the governments to do the following:

A.  Stop collection of taxes on fuels immediately to reduce fuel prices and to control both general and food inflation and thereby relieve the burden on aam admi. This will enable them to eat well, maintain good health, educate their children better and use transports necessary for their daily use, besides achieving speedier development of the country and larger exports and reducing burden on the airlines struggling for survival.

B.     Present a white paper covering all aspects of buying petroleum products and fixing fuel prices to clear all issues.

If you agree, please forward this mail to as many individuals and group mail members as possible (those who are reluctant to open attachments can be made aware of the facts by this mail). On my part, I have already sent these to more than two thousand persons to spread awareness and I am continuing.

If you forward this mail with attached article to more than 10 persons you can satisfy yourself and feel happy that you have sincerely cooperated in helping millions of people suffering directly and indirectly due to petro tax imposed by government.

MPs can and should put pressure on government to abolish petro tax because it is their bounden
duty to help millions of people suffering due to this tax. After lot of searching, I was able to get email IDs of some MPs. These are reproduced below. Please forward this mail to these MPs and as many more MPs as you can. If they are flooded with such mails, they may wake up and act

These two actions will be important contributions from you to help millions suffering directly and indirectly from high fuel taxes.


Email IDs of some MPs

rpverma@sansad.nic.in                                    rcpal@sansad.nic.in
lahiris@sansad.nic.in                                        rcdom@sansad.nic.in
bacharya@sansad.nic.in                                  gandhim@sansad.nic.in
ajits@sansad.nic.in                                           palani@sansad.nic.in
vijayan@sansad.nic.in                                      jualoram@sansad.nic.in
bmahtab@sansad.nic.in                                   geete@sansad.nic.in
skalmadi@sansad.nic.in                                   patilbv@sansad.nic.in
george@sansad.nic.in                                      handique@sansad.nic.in
jdwivedi@sansad.nic.in                                    tapan.sen@sansad.nic.in
kpsingh@sansad.nic.in                                     karnsi@sansad.nic.in
emsn@sansad.nic.in                                        asingh@sansad.nic.in                                       mranwar@sansad.nic.in                                    ramvilas.paswan@sansad.nic.in                       rajeev.c@nic.in                                                  bacharya@sansad.nic.in                                   ravis@sansad,nic.in                                          ssa@sansad.nic.in                                            govindrao.adik@sansad.nic.in                          vmoily@kar.nic.in                                                           office@rahulgandhi.in                                        scindia@gmail.com                                           sachin.pilot@sansad.nic.in                                pilotoffice@gmail.com                                       ak.antony@sansad.nic.in


The front page of Deccan Chronicle of 05-11-11 has a pertinent cartoon in which the Prime Minister says “We never face any debt crisis. Whenever we need money we hike fuel prices.”

Elia Wiesel, winner of Nobel Peace Prize cautions as follows:
“There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest.”

“All that is necessary for the triumph of evil is for good men to do nothing” Edmund Burke

“There can be efforts that fail but there should not be a failure of efforts” – Anonymous


No comments:

Post a Comment