The government is likely to reduce the prices of petroleum products: petrol by Rs 1.50 per litre, and high speed diesel by Rs 1.00 per litre.
According to Media Reports, it is notable that this cut is likely to be made only after the decrease in the international market and is not the outcome of the government’s love for the masses.
It is also a fact that whenever the oil prices in the international market go up, our government jacks up the prices in consonance with these new rates, even though that is not always advisable for a third world country’s economy like ours. Conversely, when the rates go down, our government does not lower the prices accordingly but only makes a nominal decrease.
And also it is a matter of great shame that the inflation that invariably follows the raise in the oil prices is not brought down when the prices fall.
Hence, there is reason to believe that the current decrease prices of petroleum products: petrol by Rs 1.50 per litre, and high speed diesel by Rs 1.00 per litre will only serve as a small help to the consumer and nothing of significance will happen to the prices of the rest of the goods.
The world oil prices have gone down from $100 to nearly $90 – this is a considerable drop, but the government is not passing the entire benefit to the people, when it should be the case. Indirect taxes only slows economic growth, also a factor in joblessness. The government should rely more income tax. Make the rich pay tax on their income. The feudal lords avoid paying income tax. The economy of the country will only be on track once the feudal lords are made to pay income tax and all the politicians.
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