Wednesday, 13 September 2017

Cost of Crude Oil is Decreasing, but Price of Petrol is Increasing. What is Mystery ?

Today Petrol Price Rs. 80/- in many states was one of prime news. In May 2014, Cost of Crude Oil was Rs. 41/- and Selling price was Rs. 70/-, In August 2017, Cost of Crude Oil is Rs. 20/-, yet selling price is Rs. 70/- (Cost Price Rs. 20/-, Taxes Rs. 43/-, Other Expenses and Sellers Margin/Commission Rs. 7/- per ltr) to Rs. 80/-. Main Reason - Increase in Excise Duty and VAT in three years, so many times. Govt is trying best to justify these prices, but not succeeding. This is right time to set an example of passing the benefit to consumer of heavy reduction in cost. The same is expected from traders as placed Anti-Profiteering Provisions in GST. Instead of increasing tax every time, Govt must control or manage cost on different projects. CAG Reports has revealed so many times, unlimited and unnecessary projects are being executed and repeated by many ministries. Finance Ministry Role is only limited to budget preparation, this is same, in the companies where CFO is considered not more than an accountant, and ignored by CEO/Board in all important decisions, those companies can't survive for long. So, Need to Reinvent and Refresh Finance Ministry. Need a dynamic young Finance Minister. AJ or any Senior Leader can be Adviser.  If it would have happened, Implementation of Demonetization and GST were not so pathetic and painful.


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