Government of India has hiked price of diesel by Rs. 5.76, it is still cheaper than petrol but this is a steep hike. Original news says :
Biting the bullet, the government today hiked diesel prices by a steep Rs 5.62 per litre and restricted the supply of subsidized cooking gas to 6 cylinders per household in a year to fetch an additional Rs 20,300 crore. It, however, left kerosene rates untouched and spared an increase in petrol price by cutting excise duty by Rs 5.50 per litre.
For me I dont understand how this works, on one hand Govt is subsidizing petrol - diesel, taking all losses they are facing and on other hand, they have so heavy duties on petrol and diesel. Why making all this non-sense, why instead of cutting excise duty as they did this time for petrol, they are playing game of increasing price so that Govt can reduces losses incurred by subsidizing it ?
Please give your views.. what do you say ?
