Rejoiced a lot when the Govt decontrolled fuel prices a week back. For all my socialist leanings, I’ve always felt that keeping the man on the street insulated from fuel price fluctuations is not a good thing at all. This also means that reduction in crude prices will result in dropping of costs and not the Govt holding off so that the oil companies can recover some of their losses.
But then, what about the price of the basic commodities? What about the common man on the street? Well, how much of what you are paying for fuel is the cost of the fuel? My guess was around 20-30%. I was surprised to know that I was way off the mark. The price of fuel in Karnataka is around 41% of what it is sold for. The rest 59% is just taxes!! [Source1, Source2]
Which means the BJP supporting a Bandh is total hogwash (but of course). Although I believe that this is something that needs to be protested about, we are protesting against the wrong thing. Asking the Govt to rollback the price which it did not hike is being hare-brained. But they can definitely do something about the arms and legs people have to shell out as taxes!
And what’s with the 25% in Sales taxes for the state?! Where does all that money go??