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by pkhagah
3818 days ago
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I don't understand how keeping taxes on gas prices meant that he is all marketing gimmicks? Did he promise that he'll keep gas prices low? Gas is neither cheap nor costly with the current price in India[1]. It's midway compared to most of the countries and almost the same as China. India is not a oil producing country and keeping it cheap will hurt its economy. Btw INR/USD in 2010 was way stronger than today. [1] http://www.globalpetrolprices.com/gasoline_prices/ |
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India imports majority of crude and refines all petroleum within the country. Business aren't paying international wages for their refinery workers, they get paid normal wages like for any other Indian. Yet when it comes to selling the petroleum products refined within the country, oil marketing companies used to say they were selling at loss. Not real loss, but hypothetical loss if they weren't selling at international prices -the companies were always making profit. These are listed companies and their annual reports are public.
Now Modi may have not promised he'll keep gas prices low, but is keeping it artificially high what he should do?
Keeping it cheap will not hurt economy as it has a direct impact on prices of food and transportation. People would've been able to save more.