The Great Indian Oil Scam - Whr is 49,000 Crs, we paid to the govt

Truth Scars us always. How the Indian Govt (congress, NDA, UF, Janatha and all)is taking the common indian citizen for a heavy ride. What's amusing in this article is that, the Senior Executives of key departments, clearly knows about this fact, but giving us mouthshut.

"For two years, the state-owned oil refining and marketing companies have been ripping off buyers of petrol and diesel by charging them Rs 2 extra on every litre of petrol and diesel. In the process, the oil companies pocketed a cool Rs 9,866 crore (Rs 98.66 billion) in 2003-04 and a similar amount the year before.

But -- here is the catch -- they have neither passed the Customs duty on to the government nor actually imported much petrol and diesel. Almost the entire petrol and diesel consumed in the country is being produced domestically, thanks to excess refining capacity in India."

"Over 30 years the government has collected Rs 50,000 crore (Rs 500 billion) from the public as a cess for the development of the state-owned oil industry.

But only Rs 902 crore (Rs 9.02 billion) have been allocated to the Oil Industry Development Board that is supposed to disburse the money to the industry. In fact, the OIDB has not received any money from the government since 1990-91."

The companies have been able to rip off buyers of petrol and diesel because of the complex formula for arriving at the retail price of petrol and diesel, which came into effect after the government dismantled the administered pricing mechanism in the oil industry in April 2002.

How Rs 49,000 cr disappeared into govt coffers

Oil firms pocket Rs 2 on every litre of petrol, diesel