1. In 1973, Arab countries suddenly revised the price of petroleum. Again in 1979 and
1990,due to politicalsituations the prices fluctuated wildly. To act as a cushion and
shock absorber,the government proposed to set up an Oil Pool Account. Evey litre of
petrol and diesel was taxed and a surplus amountof Rs.15,000 crores was accumulated
in this fund.

2. However, this fund was misused by the government. First this fund was used for
waiving the agriculturalloans less than Rs.10,000/- Then it was used to pay the
raised salaries of government employees .

3. In addition various surcharges and taxes were levied on petrol and diesel.For
example,during the 1990- 91 Gulf War, a " gulf surcharge " was introduced. This war
was over in 1991, but we are still paying the -surcharge ! If we examone the pricing
closely, may be we will find that we are still paying a tax or surcharge levied
during the 1971 Bangladesh Liberation War, 1962 Chinese invasion, 1857 Mutiny and
Babar invasion of 1526 !

4. In the past, petroleum prices in the world market have gone up and dowm many
times, but in India,theprices always go up, and never come down. Petrol and diesel
prices are promptly raised whenever petroleum prices go up in the world market,
but when they come down, the government of India and its monopoly oil companies
simply swallowed the profits.

5. So to save us,

the taxes and surcharges should be lowered and abolished.
Oil monopoly must be abolished immediately. Foreign companies should be
allowed to compete with the Government oil monopoly. Let the cheapest oil win !

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