Custom,insurance and freight duties,from "ARAB NATIONS"[!!!], should,also be done away with, for LPG and Kerosene,produced in India,by refining Crude HERE..
In fact the whole "under-recoveries" is NOT acceptable.
Total Refining Cost each, product should be calculated in Rupees and this should be thje basis of pricing.With such BRILLIANT BEAUROCRATs and Computer programmes available this should be very easy.
The following is a very funny,observation:-
"n fact, the duty on crude oil was brought to zero and that on products to 2.5 per cent a few years ago, effectively reducing the protection refiners enjoyed from flooding of domestic market with cheaper imported fuel."
30% of the Crude processed is produced in India. As on 2010/11, it is about 40.5 Million MT per year
But 100% of the petroleum fuels are charged not only custom duty,but insurance and Freight as well.
Taking this into account will save a HIGHER amount.Please google for:-
1.unethical pricing of petroleum fuels in india