About a fortnight ago, a group of geoscientists gathered at Cape Town, South Africa, and have recommended that mankind’s impact on Mother Earth has been so profound in recent years, that it is time to describe a new geological epoch in the history of earth, calling it Anthropocene (Anthropo, from the Greek for humankind, and cene from the Greek kainos, Latinised as caenus or cene, meaning new).
They suggested that the present epoch, described so far as the Holocene (Holo, from the Greek for whole/entire), has given rise to the Anthropocene. It is suggested to start from 66 years ago (1950), thus halting Holocene, an epoch that started about 11,700 years ago, when the last Ice Age occurred. At that time, most of the Ice Age animals – the woolly mammoths, sabre-toothed tigers and giant bears – had died out, and by 11,000 years ago, humans had occupied a significant part of the earth as hunter gatherers as well as settled communities, inventing farming and agriculture.
What hath man wrought! What has led us to redefine our epoch, from a natural one into a man-induced one? Back 11,000 years ago, the carbon dioxide (or CO2) level in the atmosphere surrounding the globe was about 220 parts per million (ppm); even 8,000 years ago, it was about 260 ppm. But starting the nineteenth century, when the industrial revolution started in the West, coal from the earth and beneath it was used extensively as the fuel for transport and industry.
The other major fossil fuels, oil (petroleum) and natural gas were discovered and put to use on a large scale. Burning carbon-rich fossil fuel liberates CO2. And CO2 is an example of what is referred to as a Greenhouse gas, which lets sunlight in, but traps the heat radiation that the earth and its oceans emit in return. (An easy example is when a car is parked in the sun, with its glass windows shut, sunlight enters the inside of the car, warming it, but the outgoing heat is trapped by the closed windows; the same effect is utilised in greenhouses, where plants and vegetables are grown in cold climate; hence the name greenhouse effect).
Non-stop burning of fossil fuels for industry, transport and other uses over these years has accumulated a large amount of CO2, which does not escape the earth (thanks to the gravitational pull of the earth; lighter gases such as hydrogen or helium gases escape, which is why they are not earthbound). Thus, over time, the level of CO2 in the atmosphere has shot up from 280 ppm at the start of the Industrial Revolution to 413 ppm today.
As a result, the average surface temperature over these two centuries has gone up by 1.5 degrees Centigrade. This has also started melting glaciers and raised the sea level by 3.2 mm every year. (Indeed, the island nation, Maldives, is worried that at this rate, some of its islands may be submerged in the near future, and had actually asked Australia whether they could buy land and move there!).
Added to the warming of the oceans and landmass caused by the Greenhouse gases (CO2, NO, Ozone, methane…), are the plastics and their debris, strewn all across the world and its oceans. Plastic pollution is an even more recent phenomenon . In addition, increase in human population from 1.2 billion in 1850 to the current 7 billion, has led to massive destruction of forests and animals therein has led to a crowding problem, and its associated effects.
Well, we do not have the luxury of time, and need to drastically cut down our use of fossil fuels, plastics and all other material that have led to this unfortunate climate change. As usual, vested interests still refuse to believe that climate change has occurred, and that the use of fossil fuels is not responsible for this dangerous ‘greenhouse gas catastrophe’. We need to be at least wise now and try hard to stop further damage to Mother Earth. Every little bit helps; little drops of water make the mighty ocean
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.