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Old 3rd July 2012, 14:06   #406
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Default Re: Govt plans to impose additional levies on diesel cars

My friend had called up the showroom manager with regard to his booking of a i20 CRDi and the manager said that his car has been invoiced and not to worry about the price hike now. He said the car will take 2-3 days to come from chennai - Is there a way he can get a copy of the invoice or something like that?
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Old 3rd July 2012, 14:21   #407
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Default Re: Govt plans to impose additional levies on diesel cars

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Originally Posted by Ranjimso View Post
My friend had called up the showroom manager with regard to his booking of a i20 CRDi and the manager said that his car has been invoiced and not to worry about the price hike now. He said the car will take 2-3 days to come from chennai - Is there a way he can get a copy of the invoice or something like that?
yeah, I think the Fin Ministry had come out with a clarification that nothing of this sort is proposed. Good old rumour mongering I would say.

Does he not have a copy of the invoice already? He can ask for the VIN number of the car and then compare it to the one that is delivered to him.
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Old 3rd July 2012, 18:12   #408
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Default Re: Govt plans to impose additional levies on diesel cars

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Does he not have a copy of the invoice already? He can ask for the VIN number of the car and then compare it to the one that is delivered to him.
Selfdrive, thanks for the suggestion, I will ask my friend to check on that
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Old 18th August 2012, 23:39   #409
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Default Re: Govt plans to impose additional levies on diesel cars

Excise duty hike for diesel cars is under consideration again:

Excise duty hike on diesel cars soon?
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Old 19th August 2012, 01:43   #410
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Default Re: Govt plans to impose additional levies on diesel cars

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Originally Posted by MandarMax View Post
Excise duty hike for diesel cars is under consideration again:

Excise duty hike on diesel cars soon?
I believe we can ignore these random news "flash"es that are touched by news agencies just to create buzz on old topics unless something really concrete comes up.
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Old 19th August 2012, 08:07   #411
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Default Re: Govt plans to impose additional levies on diesel cars

Excise duty on diesel cars again under reconsideration.

Quote:
However, the situation has again come to the point where the hike looks inevitable this time. The justification this time for the hike is that the diesel cars are more polluting, thus causing hazard to the environment. On top of that, these vehicles run on the subsidized fuel, thus providing unintended benefit to diesel car users.
Source: Examining proposals to hike excise duty on diesel cars: Government - The Economic Times

Source:Excise Duty On Diesel Cars Under Reconsideration | MotorBeam - Indian Car Bike News & Reviews
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Old 19th August 2012, 09:37   #412
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Default Re: Govt plans to impose additional levies on diesel cars

I was expecting this. Today or tomorrow this is bound to happen.

The next thing I am expecting is removal of subsidy on diesel or in other words price diesel couple of rupees below petrol. It will have a downstream impact but as if Govt cares about common man.
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Old 24th August 2012, 17:19   #413
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Default Could additional excise on diesel cars be a reality soon?

The debate on implementing additional excise on diesel cars will rage on after it was revealed in the parliament yesterday that 16% of all subsidised diesel is used by private passenger cars.

The petroleum ministry had earlier suggested additional excise duty of Rs 1.7lakh for small diesel cars and Rs 2.55lakh on medium and large diesel cars.

The implied idea here is that fuel subsidies meant for the common man is unfairly benefitting higher income groups as well; that too at the cost of huge losses to oil companies and the government against rising crude prices. According to a TOI report, state-run fuel retailers were paid Rs 83,500 crore by the government for 2012-13 to maintain low diesel price. In addition, public sector oil companies were also coerced to give discounts to fuel retailers worth Rs 55,000 crore.

The massive subsidy on diesel is evident in the widening gap between diesel and petrol prices in India. Currently diesel is priced at Rs 46.17 per litre, almost Rs 29 cheaper than petrol (Mumbai rates).

This has led to abnormally high demand for diesel cars while petrol cars are losing market relevance. To plug this gap and perhaps to balance the losses incurred by oil companies, the petroleum ministry had earlier suggested a one-time duty on diesel passenger cars based on their sizes. The ministry reportedly calculated the duty amounts based on conservative estimates of potential cost benefits to diesel car owners. However, these are significant cost hikes and could have a serious effect on the already sluggish car market, if and when they are implemented.

Currently, both petrol and diesel cars have similar excise duties.

Meanwhile, the finance minister earlier yesterday reiterated the government’s obsession to appease the ‘aam aadmi’ by ruling out any plans to increase diesel price. This comes just two days after the petroleum ministry announced that there will in fact be an increase in diesel price by Rs 4.50 per litre and petrol by Rs 3 per litre from September 2012.

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Old 24th August 2012, 18:18   #414
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Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

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Originally Posted by tsk1979 View Post
I don't think many people realize that the carbon footprint of a a diesel car is much less than that of a similar petrol car.
be problem, esp if India starts dealing in carbon credits and all seriously.

Interesting point. I am sure you have studied the subject of environmental damage from different fuels when you make this statement. Translating it into carbon credits allows for a more objective assessment.

Question is are we refining diesel to that level/grade where we are able to achieve lower environmental pollution by diesel usage vs petrol usage?

If I am not mistaken one of the members had mentioned on a similar thread that the refineries need to make huge capex to gear upto ULS diesel, which they are unable to in the present energy pricing scenario.

It would be quite informative if any of the members has some info on diesel grades, their environmental impact and can share it.
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Old 24th August 2012, 19:00   #415
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Default Re: Govt plans to impose additional levies on diesel cars

another interesting set of figures on the consumption of subsidized diesel, published in news article from economic times.

SUVs, gensets and mobile towers consume over 22% highly subsidized diesel - The Economic Times

Initial results of the first round of field survey (based on 2011-12 diesel consumption):

Passenger Vehicles (Cars, SUVs, etc.) 15.88%
Power Generation [Gen sets] 4.60%

Mobile Towers 1.93%

TOTAL: 22.41

trying to convey that substantial amount of diesel is consumed by consumers who perhaps are not eligible for subsidy.
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Old 24th August 2012, 19:46   #416
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Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

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Originally Posted by RS_DEL View Post
Interesting point. I am sure you have studied the subject of environmental damage from different fuels when you make this statement. Translating it into carbon credits allows for a more objective assessment.

Question is are we refining diesel to that level/grade where we are able to achieve lower environmental pollution by diesel usage vs petrol usage?

If I am not mistaken one of the members had mentioned on a similar thread that the refineries need to make huge capex to gear upto ULS diesel, which they are unable to in the present energy pricing scenario.

It would be quite informative if any of the members has some info on diesel grades, their environmental impact and can share it.
To make Ultra low sulfur diesel three things will be required:
1. the crude intake will need to shift to lower sulfur - which is more expensive than high sulfur.
2. you need to have additional hydro-treater units to remove the sulfur from diesel
3. you need to set up additional sulfur recovery units to dispose the sulfur from the refinery

(4). If you are not willing to go for low sulfur crude, then a lot of bottom distillate up-gradation units are required along with larger (2) & (3)

Additionally, this also brings up other issues - the yield of a low sulfur crude may not match our existing unit's design yield. Which means that constraints on throughput may be reached because of some stream (like diesel, naptha, kero etc) acting like a bottleneck.

One such unit (Hydrotreater = DHDT or sulfur recovery = SRU or auxilliaries) will cost upwards of INR 1000 crores easily.

So the cost of making a refinery ULS compliant may easily become about 5000 crore affair.
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Old 24th August 2012, 20:17   #417
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Default Re: Govt plans to impose additional levies on cigarettes and diesel cars

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Originally Posted by alpha1 View Post
To make Ultra low sulfur diesel three things will be required:
1. the crude intake will need to shift to lower sulfur - which is more expensive than high sulfur.


So the cost of making a refinery ULS compliant may easily become about 5000 crore affair.
Thank you for the explanation.

How on earth can the economics for ULSD work out in a scenario where energy pricing is not based on economic parameters is beyond my comprehension.

WRT TSK's observation Diesel is more environmentally friendly than petrol and hence more economical if carbon credits are factored into the equation- Is this statement valid for currently refined grade of Diesel or is it specific to ULSD ? Perhaps he would like to clarify.

Last edited by RS_DEL : 24th August 2012 at 20:20.
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Old 25th August 2012, 13:10   #418
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Default Re: Govt plans to impose additional levies on diesel cars

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Originally Posted by cs_rajesh View Post
another interesting set of figures on the consumption of subsidized diesel, published in news article from economic times.

SUVs, gensets and mobile towers consume over 22% highly subsidized diesel - The Economic Times

Initial results of the first round of field survey (based on 2011-12 diesel consumption):

Passenger Vehicles (Cars, SUVs, etc.) 15.88%
Power Generation [Gen sets] 4.60%

Mobile Towers 1.93%

TOTAL: 22.41

trying to convey that substantial amount of diesel is consumed by consumers who perhaps are not eligible for subsidy.

Hold On!!! I have a big problem with this statistic. In the 15% number (passenger car and SUV) have they split up the numbers for all the Taxi cabs, the Call center MUV, yellow boarded village jeeps etc? Sorry all such vehicles are still public transport. If we remove them, lets see the percentages then!!!

What about Indian Railways usage? Almost 20%. Who pays for that? Running diesel locos under electric tracks. Hah!!
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Old 25th August 2012, 13:47   #419
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Default Re: Govt plans to impose additional levies on diesel cars

Is there any problem in the Diesel quality available in India?
or is it a myth that all manufacturers have to detune their diesel engines before selling in India or that Honda is so scared that they refuse to introduce diesel cars?
Of the many cars imported in India, are any Diesel?

I think that maybe the Govt. does not want to deregulate diesel prices because they provide such poor quality of diesel fuel. They are justified giving the diesel subsidy. It's just like any other half price shop where damaged goods are sold at lesser rate.
Then again I may be wrong.
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Old 25th August 2012, 16:25   #420
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Default Re: Govt plans to impose additional levies on diesel cars

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Originally Posted by apachelongbow View Post
Hold On!!! I have a big problem with this statistic. In the 15% number (passenger car and SUV) have they split up the numbers for all the Taxi cabs, the Call center MUV, yellow boarded village jeeps etc? Sorry all such vehicles are still public transport. If we remove them, lets see the percentages then!!!

What about Indian Railways usage? Almost 20%. Who pays for that? Running diesel locos under electric tracks. Hah!!
Well, the diesel subsidy is anyway not meant for passenger vehicles, be it yellow board or private vehicles. The subsidy should be for the trucks that carry essential commodities & for the farmers.
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