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Old 24th May 2012, 03:41   #151
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Quote:
Originally Posted by Jignesh View Post
Hello,

You have made good point by calculating the effective hike per kilometer, which seems to be marginal.

But the point here is how long will the Petrol Buyers subsidize for Diesel Loss? Middle class is the largest consumer of Petrol & also salaried class is highest payer of taxes.

Also when it comes to Diesel Price hike, to me it seems no political party will dare to speak about this before 2014 elections.

Thanks,
Exactly my thoughts. The price of diesel should be raised. It's not just one hike like this. They have been raising the petrol price far too often and that's what is hurting us. We can't take it any longer.
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Originally Posted by Jignesh View Post
Now this money goes to subsidize Diesel, which is largely consumed by Poor & Rich classes.
Ya but the ratio is something like 1000:1 or something like that. All of us get the benefit from the low diesel price in one way or the other. And the middle class itself consumes more diesel than the so called 'rich class' . I think the no.of Swift diesels is more than the no.of all the diesel luxury cars in India. That is when the Govt. has problems. The no.of diesel cars, especially hatchbacks is increasing at an alarming rate. When more diesel is consumed, more loss for the companies and the solution is to increase the petrol price. Simple! So IMHO it's not the poor or the rich, but a section of the middle-class itself that is causing this.

The new price in my city is around Rs.75.5.

Last edited by fast&furious : 24th May 2012 at 03:42.
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Old 24th May 2012, 04:26   #152
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Thumbs down re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Don't know if i should say thank god i bought a diesel car as you never know when the subsidy will be out of the window , but this is past ridiculous.

While a couple of hundred bucks extra shouldn't matter but there have been far too many hikes we hear off late and this only goes to show people managing these are not confident of what the real prices should be?

A negative impact on the declining rupee or some other global down turn cannot be given as a reason always to extract more cash and i know for sure how it will hurt the real common man who runs on a budget.

So what next, diesel?
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Old 24th May 2012, 07:27   #153
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Quote:
Originally Posted by fast&furious View Post
Ya but the ratio is something like 1000:1 or something like that. All of us get the benefit from the low diesel price in one way or the other. And the middle class itself consumes more diesel than the so called 'rich class' . I think the no.of Swift diesels is more than the no.of all the diesel luxury cars in India. That is when the Govt. has problems. The no.of diesel cars, especially hatchbacks is increasing at an alarming rate. When more diesel is consumed, more loss for the companies and the solution is to increase the petrol price. Simple! So IMHO it's not the poor or the rich, but a section of the middle-class itself that is causing this.
Its not just the diesel. Dont forget the Kerosene & especially LPG, which is standard in ALL households. We should be happy that we are paying high petrol price for the subsidy I get in LPG

in other words, there is no subsidy - just it goes in one name and compensated back in other!

I am waiting for those days when they are going to rationalize the LPG....
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Old 24th May 2012, 07:31   #154
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Angry re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Its sheer torture for petrolheads. This by far is the steepest hike in a decade or so. Fingers crossed that atleast some roll back takes place. The price of petrol in Thane crossed 80 bucks.

I hope and pray that Maharashtra govt gets inspired by its counterpart Goa govt and reduce the taxes atleast, some saving grace for the agonized petrol vehicle owners.

The balance is now going to tilt more towards the diesel cars and govt will sooner or later act to increase the delayed propsed tax.

Why a new thread, shouldn't this be discussed in the
http://www.team-bhp.com/forum/indian...es-thread.html (The Official Fuel Prices Thread)

Last edited by ghodlur : 24th May 2012 at 07:32.
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Old 24th May 2012, 08:23   #155
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Are the Indian people being ripped off by tax greedy governments (central & state) by extortionate taxes on petrol?

Here is a link about the situation in the U.K. Please note Fx rates for converting 1 sterling to INR is 87.75 approx. 1.4 sterling X 87.75 = 122 odd INR.

To me it - the fuel price hike- looks like, this is only the inevitable happening. Sooner than later this will spill over to diesel also. When and in what shape/form I have no clue.
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Old 24th May 2012, 08:34   #156
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Quote:
Originally Posted by RS_DEL View Post
Are the Indian people being ripped off by tax greedy governments (central & state) by extortionate taxes on petrol?

Here is a link about the situation in the U.K. Please note Fx rates for converting 1 sterling to INR is 87.75 approx. 1.4 sterling X 87.75 = 122 odd INR.

To me it - the fuel price hike- looks like, this is only the inevitable happening. Sooner than later this will spill over to diesel also. When and in what shape/form I have no clue.
UK is a much richer country and I am sure people may not be worrying about the price of petrol as much as the common man in India does. IMO, petrol prices in India should not be sky rocketing like this without significant development happening.

After some months, the price of petrol will be somewhat equivalent to that in UK, but will it mean that our people can afford it? Or that India has become as developed as UK?

Last edited by clevermax : 24th May 2012 at 08:36.
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Old 24th May 2012, 09:18   #157
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

I think it would be better if oil companies start a "petrol savings scheme" similiar to gold saving schemes which are given out by the various gold houses. Something like "Invest today and get yourself petrol at the rate which it was on the day you invested!!! No fuel surcharges during redemption!!!". Would be an instant hit, in my opinion

On a serious note, dont know what is going to happen though.
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Old 24th May 2012, 09:18   #158
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Alas, what can I say ? Seems to an 'Italian Job' pulled off by our government on the hapless citizens of the country.

Just 2 or 3 more such hikes and petrol will reach it's maiden century in Bangalore !
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Old 24th May 2012, 09:20   #159
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Quote:
Originally Posted by clevermax View Post
UK is a much richer country and I am sure people may not be worrying about the price of petrol as much as the common man in India does. IMO, petrol prices in India should not be sky rocketing like this without significant development happening.

After some months, the price of petrol will be somewhat equivalent to that in UK, but will it mean that our people can afford it? Or that India has become as developed as UK?

Your questions are rhetorical. Kindly let us stick to facts.

[] Crude oil price is a constant within a narrow band for all refiners irrespective of their nationality.

[] Refining costs are again more or less within a narrow band across refiners. I am referring to operating costs.

[] Cost of capital and financial costs which may need to b amortised will have a larger variation between refiners.

This above factors more or less sum up the cost of petrol/diesel/other products from refiners.

The only other variable is indirect taxes. These vary substantially across locations. My submission was we are not at the top end of spectrum of retail fuel prices. Here is a link which gives that information. This information needs to be verified for it's accuracy - I however do not see any reason why the information posted will be misleading/wrong.

Last edited by RS_DEL : 24th May 2012 at 09:29. Reason: sentence needed correction
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Old 24th May 2012, 09:22   #160
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Petrol prices have been deregulated. Blaming our elected Government is unwarranted for. Some of you have made outright ignorant comments on this hike. Just read about what is happening in Greece for latest example of a global slowdown.

The price is now on par with that of Shell. What does that tell you?

I do not want to write a lengthy post but:
If OUR PSU oil companies fail
-> No petrol income to Government -> Big negative impact on our deficit
-> No backup from banks to import more crude -> No fuel in petrol stations in a month
-> No money to dealers -> All stations close down
-> Pay EMI for a car that will lie idle in your garage

The best that can be done:
* Use petrol consciously. If you cannot afford the new price, reduce usage. The Constitution does not guarantee you favorable petrol price, mind you.
* Look towards alternate sources of fuel - CNG, Electric, Diesel(a bit cheaper for now).
* Austerity with cars - Perhaps we can avoid visiting the race track, or going for a morning drive along the beach, or revving up the engine in traffic, or keeping the engine running at a red light, or taking your SUV to the shop behind your house for groceries.
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Old 24th May 2012, 09:22   #161
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

I think it's about time by the Karnataka government looks at reducing the state tax for Petrol. Karnataka is the only city that has petrol priced above Rs.80. Where other cities increased prices by Rs.7.5, in Karnataka the increase is Rs.8.5 thanks to higher state tax.

I would atleast expect Karnataka govt. to reduce tax to match Delhi or Chennai. I am not even asking for removal of tax like Goa. Atleast reduce the burden for the porr souls of Karnataka.
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Old 24th May 2012, 09:26   #162
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Quote:
Originally Posted by clevermax View Post
UK is a much richer country and I am sure people may not be worrying about the price of petrol as much as the common man in India does. IMO, petrol prices in India should not be sky rocketing like this without significant development happening.

After some months, the price of petrol will be somewhat equivalent to that in UK, but will it mean that our people can afford it? Or that India has become as developed as UK?
The last time I was in the UK, the petrol and diesel prices were the same and they have higher taxes as well. But the people are paid back with the excellent facilities and roads they get.

Here we keep on paying but there is no return whatsoever. The great 'Didi' is spending a bomb on getting the entire city painted blue and some useless lamp posts all over the city. I would have appreciated the higher prices and taxes if the roads were built properly at least.
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Old 24th May 2012, 09:31   #163
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Diesel is the next target.

For years, insane taxes on petrol has been subsidizing the diesel, and therefore, it is clear that one is artificially driving up the demand for diesel. There will very soon come a situation (probably within a few months down the line) when the exponentially increased demand for diesel cannot be subsidized by petrol any more. Just look at the number of diesel cars on the road in the private sector!

Subsidies on diesel was never meant for the private car driving middle or upper middle class, and in recent years the misdirection of these subsidies has just been increasing exponentially.

Talks are already rife about increase in diesel prices for months now, and with the recent petrol hike, the issue is even more in the picture- and the time will come very soon when this hike has to be implemented as well.

Last edited by arindambasu13 : 24th May 2012 at 09:32.
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Old 24th May 2012, 09:43   #164
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

To make sure that our perspective on the issue is correct we must stop saying "subsidizing diesel" and start saying "inadequately taxed diesel". This shift will also result in a shift in our thinking about the issue.
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Old 24th May 2012, 10:15   #165
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

The Irony is that all these taxes on fuels are actually going into corrupt politicians coffers. If there were even one less scam of 80,000 Cr, the Oil budget deficit would be completely wiped out.
Even after so many corruption scandals coming to light, the government is taking no steps to curb corruption and is further burdening the common man with the weight of corrupt governance and bad politics.
In the fuel prices that we pay, more than 70% represents taxes (including the income tax that we have already paid). Is this a fair representation of global oil prices or the price of bad governance that we are paying? Petrol , Diesel , LPG all should be deregulated and privatised, and no money should go to the politician's coffers.
India badly needs a political overhauling - maybe a case to push for in Satyamev Jayate?

Regards,
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