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Old 24th May 2012, 10:16   #166
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

I am really surprised that they have not raised the diesel & LPG price. This was clear situation where they could have raised it without much backlash from various parties.
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Old 24th May 2012, 10:28   #167
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Some interesting statistics

May 1,2012 Cost of Brent crude was at $124/barrel and then Re was at Rs50/$1

To import 1 barrel of crude = 50 x 124 = Rs 6200


Today Brent crude is at $109/barrel and Rs/$ is Rs56


To import same 1 barrel of crude = 56 x 109 = Rs 6104

Cost price of petrol per litre is Rs 82, following is the break up of cost calculated by the government.
  • Basic Price: Rs 40.28
  • Excise duty: Rs 19.98
  • Education Tax: Rs 0.60
  • Dealer commission: Rs 1.46
  • VAT: Rs 7.66
  • Crude Oil Custom duty: Rs 1.53
  • Petrol Custom: Rs 2.14
  • Transportation Charge: Rs 8.35
Total price: Rs 82

This steep increase wasn't warranted just due to devaluation of INR. The fact that they want to use this as an opportunity to offset "so called earlier losses" is just not done.

I hate the approach of this Govt where we are always trying to fix the so called issue while it would be great to have policies in place that will help the country to grow and move forward.

God save all of us
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Old 24th May 2012, 10:43   #168
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

While its really superb [/sarcasm] that when the oil prices go up, the petrol prices also go up, why doesn't it come down when the oil prices go down? Shouldn't the government mandate that the oil companies apply the current day rate for oil and then provide the consumer with a price that's matching their input costs? Yeah, I know, wishful thinking!
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Old 24th May 2012, 10:46   #169
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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 robimahanta View Post
I guess this is the right time to shift to Doha,Qatar where petrol is still around Rs.15 /litre for all petrolheads
Or Saudi Arabia. Petrol is Rs 7/litre there.

Quote:
Originally Posted by ghodlur View Post

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.
Wishful thinking that. That is the least the Govt. can do but it never will. I have this feeling the 7.5 Rs hike already has some rollback factor built into it. Same old drama like every other time.

Quote:
Originally Posted by arindambasu13 View Post
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.
I understand your sentiment and anger. But any substantial hike in diesel will have cascading effects on costs of other commodities. The best (or worst) the Govt can do is hike diesel prices by 2-3 Rs. They will do it sooner rather than later. Dual pricing structure for diesel vehicles will be impossible to implement.
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Old 24th May 2012, 10:48   #170
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Read this link , to get a insight into how well all this drama is orchestrated.

Petrol price hike: Rupees 1.5 cut in petrol price by June? - The Economic Times

Edit: last two para of the article, sums it up.

Last edited by Fordmanchau : 24th May 2012 at 10:55.
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Old 24th May 2012, 10:52   #171
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

where is this Govt. heading? 82/- a liter; you gotta be kidding me!!

with petrol becoming dearer, most of us will now be referred to as heads; no petrol!
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Old 24th May 2012, 10:56   #172
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

From today, petrol costs Rs82 here in bangalore. Diesel is 45
Soon we will hit 100 and 50, respectively..

Although its very steep, it was long delayed. Assume a Rs 3 hike every qtr and we are at the same prices..
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Old 24th May 2012, 11:04   #173
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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 SedatedDrive View Post
Petrol prices have been deregulated. Blaming our elected Government is unwarranted for. Some of you have made outright ignorant comments on this hike. ...
No cannot agree to this. It is still given a green signal from government/oil ministry. it may not be a official letter head mail indicating a gohead but more of reply to "sirjee/madamji abhi price badhayen kya?". Reasons to support this.
1. Last hike was around Nov'11. Since then crude oil prices have fluctuated, rupee has been loosing consistently. If its deregulated why there has not been any price changes slowly till now? answers in next 2 points
2. Since november there have been multiple elections in various states. price hike was put on hold
3. there were two parliament sessions during this period. the moment session is over the answer come "haan ji. badha dijiye. thoda Mamta factor ko rollback karnekeliye buffer add karen".

Now unfortunately we the common man doesnot get together and do a complete strike like the gold and diamond jwellers and hence we keep on suffering.
These jwellers do the strike and govt. bows down and rolls back the tax on import of gold,diamonds. Govt. should counterbalance the subsidy on items which are of daily necessity(food, petrol, diesel for commute) by taxing on items that are more purchased as an investment(like gold).
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Old 24th May 2012, 11:07   #174
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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 csateesh View Post
May 1,2012 Cost of Brent crude was at $124/barrel and then Re was at Rs50/$1
To import 1 barrel of crude = 50 x 124 = Rs 6200
Today Brent crude is at $109/barrel and Rs/$ is Rs56
To import same 1 barrel of crude = 56 x 109 = Rs 6104
God save all of us
Hello Csateesh,

Very interesting statistics. Thank you for a eye opener.

Yes. Petrol consumers are cheated, looted, etc since long time. But how long will this continue?

I see no end to this in near future. Infact now I am fearing a situation when Petrol Price will be Rs. 100 per liter & Diesel will be Rs. 50 per liter.

Have we made a mistake by buying Petrol Cars?

Thanks,
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Old 24th May 2012, 11:14   #175
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Utter stupidity, I being a Diesel car owner now safe, but i'am sure i ll definetly not be in safer side tomorrow. We are paying 50% as tax (~40 Rs/-)for per litre petrol. what's the govt. thinking?

Every scam nowadays comes with 80,000 crore, 90,000 crore. Govt. not ready to do anything about that.

Its high time to move out of this country.
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Old 24th May 2012, 11:15   #176
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

It was crowded in the petrol bunks yesterday night. Totally sensible.
It is crowded today too - but why? Am I missing something - Is the price hike not effective yet?

Time to buy something like this and pedal / cruise to office in style
Audi e-bike: A bicycle that runs at 80 kmph Photos | Pictures - Yahoo! News India
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Old 24th May 2012, 11:23   #177
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

On a lighter note, just received this sms -

Harbhajan to Dhoni: We lost the match deliberately.
Do you know, the Volkswagen that the winning team is going to receive, will be running on Petrol.

On a positive side, I see this as an opportunity to get even more awesome deals on some great petrol cars.

Last edited by dkaile : 24th May 2012 at 11:28.
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Old 24th May 2012, 11:29   #178
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

For all the people talking about subsidies, here's the breakdown on the petrol price, as per the Indian Oil Website (https://iocl.com/Products/Gasoline.aspx) before the hike came into effect.

Price Buildup of Petrol at Delhi effective 16-05-12

1 C&F (Cost & Freight) Price of Gasoline (Petrol) BS III equivalent $/bbl 124.37
2 Average Exchange rate Rs/$ 53.17
3 Refinery Transfer Price (RTP) on landed cost basis for BS IV Petrol
(Price Paid by the Oil Marketing Companies to Refineries) Rs/Ltr 42.57
4 Price Charged to Dealers (excluding Excise Duty and VAT) Rs/Ltr 38.42
5 Add : Specific Excise Duty @ Rs.14.78/Ltr
(Rs.14.35/ Ltr+ 3% Education cess) Rs/Ltr 14.78
6 Add : Dealer Commission Rs/Ltr 1.50
7 Add : VAT (including VAT on Dealer Commission) applicable for Delhi @
20% Rs/Ltr 10.94
8 Retail Selling Price at Delhi- Rounded off Rs/Ltr 65.64

{RANT BEGINS}
The middle class will be the most hit, given that the Nano driver now pays more money than someone driving a Merc S320 CDI. However, the government doesnt really care because you and I are not the electorate. Votebank politics allow for the government to continue sinking money in money draining schemes, and god forbid, if you ask for some accountability, you'd be labeled anti-poor (or communist/maoist, if you're in west bengal )

Unless the middle class actually stands up and begins voting, all we can do is sit back in our chairs, rant, fume and then gas up at whatever price on the drive back home.

As a joke last night said, with petrol prices rising, it may be wise to put a Viagra tablet in the tank... at least the needle will stay up

{END OF RANT}
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Old 24th May 2012, 11:37   #179
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

I see many people suggesting that govt. reduce taxes. What a wishful thinking!

Think of it this way. If they reduce the tax from where will they get the money for all the scams?
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Old 24th May 2012, 11:38   #180
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Quote:
Originally Posted by the VTEC guy
These jwellers do the strike and govt. bows down and rolls back the tax on import of gold,diamonds.
And unlike them we the common man go out and buy petrol more stupidly than ever at these prices.
If for a day noone goes to the pumps and they have zero sale, the government will be forced to reduce taxes on petrol or atleast take a step in that direction. But they want money in every possible manner. Buy this pay tax. Buy that pay tax etc etc.

Too bad illiteracy is plaguing the country. As long as the percentage of uneducated is more in the country the governments subsequently elected will be no lesser scam artists and are just going to continue their "kleptarchic" rule over india and stashing money abroad. You stare at a ballot paper in a voting booth and feel like which con man do i elect now. Even if we exercise our democratic rights of voting we just end up electing wrong guys as corruption percolates from the grassroot levels in our country.

Lets hope they dont increase prices of diesel even though i dont have any diesel cars. But increasing the diesel price is just going to increase our suffering and burdens and collapse our economy. Everywhere pranab da has been the minister its been a disaster especially the finance division. Come 2014 elections the party members would have emigrated to tax havens with the scam monies.

Regards
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