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Old 24th May 2012, 11:42   #181
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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
  • 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
May I ask from where you have got this data? Any references or links? There is already this thread http://www.team-bhp.com/forum/indian...-analysis.html (Fuel Pricing in India. Detailed Robbery Analysis.) which has this analysis and breakup in terms of taxes. The taxes also have a state component to it and in some states they are extremely high.

This post http://www.team-bhp.com/forum/indian...ml#post2572530 (Fuel Pricing in India. Detailed Robbery Analysis.) in the same thread has a breakup of the taxes for petrol and diesel sold in Delhi.

To be honest the pricing, taxes and the subsidy story is a huge hocus pocus played on us by the government. Its time we filed an RTI and got a detailed breakup of the actual calculations done for these essential commodities. That way we can keep a track of what and where are the loopholes that need to be plugged.

OMCs pay their employees royally that is for sure. There were some news reports as to the astronomical salaries being paid to the lowest level of staff. There is wastage, black marketing, stealing, you name it and everything happens. I remember a friend from my college whose father was a GM at one of the country's largest refineries telling me that the employees wash their hands in petrol, the wastage is that much.

Last edited by samarjitdhar : 24th May 2012 at 11:57.
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Old 24th May 2012, 11:50   #182
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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 anandjha View Post
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?
Reducing taxes is a different story. Why can't the government set a fixed tax slab. For eg., upto a certain point, tax will be a percentage of the fuel price. When prices increase beyond that mark the tax component should remain fixed. With yesterday's hike, the government adds a rupee or so by means of taxes and state governments add another rupee or 2 to their kitty

This is not at all acceptable. If taxes were a fixed amount, yesterdays price hike would have been around Rs.6.2. God help our country
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Old 24th May 2012, 12:05   #183
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

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Originally Posted by fuel_addict View Post


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.

More than anger (people are used to frequent hikes by now), it is just the complete disregard for the actual reality by the government that astounds me. Car sales figures clearly show that most people buying passenger vehicles are going for diesel vehicles (mid segment upwards, from where diesel cars are actually available). The government cannot continue to ignore this fact, and there has to be some mechanism worked out. Dual pricing may not work perfectly, but de-regulation would definitely be on the cards sooner rather than later. We are far removed from the scenario 4-5 years back when people did not care much about the price differential between diesel and petrol. Now, this differential is a glaring anomaly, and more and more visible to the common man.

Personally, with my monthly running of 700-800 kms max, my break even point still remain above 4-4.5 years, so I would still go for a petrol car. But looking ahead, the dichotomy has to be solved somehow.
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Old 24th May 2012, 12:06   #184
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

The government should increase and fix the prices at Rs 100 a litre once and for all. But should also promise not to increase the prices for atleast next 25 years!

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Old 24th May 2012, 12:07   #185
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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 Vid6639 View Post
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.
+100. If the taxes are reduced to retain the prices near 74, they actually wont lose money to the exchequer since the collection in absolute terms would still be the same.

They need to look at reducing the VAT by 50% from whatever rate it is currently.
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Old 24th May 2012, 12:08   #186
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

But what about further price reduction on Diesel?

You know how diesel is used to power everything in our economy - trains, buses, trucks.
Everything that affects the common man. In this era of slow growth rates, high interest rates, and high inflation, there is no point continuing with high Diesel prices.
Reduce the price and expect miracles!

Idiots. Doesn't the govt know anything about economics?
The moment there is a significant difference between the Price of petrol and Price of diesel - you have already swung EVERYONE towards Diesel.
Which means you are going to earn less - since less petrol will be sold (which is higher priced good), BUT more diesel will be sold (which is lower priced good).

And the India is in bad scenario (economically) because of lack of political will, lack of high quality income, lack of checks an curbs and remedial actions on scams, everything being subsidized (which kills the incentive to increase productivity), lack of transparency and accounting of expenses.

In short a mediocre nation deserves the current scenario.
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Old 24th May 2012, 12:08   #187
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Is there a bandh call by NDA against price hike on May 31 ?

Source : Petrol price: NDA opposes the steep hike, calls for bandh on May 31 - The Economic Times
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Old 24th May 2012, 12:13   #188
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Guess the CNG kit market is going to generate some good business. Tough times for Petrolheads!
There should be a thread on some facts bout CNG and advantages vs disadvantages on installing a kit.

Last edited by TheQuarterMile : 24th May 2012 at 12:20.
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Old 24th May 2012, 12:27   #189
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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 lambuhere1 View Post
Is there a bandh call by NDA against price hike on May 31 ?

Source : Petrol price: NDA opposes the steep hike, calls for bandh on May 31 - The Economic Times
Politics again! if NDA was in power, would they also let the economy tumble with Fuel subsidy going throught the roof! What is more worrying is that in the near future we will continue to have a hung parliment with small players like mamata calling the shots. So petty politics will be at play again leading to gross wastage and heavy deficit for India. The whole things is frustrating me so much! Will India ever become a super power like it is predicted?

Being a petrol head, this news continues to make my blood boil! Complaining does not work! We need a PM with spine & guts to take india forward!

The silver lining is that I think this is best time to get a petrol car since we will get fantastic bargains. My car runs maximum 40000 before i sell it off. So even with this divide, i think i can get a good deal on petrol & save the extra money (hopefully minimum 1.5 to2 lakhs) which i will put in the bank & pay the differential fuel cost which is only monthly!

Last edited by urajkumar : 24th May 2012 at 12:28.
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Old 24th May 2012, 12:27   #190
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

The central government has asked congress ruled state governments to reduce state taxes on the fuel. Keeping fingers crossed for some burden to be eased.
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Old 24th May 2012, 12:47   #191
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

It's impossible for the Govt. to reduce the tax beyond a limit because of the economic condition of the country. How they use it is a different question. It's not possible to raise the diesel price beyond a limit either because of its impact on the already skyhigh prices. LPG's case is also similar. I can see only two solutions which if implemented together can solve the issue.

1)Are you guys aware of the salaries and various other incentives these people at oil companies get? I can tell you it's waay waay more than what an average person with the same qualification would get. Why not bring it down? I'm not talking about the engineers and workers working at oil rigs. They deserve what they get. I'm talking about these guys at 'Indian' oil companies who sit inside AC cabins earning huge amounts as salary + incentives like free fuel etc.

2)Discourage the sales and ownership of diesel cars by increasing tax, insurance prices etc. Ya that has to happen. If not controlled, people will go ahead and buy more and more diesel cars resulting in an increased loss to the Govt. which it will put on the shoulders of poor petrol car owners. That's unfair.

OR

Double pricing of diesel. Corruption is an issue but it's still possible I guess. Might take some time to implement it completely but even with small issues here and there, it will be a huge relief to the Govt.

I very strongly support the dual pricing theory as it allows people to buy the car they wish to own and at the same time is a relief to the Govt. and the oil companies. And I believe it's possible to create a system that has very little scope for corruption.

Any other possible solutions?

Last edited by fast&furious : 24th May 2012 at 12:50.
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Old 24th May 2012, 13:01   #192
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Govt collects tax from us for the oil and then gives the money to oil companies as subsidy.

So, why cant they stop giving subsidy and in turn stop collecting tax. Net will cancel out no?
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Old 24th May 2012, 13:19   #193
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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
Double pricing of diesel.
Any other possible solutions?
I have simple solutions:

A. Why is Diesel avialable at Subzidized Rates to the following:
1. Mobile Tower Generators
2. Luxury Volvo Buses
3. Mall running on Power Generators
4. Pasenger Cars, etc

If Government has some willing it can easily ensure that Price of Diesel sold to above consumers is at par with Petrol Price.

Also I have seen many Restaurants & Caterers using LPG Cylinders? Why should they get LPG at Subsidized Rates?

Thanks,
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Old 24th May 2012, 13:27   #194
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

India is the only country with such a huge diesel and petrol costing difference. I think we need to learn from Bangladesh how to manage this.

All this aam aadmi crap on keeping diesel prices low is total humbug. If other poorer countries like Bangladesh can live with higher prices of diesel why can't we.

Actually speaking now diesel is used mostly by rich farmers who own diesel gensets, fat cat transporters and industrialists who rake in the moolah anyway.

Petrol really has become the lower middle class and middle class fuel with their motorcycles and small cars.

But then the people we elect are such hyprocrits and gutless morons that really nothing can change in this country.

Its amazing that my Aria (@15km/lt) costs me 3Rs a km while my S10 (@10km/lt) cost me almost thrice at 8Rs a km.

So how do we solve this -

This is what the government if there is any needs to do to bring the country back to track -

- Reduce fiscal deficit
- Reduce current deficit
- Increase confidence in economy
- Increase competition in economy

If they follow these four basic principles, automatically everything else will fall in place.

For us, how do we take advantage of current situation -

- Total no brainer buy a diesel or alternative fuel car

Cheers
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Old 24th May 2012, 13:35   #195
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

82 Rs. a litre for petrol in Bangalore now! Ridiculous stuff. My bike is now costlier to run than a Swift Diesel! Added to this, I can listen to music, travel in shelter in the rain, travel with AC on sunny days, experience more safety on my office commute; and I can do all this in under 2000 Rs. per month for a Swift D, while it costs higher to commute by bike!

Going by the rate at which the petrol price has increased, soon the aam aadmi's vehicle will be the Swift D or Beat D, not Splendors or Discovers or CT100s

Quote:
Originally Posted by fast&furious View Post
I very strongly support the dual pricing theory as it allows people to buy the car they wish to own and at the same time is a relief to the Govt. and the oil companies. And I believe it's possible to create a system that has very little scope for corruption.
In my opinion, it is impossible to implement this. If you double-price diesel at say 70 Rs. for private cars and 45 Rs. for trucks, the truck driver will tank up at a bunk for 200 litres, then come out and start selling those 200 litres in black at say 60 Rs. per litre (still making 15 Rs. per litre)! This strategy is not going to work, at least not in India. Else, this could have been implemented long ago.

Last edited by KarthikK : 24th May 2012 at 13:55.
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