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Old 28th May 2012, 02:04   #286
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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 faustus77 View Post
With these salaries ,very high tax structure and cross subsidizing is it any wonder that in bombay we pay more than 70 per litre(now rs 78)
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Mods.This post is repeated.If it is against the rules please delete.Sorry for the inconvenience.
Now if we are blaming petrol pricing on the salary levels of employees of IOC its very wrong - we can blame policy, we can pin blame on how inefficiently the OMCs are run but blaming the salary paid to the employees of PSUs is stretching things too far . Its a fact that their salaries are nothing compared to what gets paid in the private sector.
If you calculate total salaries as a percentage of the turnover between IOC and RIL (IOC is 114% of RIL) - IOC works out to around 1.2% while RIL is around 0.8% but we should not lose sight of the fact that IOC as a PSU is forced to employ a much larger workforce of 34105 as compared to RIL's 22661 so average pay per employee would be much reduced for IOC as compared to RIL . Even if we compare the pay as compared to other walks of life ( banks, IT, etc ) I feel that its nothing extra-ordinary for us to complain. The figures are as per AR FY 11
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Old 28th May 2012, 12:56   #287
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Default Re: Another Round of Price Hike - Now due to depreciating rupee ?

Then what they heck they do with hedging. I do not think Rupee value gona impact these guys in short run, as they actually cover them under hedging. Not sure why they crip a lot, only reason I can see just to make an increase in price. Heard from dealer yesterday Innova going to cost 20K more.
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Old 28th May 2012, 14:06   #288
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Looks like the diesel/kerosene price hike is not going to happen. Govt is thinking of increase the excise duty for diesel cars again, though.
Source: No price hike for diesel, LPG, kerosene: Jaipal Reddy
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Old 28th May 2012, 14:31   #289
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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 jingaboysr View Post
Looks like the diesel/kerosene price hike is not going to happen. Govt is thinking of increase the excise duty for diesel cars again, though.
Hello,

Yes. I read that piece of news sometime back & my worst fears have come true - Diesel / LPG Prices will not increase before 2014 Elections.

What does this means for Petrol Car Owners?
1. There is only one way that Petrol Prices will go - upwards.
2. Seems Diesel Cars is the only way to go ahead?
3. How long will honest Tax Payers bear the cost of subsidy on Diesel / LPG / Kerosene, a large part of which is consumed by Rich & Upper Class?
4. Will Petrol Cars become out-dated in India & their resale value fall further?
5. Second Hand Diesel Car Market will hit the roof?

Thanks,
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Old 28th May 2012, 14:46   #290
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this is why I'm going to keep paying more and more for petrol, just because an inept administration can't keep it in the black?
horse radish!! !
management change, minister, not MY change, please.

amazing how "at any cost " means at my cost.
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Old 28th May 2012, 14:51   #291
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Default Re: Another Round of Price Hike - Now due to depreciating rupee ?

Quote:
Originally Posted by sam003 View Post
Then what they heck they do with hedging. I do not think Rupee value gona impact these guys in short run, as they actually cover them under hedging. Not sure why they crip a lot, only reason I can see just to make an increase in price. Heard from dealer yesterday Innova going to cost 20K more.
None of the corporates take a 100% hedge, seldom its more than 60-65% of the flows . Given RBI's recent directive which prevents corporates from cancelling and rebooking contracts ( supposedly to reduce speculation) , managing forex fluctuations have become even more difficult. Plus if you are hedging with forwards and the currency depreciates as rapidly as was the case with the rupee, even the hedging costs go up significantly. Thus I don't think thats its an implausible crib .
Price adjustment , if any, would be due to the fact that most of the companies would have done product planning and pricing strategy taking USD/INR at 45-46 max and not at 54-55 , its a hit of 20% !
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Old 28th May 2012, 15:00   #292
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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
3. How long will honest Tax Payers bear the cost of subsidy on Diesel / LPG / Kerosene, a large part of which is consumed by Rich & Upper Class?
With all due respect, where did you get that piece of statistic from? Do you really mean that a majority say at least 50% of the subsidy bill which would be close to around Rs 60000 crores is consumed in subsidies by the rich and upper class. Not that I claim to be in any of that category but this seems to be an exaggeration of sorts specially when kerosene is not used by the rich or upper class at all.

I am not defending subsidies or cross-subsidization but I think we should not be sensationalizing this issue like the media houses any more but demand saner policies towards taxation of these commodities. In my view if the government decides to spend around Rs 10-20000 crores to collaborate with some leading companies to get electric cars as options, companies like Better Place, the "subsidy" bill can be addressed to a greater extent for subsequent years. But then the government takes a hit on tax collections on petrol and diesel as well as the car companies selling petrol or diesel cars who would be raising a hue and cry on declining sales. So if there is a bitter pill, it must be swallowed by the ordinary tax paying citizen till the last drop of blood has been sucked out. Do you think by stopping sales of all diesel cars for private ownership it will either bring down the price of petrol or guarantee you no more increases? I think not. This needs a complete overhaul of the system. Where will these laggards in governments find alternate sources of revenue once the tax collected on diesel or petrol starts reducing due to whatever reason.

As for me, call me selfish if you will, I used a petrol car for so long as I can remember, paid half of the retail prices as taxes that the government collected saying that they will provide better infrastructure, roads, public transport, yada, yada. All I have got is zilch till now. So now I made a choice to stop donating my hard earned money to the government who waste it on foreign trips for their babus. If others want to continue donating to the government by purchasing petrol cars and hefty petrol bills, that is their choice, but it is unfair to blame the diesel car owners for not continuing this useless donation. End rant
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Old 28th May 2012, 15:02   #293
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

All the talk about oil companies making losses. Why does their earning report show otherwise?

Quote:
Indian Oil Corporation on Monday announced a net profit of Rs 12,670.43 crore for the quarter ended March 31, 2012, a 224 percent YoY increase from Rs 3,905.16 crore in the year-ago period.
More details at Indian Oil net profit up 224% at Rs 12,670 crore, beats estimates - The Economic Times

Last edited by windsurfer : 28th May 2012 at 15:03.
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Old 28th May 2012, 16:11   #294
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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 samarjitdhar View Post
Not that I claim to be in any of that category but this seems to be an exaggeration of sorts specially when kerosene is not used by the rich or upper class at all.
Hello Samarjitdhar,

I have already declared in the forum that I have no personal ill-feelings against Diesel Car Owners as they have already paid atleast Rs. 1.25 lacs more than Petrol Cars.

No coming to usage ok subsidized Products by Rich & Upper class please note the following:
1. Why should Volvo Buses run on subsidized Diesel?
2. Why should Mobile towers run on Subsidized Diesel?
3. Why should Shopping malls & other high shops run on subsidized Diesel?
4. Why should Profit making Industries use Sibsidized Diesel?
5. Why should Luxury Cars run on Subsidized Diesel?
6. You know, Keresone is so heavily subsidized in India, that it is smuggled to Bangladesh & Pakistan & other countries.
7. Why should Auto Rixas in small Indian towns run on Petrol mixed with Kerosene?

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Old 28th May 2012, 16:42   #295
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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 Samarjitdhar,

I have already declared in the forum that I have no personal ill-feelings against Diesel Car Owners as they have already paid atleast Rs. 1.25 lacs more than Petrol Cars.
Duly noted, there is absolutely nothing personal. My point was more towards plugging all the holes which are draining our finances causing this amazing need to collect taxes on petrol and diesel.

Quote:
Originally Posted by Jignesh View Post
No coming to usage ok subsidized Products by Rich & Upper class please note the following:
1. Why should Volvo Buses run on subsidized Diesel?
Please note that the number of Volvo buses are minuscule in number. And I have huge huge doubts that the rich and upper class use the Volvo buses to commute. Its the petrol users having run out of options who use Volvo buses for their commutes now after the recent hike in petrol. The not so fortunate ones have to rely on the low floor buses from Tata or Ashok Leyland which too run on diesel. Should we be hitting them more?

Quote:
Originally Posted by Jignesh View Post
2. Why should Mobile towers run on Subsidized Diesel?
And the poor too receive the benefit of it. Imagine the millions of cell phone connections added in the past few years. I would be living in a different country if a majority of those millions were the rich and affluent. I am not blindly supporting it but given the dismal power situation in the country our cell phones would have performed worse than fixed lines of the seventies .

Quote:
Originally Posted by Jignesh View Post
3. Why should Shopping malls & other high shops run on subsidized Diesel?
4. Why should Profit making Industries use Sibsidized Diesel?
As do a lot of businesses in the small scale sector and large farmers. The power generation situation in India has caused this and almost every business is suffering due to the lack of uninterrupted and reliable power. A lot of the industries provide employment for the masses. If for argument's sake these businesses were made to buy very expensive power, their operating models will go for a toss. Actually this particular issue is more complex and its not so easy to wipe off subsidized diesel in one policy stroke.

Quote:
Originally Posted by Jignesh View Post
5. Why should Luxury Cars run on Subsidized Diesel?
Because it is not subsidized. Also diesel, subsidized or not provides better fuel efficiency for such cars. How many luxury cars are we talking about here? A lot of the performance oriented luxury cars run on petrol and those who buy them don't care much about the petrol - diesel price differential. Now if you are talking about cars like Figo or Beat or a Swift then it is a different discussion.

Quote:
Originally Posted by Jignesh View Post
6. You know, Keresone is so heavily subsidized in India, that it is smuggled to Bangladesh & Pakistan & other countries.
Excellent point. But I fail to understand why should we blame the rich or the upper class for a product they do not use even and is being pilfered primarily due to a law and order problem. Kerosene does need to be subsidized heavily because it is the poor man's fuel and we all know how difficult it is for a majority of our citizens to get through life each day. The public distribution system through which it reaches the masses can become a doctorate level subject on corruption.

Quote:
Originally Posted by Jignesh View Post
7. Why should Auto Rixas in small Indian towns run on Petrol mixed with Kerosene?
Because they too refuse to pay high taxes claimed by the government on petrol. And these guys are way too poor to even think about anything else. Its a question of their basic survival.

You have brought out very good points. I was just going through this link Portal setup by government to monitor household LPG refills - The Economic Times where there is a breakup of the subsidies under the heads of LPG, kerosene and diesel. Actually they can get rid of the diesel subsidy totally and ask the states to do away with the taxes they collect. That way everything stays awash and inflation will be saved from being hit by the diesel price rise bullet.
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Old 28th May 2012, 17:00   #296
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Post re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Just read the news on NDTV that government is NOT going to touch Diesel, LPG and Kerosene.

Quote:
Oil minister S Jaipal Reddy on Monday ruled out any price hike in diesel, kerosene and LPG for now. He added that no date has been fixed for a meeting of the Empowered Group of Ministers (EGoM), whose consent is required for any increase in the price of these three regulated commodities.

"We are not touching the prices of diesel, LPG and Kerosene as of now," he said Monday afternoon. He said he had also met with Finance Ministry officials to discuss the impact of a diesel price hike on inflation.
Source: No price hike for diesel, LPG, kerosene: Jaipal Reddy



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Old 28th May 2012, 17:42   #297
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Slight respite for Delhi-ites.

Quote:
The price of petrol in Delhi has been slashed by Rs 1.26 per litre. Delhi CM Sheila Dikshit says VAT has been cut by 20 per cent, which means petrol will now cost Rs 71.48 per litre in Delhi.
Source - Live streaming News sites
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Old 28th May 2012, 17:51   #298
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Thumbs up re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

Good News for Delhi:

Quote:
New Delhi: Petrol price in Delhi will be cheaper by at least Rs. 1.26 a litre as the Delhi government today proposed to cut 20 per cent Value Added Tax (VAT) on petrol prices in the capital to ease the burden on common man.
Source: Delhi government cuts petrol price by Rs 1.26 per litre


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Old 28th May 2012, 18:19   #299
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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 RavenAvi View Post
Slight respite for Delhi-ites.



Source - Live streaming News sites
Quote:
Originally Posted by Irish View Post
Good News for Delhi:

Source: Delhi government cuts petrol price by Rs 1.26 per litre


Cheers!
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Honestly speaking this formality will not do any good - neither for people nor for the current Government. We still are paying Rs 6+ for one liter petrol and the current Government will face trouble from people in 2013 and 2014 elections respectively.

Increase by Rs.7 decrease by Rs. 2 is now a old and boring game.
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Old 28th May 2012, 21:45   #300
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Default re: Petrol price hiked by Rs. 7.50. EDIT 1st March 2013 : Up by Rs. 1.4

I just found the price break up for petrol on IOC site - https://iocl.com/Products/PriceBuild...ldup_of_MS.pdf

This shows that VAT @ 20% as Rs 12.20 per liter. But the news says 20% VAT = Rs 1.26/-. Not sure how this works.
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