Petrol price hiked by Rs. 7.50. EDIT - 1st May 2013 : Down by Rs. 3!

[Behemoth]

Thank heavens that we replaced our Civic At in time and now are on the diesel bandwagon. The Civic At was giving a mileage of 8.5 on petrol and was becoming too expensive to run. But it was one of the best handlers and a lot of fun to drive. I wish Honda listens to the Indian customer and gives us a diesel soon with as good handling.
The petrol prices hurt so much as they go directly out of post tax cash in hand so the fuel cost is actually 33% higher that what you see in the bunk. The burden of taxes are really killing the Indian customer. If the god of cars is listening, please give us a car which runs on air or water or something which never runs out!

[oss]

Originally Posted by pratheekkunder

But seriously, my thinking is that if you buy a vehicle you should be able to pay for its fuel.Govt shouldn't pay for it.

Very few country follow this subsidized fuel policy.

Originally Posted by naveenroy

Not an economics student but totally agree with the last 2 sentences. Sadly, we are so used to "cheap" petrol that we hardly understand that it is subsidised and many countries pay a lot more for it.

In the debate on subsidy or no subsidy we often miss out the point that almost half of the price we pay for the fuel at the gas station is made up of duties and varies central & state taxes.

I am all for government removing the subsidies, but they should also bring down the skyhigh duties & taxes on fuel to lessen the impact on common man. Everytime the price goes up the govt's share of the loot keeps going up; they can atleast make it revenue neutral for the govt and make the price increase moderate.

[naveenroy]

Originally Posted by Cowardly Lion

"Petrol Subsidy" again. I think that this issue about the notional loss that the govt suffers on account of petrol has been discussed ad infinitum and the same does not merit any mention here again.

Sorry was just trying to understand. Maybe I need to check elsewhere for such information. Rant on!

[madnish30]

Originally Posted by pratheekkunder

The reason they are not raising price for subsidized fuel(Diesel,Cooking Gas and Kerosene) is because the GOVT dont want the inflation to shoot up drastically.Petrol is considered as a luxury item in this Country, and thats its been increased so much.

But seriously, my thinking is that if you buy a vehicle you should be able to pay for its fuel.Govt shouldn't pay for it.

Very few country follow this subsidized fuel policy.

Oh come on, the hike for Diesel will come sooner or later - of course not so drastic.

What I can see in the near future is waiting for popular Diesel cars doubling and car manufactures will HAVE to sell their petrol car stocks at even bigger discounts and count every petrol engine they make.

Oh, we finally might also see a Diesel vehicle from Honda (they will have to do it to survive in India).

Oh and even more people in the Metro! Oh joy!

[Parthasarathig]

AFAIK shell prices will remain same for sometime. This i noticed during the last hike. What is the government doing to ease the problems.of the common man? Not everyone is going to spend money to buy diesel car. Rather many wont have the extra 2 lakhs to spend on a diesel. Many buy cars and bikes on loans. Firstly there's the emi of the loan add to that the rise in petrol prices.

Be ready to have fuel stolen from your bikes and cars and increase in crimes such as mugging and robberies. Its very obvious. Crime rates are going to rise as the rupee continues to rise against the dollar.

Economic and financial meltdown and come december 21st 2012, whole world is going to meltdown. Having an all petrol garage is turning out to be my biggest nightmare. Planning on buying a cycle soon and becoming the laughing stock of my diesel owning friends how the rising petrol prices forced me into green eco friendly transportation. Soon us petrol heads will have to sell off our cars as works of art in auctions. And in later years our children will be introduced to the petrol engine in museums just as we were introduced to the steam engine.

Soon ferrari and lamborghini and other supercar owners will be asking for the diesel option. Jk.

Regards

[Shivank]

I hear this hike is due to the steep decline of rupee against dollar? Is it true?

If that's the case, then why the poor and its Splendor should compensate, instead of the rich or its gas-guzzling Audi? Beats me!

They could have distributed the hike between both the types of fuel. Why only petrol?

The day is not far when the running cost of a 100cc bike will walk past ahead of that of a diesel Beat/Swift.

[Fiest@DuraTec]

Originally Posted by scopriobharath

These gentlemen must commit that if rupee rises to 46/47, the hike would rolled back

They never would. All these guys are a bunch of robbers. I cannot imagine its true that an oil company was incurring a loss and because of that this fuel hike was needed. I would want to see their balance sheets. They are not NGO's who'll work for the goodwill of the common man and sell fuel for a loss. They won't spare even a single penny.

OT : I heard there was an incident somewhere in Kerala, where a man had filed a case last year against the OIL companies using his RTI, asking them to explain how they were incurring losses. When ordered from the court to present their balance sheets, the oil companies started making lame excuses and demanded time(to alter and prepare probably). The case lost its news over the period of time, but I heard the oil company had to decrease the price a bit to subdue it.

[KiloAlpha]

Originally Posted by man_and_machine

But the biggest hit will be for the 2 wheelers (remember they do not have LDI/VDI options). A 10% raise is a clear hit on their monthly budget. The reason why many drive a 2 wheeler is they can't afford anything more. The run on tight budget, a vast % of tax our fellow citizens use 2 wheelers as their daily bread earning means. This is a sudden impact.

Originally Posted by pratheekkunder

Petrol is considered as a luxury item in this Country, and thats its been increased so much.

This is really what makes me sad and mad. How on earth is petrol a luxury item if majority of petrol use in India is 2-wheelers and A/B segment cars?? The government is hurting the class of people who can least afford this price hike!

Even though fuel is considered price inelastic in economic terms (demand does not drop with increase in price), beyond a certain price point, people will start looking for technological substitutes. I think we are fast approaching this price point with petrol.
Those with cars start using 2-wheelers and buses, and those with 2-wheelers start using buses or electric scooters. Which further drops consumption of petrol. Which means that whatever profit oil companies might be making from petrol, and whatever tax revenue the government might be getting, is beginning to erode.

[vikram_d]

Time to buy a bike or move to Goa.

[madnish30]

It is very unfair to single out owners with bigger cars! And by the way - if there is a price hike in Diesel all essential commodities will also become more expensive! - food, goods, travel - everything! All transportation of everything is done on Diesel vehicles, would you want more expenses just so that Diesel car owners also share your pain!

Originally Posted by Shivank

I hear this hike is due to the steep decline of rupee against dollar? Is it true?

If that's the case, then why the poor and its Splendor should compensate, instead of the rich or its gas-guzzling Audi? Beats me!

They could have distributed the hike between both the types of fuel. Why only petrol?

The day is not far when the running cost of a 100cc bike will walk past ahead of that of a diesel Beat/Swift.

[Fiest@DuraTec]

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[Crazy4.Cars]

Originally Posted by sonic_boom

I'm very sure diesel is next. Enjoy while it lasts LDi/VDi owners

Even if diesel gets decontrolled, the price of diesel will increase by INR 10to 12 per litre maximum. There are many extra taxes on petrol which diesel doesnt have. Check on the internet about it.

Worst Case situation Diesel will go upto INR 57 per litre and petrol is already INR80.5 Per litre from midnight today in bangalore.

All diesel owners are sure to enjoy for the next 2 years atleast for Sure !!!

[sourav21]

Originally Posted by bejoy

Whenever crude price goes down rupee also falls! Weird.

Crude price is hovering $90 currently.

Not weird. Economic sentiment around the world dampens which leads to lower demand for oil. At the same time investors take out their money from places where they do not have confidence - like currently, money is evaporating from India, so the rupee depreciates and oil import bill goes up.

The biggest culprit for the Rupee's depreciation is the government. Because of the fantastic scams it was able to pull out from underneath it's briefs every other night, which, as a consequence, lead to policy paralysis because our distinguished bureaucrats have been scared the hell out of being implicated in some scam. Add to that, the government has left no stone unturned to block investor money. Government avoids the three lettered word "FDI" as if it were a four lettered one.

[Warwithwheels]

Just sold off my three year old i10 sportz for 3.5L and switched over to a diesel hatch. Even after incorporating the marginal increase in my monthly EMI payout, I still save big money!

[flyingkolors]

Originally Posted by naveenroy

Sorry but on an aside - talks are that the 7.50 rupees hike includes a 2.50 rupees "Mamta" rollback included.

That would be precisely the strategy, Naveen. first increase the price by 7.50 rupees and there will be strong reactions/ protests from people, opposition and various other bodies.

After a day or two, government will declare that they will bear a 'part of the loss' and cut the price hike to 5/- and everybody breathe a sigh of relief and be happy that its only 5 rupees hike.

Rupee fall, negative Industrial Output, Rising inflation, Rising fuel prices, dearer train travel, etc. We are heading the right way!