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View Poll Results: Fuel bills constitute what percentage of your overall monthly expenses?
Less than 10%. 107 62.57%
Between 11% and 20% 49 28.65%
Between 21% and 30% 13 7.60%
Between 31% and 40% 2 1.17%
Voters: 171. You may not vote on this poll

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Old 26th May 2012, 15:12   #16
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

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Originally Posted by bluevolt View Post
If you only consider fuel price hike then it doesn't' matter much considering the monthly income of the family BUT finances are affected if you consider all hikes including milk/vegetables/electricity/water etc. The overall bills really pinches hard as inflation is not limited to petrol prices. Not only the prices of petrol affects but also the service costs/engine oils/consumables are now more expensive than before. So overall we are expending more than before including servicing costs/running costs + Car prices are also increased every now and then by manufacturers itself.
What you are saying is true. However, this recent hike has not had that effect. That is because inflation of other products, as you are saying, is due to increased transportation costs and that will happen only when diesel rates are hiked. So fingers crossed, and plus I guess now running my SUV would be cheaper than running my hatch.
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Old 26th May 2012, 16:07   #17
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

The poll results are as expected of an enthusiasts community as Team-BHP.com. However, ask the guy who struggled & bought a Maruti 800 as his first car, using it daily to get to work, and weekends for the family. The impact on his wallet can really pinch.

Also, further to the thread question, petrol cars just lost 10 - 20% of their value overnight in depreciation. That is HUGE!
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Old 26th May 2012, 16:25   #18
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

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Originally Posted by GTO View Post
The poll results are as expected of an enthusiasts community as Team-BHP.com. However, ask the guy who struggled & bought a Maruti 800 as his first car, using it daily to get to work, and weekends for the family. The impact on his wallet can really pinch.
+1,

Along with this imagine the plight of people who bought their two wheelers (Scooters/bikes) on loan and have to think twice before taking their vehicles out. Two wheelers guys can neither think of CNG or diesel.
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Old 26th May 2012, 16:27   #19
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

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Originally Posted by swarnava.m View Post
What you are saying is true. However, this recent hike has not had that effect. That is because inflation of other products, as you are saying, is due to increased transportation costs and that will happen only when diesel rates are hiked.
In the past 6 months i don't think diesel prices have been increased. But every thing the common man buys has seen atleast a 25% increase in price. Lot of things we don't notice because the price is kept constant (like chips packets/ biscuits, etc) but quantity/ weight is being decreased.
IMO everyone just waits for an excuse to increase price, even if it doesn't affect them. The other day an auto-wallah demanded extra money above the usual rate, telling me about the petrol price hike. I paid and only when the auto started leaving i saw an LPG sticker at the back.
Keeping this diesel price as it is, to keep commodities prices under control is not working. The bubble is getting bigger.

Last edited by Daewood : 26th May 2012 at 16:28.
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Old 26th May 2012, 16:59   #20
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Interesting thread- forced me to actually calculate how much I spend on fuel.

I covered about 30,000 km in my cars last year (both petrol). At 12 kpl that is an astounding 2500 litres! Last year's price was around 65 on average so that's about 1.6 lacs spent on fuel alone. This year, even assuming current price of 80 as the average that itself has gone up to 2 lacs a year. That is just ridiculous.
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Old 26th May 2012, 17:00   #21
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Disclaimer: This is a layman speculative view & is definetely not accurate.

So if i were to buy a petrol sedan now
1) I would bargain and get a minimum 1.5 to 2 lakh difference over a diesel car (the normal cost difference of 1 lakh & if i could squeeze some bargains due to petrol cost, i could save minimum 1.5 lakhs)
2) So i would not be paying interest (on EMI) for this 1.5 lakhs which is another saving
3) Assuming the interest (simple not cumulative) + plus principal cost i am saving, i would spend the extra money on filling petrol. This would last minimum 45,000 KM(Assumtions below) which is much more than my average run before selling my car (my avg is pathetically low at 30000 KM).

Fuel Cost Per KM
Petrol 6.7 Rupees per KM (80 Rs / 12 KM Per Liter)
Diesel 2.6 Rupees per KM (45 Rs / 17 Km Per Liter)
Difference per KM 4.0 Rupees per KM

Principal saved 150000
Interest saved for 2 years @ 12% 36000
Total 186000
KM after which i will break even = 46273 (Money saved / Diff in cost Per KM)

5) I need not worry about if Diesel is available in the Fuel station (looking at recent trends)
6) No clatter, No noisy engine (While diesel engines have got better, still not as good as petrol)
7) The cost of diesel maintenance is higher than petrol cars which is another factor to consider.
8) I would get the car delivered within maximum one week as against my diesel car loving friends who while waiting 3-6 months for delivery would get frustrated on finding about a new model or facelift being launched
8) Finally on the re-sale / depreciation value, i am praying that Govt comes to its senses & keeps the Diesel/Petrol divide in control before i have to sell the car so that i get a good deal on the car when i sell it.



ahh well! i am sure there are lots of holes & assumptions which might not make sense to a lot of people but this is what a Die hard petrol head like me can do now! Crib, Dream & Hope for a level playing field in india soon!

Last edited by urajkumar : 26th May 2012 at 17:07.
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Old 26th May 2012, 17:14   #22
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

I have a strict budget of max 1500-2000 rs for both my cars.My monthly spending on fuel does not go beyond 2k at max.Long drives don't happen for me due to work and other constraints.Frankly the fuel price hike keeps me unfazed and really doesn't affect me much.The only change that happens is that i get less quantity of fuel for my price.

I use the Co transport for work as i find it more convenient to sleep and relax in the bus rather than face the traffic and other such tiring things while commuting.

I do however enjoy the occassional trips i take on weekend at times to the office and other places within my 'restricted' budget.I have a Civic and a 800.The Civic is used for longer drives and i manage 12-13 kmpl by driving mostly on highways during weekends etc while the 800 is used for short distance driving ,round the corner trips once a while.

The keyword here is 'budget'.

Last edited by sumeethaldankar : 26th May 2012 at 17:15.
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Old 26th May 2012, 19:12   #23
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

When I bought my first car in 2003, petrol price was around Rs 40. After 9 years, it has doubled to 82. Is that a big deal? Isn't it just keeping up with inflation? Haven't the salaries doubled in a decade?

Lets go a bit further, when I bought my first bike in 1992, petrol price was Rs 18. After 2 decades, it has quadrupled. Big deal?

Quote:
Originally Posted by GTO View Post
The poll results are as expected of an enthusiasts community as Team-BHP.com. However, ask the guy who struggled & bought a Maruti 800 as his first car, using it daily to get to work, and weekends for the family. The impact on his wallet can really pinch.

Also, further to the thread question, petrol cars just lost 10 - 20% of their value overnight in depreciation. That is HUGE!
I think it pinches more to see diesel cars spend half of what petrol cars spend on travel. If anybody thought that fuel prices are going to remain stagnant, when they bought their cars have only themselves to blame. Fossil fuel reserves are only going to diminish, and prices are nly going to go up. It is better to "plan" for that car than cribbing later.

Last edited by civic-sense : 26th May 2012 at 19:42.
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Old 26th May 2012, 19:58   #24
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Quote:
Originally Posted by civic-sense
When I bought my first car in 2003, petrol price was around Rs 40. After 9 years, it has doubled to 82. Is that a big deal? Isn't it just keeping up with inflation? Haven't the salaries doubled in a decade?

Lets go a bit further, when I bought my first bike in 1992, petrol price was Rs 18. After 2 decades, it has quadrupled. Big deal?

I think it pinches more to see diesel cars spend half of what petrol cars spend on travel. If anybody thought that fuel prices are going to remain stagnant, when they bought their cars have only themselves to blame. Fossil fuel reserves are only going to diminish, and prices are nly going to go up. It is better to "plan" for that car than cribbing later.
I bought my first motorcycle in 1992-93. Used to pay around 16-18 for petrol. No worries there! The first m800 came along in 1996-97 and I used to pay some 22-23 Rs for petrol. On a struggling salary in those days I used to be judicious in my car usage. But you are absolutely right about inflation. The value of a Rs 10 note in 1993 is more or less the same as the value of a Rs 100 note in 2012 in terms of what one can buy with it! I shifted to Diesel permanently in 2005, to be able to experience the freedom of more and frequent motoring holidays etc. While I know I am playing the system and using the subsidy, I feel that I am only extracting something back for the huge road taxes and income taxes that I pay and for which I get almost nothing in return otherwise! Having said all this I still dont burn more than around 100 -120 litres a month all inclusive and I do try to reduce my carbon footprint by owning only one vehicle as well as making sure I drop and pickup my wife too, for the office commute. Now with a far more fuel efficient engine in the form of my Yeti, I feel even better than before. I dont indulge in un-necessary driving for small things, preferring to either walk or cycle instead. With all these efforts and considerations I do not feel guilty at all about the way I am managing things, despite my using the Diesel subsidy for what it is worth. One day when price parity is reached I will pay the required price but will still stick with Diesel because I like the torquey luggability that my Diesel engine provides me with.
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Old 26th May 2012, 20:09   #25
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

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Originally Posted by shankar.balan View Post
I shifted to Diesel permanently in 2005, to be able to experience the freedom of more and frequent motoring holidays etc. While I know I am playing the system and using the subsidy, I feel that I am only extracting something back for the huge road taxes and income taxes that I pay and for which I get almost nothing in return otherwise!
Very well, sir. But, we petrol car users pay our taxes too.

Last edited by civic-sense : 26th May 2012 at 20:19.
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Old 26th May 2012, 20:15   #26
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Quote:
Originally Posted by civic-sense

Very well, sir. But, we petrol car users pay our taxes too.
I totally agree, which is one of the reasons I shifted from my petrol gypsy to the diesel bolero in 2005. That choice is always there for you too, to make if you want to!
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Old 26th May 2012, 20:48   #27
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

I did not vote. What % of my disposable income or my total expenses is irrelavent. On an average, I consume 120 liters of petrol a month. This hike means a direct increase of Rs. 900 per month. I can think of a thousand other ways to spend that Rs 900 beneficially, than to spend it on petrol, so the people with swanky SUVs can drive cheaper.

Rajan
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Old 26th May 2012, 20:58   #28
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Sorry but I feel this poll does not reflect the general sentiment of the country at all.

Ask the sales executive who uses a HH Splendor and travels more than 100km per day to sell insurance, credit cards, water purifiers and the like.

It is the "real middle class" who feel the pinch, and they, are in very small numbers on TBHP.
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Old 26th May 2012, 21:10   #29
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Diesel is meant for transport vehicles and hence subsidized in India. If you see the outside world, diesel prices are always higher than petrol.

Our rich and famous to my belief take disadvantage and use high end diesel cars to save their money. Petrol is fuel of middle class who is not so rich yet honest.

Any patriotic person should stop using diesel cars and contribute to the nations wealth. All those using diesel run Mercedes, BMWs, Audis and other such high end cars and SUVs should be ashamed of this fact.

Let diesel be only used in Trucks, Buses, Trains and Taxis. In fact for Taxis and local buses it should be mandatory to use CNG only.
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Old 26th May 2012, 21:26   #30
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

The most heartening thing about this thread is - it show there are folks here who while being dyed in the wool automotive enthusiasts are also cognizant of the constraints of the existence of people in the country who constitute the suffering majority.

Rising energy prices hit everyone. The under/less privileged feel the pinch straight off and hard. The more privileged indirectly due to implicit devaluation of the currency due to inflation.

A simple quantification based on the liters of fuel used is simplistic and does not reflect the true impact as has been detailed by other contributors to this thread.
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