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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 25th May 2012, 19:00   #1
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Default Do Petrol Price Hikes Really Affect Your Finances?

I keep track of my monthly expenses in an Excel sheet. And I have noticed that petrol expenses are just about 6% of my overall monthly expenses. Which implies that a 10% hike in petrol prices doesn't affect my finances that much.

What about you? Do you run to the petrol bunk to fill up your gas tank every time petrol prices are hiked? Or do you relax and wonder what the fuss is all about?

Approximately, what percentage of your monthly expenses goes into feeding your four (or two) wheeled horse?

Last edited by smartcat : 25th May 2012 at 19:05.
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Old 25th May 2012, 19:42   #2
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Avg 7% since Jan 2005
Avg 8% for last 12 months
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Old 25th May 2012, 20:32   #3
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

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.

Last edited by bluevolt : 25th May 2012 at 20:33.
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Old 25th May 2012, 20:46   #4
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Wow! It is about 11-12% for me. The distance that I travel and the salary that I receive!! He He He. :-)
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Old 25th May 2012, 22:10   #5
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Overall, i fill about 3-4 full tanks every month as my running is very low. I do not drive on daily basis to office and use company or public transport as much as possible.

Over 3-4 fills post this price rise my monthly outgo on fuel every month will go up by ~1000Rs. Which i accept isn't much.

Real problem starts when by the end of this year i am expecting my daily run to go significantly up and might do (~2k Kms every month) which would mean from 3-4 refills it will go up to ~8+ refills, translating to 2-3K per month. Which to me looks like a decent amount, might not pinch immediatly but if this trend continues then this 3K will soon become 6-7k.
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Old 25th May 2012, 22:23   #6
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Quote:
Originally Posted by smartcat View Post
What about you? Do you run to the petrol bunk to fill up your gas tank every time petrol prices are hiked? Or do you relax and wonder what the fuss is all about?
To be honest, this time I did run. Well, usually those two or three bucks per liter hike means ~100 bucks in a tankfull. I dont usually bother to save that money by spending my time in the queue at the bunk. However this time, it was ~400, which meant - run to the bunk!
Quote:
Approximately, what percentage of your monthly expenses goes into feeding your four (or two) wheeled horse?
Say, about ~15% .

I/family travel a bit (3-5k kms per month), and yes, this hike is definitely gonna pinch.

The ikon is going to stay home longer than ever, and the Jeep is going to go longer distances. Its going to be an endurance test for me each time. :(
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Old 25th May 2012, 22:42   #7
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

To answer your question: yes and no.

I like riding bike more and take car out only wid wifey or family.
So, back on the envelope calculation shows extra amount i will be paying on a tank full, doesnt make much of difference, thats why answer is No. A single price hike doesnt affect budget much , BUT Very frequent price hikes do affect my budget (as it is happening for last 20 dd months), thats why i said Yes.

But for me, the most affect it has is on my perception and thinking. Earlier i never used to think twice before going out at midinite for ice cream, coffee or weeknd outings to malls or just long drives. But now i think twice, calculate distance and petrol consumed in my mind and then decide, one of the reason being increased fuel prices.
Other is traffic

I think having a diesel car helps in first cause.
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Old 25th May 2012, 23:45   #8
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Voted for less then 10%. In fact another option 0-5% may get more granular data.
Since I don't even travel everyday to office for work, I have got rid of my petrol automatic (which I had bought when I was doing 50 kms everyday) and have retained the guzzler Forester. Impact is felt only when I go for an occasional long trip.
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Old 26th May 2012, 01:02   #9
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Driving a car or owning one is not a luxury any more.These days its a neccessity.
I travel roughly around 16kms a day.With the rising rickshaw prices and the traffic conditions amidst the dust,pollution etc its better to travel in the comfort and safety of your own vehicle.
Now with the fuel prices increasing so often its hard to single out a soliditary price hike and which increases only by a few hundred Rupees.(on a full tank of fuel)
For instance,with the recent hike my fuel bills increased to 240rupees additionally.
Which i thought was not an issue.But if you collectively look at the cost of fuel increased over a period of time,then yes it does make a big difference.Then it does start affecting my finances.Its an issue that depends on an each ones thought.
To some this may sound irrelevant.To some it may sound relevent.For now over time i try and plan my trips and also drive in a more efficient fuel conserving manner.Leisurely drives have become less frequent or may be only late nights with friends when traffic is at its bare minimum.
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Old 26th May 2012, 02:54   #10
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

I am surprised at yet another thread when we have exactly similar thread that too with almost similar poll.

http://www.team-bhp.com/forum/indian...ery-month.html (How much do you spend on fuel every month)

There are few more in the same lines which are listed on the bottom of the page under similar threads list.

Anyway my take on the topic:
(Directly) No:
As most people have voted, the monthly expenditure is in 5-15% range so it doesn't affect much.
(Indirectly) YES:
As most of the taxis, autos, two-wheelers run on petrol, it does affect us badly. Secondly as a businessman, I have 4 two-wheelers and an Omni which are extensively used by the staff. So the petrol expense will definitely shoot-up which will affect the overall profitability and would also affect the prices quoted, etc. Also if one uses petrol cautiously and reduces his/her frequency for dining, having ice-cream at midnight, joy rides, etc. won't it affect the overall economy. For having ice-cream worth Rs.100/- one has to spend petrol worth 200/- like scenario. One should also not forget that the hike is 10% on older prices which were hiked by some % of further older prices, so just by ignoring each hike as marginal, we forget the cascading effect.
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Old 26th May 2012, 08:14   #11
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Quote:
Originally Posted by smartcat View Post
What about you? Do you run to the petrol bunk to fill up your gas tank every time petrol prices are hiked? Or do you relax and wonder what the fuss is all about?

Approximately, what percentage of your monthly expenses goes into feeding your four (or two) wheeled horse?
Over the last 2 FYs, my total expenditure - i.e. including fuel, parking, tolls, servicing, PUC, insurance, accessories - on both my car and bike has hovered in the region of 10% of my annual post-tax and pre-invesment cash outflow.

It'll be much lower this FY, because after moving to Gurgaon my car's usage has dropped drastically. Also over the last 3 weeks the car's been grounded because of the sun film issue.

So the recent hike really doesn't move the needle for me, at least in my commute/regular usage.

That said, I would still have to think twice about long drives. Routine monthly expenses are a trickle compared to what goes out during a long drive vacation.

Regards,
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Old 26th May 2012, 11:31   #12
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

Quote:
Originally Posted by carwatcher View Post
I am surprised at yet another thread when we have exactly similar thread that too with almost similar poll.

http://www.team-bhp.com/forum/indian...ery-month.html (How much do you spend on fuel every month)

There are few more in the same lines which are listed on the bottom of the page under similar threads list.
Yes, all the threads are the same, but they are also different!

Fuel costs as a percentage of expenses gives an idea about whether these constant hikes really affects one's lifestyle. I want to know if the logic of fuel price hikes affecting our finances is just a psychological thing (blame it on media and politicians who make it such a big event).

Actually, fuel costs as a percentage of INCOME gives a better idea - but you know - we don't like to talk about our salary/business income.

Other inferences we can probably make:

1) Fuel expenses less than 10% of overall expenses -> Do Nothing. Or perhaps buy an Accord V6.
2) Fuel expenses between 10% - 20% -> Probably should consider buying a diesel car.
3) Fuel expenses greater than 20% -> Probably should consider getting a diesel car, or using a two wheeler over short distances, or consider shifting home close to work or using public transport whenever possible.

Last edited by smartcat : 26th May 2012 at 11:33.
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Old 26th May 2012, 11:39   #13
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Quote:
Originally Posted by smartcat View Post
3) Fuel expenses greater than 20% -> Probably should consider getting a diesel car, or using a two wheeler over short distances, or consider shifting home close to work or using public transport whenever possible.
This is turning into a vicious circle. I know many people in Mumbai who have not bought a car due to lack of parking space and excellent public transport system. IMO that is the best approach.
If you buy a new car and don't use it more then just have a look at cost per km when you decide to sell it.
Media and politicos are bound to sensationalise everything and yet claim they are most patriotic people on earth.
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Old 26th May 2012, 12:19   #14
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

The amount I spend on petrol every month is around 7-8% of my disposable income after utilities & loan EMI's. This hike is affecting me by about Rs.600/month. Which is not making me unduly worried, because my fuel expenses will still be under 10%. But it does spur me on to use the scooter a little more often!
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Old 26th May 2012, 14:51   #15
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Default Re: Do Petrol Price Hikes Really Affect Your Finances?

My petrol expenses are less than 5% of my post tax salary. So one such hike does not impact but many such hikes have had an impact on my petrol expenses but I am not one of those who will rush to the bunk and wait in the endless queue to save some 200-300 bucks. The day when petrol prices were hiked, there were huge queues outside the petrol pumps causing jam even on the express way here in mumbai. Those in queue would have sacrificed at least 1 to 2 hours of time with family for a small saving. No offence meant to people who queued up, this is just my opinion. Now with all these hikes the petrol head in me has also started thinking about whether I should consider diesel as my next car.
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