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Old 22nd May 2008, 14:58   #16
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Good Day to T-bhpians,

We are lucky that we still have controlled prices for quite a few essential items.The govt and the oil companies have been bearing the brunt all along because of subsidies.
Thats the reason many of the reliance Pumps cannot match the prices offered by the psu oil cos .Most of the reliance outlets have shut down.
We as citizens should not crib as we fully understand the complexity of economics.
Kindly note that the govt cannot afford to go on cutting duties as it also requires money .Cutting duties will only increase deficit.These are hard times and is a global scenario ,not just limited to our country.

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Old 22nd May 2008, 15:06   #17
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With this, even the petrol pumps will start to sell the petrol/diesel in black.
they would demand extra money for the same amount of petrol like 60/ltr.
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Old 22nd May 2008, 15:15   #18
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Originally Posted by leadf00t View Post

Rationing of Fuel.

I canít believe it. Itís high time that the government chalk out a plan to make the fuel prices in line with the international prices. I mean yes that means taking prices to about 100Rs a liter but thatís the way the prices are in reality. There will be a lot of hue and cry and not to talk of inflation. But that is inevitable.

Here in Amsterdam, The Netherlands the price of regular petrol is 1.52 euros that is approx 98 rs per liter.

But because of the subsidy and all other political and bureaucratic "policies" we have managed to keep it around the 55 mark.

But how long can India sustain by accepting losses due to subsidy and due to cheap tricks played by the government to retain their vote banks.

I have one question here?
I assume that the auto LPG is free from subsidy. If the prices of petrol touches say 70 rs will the Auto LPG also increase from say 33 -34 levels to 40 + levels?? Or it will remain in its current price range.
Petroleum subsidies are not vote bank related (since there is not one group affected by this). Its a general thing pertaining to the whole population.

With the fuel subsidies, the inflation is rising and you can just imagine what would happen if they are removed. Taxes are the main culprit. Again what else can you do ? Tax collection is a big problem and this is one way of getting money without affecting the lower sections of society (since they don't drive).

Being in Bengaluru, I want prices to go down to match Delhi or Trivandrum !!
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Old 22nd May 2008, 15:16   #19
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Repeated so many times and repeated again.

Theoretically, oil companies are reimbursed by the Government through oil bonds. However, that is not cash which is required to pay for crude oil. Even oil bonds are not liquid, and are sold at a discount. Thus, if the present policy of low prices continues for much longer, the oil companies and the Govt. may run out of cash to pay for diesel/petrol. Even the fertiliser companies have been facing the same problem (bonds instead of paying for subsidies in cash).
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Old 22nd May 2008, 16:05   #20
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I hope that premium fuels do not fall under this category. I am willing to pay more to get what I want rather than pay less and ultimately not have it at all. Maybe there is future for Reliance outlets.
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Old 29th May 2008, 12:47   #21
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Pumps going dry in Mumbai

Oil firms set for quota, Mumbai petrol pumps go dry

Y'day IOC was saying (in the news) they have cash to import crude only up till Sep. BPCL and other smaller companies are already in trouble as per the news
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