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Old 23rd May 2008, 14:29   #1
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Default Tank up! Petrol may go up by Rs 10, diesel by Rs 5


FUEL ON FIRE: Petroleum Minister Murli Deora will meet PM with his proposal.

The Petroleum Ministry wants to increase petrol price by Rs 10 per litre and diesel price by Rs 5 per litre. They also want to reduce customs and excise duties to offset the impact of surge in crude oil prices that have touched $135 per barrel.

"The situation is getting to be alarming. We need to stem the rot in the beginning," Petroleum Secretary M S Srinivasan told reporters after a meeting with the heads of state oil companies.

Srinivasan however, said the Cabinet meeting scheduled for Friday would not consider raising fuel prices as the subject needed some more preparation and a note would be moved to the authorities in a day or two.

"We expect a decision in three-four days time,” he said, adding the Ministry was suggesting a combination of price hike and duty cut to lower the projected Rs 2,00,000 crore under-realisation on sale of petrol, diesel, LPG and kerosene.

"The price hike is inevitable," he said but refused to say what quantum of hike the ministry was seeking. The Ministry was seeking a lowering of customs duty on crude from 5 per cent to zero and import duty on petrol and diesel from 7.5 per cent to 2.5 per cent.

Besides, the Ministry was also seeking cut on excise duty on the two products. Petroleum Minister Murli Deora said he had discussed the situation with the Prime Minister Manmohan Singh Thursday evening and will raise the issue again today to seek and early meeting of the Cabinet.

"We are trying to see that some action is taken immediately," Deora said.

Source

Last edited by sabret00the : 23rd May 2008 at 14:31.
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Old 23rd May 2008, 14:32   #2
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but how much and for how long will that tank last.

This was inevitable, we cant expect the oil companies not to increase costs when the barrel prices are touching $135 and no sign of respite.

..thats another thing that I already tanked up yesterday since the fuel lamp started glowing
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Old 23rd May 2008, 14:33   #3
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Ten Rupees!! I really hope the hike isn't that drastic!

Tihs is going to pinch real bad.
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Old 23rd May 2008, 14:36   #4
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Karnataka is amongst the highest EXCISED and TAXED states as far as Fuel is concerned.

The ideal policy for govt to adopt would be as follows according to me:

1. Reduce Import Duties definitely
2. Have a SAME RATE EXCISE AND VAT for FUEL ACROSS ALL INDIAN STATES - after all I do believe we are ONE COUNTRY and it makes NO SENSE to have differential taxation from state to state.
3. What earthly sense is there in allowing UNION TERRITORIES like DELHI, PONDY, MAHE etc to have such a huge difference in the price of FUEL? - I think that since after all, we are one country, we should have parity in pricing in a transparent manner.
4. And definitely we must have a rise in fuel prices - closer to international norms- and there is no reason the govt should be held to ransom by the Truckers lobby. Its a reality and its about time we all accepted it.

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Originally Posted by sabret00the View Post

FUEL ON FIRE: Petroleum Minister Murli Deora will meet PM with his proposal.

The Petroleum Ministry wants to increase petrol price by Rs 10 per litre and diesel price by Rs 5 per litre. They also want to reduce customs and excise duties to offset the impact of surge in crude oil prices that have touched $135 per barrel.

"The situation is getting to be alarming. We need to stem the rot in the beginning," Petroleum Secretary M S Srinivasan told reporters after a meeting with the heads of state oil companies.

Srinivasan however, said the Cabinet meeting scheduled for Friday would not consider raising fuel prices as the subject needed some more preparation and a note would be moved to the authorities in a day or two.

"We expect a decision in three-four days time,” he said, adding the Ministry was suggesting a combination of price hike and duty cut to lower the projected Rs 2,00,000 crore under-realisation on sale of petrol, diesel, LPG and kerosene.

"The price hike is inevitable," he said but refused to say what quantum of hike the ministry was seeking. The Ministry was seeking a lowering of customs duty on crude from 5 per cent to zero and import duty on petrol and diesel from 7.5 per cent to 2.5 per cent.

Besides, the Ministry was also seeking cut on excise duty on the two products. Petroleum Minister Murli Deora said he had discussed the situation with the Prime Minister Manmohan Singh Thursday evening and will raise the issue again today to seek and early meeting of the Cabinet.

"We are trying to see that some action is taken immediately," Deora said.

Source

Last edited by shankar.balan : 23rd May 2008 at 14:37.
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Old 23rd May 2008, 14:40   #5
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No Govt is insane to increase the price drastically by Rs.10, even Rs.5 looks doubtful!

My guess is around Rs.3 for petrol!
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Old 23rd May 2008, 14:42   #6
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I am sure that the prices will not jump so drastically as this will have a very big effect on the inflation figures, which the Govt is anyway desperately trying to control. They might probably increase the price by 3 - 4 Re for Petrol & 1 -2 for Diesel.
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Old 23rd May 2008, 14:44   #7
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this increase in the prices is what the petroleum ministry wants, but the govt will balance it out with the reduction in duties and therefore it will be a lesser increase.
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Old 23rd May 2008, 14:47   #8
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Quote:
Originally Posted by sabret00the View Post

FUEL ON FIRE: Petroleum Minister Murli Deora will meet PM with his proposal.

The Petroleum Ministry wants to increase petrol price by Rs 10 per litre and diesel price by Rs 5 per litre.
Why this is not Rs. 10 for diesel and 5 for petrol. Diesel is more subsidised than petrol and sells 7 times more.

\N
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Old 23rd May 2008, 14:51   #9
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Guys, there is already a thread on this.

http://www.team-bhp.com/forum/indian...5-lt-hike.html (Rediff reports Cabinet mulling Rs.5/lt hike)

Mod's please do the needful.
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Old 23rd May 2008, 14:52   #10
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Quote:
Originally Posted by shankar.balan View Post
Karnataka is amongst the highest EXCISED

Central Excise duty (which applies to petrol) is the same all over the country, except the state excise duties.
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Old 23rd May 2008, 14:55   #11
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all this is fine - this balancing business
but why on earth should there be a system of differential pricing in different states and why should prices be so considerably less in UNION territories?
If we are one country then let there be one system of taxes and duties bringing complete parity in pricing across India first.
We should definitely pay more - though as per ET Online edition the price has fallen from 135 per barrel to 130 - both Singapore and Brent Crude rates.

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Originally Posted by dadu View Post
this increase in the prices is what the petroleum ministry wants, but the govt will balance it out with the reduction in duties and therefore it will be a lesser increase.
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Old 23rd May 2008, 14:56   #12
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Hi All

Please continue your discussions here

http://www.team-bhp.com/forum/indian...5-lt-hike.html (Rediff reports Cabinet mulling Rs.5/lt hike)

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