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Old 28th May 2008, 21:17   #31
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Now this is a bit below-the-belt, but I think it is high time non-commercial users of diesel (= private cars, and other diesel vehicles registered as private vehicles, sporting white plates) started sharing the "burden" of the government a bit, in terms of different pricing for diesel fuel.
Anup,

Just the today one of my friend also suggested this, that commercial vehicles should get subsidized fuel & private owners should not. IMHO the problem is how will you track who is commercial user & who is not? I mean most of the fuel pumps dont give receipts unless asked for, on top of this they will have to maintain a record of these two type of categories to which fuel was supplied & how much to each category which means keeping track of each vehicle's fuel bills record.
I am very sure no Fuel pump would like to give some much insight into their business

Besides this might start black marketing of the subsidized Diesel
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Old 28th May 2008, 22:05   #32
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Yes, the black-market and the under-the-counter market will definitely be a problem. And then there will be the commercial users who buy Diesel at the subsidized rates and make a quick buck by selling it to private vehicle-owners.

I really can't think of a totally fool-proof way of implementing differential pricing though. As you indicated, wherever there is a human element involved, there will eventually be a way of going around the system.

I think burdening private diesel vehicles with higher road-tax or such one-time measures which will be pretty tough on the private owners, so that will not really be a viable/reasonable way either

I don't think the usage of petrol is really going to be affected that much even with a price-rise. So demand is definitely not going down just because prices are raised. Which means with the demand for the fuel being mostly the same, prices will continue going up (the market will continue to take it).

I'm sure that over time, the petrol prices will reach a level where there will be no way the Govt can viably increase petrol prices. Then, they would have to look in the direction of the diesel subsidies and the sectoral application of these subsidies to even out the balance. It is just a matter of time, IMHO. Like they say, life will find a way.

OT: I wonder why I'm ranting. Very unlike me
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Old 28th May 2008, 22:56   #33
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Thank God, that this news happed to be wrong.
Now I am relieved. Thank God things didnt go wrong in this manner.
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Old 28th May 2008, 23:07   #34
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The only solution that will work is for govt to do away with duties and subsidies and let the market forces determine the fuel prices. Let the prices change on a daily basis based on market demands.
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Old 28th May 2008, 23:22   #35
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Quote:
Originally Posted by hydrashok View Post
Now this is a bit below-the-belt, but I think it is high time non-commercial users of diesel (= private cars, and other diesel vehicles registered as private vehicles, sporting white plates) started sharing the "burden" of the government a bit, in terms of different pricing for diesel fuel.
I agree as well. The whole idea of subsidizing diesel was to keep the transport cost of food grain and other edibles low. However, the lucrative pricing of diesel is encouraging private buyers to buy diesel vehicles and hence misuse subsidy.

However, this problem can't be fixed at distribution point (petrol pumps). It just won't work and like you said, it will promote black marketing.

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Originally Posted by hydrashok View Post
I think burdening private diesel vehicles with higher road-tax or such one-time measures which will be pretty tough on the private owners, so that will not really be a viable/reasonable way either
If the idea is to discourage the use of diesel for private use, the best way would to be add a diesel tax for all diesel vehicles other than those that will presumably be used to transport food. Yes, this would make the price of the diesel vehicles go higher and hence unattractive to people. This would encourage people to buy more petrol vehicles hence tilt the consumption ratio towards petrol.

Other option ofcourse is to reduce subsidy on diesel but that is unlikely to fly this year and next (considering the election timings)
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Old 29th May 2008, 12:43   #36
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Originally Posted by hondadude View Post
If the idea is to discourage the use of diesel for private use, the best way would to be add a diesel tax for all diesel vehicles other than those that will presumably be used to transport food. Yes, this would make the price of the diesel vehicles go higher and hence unattractive to people. This would encourage people to buy more petrol vehicles hence tilt the consumption ratio towards petrol.

Other option ofcourse is to reduce subsidy on diesel but that is unlikely to fly this year and next (considering the election timings)
Another long run option would be asking manufacturers not to detune engines for "indian conditions" and asking oil cos to provide high quality diesel for these engines. Am sure vehicles demanding high quality diesel but running on lower quality one would eventually break down sooner/often (hopefully both) to keep private users off lower quality diesel (which could be used by trucks etc). Till then add diesel tax for private+smaller diesel vehicles. Tax should be exempted only if it's a black and yellow cab.
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Old 29th May 2008, 14:05   #37
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Since the govt has denied the news so would request the moderators to close the thread.
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Old 29th May 2008, 20:53   #38
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Default International crude price falls

Yesterday I heard that the crude fell from $135 to $128 a barrel. The Indian Govt. hasn't come out with any statement with reference to this..
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Old 29th May 2008, 20:58   #39
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Since this news was false please discuss government decisions on Fuel hike on this thread

Fuel Price Hike - What is Govt Doing (rising oil price burns - What is government Doing here)

Also International Crude Oil Prices can be discussed here

International Crude Oil Price (Oil prices to hit USD 200 a barrel)

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