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Old 26th June 2010, 15:43   #1486
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Old 26th June 2010, 18:18   #1487
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Originally Posted by mxx View Post
no 26rs tax per 50/ltr petrol = no subsidy on LPG, kerosene = very very bad govt

bad govt > very very bad govt

Hence, 26rs tax per 50/ltr petrol
A govt relying on cheap populist subsidies is a bad govt.

A lot of the LPG subsidy is used towards people who don't need it.

The average BPL family requires 5 litres of kerosene per month. I think they can be given 150/- p.m. to purchase non-subsidized kerosene, and we eliminate the widespread pilferage problem.

This discussion can be continued here:

http://www.team-bhp.com/forum/indian...ces-india.html (Macroeconomic viewpoint Vs Microeconomic viewpoint - A story of fuel prices in India.)
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Old 26th June 2010, 19:26   #1488
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Quote:
Originally Posted by vnk77 View Post
Not only Reliance, but all the private palyers including shell. As I mentioned earlier it was only Shell who kept on adding more and more outlets even if their sales went down and down. They knew this is going to happen.
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Originally Posted by kri$hna View Post
Yes... i also somehow have this feeling !! what with anil & mukesh joining hands, two wicked minds at work.. we can expect things like this only to happen
Even though I am worried that this fuel hike will make food prices worse which is bad already, the good side of this move will give the private operators a level playing field. This means better quality petrol, correct quantity, a slap on the face , kick in the balls of the govt run highly inefficient oil marketing companies. I just hope that a cartel does not emerge out of this.

Amabani brothers are not business saints but the things they do to make money is good for Indias economy and compatetivens.

Reliance Industries pushes to complete Jamnagar refinery
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Old 26th June 2010, 19:36   #1489
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Hi Friends,

Fuel price deregulated. So I am also thinking whether to cancel my booking and go for diesel because in our country if petrol price is increased by 5/- diesel would be 2-2.50/-.
But then again thought - fuel price includes diesel as well. I believe subsidy is more in diesel than in petrol.
So sooner or later diesel price will also go up once subsidy is reduced and gap between diesel and petrol prices would be less. Is it so? Your opinion please.
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Old 26th June 2010, 21:38   #1490
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Originally Posted by mxx View Post
well it did go down to around $33 per barrel in dec 2008 from around $145 in july 2008, before gradually increasing to current levels of $78.So, it fluctuates up and down, not just up.
I have faith in the americans. I bet they have already started planning the next bubble. So when the bubble bursts along with it comes economic slow down and crashing oil prices. After all, they have been doing it regular 4-5 year cycles.

BTW, it occurred to me that these people who are cribbing about this hike should also know we were not paying high prices when the oil was trading at twice the current prices.
So, this seems like selective amnesia.
Moderate crude prices+rs.60 per litre = bad government
High crude prices+rs.60 per litre = still bad government
??? cant see the logic
Quote:
Originally Posted by mxx View Post
no 26rs tax per 50/ltr petrol = no subsidy on LPG, kerosene = very very bad govt

bad govt > very very bad govt

Hence, 26rs tax per 50/ltr petrol
Diesel & LPG are the favourites of the government as far as regulation of prices & subsidies on price are concerned.

All I need to know is that why only gasoline/petrol is given the step motherly treatment? Are all petrol car users super rich? or should everyone buy a diesel car for daily trips to the grocery store/ for running errands.

Diesel is basically subsidized so as to facilitate the running of commercial vehicles & heavy goods carriers so, why is diesel usage in passenger cars considered less of a wrong than usage of household LPG. I mean, we are banking on subsidies anyway.
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Old 26th June 2010, 21:58   #1491
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Quote:
Originally Posted by AvonA7 View Post
Hi Friends,

Fuel price deregulated. So I am also thinking whether to cancel my booking and go for diesel because in our country if petrol price is increased by 5/- diesel would be 2-2.50/-.
But then again thought - fuel price includes diesel as well. I believe subsidy is more in diesel than in petrol.
So sooner or later diesel price will also go up once subsidy is reduced and gap between diesel and petrol prices would be less. Is it so? Your opinion please.
Quote:
Originally Posted by SafeDrive View Post
I'm actually in two minds about this. While one part of me believes that what the Government has done is correct, the other part is looking at the impact on the monthly budget and cursing for not buying a diesel car. As rightly pointed out, some questions remain:
- will the prices fluctuate daily or will it be periodic?
- will different brands now offer different prices as in developed markets?
I am guessing the next big move by the government would be to crack down on the privately run diesel vehicles.
Expect govt to come with some change to make sure the people's choice is not skewed towards diesel cars, as they still enjoy a bit of subsidy (I am guessing, or is that also fully deregulated).

Quote:
Originally Posted by pulsar56 View Post
I don't think this will lead to better quality of fuel from PSUs except we shift back to Shell and Reliance reopens the closed pumps.
Dont think the lethargic government run retailers (sans BP) will bother to better the quality.
But in effect what can happen is International private players like what shell is might enter into Indian retailing area and finally after decades we will have competition in this sector.
I am expecting Anil Ambani to set up petrol pump chains, similar to Reliance, (now that the no compete deal is off) and more petrol pump cum motels similar to the one reliance has now. In all the major highways.

Last edited by xingamazon : 26th June 2010 at 21:59.
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Old 26th June 2010, 23:18   #1492
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Quote:
I believe subsidy is more in diesel than in petrol.
This is a big misconception. I've seen many people on this board say/assume there is a subsidy on petrol and/or diesel. There is NO subsidy on diesel and petrol. Both are taxed and we are paying more than the market rate for both. Petrol is taxed more than diesel (about 10 Rs / liter more by central govt and additional state govt taxes increase this difference to about Rs 12 per liter.)

Quick reference for all those who are confused on what has subsidy and what does not

Subsidized
LPG: There is Rs 200+ subsidy on each domestic LPG cylinder
Kerosene: There is approx Rs 14 subsidy on each liter of kerosene

Taxed (not subsidized)
Petrol: We pay approx Rs 26 tax when a liter of petrol costs Rs 50 (i.e. when actual price Rs 24/liter)
Diesel: We pay approx Rs 15 tax when a liter of diesel costs Rs 40 (i.e. when actual price Rs 25/liter)

Last edited by echo77 : 26th June 2010 at 23:29.
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Old 27th June 2010, 01:01   #1493
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Quote:
Originally Posted by echo77 View Post
Petrol: We pay approx Rs 26 tax when a liter of petrol costs Rs 50 (i.e. when actual price Rs 24/liter)
Diesel: We pay approx Rs 15 tax when a liter of diesel costs Rs 40 (i.e. when actual price Rs 25/liter)
I am curious to know how / where is the actual cost of Petrol & Diesel found or arrived at - is it common domain knowledge, or is known to 'insiders' alone? Is there any source that we can refer?

(@echo77 - I am not questioning your post, but this question arises in my mind whenever I encounter the actual / taxed pricing of Petrol and Diesel, as I get conflicting info from different sources)
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Old 27th June 2010, 01:10   #1494
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Quote:
Originally Posted by poloman View Post
Can some one explain how the deregulation of petrol prices is going to work. Will price be revised on a daily/weekly/monthly basis? Hoarding, black marketeering, speculative trading every thing is going to happen now.
BJP back in 2002 let PSUs change prices every fortnight. UPA is yet to arrive on a strategy.
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Old 27th June 2010, 02:09   #1495
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Quote:
Originally Posted by ph03n!x View Post
I am curious to know how / where is the actual cost of Petrol & Diesel found or arrived at - is it common domain knowledge, or is known to 'insiders' alone? Is there any source that we can refer?

(@echo77 - I am not questioning your post, but this question arises in my mind whenever I encounter the actual / taxed pricing of Petrol and Diesel, as I get conflicting info from different sources)
my figures are approximate in the current tax regime - just to give a picture
It is common knowledge because the per liter central tax amount (fixed) and state tax (% - different for each state) is known.

Last edited by echo77 : 27th June 2010 at 02:11.
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Old 27th June 2010, 04:58   #1496
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I get the feeling we're going towards a new high in prices now.

Expect Petrol to hit Rs.80-100 soon.

In India all the globalisation has only increased prices, don't see how oil companies are going to be any different.
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Old 27th June 2010, 05:24   #1497
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Quote:
Originally Posted by mwzd View Post
I get the feeling we're going towards a new high in prices now.

Expect Petrol to hit Rs.80-100 soon.

In India all the globalisation has only increased prices, don't see how oil companies are going to be any different.
Well, I guess it's time for some inventive thinking.
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Old 27th June 2010, 12:51   #1498
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Repeating from the Bicycles thread:

The recent fuel price deregulation is another reason to pick a bike (bicycle) up. Keep the driving for the >10km distances, out of city trips etc. For anything within that, cycling is a great, quick, cheap option when alone. Fuel costs are bound to go northwards, and it makes sense to save whatever we can for those times when we really need it/can enjoy it. Sub 20kmph crawls are no fun in cars/motorbikes, but awesome on cycles!
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Old 27th June 2010, 12:53   #1499
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tanked up yesterday- 55.89 Rs per Ltr of the "saada" stuff- ouch that hurts!!
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Old 27th June 2010, 13:12   #1500
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I agree to this in some extend. However, in some cases, it is quite dangerous. In india, we don't have designated bike lanes.

Quote:
Originally Posted by zenx View Post
Repeating from the Bicycles thread:

The recent fuel price deregulation is another reason to pick a bike (bicycle) up. Keep the driving for the >10km distances, out of city trips etc. For anything within that, cycling is a great, quick, cheap option when alone. Fuel costs are bound to go northwards, and it makes sense to save whatever we can for those times when we really need it/can enjoy it. Sub 20kmph crawls are no fun in cars/motorbikes, but awesome on cycles!
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