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Old 26th September 2011, 15:52   #2146
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Lightbulb Re: Fuel Price Thread

Its hard to believe but, check out these figures for Mumbai:

Price of Petrol in 2006: 46
Price of Petrol in 2011: 71

Inflation % - 154%

Projected Cost in 2016 - 109.5869565


Price of Diesel in 2006: 38
Price of Diesel in 2011: 46

Inflation % - 121%

Projected Cost in 2016 - 55.68421053

That's why i switched to Diesel !!!

Last edited by GTO : 2nd November 2011 at 13:53. Reason: Guess you meant the 2nd one to be diesel. Corrected
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Old 26th September 2011, 15:54   #2147
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Default Re: Fuel Price Thread

lolllllllllllllllllllz

For sure this ad evokes lots of emotions which cant be expressed on this forum


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Found this on Facebook. How funny is it today?

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Old 27th September 2011, 10:06   #2148
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Default Re: Fuel Price Thread

Well, folks in different countries have different reasons to defend their prices.

In India, the so-called 'economists' say
1. More than 80% of our petroleum is imported, which are paid for in $$$. This results in valuable forex loss (govt. loses it's accumulated $$).
2. The Finance ministry needs money to sustain & subsidize it's programs and of course, diesel.
3. Infrastructure Issues - Everyone agrees that we have too many vehicles on the road and the vehicle demand is only going up !!! Now if the govt. removes all the taxes/duty on petrol, it should come down to Rs.40 per liter? They are scared of what happens to the roads (2-wheeler owners will upgrade to Nano/Alto, small car buyers will upgrade to big ones, etc...)
4. India just does not have the negotiating power with the oil-producers when it comes to prices.


In the US, the same so-called 'economists' say
1. We need more taxes on gasoline to curb vehicle use due to global warming, force manufacturers to produce more fuel-efficient ones, force people to switch to public transport, etc.
2. People in Europe & Asia pay load of taxes on gas.
3. Imported oil is funneling money into the same people whom they are fighting as terrorists.
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Old 27th September 2011, 10:40   #2149
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Default Re: Fuel Price Thread

Here is one possible solution to the problematic fuel pricing:

Why not allow petrol and diesel to be unifomly priced and allow subsidy eligible brackets (public transportation/agriculture/fleet operators) to claim re-imbursement directly from the governement at a later stage by producing Bills/UID/Vehicle registration. This can be implemented in phases so that its impact is slowly felt.

Clauses:

1) Transportation sector:
  • There should be a monthly/weekly limit on diesel purchase for each vehicle.
  • These vehicles should be equipped with a GPS unit (most of them are already equipped) to justify diesel expenditure.
  • The GPS unit should be a tamper proof one
2) Agriculture sector:
  • Should be given alternative energy subsidies (like power subsidy) to compensate for usage of Diesel in pumpsets/generators.
Thoughts/Opinions?
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Old 27th September 2011, 10:54   #2150
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Default Re: Fuel Price Thread

The rate at which petrol prices are increasing, one shouldn't be surprised if 70% of the vehicles being sold turn out to be diesel in 2012 and beyond.

It ll be interesting to see what happens when there ll be a huge demand for diesel from may be 2013/14 onwards. Would they increase diesel prices then ?
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Old 27th September 2011, 13:05   #2151
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Default Re: Fuel Price Thread

This is bound to happen, infact ifeel petrol cars will be off shelf soon. with so much demand on diesel am sure the price of the fuel will shoot up..

not sure wht will people do then

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Originally Posted by karty_83 View Post
The rate at which petrol prices are increasing, one shouldn't be surprised if 70% of the vehicles being sold turn out to be diesel in 2012 and beyond.

It ll be interesting to see what happens when there ll be a huge demand for diesel from may be 2013/14 onwards. Would they increase diesel prices then ?
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Old 27th September 2011, 13:24   #2152
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Default Re: Fuel Price Thread

Quote:
Originally Posted by karty_83 View Post
The rate at which petrol prices are increasing, one shouldn't be surprised if 70% of the vehicles being sold turn out to be diesel in 2012 and beyond.

It ll be interesting to see what happens when there ll be a huge demand for diesel from may be 2013/14 onwards. Would they increase diesel prices then ?
Even now the quantum of diesel used is more than that of petrol. So, the frequent and sizeable increase in the price of petrol is not exclusively dependent on the quantum of it being sold.

Diesel being used for agriculture and transport, it is for now increased in far lesser quantum when compared to petrol. But there has been a talk that the government is considering dual - pricing mechanism where in the non-agriculture, non-transport users have to pay full market price. This sector includes the private cars, malls using diesel gensets, cellular towers etc.

According to various reports, the price of diesel without the so-called subsidies may increase from Rs.5-odd to Rs.7-odd. Even after that the diesel price is lower than that of petrol.

Another factor is lower taxes the diesel attracts. Increasing the taxes may bring diesel at par with petrol. This is a far fetched scenario.

The only thing relevant, without burdening the OMCs and the consumer, is to lower the taxes.
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Old 27th September 2011, 14:07   #2153
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Lightbulb Re: Fuel Price Thread

Here, a sensitive nerve has been touched.

I refer to the strategy to split diesel prices - the current subsidization for commercial vehicles to continue and non-commercial vehicles to pay full-price. I fail to see how the government plans to impose this, but then again it may be my ignorance.

In this time and age of Anna Hazare type thoughts and beliefs, dare I be the one who points out the rampant opportunity for black market diesel? I fail to see how a supplier can not be *ahem* cajoled into providing "commercial rate" diesel - of course, at a remuneration for services rendered which would still be far below the actual "non commercial rate".

As an Endy owner, I might just be *ahem* tempted to take that route...
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Old 27th September 2011, 14:20   #2154
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Quote:
Originally Posted by simplyself View Post

According to various reports, the price of diesel without the so-called subsidies may increase from Rs.5-odd to Rs.7-odd. Even after that the diesel price is lower than that of petrol.

Another factor is lower taxes the diesel attracts. Increasing the taxes may bring diesel at par with petrol. This is a far fetched scenario.

The only thing relevant, without burdening the OMCs and the consumer, is to lower the taxes.
You know, I find that interesting. I know that globally prices of Diesel is higher than Petrol at retail level with the same amount of taxes levied. With the output per barrel of Petrol being higher (despite the refinement costs) if the taxes are normalized on Diesel then it would cost roughly the same if not more than petrol at retail.
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Old 27th September 2011, 15:23   #2155
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Quote:
Originally Posted by simplyself View Post
Diesel being used for agriculture and transport, it is for now increased in far lesser quantum when compared to petrol. But there has been a talk that the government is considering dual - pricing mechanism where in the non-agriculture, non-transport users have to pay full market price. This sector includes the private cars, malls using diesel gensets, cellular towers etc.
I know i ll be hated for making this statement
I would love to see the dual pricing in place. I prefer a petrol car any day and considering my running it makes logical sense too. I am sure there are many out there in my shoes. But we are being compelled to shift to a diesel vehicles owing to rising costs.
Now with diesel prices almost half as that of petrol, it is really unfair on petrol heads. Diesel vehicle owners are taking distinct advantage of pricing system that is in place to aid public transport.

Say for instance, if i were to be in the market today to buy a premium hatch then i prefer a Jazz. But with an unfair fuel pricing system in place i would be pushed to get myself a Swift D or a Polo D against my wish.
Such mind over heart/necessity decisions will only increase in the coming years.

Last edited by karty_83 : 27th September 2011 at 15:24.
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Old 27th September 2011, 15:52   #2156
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Quote:
Originally Posted by karty_83 View Post
Say for instance, if i were to be in the market today to buy a premium hatch then i prefer a Jazz. But with an unfair fuel pricing system in place i would be pushed to get myself a Swift D or a Polo D against my wish.
Such mind over heart/necessity decisions will only increase in the coming years.
+1 - And this is already happening. And I dont see any changes happening for the next two years at least till this govt goes.

IMHO it makes total sense to go for a diesel now.

I have never owned diesel cars before and I think my next car would have to be a diesel.

Cheers
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Old 27th September 2011, 16:34   #2157
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Quote:
Originally Posted by karty_83
Say for instance, if i were to be in the market today to buy a premium hatch then i prefer a Jazz. But with an unfair fuel pricing system in place i would be pushed to get myself a Swift D or a Polo D against my wish.
Such mind over heart/necessity decisions will only increase in the coming years.
It's already happenning. Swift has bookings of 1L of which 80% is diesel. How many of them due we think booked Swift only for it's diesel mill ?

At this petrol increase rate, folks having petrol cars will end up restricting their use to minimum. It might be cheaper and hassle free to rent an indicab for the day than filling up the tank.

Two wheelers will end up being the most affected since they do not have the diesel option.

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Old 27th September 2011, 20:17   #2158
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Default Re: Fuel Price Thread

Quote:
Originally Posted by karty_83 View Post
I know i ll be hated for making this statement
I would love to see the dual pricing in place.

Now with diesel prices almost half as that of petrol, it is really unfair on petrol heads. Diesel vehicle owners are taking distinct advantage of pricing system that is in place to aid public transport.
Some of the diesel car owners may take the advantage of the pricing.

It is amusing to see that a few years ago, diesel was considered dirty and infra dig but in a few years it has become the preferred fuel, thanks to the rapid technological advances.

I believe the policy makers did not foresee that the advances in diesel burning technology would be so great as to make diesel hot. This resulted in increase in number diesel cars being sold which put pressure on administered pricing mechanism/subsidies etc.

Diesel consumption share by passenger cars is quite low. The Govt wouldnt benefit in a very major way. The thinking should be that whether the gradual but well-thought out lifting of subsidy would offset the loss of revenue via lesser quantum of taxes. Even then, even if the subsidy is completely removed, diesel would cost less than petrol.

I wonder what was the FE of Scorpio petrol?

Arent diesel motors cleaner and more fuel efficient?
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Old 13th October 2011, 16:08   #2159
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Default Re: Fuel Price Thread

BTW, did anyone read this today ?
Oil companies BPCL, HPCL, Indian Oil not ready to pass on benefit of falling crude prices to consumers - The Economic Times

Is the freeing up of oil prices just meant to increase the price? These PSU Oil companies are not willing to pass on the benefit of decrease in oil prices to customers

That's daylight cheating and looting.
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Old 17th October 2011, 07:30   #2160
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Default Re: Official tracker of fuel prices. EDIT : Petrol going UP again on 16th September,

The petrol prices are a joke, ATF prices have been reduced but apparently Petrol Prices have not been reduced because of prevailing dollar prices. Looks like time all of us got together to file under RTI the background behind this exercise. Just trawled the net to get the last 6 months data of USD - INR rates and Brent Crude rates, the difference between the highest and lowest value of "Rate per Barrel of Brent Crude (INR)" is -17.46%

The Official Fuel Prices Thread-picture1.png

In comparison to that the retail prices have gone in only one direction, we all know which side. This comparison is done on INR terms which proves quite clearly its a huge sham now.

The OMC's have been keen only in raising prices but never talk of reducing when the rates change be it USD rates or Brent rates.

I suspect the OMC's have decided to extract as much as possible from the Petrol rates to offset losses made in other subsidized products.

For those who want to see my workings I have attached the Excel file, feel free to share your views.
petrol price chart.xls
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