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Old 12th July 2012, 15:19   #2626
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Default Possible hike on Diesel

NEW DELHI: Government is likely to raise diesel prices after presidential polls on July 19, an oil ministry source said on Thursday, as the government attempts to cut the amount of money it pays out to keep prices lower.

"This has been the thinking for quite some time," that a price rise could come after presidential polls, the source said, requesting anonymity.

"It is inevitable. By how much I can't say," he added. Government heavily subsidises diesel prices as the fuel powers much of the economy, especially in farming and transportation.

The source added that gasoline prices - ostensibly already freed from government controls - were currently not causing any losses for India.

"It is under control, there is volatility both on the rupee front and oil prices (global) at the moment we are not incurring any loss," the source said.

Source: Diesel price hike likely after presidential polls on July 19: Source - The Economic Times

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Old 12th July 2012, 15:25   #2627
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Default Re: The Official Fuel Prices Thread

This is bad news !! Already being ruined by the goverment's tax policy and diesel prices will only contribute to increasing prices for daily commmodities.

Hope the hike is not too much!
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Old 12th July 2012, 16:22   #2628
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Lets see if it really happens. Would represent a tiny step in the right direction. Singapore wholesale diesel prices are about Rs 40 per litre, and transport costs + distribution would add another rs 10 per litre - so even if state governments levied no taxes, diesel should cost Rs 50 per litre for the GOI to break even. Given typical VAT rates of 20%, diesel needs to go to Rs 60 per litre
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Old 12th July 2012, 16:28   #2629
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Default Re: The Official Fuel Prices Thread

Diesel price goes up, be prepared for price rise in almost all commodity/service...
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Old 12th July 2012, 17:41   #2630
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Hayek View Post
Lets see if it really happens. Would represent a tiny step in the right direction. Singapore wholesale diesel prices are about Rs 40 per litre, and transport costs + distribution would add another rs 10 per litre - so even if state governments levied no taxes, diesel should cost Rs 50 per litre for the GOI to break even. Given typical VAT rates of 20%, diesel needs to go to Rs 60 per litre
It would be a big deal if they even get to that price point over the next 12 months with gradual hikes. This would not have been so bad, had they initiated this last year instead of twiddling their thumbs over electoral reverses. Which happened in any case.

It looks like it will be a 5 rupee hike with a couple of rupees rolled back if the allies protest. Anything more would be a surprise.

They will do everything except talk about the tax levied on fuels. And then some oversmart minister travelling in chauffeured AC comfort at taxpayers expense will make sarcastic comments about middle class complaining about diesel hikes, but buying popcorn with a smile.

Quote:
Originally Posted by lohithrao View Post
Diesel price goes up, be prepared for price rise in almost all commodity/service...
yes, diesel price goes up 5%, other prices go up 50%. an opportunity for all middlemen to increase their margins. just my opinion, @others, please dont climb on me over the percentages.
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Old 13th July 2012, 11:05   #2631
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Default Re: The Official Fuel Prices Thread

Another speculation about diesel price hike. When will our Netas learn to be transparent. After all, they are paid our tax money and roam around in cars bought with our tax money. And why the rise after President poll. Do they think that their darling presidential candidate would not be voted if they increase the price before the poll?? Nonsensical politics. IMO, the diesel price hike should have happened in a gradual manner rather than in an abrupt manner. Already the amm aadmi is suffering from inflation in all sides and now this.

If I remember, a 1% rise in diesel price would contribute to a 0.1-0.2% rise in rate of commodity owing to the transportation component in the costing of a product. Ofcourse, God only knows about the indirect price rise imposed by those middlemen.
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Old 13th July 2012, 13:32   #2632
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Default Re: The Official Fuel Prices Thread

I saw a flash once on one of the news channels (Times Now / NDTV 24x7 / CNN-IBN or Headlines Today) this morning. It was not repeated. So let us hope there is some truth in this news. I think they are going broke so may not have many options. This should happen once the Presidential Elections are over.
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Old 13th July 2012, 14:08   #2633
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Shubz
Shell prices are a rupee plus less than than IoC/BP/HP prices @ 76.10/L. It has been lower than the govt prices for sometime now.
In Chennai also, Shell prices are lower that PSU prices, but by much less than a rupee (a few paise IIRC). But they are making the most of even this minor difference, by advertising it near their pumps. For eg, the Shell pump at Eekkaaduthangal has a banner stretched across the back of an old/unused truck that is parked in front of their pump.
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Old 13th July 2012, 14:35   #2634
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Originally Posted by sgiitk View Post
I think they are going broke so may not have many options. This should happen once the Presidential Elections are over.
Isnt this downright stupid? In any case, everyone and their uncles now knows there is going to be a hike. So if it has to affect the presidential elections, it will affect it now also.
so what difference does it make to the elections if the diesel hike comes now or a week later?
Or is it just to prop up specific share prices in the market, something similar to insider trading?
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Old 13th July 2012, 15:19   #2635
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Default Re: The Official Fuel Prices Thread

So the diesel price hike might not go well with UPA partners and they will withdraw their support to the presidential poll?
Stupid people, stupid representatives. Is this just to satisfy the rating agencies? I feel great that even our govt has become like the corporates.
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Old 13th July 2012, 15:29   #2636
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Default Re: The Official Fuel Prices Thread

Is shell refinery in mangalore ? . They have a outlet at kanakapura road also .But its little far from my place . Last time the bunk next to shell had board cheaper than shell ,now its the time for shell to display the board .

They should not increase diesel prices. It will hurt truckers and daily wage transporters immediately .Very dirty politics there are doing .
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Old 13th July 2012, 20:36   #2637
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Quote:
Originally Posted by black12rr
Is shell refinery in mangalore ? . They have a outlet at kanakapura road also .But its little far from my place .
.
AFAIK Shell sources fuel from MRPL for our state. They don't have any refinery.
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Old 15th July 2012, 18:36   #2638
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Default Re: The Official Fuel Prices Thread

What I mentioned ages ago seems to be the one of the current ideas - Rs.5.00 support on Diesel and the rest market driven. The Rs.5 I think will get whittled down gradually.
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Old 18th July 2012, 16:52   #2639
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Default Re: The Official Fuel Prices Thread

With the Presidential election more or less done, here we go

Government looking at LPG subsidy cut, partial decontrol of diesel - The Economic Times
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Old 21st July 2012, 10:14   #2640
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Default Re: The Official Fuel Prices Thread

This time Arvind is also supporting us about the petrol price...



Hope this post is not a forum rule violation.
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