Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 12th September 2012, 11:57   #2746
BHPian
 
sarathlal's Avatar
 
Join Date: Apr 2012
Location: Trivandrum
Posts: 965
Thanked: 1,927 Times
Default Re: The Official Fuel Prices Thread

Any idea on why Govt does this subsidy thing?

Govt pays oil companies subsidy to help common people.
Govt takes extra money as taxes from the same people, on sale of the same commodity!

In this vicious cycle, who is helping whom and who is actually losing?

Why is not possible to withdraw subsidy altogether, and thereby the Govt helps itself and oil companies as well because they are free to own the prices.
Then, remove taxes, as Govt donot have the burden of providing subsidy, so that common people also benefit.

I know, in real world economics, the above statements might sound childish, but then, this is all what it all looks like.
sarathlal is offline   Reply With Quote
Old 12th September 2012, 14:58   #2747
BANNED
 
Join Date: Mar 2006
Location: mumbai
Posts: 1,893
Thanked: 1,779 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sarathlal View Post
Any idea on why Govt does this subsidy thing?

Govt pays oil companies subsidy to help common people.
Govt takes extra money as taxes from the same people, on sale of the same commodity!

In this vicious cycle, who is helping whom and who is actually losing?

Why is not possible to withdraw subsidy altogether, and thereby the Govt helps itself and oil companies as well because they are free to own the prices.
Then, remove taxes, as Govt donot have the burden of providing subsidy, so that common people also benefit.

I know, in real world economics, the above statements might sound childish, but then, this is all what it all looks like.

Initial idea on subsidies was floated in mid sixties when govt wanted to wean people away from using wood fires for cooking, considering the fast depleting forests. So LPG/cooking gas and kerosene were subsidized to encourage people to change over to kerosene and cooking gas. Diesel was initially subsidized to encourage farmers to give up bullocks and manual ploughs and adopt the tractor and give a boost to the green revolution.
In the earlier poverty stricken and drought stuck famine and food scarce India these subsidies meant difference between life and death.

What the govt was losing in terms of subsidies, it was gaining in terms of higher taxes on luxury fuel i.e. petrol, aviation fuel and high taxes on cars/bikes and the likes. This entire happy planning went for a toss in the last decade due to rapid growth and increasing in spending power.

With every second Indian either buying a car or a bike and every 10th Indian travelling by air, the subsidy burden far outweighs the revenues earned on avgas or petrol. Hence there is a growing defcit in the govt budget and if this same trend continues we will soon do a Greece.

Taxes are not controlled by the central govt. States fund their own budgets by state taxes and govt has no control in terms of telling them how much to tax. If govt declares fuel as a declared good, then they will have to fork the difference in loss of revenue to each state govt. Very difficult!!
apachelongbow is offline   (5) Thanks Reply With Quote
Old 13th September 2012, 20:11   #2748
BHPian
 
BoneCollector's Avatar
 
Join Date: Apr 2011
Location: MFP
Posts: 739
Thanked: 763 Times
Default Re: Rationalising diesel prices

News Flash on news channels-Diesel prices raised by 5Rs. per liter.Increase was expected but the real shock is LPG cylinders,only 6 cylinders to be given at subsidised rates!

Last edited by BoneCollector : 13th September 2012 at 20:13.
BoneCollector is offline   Reply With Quote
Old 13th September 2012, 20:12   #2749
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,166
Thanked: 2,934 Times
Default

Diesel prices increased by Rs 5. Just saw it on the news. Lets wait if the govt is able to hold on to this or give a roll back after opposition from various political corners.
drmohitg is online now   Reply With Quote
Old 13th September 2012, 20:14   #2750
Senior - BHPian
 
ninjatalli's Avatar
 
Join Date: Jul 2011
Location: NC / BOM
Posts: 1,554
Thanked: 1,087 Times
Default Re: Rationalising diesel prices

And so it begins finally!

Link

Edit: I wonder how long before Didi & others start calling out to roll-back this hike!
ninjatalli is offline   Reply With Quote
Old 13th September 2012, 20:15   #2751
BHPian
 
Join Date: Feb 2012
Location: Bangalore
Posts: 61
Thanked: 119 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by drmohitg View Post
Diesel prices increased by Rs 5. Just saw it on the news. Lets wait if the govt is able to hold on to this or give a roll back after opposition from various political corners.
Hiked by 5 so that it can be later on rolled back to 3.

Also LPG subsidy restricted to 6 cylinders a year.
carbookie is offline   Reply With Quote
Old 13th September 2012, 20:19   #2752
Team-BHP Support
 
moralfibre's Avatar
 
Join Date: Dec 2004
Location: MH-12
Posts: 6,327
Thanked: 5,261 Times
Default Re: The Official Fuel Prices Thread

Finally, diesel prices go up by Rs. 5/-. If I am not mistaken, this is the highest increase ever in diesel prices. Correct me if I am wrong.

Source

Last edited by moralfibre : 13th September 2012 at 20:20.
moralfibre is offline   Reply With Quote
Old 13th September 2012, 20:20   #2753
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,166
Thanked: 2,934 Times
Default

Quote:
Originally Posted by carbookie
Hiked by 5 so that it can be later on rolled back to rs 3.
Well given the current levels of complacency prevalent in the govt, I would say even a 3 Rs hike is quite a bold step. But a step in the right direction.
drmohitg is online now   Reply With Quote
Old 13th September 2012, 20:27   #2754
BHPian
 
nettooran's Avatar
 
Join Date: May 2012
Location: Cochin
Posts: 100
Thanked: 105 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by drmohitg View Post
Diesel prices increased by Rs 5. Just saw it on the news. Lets wait if the govt is able to hold on to this or give a roll back after opposition from various political corners.
Well, Just 2 days ago , there was a decision in Congress core committee that they would not be rising the price of diesel now. . Now we can expect a rise of all commodities.

My neighbor just rushed out with his car to the nearest bunk. No idea how long the queue would be.
nettooran is offline   Reply With Quote
Old 13th September 2012, 20:28   #2755
BHPian
 
Hayek's Avatar
 
Join Date: Jul 2011
Location: Bombay
Posts: 647
Thanked: 1,419 Times
Default

At long last, a tiny step in the right direction. Lets hope they stuck to it. So oil cos lose just Rs 15 per litre. The LPG move is also long overdue.
Hayek is offline   Reply With Quote
Old 13th September 2012, 20:50   #2756
Team-BHP Support
 
moralfibre's Avatar
 
Join Date: Dec 2004
Location: MH-12
Posts: 6,327
Thanked: 5,261 Times
Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by nettooran View Post
My neighbor just rushed out with his car to the nearest bunk. No idea how long the queue would be.

When he returns, do show him this thread. (Ridiculous! Waiting in a petrol pump queue on the eve of a price hike)

I am ok with the Rs. 5/- hike in diesel prices.
moralfibre is offline   Reply With Quote
Old 13th September 2012, 20:52   #2757
Senior - BHPian
 
wilful's Avatar
 
Join Date: Oct 2007
Location: cochin
Posts: 1,022
Thanked: 718 Times
Default Re: The Official Fuel Prices Thread

I wonder what the quantum of rollback (which I think is a dead cert) is going to be.
My guess is that being the 'slog overs' if one may call this final phase of this government, one may see some more politically difficult decisions.
wilful is offline   Reply With Quote
Old 13th September 2012, 21:04   #2758
BHPian
 
Join Date: Aug 2010
Location: Gurgaon
Posts: 118
Thanked: 79 Times
Default Re: The Official Fuel Prices Thread

The same joke continues, albeit this time for diesel. Raise by Rs.5 and then partial rollback after 2 days. And that settles the dust then!!!
I can understand when economists say that its a step in the direction. But with the scams of gigantic proportions that are happening on one side and govt. lamenting the bad economy as reason for these hikes , I feel a sentiment of getting robbed.
headbanger is offline   Reply With Quote
Old 13th September 2012, 21:04   #2759
Senior - BHPian
 
manikjeet's Avatar
 
Join Date: Sep 2006
Location: chandigarh
Posts: 1,605
Thanked: 106 Times
Default Re: The Official Fuel Prices Thread

I think Its a very stupid move by the so called UPA government. This hike will effect each and every commodity. They should have raised it slowly.

A roll back would immediate action needed before the truck unions start a strike
manikjeet is offline   Reply With Quote
Old 13th September 2012, 21:05   #2760
BANNED
 
Join Date: Mar 2006
Location: mumbai
Posts: 1,893
Thanked: 1,779 Times
Default Re: The Official Fuel Prices Thread

Aha! And now our members have started saying 'Finally some sense" and "I am ok with this fuel hike". Friends it not just a hike of Rs 5/liter which you fill in your tanks. This Rs 5 hike means a hike in everything you and I pay for. Wait and watch! See how transport, food, vegetables, goods, resturants, cab services, water tanker services etc etc will flash hike their rates. I estimate about a 15-20% immediate increase in monthy household budgets. With an expected hike of approx 10% on an average, every Indian will pay 10% more to just exist.

Wonderful government and wonderful policies!!! Are these people actually brainless morons or have they become so smug thinking that no matter what, common man will not react!!

PS: On a personal level, this fuel hike doesnot impact me. However I refuse to pay more on all related/unrelated services (almost an extortion) because or esteemed government is powerless to stop this price rise.
apachelongbow is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
BMW to drop prices due to increased localisation. EDIT: New prices announced Aditya The Indian Car Scene 38 10th July 2015 21:19
Have official pioneer HU prices fallen? greenhorn In-Car Entertainment 3 11th January 2010 01:36
Hyundai Cut prices- New detailed prices. harry10 The Indian Car Scene 5 9th December 2008 00:45
Are these good prices for Tata\Fiat vehicles? Corporate Offer Prices sahakar The Indian Car Scene 15 8th July 2008 23:03


All times are GMT +5.5. The time now is 20:00.

Copyright 2000 - 2016, Team-BHP.com
Proudly powered by E2E Networks