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Old 26th January 2012, 18:25   #331
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Originally Posted by zaphod
With fuel prices set to rise again and petrol being affected the most isn't it time that the government tried implementing a 2 tier structure for diesel prices such as in the UK ?

In my opinion while diesel should continue to be subsidised for mass transport and carriage of goods , the price of diesel for personal vehicles should be on par with petrol - with the advantage of higher efficiency diesel will still be a viable fuel for those who drive a lot.

I think it's not fair that the advantage of subsidised diesel should be extended to personal vehicles .

So I think the government should implement 2 kinds of diesel - different in colour for checking and try (try being the important word in the Indian context) to ensure that only commercial vehicles have access to diesel at lower prices.

But would public opinion let this happen ? People buy diesel cars just because of the savings in fuel cost ... and the outcry would be huge ...but it needs to be done
Totally agree with you. Currently the subsidy is being enjoyed by a section which should be deterred. Not sure if multi pricing can be implemented in India. Would lead to black marketing for sure. Easy kill will be to further enhance diesel car prices and widen the gap. End of day proud to be a petrol car driver.
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Old 26th January 2012, 18:39   #332
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by joslicx View Post
Well I was in Delhi recently (during last Diwali) and moved around a bit in a govt vehicle that had no A/C so we had windows open and I can tell you it wasnt good! The pollution in Delhi is definitely worse than Bangalore!!
Well may I suggest that it might be due to the Diwali festival? It does get bad around that time. Anyways the point I was trying to make was that the black smoke part is gone now from our roads. That was the part that used to both visually, respiratorly and psychologically used to harm us.

As far as bangalore vs Delhi is concerned, it might be also due to the different weather conditions in the 2 cities. But ofcourse owning to Delhi's massive vehicular population it might be way more then bangalore.
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Old 26th January 2012, 18:46   #333
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

CSE really are like a bunch of people whom we elect. They think (Manmohan and ilk) they are all super brainy and stuff but just cant do something that is logical and practical. And come up with more hair brained ideas which increases more distortions.

You want to reduce pollution. Just do the following

- Get rid of all public / commercial vehicles above 15 years
- Jack up public parking rates
- Remove subsidies from fuel
- Improve public transport

And on a non car segment
- Get mobile companies to stop using diesel for their towers. They need to move to solar. Currently they use 4% of total diesel used in the country. Now where is CSE here and not highlighting this aspect. Just as I said, CSE bunch just no practical logic or common sense.

Cheers
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Old 26th January 2012, 19:18   #334
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by sahakar View Post
You want to reduce pollution. Just do the following

- Get rid of all public / commercial vehicles above 15 years
- Jack up public parking rates
- Remove subsidies from fuel
- Improve public transport
Excellent points! The last one being the most important.

Quote:
Originally Posted by sahakar View Post
Currently they use 4% of total diesel used in the country.
Correction - they use far more than 4%.

Last when I was part of that industry, they were soon to be the 2nd largest consumer of diesel in the country, just after the Railways.

Unfortunately the solar option though a better option for the greater good as well as the concerned companies, is not proving to be a viable option, multiple reasons included.

Last edited by ninjatalli : 26th January 2012 at 19:20.
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Old 26th January 2012, 19:23   #335
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

CSE are a bunch of so and so's. Remember they wanted to ban diesel cars reportedly at the instance of Maruti just as the Indica was about to be launched. Also, all the noise about pesticides in water and soft drinks. They had to to run away with tails between their legs.
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Old 26th January 2012, 23:03   #336
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

does all this noise make the upcoming Mahindra Reva an exciting option? It's quite better looking than the current Reva.
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Old 27th January 2012, 06:55   #337
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

IMO there should be tax subsidies for cars that run on hybrid / electricity. That should make them lucrative. Alternative fuel technologies should have more R&D and govt. should encourage those.

Dual pricing of diesel is not an option. one time tax at time of registration may be implemented based on type of body(hatch/sedan/SUV) and size of engine.
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Old 27th January 2012, 16:12   #338
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

I do not think any vehicle making extensive use of batteries is viable unless subsidised in some for or the other.

Dual pricing is definitely not an option. See what is happening in LPG. The bulk of domestic supply is cannibalised or diverted. I do remember that about a decade ago LPG connections were available for the asking.

Any subsidy distorts the market, and puts a premium on inefficiency. My view is bite the bullet, take the shock once, and then play on an even field.

Now with Aadhar coming on (Chidambaram, MLAs and MPs of one party notwithstanding) it will be easy and cheaper to give the subsidies directly to the needy.
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Old 27th January 2012, 23:34   #339
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

ok honestly, the whole problem with diesel thing is that if government makes separate queue for cars and commercial, people might bribe to get cheaper diesel (black), you cannot regulate until profit margin differs for pump owners.

If they deregulate it then be prepared for strikes and way way higher prices for commodities even the common man would crib, they are taxing cars more. However, i agree public transport needs to be drastically improved in this country even cycle lanes, i am any day ready to bike to work if i have a lane and i know i will reach safe.
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Old 28th January 2012, 11:49   #340
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Rs 80,000 additional tax on diesel cars...proposed!

"diesel car prices would rise substantially shortly. The oil minister on Friday formally proposed to finance minister to slap an additional excise duty of Rs 80,000 on diesel vehicles in the Union Budget, a move that is bound to be opposed by the automotive industry and the department of heavy industries"

Jaipal Reddy wants Rs 80,000 additional tax on diesel cars - The Times of India
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Old 28th January 2012, 12:16   #341
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Like people mentioned earlier, a flat tax is bad. It should be based on the price of the vehicle. Also it should be annual so that the current diesel cars are also included.

I guess this will not cut the ice. Its just their way of scaring some folks away from diesel.
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Old 28th January 2012, 15:14   #342
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

I read noopster's Vento ownership thread. He has covered ~18K km in his Petrol Vento AT and has estimated his fuel costs to be in the region of Rs.1.25L. After reading that, I went through my own fuel costs. My diesel Punto has also covered ~18K km (17847 to be exact) and my fuel cost is just around 49K. That's almost 80K saved right there in just about 18K km and 1.5 years. Of course, comparison between a Vento diesel and noopster's car running in the same city may not be as skewed as this - but still I guess an 80K premium can be recouped in about 2 years of running.
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Old 28th January 2012, 16:00   #343
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Will all this extra tax tam tam deter anyone from buying a diesel car. Put simply, NO.
Apart from bringing in huge revenues to the Central Govt it will only taunt states to levy some sort of extra tax on diesel passenger engines. The 70,000 proposed hike will come in as part of the vehicle loan to those buyers who take a loan. And who do a cash down, well they might have to cough up.
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Old 29th January 2012, 15:32   #344
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by sgiitk View Post
............


My view is bite the bullet, take the shock once, and then play on an even field.


..................

Exactly .That'll have to be done eventually. It's a matter of when (and more importantly, who), not if.

Last edited by Chetan_Rao : 29th January 2012 at 15:36.
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Old 29th January 2012, 17:23   #345
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by StarrySky View Post
I read noopster's Vento ownership thread. He has covered ~18K km in his Petrol Vento AT and has estimated his fuel costs to be in the region of Rs.1.25L. After reading that, I went through my own fuel costs. My diesel Punto has also covered ~18K km (17847 to be exact) and my fuel cost is just around 49K. That's almost 80K saved right there in just about 18K km and 1.5 years. Of course, comparison between a Vento diesel and noopster's car running in the same city may not be as skewed as this - but still I guess an 80K premium can be recouped in about 2 years of running.

Perfectly sensible approach rather than to cry on the tax. Just Imagine the savings again on a bigger car will be more. Again whatever is done for rationalising the pricing they will always have it controlled, anyday our netas need to keep their votebanks happy.
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