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Old 14th September 2012, 01:31   #841
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by saintsinner View Post
with the amount of flak the government is going to face. they will be forced to roll back. My simple point is that if they are losing money, why don't they cut back on their taxes? oh wait, they can't.. how will they afford their luxuries?
Actually, they have. Excise duty on petrol has been cut by 5.5 Rs/liter.
Not that i think its a good decision.
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Old 14th September 2012, 01:42   #842
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

The much awaited diesel price hike is finally here. Not sure how long the price is going to stick to that. But the loss of 19rs/litre as quoted by IOC and the likes is still 14rs/litre. So, this price hike is only a few drops in the ocean IMO.

I just don't get it. How hard is it to really distinguish a commercial vehicle from non-comm vehicle? Shouldn't diesel and petrol prices be at par for non-commercial vehicles? That way, there's a healthy market for vehicles powered by either.

For a country that's MAJORLY run on 2 wheels, doesn't the deregulation on petrol pinch the "aam aadmi" at least once every 2 months?
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Old 14th September 2012, 02:29   #843
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Finally our government does something it should have done long ago ! The allies may arm twist the govt and ask for a rollback. If they stick to their decision and even if 2-3 rupee hike is what finally sustains it should be good.

This is the only way forward,I don't think increasing duties on diesel cars will help.
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Old 14th September 2012, 04:29   #844
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by mempheS.D View Post
I just don't get it. How hard is it to really distinguish a commercial vehicle from non-comm vehicle? Shouldn't diesel and petrol prices be at par for non-commercial vehicles?

Not very difficult. Just as it's not difficult for one type of vehicle to fill it's tank and the pump and then sell it off outside to the other type - leading to a parallel black marlet.

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Originally Posted by mempheS.D View Post
For a country that's MAJORLY run on 2 wheels, doesn't the deregulation on petrol pinch the "aam aadmi" at least once every 2 months?
The aam aadmi has neither a two wheeler nor a 4 wheeler. He walks or travels by bus or train. I would think that less than 5% of the country owns a two wheeler.

Last edited by carboy : 14th September 2012 at 04:35.
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Old 14th September 2012, 07:42   #845
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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This is the only way forward,I don't think increasing duties on diesel cars will help.
Right on. Now just wait till you go to buy groceries and vegetables from market. And pay the bus fees of the kids. Or for that matter take a taxi.

Indeed this is the only way forward.
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Old 14th September 2012, 07:51   #846
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by antz.bin View Post
Well, if it helps, I had a chat with a few truckers on my recent Leh ride. The guys I talked to told me that the FE of a 22-ton
Taking this fact in consideration, could we redo the math? Since many others here are better than me at this particular calculation, could you please take over?

You think one conversation is enough to provide you with a perspective on the trucking business that is close to reality?

The bulk of the consumer durables, consumables - fresh produce/packaged goods, are ferried on 10 and 6 wheelers. Excepting for the jerks who overload, majority of the truckers stick to mandated weight limits. Why? Overloading is the shortest and fastest way to bankruptcy for any truck owner. Tyre cost shoots up, maintenance shoots up not to mention the traffic cops and RTO crooks who have to be fed all along the length of the national highways.

So please do be kind enough to get some authentic insight into a business before trying your attempts at sarcasm. Maybe then you will be more effective?
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Old 14th September 2012, 09:02   #847
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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The aam aadmi has neither a two wheeler nor a 4 wheeler. He walks or travels by bus or train. I would think that less than 5% of the country owns a two wheeler.
If we have to talk about percentages, then shouldn't that be in terms of Percentage of vehicle users rather than the population itself? Else it will always give a drastically low number.
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Old 14th September 2012, 09:09   #848
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

It is a very tricky situation. Before the hike, everyone believes a hike is justified and inevitable. If not done, would hit the economy. Once done, reactions are O-M-G. This will impact inflation and hit poor (ofcourse, everyone knew this).

Honestly in a coalition scenario prevalent, how would you do it? Hike it by 5 Rs, roll it back by 2-3 Rs. Some coalition partners, forget that they are a part of the government, and not the opposition. They are so used to opposing every thing, that it is inevitable that government will have to use this approach to get things moving. Even it it means take a couple of steps forward, a step back, you still keep inching (if not marching) forward. Isn't this inevitable?
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Old 14th September 2012, 09:16   #849
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Absolutely necessary move. Passenger vehicles were never meant to benefit from diesel subsidies, and looking at the skewered petrol v. diesel car market, this was inevitable. And this is just the beginning since we are set for a future where buyers will, irrespective of requirements, continue to blindly buy diesel cars. And as someone said, Rs. 5 out of a requisite Rs. 19 is just about 25%.

This was always coming, and the kind of massive difference in pricing between diesel and petrol cannot be sustainable even in the short run, forget about in the long term scenario.
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Old 14th September 2012, 09:17   #850
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

@sachinayak; The reaction is to be expected. However, it is pretty mild. The best was Yashwant Sinha who essentially said that if free pricing was not done away with by UPA-I this dramatic increase would not have been required.

However, with QE3 crude prices are expected to rise. Let us see what happens there.
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Old 14th September 2012, 09:56   #851
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by mempheS.D View Post
But the loss of 19rs/litre as quoted by IOC and the likes is still 14rs/litre.
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Originally Posted by carboy View Post
The aam aadmi has neither a two wheeler nor a 4 wheeler. He walks or travels by bus or train. I would think that less than 5% of the country owns a two wheeler.
Importantly, the same aam aadmi fills the loss of Rs 14 faced by oil companies, though he pays indirectly.

The question is whether aam aadmi wants to pay directly for diesel or indirectly. Note that when he pays indirectly, he actually paying for who can afford to pay the full price.
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Old 14th September 2012, 10:17   #852
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by arindambasu13 View Post
Absolutely necessary move. Passenger vehicles were never meant to benefit from diesel subsidies, and looking at the skewered petrol v. diesel car market, this was inevitable. And this is just the beginning since we are set for a future where buyers will, irrespective of requirements, continue to blindly buy diesel cars. And as someone said, Rs. 5 out of a requisite Rs. 19 is just about 25%.

This was always coming, and the kind of massive difference in pricing between diesel and petrol cannot be sustainable even in the short run, forget about in the long term scenario.
Agree that the Price difference between Diesel & Petrol is not really sustainable in the long term, but with a supremely price sensitive market like India where the per capita income ranges between 1100 - 1200 USD's a hike in diesel prices to ground the Diesel car owners is largely a myopic point of view IMO.

India a country of great diversities and even greater divide amongst the rich & the poor needs to have a balance between things. a Rs. 5 hike will definitely hamper the sales of Diesel vehicles, but in the end it may not effect really effect those people who own diesel cars as much as those who dont own any vehicle (let alone a diesel car).

This Govt. totally lacks spine to sustain this Rs. 5 hike & i am pretty sure a day of chaos on the roads with dharnas & morchas and the associated traffic jams would be followed by a roll back of the prices.
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Old 14th September 2012, 10:27   #853
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Finally the govt has bitten the bullet and increased Diesel by Rs.5 per litre. Amidst vehement protests by the didis and the bhaiyyas, I see this being rolled back to an effective 2 Rs. or 3 Rs. increase per litre in the near future.
But, the big question mark is on when will the prices of other commodities go up? Bus fares, taxi fares, essential commodities etc will bear the brunt by at least 10% rise.

And restricting families to 6 LPG cylinders per month?
I saw this interesting statistic on the net on how many cylinders our netas have consumed during this year so far:
Delhi CM=42, Current Vice president=171, Steel Industrialist and MP=369, Minister of State for External Affairs =161, Former aviation minister =41, Uttarakhand CM=83, IPS officer heading Hockey fed=79. And Our Ex-telecom minister "King" while on Tihar tour used up 47 cylinders.
Ms. Animal rights Gandhi got 63 refills in the year, the same number as the CWG fame Tihar resident. Father of the CM of UP consumed 58 refills at this residence in the national capital.
BSP behenji used 45 refills, Rajasthan CM= 45, Mr. Chara ghotala= 43 .

Sorry, didnt mean to drag this into a political debate, but its just not fair that we end up bearing the brunt and the powers in question go scott free.
And 369 cylinders in a year? More than 1 per day by the industrialist who runs 1000s of crores worth of steel business?? Really??

Last edited by hrman : 14th September 2012 at 10:41.
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Old 14th September 2012, 10:41   #854
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by carboy View Post
Not very difficult. Just as it's not difficult for one type of vehicle to fill it's tank and the pump and then sell it off outside to the other type - leading to a parallel black market...
.
.
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The aam aadmi has neither a two wheeler nor a 4 wheeler. He walks or travels by bus or train. I would think that less than 5% of the country owns a two wheeler.
That's not quite convincing.

For eg, my native town is blessed with a Union Territory just about 25kms away. The fuel prices vary in the range of close to 5-8 rs/litre between my town and the UT. It's evident that a black market sustains, but there's nothing that can be done about. It's just the way it is.

Another eg, fuel prices in Bangalore are the highest in the country. With TN bordering at roughly about 25kms, there is a small sizeable market that is already taking advantage of the fuel price difference.

In short, an alternative market sustains already. So, why breed more reasons to eat into the fiscal deficit which would then definitely bring about inflation and reduce growth rate?

Agreed that the percentage that you quote w.r.t to the population of this country is true. But, I speak in ref to the number of private vehicle users.
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Old 14th September 2012, 10:58   #855
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Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Finally they bit the bullet. I hope they stick to the decision and not roll-back.

Today morning we were discussing this during coffee-break and my boss said "They should have increased it by Rs15, not Rs5". Point to note is both his cars (Figo / Fiesta) are diesel and he added that he did not deserve the subsidy. Ofcourse he and most of us here can afford a hike in fuel price and even any accompanying price-hike due to this, but those at the lowest level would be pinched when prices of essentials increase. Ofcourse, like many pointed out some posts earlier, a 12% hike in one of the inputs does not automatically translate to a 12% increase in product prices.

Last edited by supremeBaleno : 14th September 2012 at 11:02.
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