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


Reply
 
Thread Tools Search this Thread
Old 9th January 2013, 10:36   #1021
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 281 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by mjothi View Post
Wow, this is an eye opener. I am sure the govt is aware of this. Why cant they tax the tobacco products higher?
Increasing the taxes is not the answer to everything. It does not guarantee higher revenues. Cigarettes are already taxed heavily. If cigarettes become so expensive that price differential with neighboring countries become very high, then you will start seeing smuggling of cigarettes into the country and hence revenue through taxes will start becoming lower.
carboy is online now   Reply With Quote
Old 9th January 2013, 11:34   #1022
Senior - BHPian
 
Jignesh's Avatar
 
Join Date: Dec 2011
Location: Eindhoven, NL
Posts: 1,603
Thanked: 933 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Hello,

Much is been said about sibsidized Diesel used by passenger Car & I will not get in to the debate again.

I just read somewhere that Mobile Towers consume approx Two Billion Liters of Diesel every year. Going by the current growth in mobile services in India, this consumtion is expected to rise to 3.5 Billion Liter per year by year 2020. (Source - http://www.business-standard.com/ind...bill/186818/on)

Now 2 Billion Liters is approx 3.5% of total Diesel consumed in India & I feel mobiles companies should pay for Diesel at market rates & should be entitled for subsidized diesel. This is help in reducing the subsidy burden on Diesel to a huge extent.

Now, given the low prices of Mobile service in India, I think even if Mobile companies pass on this increased burden to Customers the voice / data rates will increase maximum by 10% which probably most of people in India can easily live with.

Thanks,
Jignesh is offline   Reply With Quote
Old 9th January 2013, 11:54   #1023
Team-BHP Support
 
tsk1979's Avatar
 
Join Date: Feb 2005
Location: New Delhi
Posts: 22,953
Thanked: 15,638 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

The entire thread is based on the false argument that petroleum products are subsidized.
They are not subsidized.
Petro sector contributes 4 times the amount to govt as it gets back in subsidy
56000 crores from sector to govt
15000 subsidy from govt to the sector(including bonds)

But the media know how idiotic the middle class is and then feeds this cock and bull story
tsk1979 is offline   (4) Thanks Reply With Quote
Old 9th January 2013, 12:03   #1024
Senior - BHPian
 
mjothi's Avatar
 
Join Date: Dec 2007
Location: Bangalore
Posts: 3,252
Thanked: 216 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by carboy View Post
Increasing the taxes is not the answer to everything. It does not guarantee higher revenues. Cigarettes are already taxed heavily. If cigarettes become so expensive that price differential with neighboring countries become very high, then you will start seeing smuggling of cigarettes into the country and hence revenue through taxes will start becoming lower.
That's exactly what I meant. Let the consumption of tobacco products reduce. A good govt. should not depend on such revenues. That would be 2 birds in one stone - Why to keep low tax and get people involved, then spent extra money in the medical treatments? Again, the treatments for those are also our Tax money.
mjothi is offline   Reply With Quote
Old 9th January 2013, 12:08   #1025
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 281 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by tsk1979 View Post
The entire thread is based on the false argument that petroleum products are subsidized.
They are not subsidized.
This is true. However this misses the fact that petrol for personal driving is taxed more than diesel for personal driving - I don't see a reason why this should be so. This has to be fixed. It can be fixed by either taxing diesel more or taxing petrol less or by taxing a diesel car.


Quote:
Originally Posted by mjothi View Post
That's exactly what I meant. Let the consumption of tobacco products reduce.
Beyond a certain point, it doesn't reduce. The revenue reduces but the consumption doesn't. I think we have reached that point.

Quote:
Originally Posted by mjothi View Post
A good govt. should not depend on such revenues. That would be 2 birds in one stone - Why to keep low tax and get people involved, then spent extra money in the medical treatments? Again, the treatments for those are also our Tax money.
What makes you think the tax on cigarettes is low?

Last edited by carboy : 9th January 2013 at 12:13.
carboy is online now   (1) Thanks Reply With Quote
Old 9th January 2013, 12:11   #1026
Senior - BHPian
 
srishiva's Avatar
 
Join Date: Nov 2006
Location: Bengaluru
Posts: 3,572
Thanked: 814 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by tsk1979 View Post
The entire thread is based on the false argument that petroleum products are subsidized.
They are not subsidized.
Petro sector contributes 4 times the amount to govt as it gets back in subsidy
56000 crores from sector to govt
15000 subsidy from govt to the sector(including bonds)

But the media know how idiotic the middle class is and then feeds this cock and bull story
15K subsidy is still an issue. Especially when we have fiscal deficit. This much amount can be transferred to some people (and all middlemen) on some program pretext and elections can be won?
srishiva is offline   Reply With Quote
Old 9th January 2013, 21:35   #1027
BHPian
 
drsingh's Avatar
 
Join Date: Mar 2011
Location: Ludhiana
Posts: 682
Thanked: 466 Times
Default

^^^^^ the subsidy pay out by the government is less than the profits it makes from dividends it receives from oil marketing companies...!
drsingh is offline   (3) Thanks Reply With Quote
Old 10th January 2013, 13:14   #1028
BHPian
 
windsurfer's Avatar
 
Join Date: May 2006
Location: Dundee, UK
Posts: 513
Thanked: 25 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Seems like there will be a decision on Diesel and LPG today.

Source : http://economictimes.indiatimes.com/...eshow/17961645.
windsurfer is offline   Reply With Quote
Old 10th January 2013, 19:58   #1029
Senior - BHPian
 
wilful's Avatar
 
Join Date: Oct 2007
Location: cochin
Posts: 1,120
Thanked: 862 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by windsurfer View Post
Seems like there will be a decision on Diesel and LPG today.

Source : http://economictimes.indiatimes.com/...eshow/17961645.
This link doesn't seem to work. I just saw something similar on IBN - seems they are planning a Rs.4.50 hike on diesel either this week or next week.
Here is the link -
http://ibnlive.in.com/news/govt-set-.../314942-3.html

Better times for petrol cars I guess.
wilful is offline   Reply With Quote
Old 16th January 2013, 13:52   #1030
BHPian
 
Join Date: Nov 2011
Location: Bangalore
Posts: 78
Thanked: 24 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

The government is expected to bite the bullet on the crucial decision of hiking excise duty on diesel vehicles in this year's budget.http://economictimes.indiatimes.com/...w/18045272.cms

A bad news if it is true
vivekkp is offline   Reply With Quote
Old 16th January 2013, 15:46   #1031
BHPian
 
Sommos's Avatar
 
Join Date: Jun 2012
Location: Bhilai, CG.
Posts: 984
Thanked: 674 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

We have been hearing about the ED on diesel cars from last year's budget. The decision then was deferred due to the huge lobbying from the automobile companies.

This would apparently mean that the govt. is still indecisive on raising the diesel prices recommended by the Kelkar committee. I seriously doubt whether the govt. would actually risk (or have the will power) doing the same this year with assembly elections due in as many as ten/eleven states including some important ones like Delhi, MP, Rajasthan, Karnataka etc.

Politics play a very crucial role over policies, in India.

Last edited by Sommos : 16th January 2013 at 15:48.
Sommos is offline   Reply With Quote
Old 16th January 2013, 16:40   #1032
Senior - BHPian
 
rohanjf's Avatar
 
Join Date: Nov 2009
Location: Adelaide
Posts: 1,190
Thanked: 684 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

If at all the government decides to raise excise duty on diesel-run passenger cars, I hope they exclude diesel hybrids. In another 10-20 years, I am sure we will see many diesel-hybrids around the world. Then the government policies will be a deterrent for manufacturers to launch them in India, because I am sure that the future governments will also be slow in responding to changing needs, just like the current government.
rohanjf is offline   Reply With Quote
Old 16th January 2013, 17:37   #1033
BHPian
 
MaddyCrew's Avatar
 
Join Date: Jul 2007
Location: ALPY/TRV/SYD
Posts: 73
Thanked: 33 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by tsk1979 View Post
The entire thread is based on the false argument that petroleum products are subsidized.
They are not subsidized.
Petro sector contributes 4 times the amount to govt as it gets back in subsidy
56000 crores from sector to govt
15000 subsidy from govt to the sector(including bonds)

But the media know how idiotic the middle class is and then feeds this cock and bull story
+1 to that.

Add to it the fact that fuel pricing in India is based on a logic which dates back to the time when we used to import finished petroleum products from other countries - due to lack of proper refining infrastructure. Today India is an exporter (you read it right, exporter) of several petroleum products - though not in the league OPEC. The policy makers know for a fact that not many Indians will stand up and fight against the system and hence continues to loot the common man (a.k.a the Great Indian Middle Class) without a second thought

As if all this wasn't enough they claim that they oil companies are "losing" around INR 100k+ Crore every year. It is quite another story that all the Oil PSUs keep reporting profits in excess of INR 1k Crores every year.
MaddyCrew is offline   Reply With Quote
Old 17th January 2013, 14:45   #1034
Senior - BHPian
 
mjothi's Avatar
 
Join Date: Dec 2007
Location: Bangalore
Posts: 3,252
Thanked: 216 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Finally, here it comes.

Quote:
The government on Thursday raised the annual cap on supply of cheap cooking gas to nine cylinders from six and gave freedom to state-run oil companies to raise price of diesel "from time to time"
Source: http://timesofindia.indiatimes.com/i...w/18059471.cms
mjothi is offline   Reply With Quote
Old 17th January 2013, 15:45   #1035
Distinguished - BHPian
 
sgiitk's Avatar
 
Join Date: Dec 2007
Location: Kanpur
Posts: 7,160
Thanked: 3,755 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Totally crazy and incomplete announcement. What is the quantum of increase in Diesel - Rs.9.60 as claimed in a single shot, or phased. Who pays for the additional three LPG cylinders? I feel that they may use Petrol and Diesel to cross subsidise LPG and Kerosene. In any case the subsidised K-oil will be mostly (unofficially) going into the unsubsidised Diesel.
sgiitk 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
Swift Diesel, Saga continues. The DIESEL experience! Part II 72k kms Update Page 182. Now SOLD! Jaggu Long-Term Ownership Reviews 2988 21st September 2017 11:10
BMW to drop prices due to increased localisation. EDIT: New prices announced Aditya The Indian Car Scene 38 10th July 2015 21:19
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 19:09.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks