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


Reply
 
Thread Tools Search this Thread
Old 17th January 2013, 15:47   #1036
BHPian
 
BinFord's Avatar
 
Join Date: Oct 2012
Location: Brisbane,AUS
Posts: 107
Thanked: 35 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by mjothi View Post
Hello BHPIans

Now tell us is it worth owning diesel vehicles? It will be a matter of time where diesel price will almost par with that of petrol.

Before going for the next upgrade this will be a tough task for all people to decide on which fuel type for their dream machines.

Your views and suggestions much appreciated.
BinFord is offline   Reply With Quote
Old 17th January 2013, 15:51   #1037
BHPian
 
rohit_dce's Avatar
 
Join Date: Nov 2005
Location: Delhi
Posts: 81
Thanked: 18 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

The outcry will be huge but the losses being incurred by the fuel companies are also accumlating. They need to ease out that tension too. It would be a bit helpful if done in a phased manner, rather than increasing it all of a sudden.
rohit_dce is offline   Reply With Quote
Old 17th January 2013, 17:28   #1038
Senior - BHPian
 
rajshenoy's Avatar
 
Join Date: Apr 2006
Location: bangalore
Posts: 1,846
Thanked: 623 Times
Infractions: 0/2 (10)
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by BinFord View Post
Hello BHPIans

Now tell us is it worth owning diesel vehicles? It will be a matter of time where diesel price will almost par with that of petrol.

Before going for the next upgrade this will be a tough task for all people to decide on which fuel type for their dream machines.

Your views and suggestions much appreciated.
It depends. Even if diesel were to be priced same or couple of rupee more than that of petrol, It still brings FE and the torque. So those having high running usage will naturally opt for diesel

Also our market prefers the rough SUVs and MUVs(Refer to the sales of Bolero/Scorpio/XUV/Fortuner and the likes of Innovas. ) I cant even imagine them running on petrol even if govt decides to subsidize petrol by half

Tough task is only for those with herd mentality who wants diesel just because the neighbor or friend bought a diesel !! I know many who run mostly 10-12K per year and own a diesel hatchback. They seldom take it out on highways, use the car few time a week only etc.

P.S: I drive a petrol car and my yearly usage is around 12-15K. My next buy would be a diesel, not because of my usage or diesel prices. It will be because i might require more seats to support growing family(7-8 seater). Now this decision wont change even if diesel were to be priced close to petrol as well isnt it ?
rajshenoy is offline   (1) Thanks Reply With Quote
Old 17th January 2013, 17:36   #1039
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 All,

Finally it seems that Government has given nod to partial (hidden) deregulation of Diesel Prices.

Minister of Petroleum and Natural Gas - Mr. Moily was quoted today saying - "The oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel"

Which means that Oil Companies are free to raise prices to cover losses, but not make profit. But at the same time, it known to everyone that Oil Companies will not go for steep hike in Diesel prices without Government approval.

It seems to me that Oil Companies will raise Diesel prices by Re. 1 per months for next couple of months.

Thanks,
Jignesh is offline   Reply With Quote
Old 17th January 2013, 18:11   #1040
BHPian
 
Tassem's Avatar
 
Join Date: Sep 2009
Location: Bangalore
Posts: 467
Thanked: 426 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

I wonder how bad the hikes will be. The bigger issue will be the inevitable increase in cost for most commodities. Public transport costs will also go up.

On the brighter side, Diesel mileage is still a plus. Even if the prices reach petrol levels, the cost per kilometre for most diesel cars will still be lower than petrol counterparts.

I guess we'll have to wait and watch.

Quote:
Originally Posted by Jignesh View Post
Raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss
Does this mean that the price per litre will increase by a max of 9.60 per litre albeit in small increments? Or did I get that wrong?
Tassem is offline   Reply With Quote
Old 17th January 2013, 18:57   #1041
BHPian
 
paliontile's Avatar
 
Join Date: Nov 2011
Location: Hyderabad
Posts: 70
Thanked: 82 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by Tassem View Post
Does this mean that the price per litre will increase by a max of 9.60 per litre albeit in small increments? Or did I get that wrong?
Right, for now, in small increments the price will go up by a maximum of Rs9.06. But eventually (in a couple of years maybe?) the goal is to totally de-regularize diesel.

I wonder if this has an impact on the pricing of diesel cars now. Or would they just increase the petrol cars for raking more profits?

To top it all, Maruti just opened up a new plant to up its diesel engines production.
paliontile is offline   Reply With Quote
Old 17th January 2013, 20:33   #1042
BHPian
 
Join Date: Dec 2012
Location: bangalore
Posts: 169
Thanked: 85 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Maruti will be happier selling petrol cars then diesel,since for each diesel cars sold by them means they have to pay royalties to Fiat .

I doubt oil companies are making losses more like they are not making profit.
aim120 is offline   (1) Thanks Reply With Quote
Old 17th January 2013, 21:25   #1043
BHPian
 
Join Date: Mar 2008
Location: Hyderabad
Posts: 860
Thanked: 298 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Diesel price has been raised by 50 paise/litre, that of petrol down by 25 paise, subsidized domestic LPG cylinder cap has been raised to 9 per year.

Bulk users of diesel will be charged market price.

Govt deregulated diesel and allows OMCs to raise price periodically so as to reduce subsidy burden.

Well, now the transporters will be in tight spot. The government's rationale is increase the price of diesel by small small amounts so that people are not burdened at once. But truckers and other transporters will face trouble because most of the truckers have a rate contract on yearly basis and they cannot ask for increase every time the OMCs increase the price.

At first glance today's increase of 50 paise may not seem to be much but over a period of several months these add upto significant increase.

The rates of transporters are stabilizing around this time after the 6 rupee per litre increase in diesel price. And now the periodic upward revision in small amounts do affect them adversely.
simplyself is offline   Reply With Quote
Old 17th January 2013, 22:02   #1044
Distinguished - BHPian
 
drmohitg's Avatar
 
Join Date: Sep 2010
Location: Delhi
Posts: 4,479
Thanked: 3,624 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

So finally the worst is true. Instead of making fuel slightly more affordable by reducing taxes, they finally want to increase prices of diesel too and bring it closer to the Petrol prices, which is anyways close to looting the public. Great going GOI.
drmohitg is offline   (2) Thanks Reply With Quote
Old 17th January 2013, 22:36   #1045
Senior - BHPian
 
rajshenoy's Avatar
 
Join Date: Apr 2006
Location: bangalore
Posts: 1,846
Thanked: 623 Times
Infractions: 0/2 (10)
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Knowing how this govt functions, expect the hike followed by couple of rupee reduction during elections to secure vote bank(now the desperate diesel car owners vote for congress)

Jokes apart, the diesel available in india is probably one of the worst grade. As the prices increase oil companies should also improve the quality of the diesel being sold. Plus govt should relook at the tax structure as well.

Madam Sonia. we Indians are all not Manmohans. many of us do know how to use our brains and mouth. Theek hai ?
rajshenoy is offline   (1) Thanks Reply With Quote
Old 17th January 2013, 22:57   #1046
Senior - BHPian
 
Join Date: Mar 2010
Location: Bangalore
Posts: 1,019
Thanked: 526 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by drmohitg View Post
So finally the worst is true. Instead of making fuel slightly more affordable by reducing taxes, they finally want to increase prices of diesel too and bring it closer to the Petrol prices, which is anyways close to looting the public. Great going GOI.
Collecting tax is not the problem. Utilization of the same for productive purposes is what is lacking in this country. Provide good roads free of tolls. Upgrade infrastructure and civic amenities. Millions of liters of fuel is wasted idling in traffic jams. Provide soutions for all these.If Govt does its job no one will complain of hike in prices or paying taxes which are inevitable in a growing economy. In this country excehquer is made to pay for the inefficiencies and vote catching fancies of the govt nothing else.

Last edited by poloman : 17th January 2013 at 23:03.
poloman is offline   Reply With Quote
Old 17th January 2013, 23:01   #1047
BHPian
 
Join Date: Aug 2007
Location: Mumbai/BLR/USA
Posts: 928
Thanked: 190 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

So diesel is finally on its way to being decontrolled, the mad rush towards diesel vehicles will slow down. Manufactures profiting just by selling diesel vehicles will take some impact. Diesel engine suppliers like Fiat will be worst hit.

Central & State Governments should bring down the heavy taxes levied on fuel and find ways to increase the tax base and compliance to make up for the lost revenue.
tj123 is offline   Reply With Quote
Old 18th January 2013, 00:00   #1048
BHPian
 
amrisharm's Avatar
 
Join Date: Feb 2010
Location: siliguri/Darj
Posts: 505
Thanked: 299 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Diesel prices will never be priced close to petrol because as the OMC's are saying now diesel is sold at a loss of 9-10 Rs per litre, so the break even price for diesel is 57-62 Rs/litre, where as petrol is at 69-74 Rs /litre.

If the govt does not raise diesel prices and cut the subsidy then what will happen? will the Aam admi be spared? not quite.

If the govt continues to pay for the subsidy of diesel at Rs 96,000 crore per year to keep the price of diesel where it is then the govt will have to spend money it does not have. To do that the govt will have to print more money which will devalue the Indian Rupee. This will mean diesel will be priced the same but prices of all other goods will go up both imported and locally produced (due to increase in price of raw materials) when the rupee is devalued. So the Aam admi is screwed even if diesel price is not raised

And if the diesel price is increased then the Aam admi is screwed no the less.

So there is no way out for the Aam admi.

Its better to focus on spending less than Buying more for less money, happy saving!

Last edited by amrisharm : 18th January 2013 at 00:03.
amrisharm is offline   Reply With Quote
Old 18th January 2013, 00:37   #1049
Senior - BHPian
 
Ym-enjn's Avatar
 
Join Date: Jun 2008
Location: Jaipur
Posts: 1,039
Thanked: 54 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by amrisharm View Post
Diesel prices will never be priced close to petrol because as the OMC's are saying now diesel is sold at a loss of 9-10 Rs per litre, so the break even price for diesel is 57-62 Rs/litre, where as petrol is at 69-74 Rs /litre.!
They have reduced price of petrol in ratio half to the increase in diesel price. That means if eventually they plan to increase Rs10/- in diesel they will reduce Rs 5/- per lt Petrol.

That means finally Diesel will become 57-62/- and Petrol 64 to 69 per lt. That difference of 6 to 7 Rs will remain for a long time and looks reasonable.
Ym-enjn is offline   Reply With Quote
Old 18th January 2013, 07:07   #1050
Senior - BHPian
 
Join Date: Mar 2007
Location: Mumbai
Posts: 1,457
Thanked: 282 Times
Default re: Rationalising diesel prices*Update: 50p rise/month announced*

Quote:
Originally Posted by rajshenoy View Post
P.S: I drive a petrol car and my yearly usage is around 12-15K. My next buy would be a diesel, not because of my usage or diesel prices. It will be because i might require more seats to support growing family(7-8 seater). Now this decision wont change even if diesel were to be priced close to petrol as well isnt it ?
Aren't there 7-8 seater petrols available?


Quote:
Originally Posted by drmohitg View Post
So finally the worst is true. Instead of making fuel slightly more affordable by reducing taxes, they finally want to increase prices of diesel too and bring it closer to the Petrol prices, which is anyways close to looting the public. Great going GOI.
I, for one, welcome it. I don't see why Govt should be looting the public only on petrol prices and sparing them on diesel prices. If they want to stop looting, let them stop looting on both.

Quote:
Originally Posted by aim120 View Post
Maruti will be happier selling petrol cars then diesel,since for each diesel cars sold by them means they have to pay royalties to Fiat .
I think it would depend on their respective profits on the diesel and the petrol car. If their overall profit on the diesel car is more than that on the petrol car why should they worry whether they have to pay Fiat or not.

Last edited by carboy : 18th January 2013 at 07:13.
carboy is online now   (2) Thanks 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 12:19.

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