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Old 18th January 2013, 13:04   #1081
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by selfdrive View Post
I wonder what will be done by people who bought diesel cars even though their usage was quite low.
Perhaps in resale/ used car market, demand for diesel cars will take a hit
Hello Selfdrive,

People who have bought Diesel Cars just to save couple of thousand rupees per annum in fuel cost have to blame only themselves & nobody else. Only cushion for them is that Diesel prices will be hiked marginally every month. But sometime in future (say 1 - 2 years) they will have to be prepared to pay market rates of Diesel (which will almost the same as Petrol prices).

Regarding used Diesel car markets, I feel the correction of prices was long overdue (especially used Diesel hatchbacks). I have seen sellers of 2007 Swift Vdi asking Rs. 4,00,000+ just because demand of used Diesel hatchbacks was at its peak during last year.

Thanks,
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Old 18th January 2013, 13:05   #1082
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

Took a long time coming, but better late than never. Really high time that diesel prices were brought to the market prices without subsidizing it for the upper middle class. This should also stop the herd mentality of people who want to buy diesel cars just because their neighbour or friend got one, irrespective of actual need or requirement.
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Old 18th January 2013, 13:16   #1083
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Quote:
Originally Posted by Recompose

Could I get the source for this?
Just google it. Goi's gross tax revenues were Rs 900, 000 cr of which Rs 83, 000 cr was excise on fuels. The subsidy bill is split between Goi, Omcs and upstream cos. Portion borne by Goi is accounted for but that borne by others is effectively off balance sheet. Goi's share of subsidy was Rs 83, 000 cr last year

State governments make even more from fuel taxes, Rs 112,000 cr last year.

Last edited by Hayek : 18th January 2013 at 13:17.
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Old 18th January 2013, 13:24   #1084
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

I think people are reading too much into this whole Rs 6/- in a year hike thing. People bought diesel for a while because they could benefit from lower running costs, once they have tasted that, its quite hard to go back to petrol.

Diesel is a fuel of choice in many countries where it is priced more than petrol. Among larger cars the fuel economy can be nearly 80% better. The diesel vehicle is here to stay, petrol is an option for the rich or some who don't do long distance. The "EMI is more in diesel" argument can be overlooked because you have less frequent visits to the pump and cover longer distances in any type of traffic.
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Old 18th January 2013, 14:10   #1085
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

Latest joke, Karunanidhi claiming that the 0.45 hike will put a heavy burden on the middle class!!
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Old 18th January 2013, 14:20   #1086
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

^^Oh, that is his hallmark; hunting with the hounds and running with the hares!
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Old 18th January 2013, 14:30   #1087
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But the point is that will the govt roll back the various cess they imposed on our income ostensibly to fund the oil subsidy? No way... So the mango people continue to be exploited by the "con"gress
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Old 18th January 2013, 15:51   #1088
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by selfdrive View Post
What about the Mitsubishi Outlander? Sorry I dont know what its priced for or whether it meets your other requirements
Outlander is a 5 seater. I wanted a 7 seater with road presence of a rexton / fortuner. I thought of X1, but to me X1 is a hatchback, eventhough BMW claims it to be an SUV.

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But the point is that will the govt roll back the various cess they imposed on our income ostensibly to fund the oil subsidy? No way... So the mango people continue to be exploited by the "con"gress
Totally Agree. Now Diesel will rise by Rs 20 in 1.5 years and Petrol say by Rs 10. There would be a 10/- difference in all IMHO.
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Old 19th January 2013, 00:59   #1089
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

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Diesel prices have been revised upwards by Rs 5, while sparing petrol, a step in the right direction considering underrecovery of Rs 17 per litre on diesel. I wonder why the government can't raise Rs 1-2 every month instead of raising it at one go which attracts criticism and bloats the fiscal deficit.
Finally the govt has bitten the bullet and done the right thing! It is the right way to go rather than wait for 10 months and then raise the rates by Rs 5 all of a sudden. I think the rumored tax on diesel cars may be dropped or may be there for big SUVs only. I see demand for diesel vehicles slackening and some discounts may be on offer in near future.

The price difference between the diesel and petrol, though narrowing, will always remain because of differential taxation on the two.
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Old 19th January 2013, 01:11   #1090
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Q - The one company which will be hit the hardest if demand for Diesels Drops significantly?

A - FIAT!!! What with a major part of their current income coming through their powertrain division in India.
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Old 19th January 2013, 02:20   #1091
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I am really sorry to post a comment against those who are supporting this move by government . A diesel car owner is fooled on--
1. Extra cost borne in buying a diesel car paid to the manufacturer.
2.Additional road taxes and other statutory charges .
3.higher EMI due to high cost .

Apart from the above points no one is observing that we the common people have to shell out more for increase in the transportation costs that the transporter will pass on to the masses indirectly through the price hike on all necessary commodities .

Also there is no guarantee that the petrol price will be stabilized .

No progress with Congress. That's all I have to say.
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Old 19th January 2013, 06:07   #1092
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I am really sorry to post a comment against those who are supporting this move by government..

No progress with Congress. That's all I have to say.
Apologies if this is OT. While I too believe that Congress is bad for the country, however diesel price hike is the right thing to do. But Congress is doing it for the wrong reasons.

Socialist welfare schemes of Congress premised on keeping poor perpetually poor by handing dole outs instead of building capabilities has resulted in a situation that these expenditures are unsustainable. National Rural Employment Guarantee Scheme, Direct Cash Transfer, and the mother of all dole outs - the proposed Food Security Bill - need a lot of money. The ultimate paradox of socialism is that it requires a lot of money to sustain it.

So the only way for Congress to finance these expenditures is by taking loans, reduce expenditures in other areas (recent defense budget cut for instance), increasing taxes and decreasing subsidies. Congress would not dare touch subsidies that appear to directly affect the poor, such as fertilizer subsidy. However, fuel subsidy is fair game as it appears to directly affect the rich, the business class and the middle class driving those vehicles that the poor cant afford.

As this class of people is not the traditional vote bank for Congress, it will continue to be short changed by Congress.

However, in the long run it is good if all subsidies are removed, so that precious government resources are spent on critical areas such as infrastructure, education, healthcare, defense and other such public goods. Welfare schemes too are needed, but these need to highly focused to ensure that they serve only the most needy and are not free for all like current welfare schemes that only breed corruption and waste government funds without building capabilities of the poor to enable them to break the shackles of poverty and enter the middle class. A middle class that aspires to conquer the world. A middle class that treasures its freedom. A middle class that dreams of owning that wonderful symbol of freedom - a car.
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Old 19th January 2013, 08:42   #1093
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by rki2007 View Post
Apart from the above points no one is observing that we the common people have to shell out more for increase in the transportation costs that the transporter will pass on to the masses indirectly through the price hike on all necessary commodities .
That myth has been busted by the recent hike of Rs 5, when no appreciable increase in any commodities. Transportation costs form a very small percentage of the final price of a commodity (less than 5%, if you want a ballpark). Now, on that a 5% increase drives the price by at most .25%, which is nothing significant.

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No progress with Congress. That's all I have to say.
Thanks for bringing politics into this forum.
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Old 19th January 2013, 18:30   #1094
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Default Re: Rationalising diesel prices*Update: 50p rise/month announced*

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Originally Posted by sgiitk View Post
Latest joke, Karunanidhi claiming that the 0.45 hike will put a heavy burden on the middle class!!
Actually I guess he was talking about the rise of nearly Rs.10/- for the bulk direct buyers like railways, transport undertakings, and the defence, cement, mine and power sectors. This will save Rs. 12,907 crores annually for the OMC.

And till now we were unfairly blaming the Mercedes owner for the underrecoveries.

Last edited by wildsdi5530 : 19th January 2013 at 18:33. Reason: grammatical error.
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Old 19th January 2013, 18:51   #1095
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

IIRememberWell there were lots of cess worth Rs. 1 (education cess) and Rs. 2 (highways cess) incorporated during BJP rule. Wonder what happened to those ?
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