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Old 19th January 2013, 19:10   #1096
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

As a long time Diesel user I support this.
About time that the differential between Diesel and Petrol were closed up a bit.

However, this makes me think that I should change my parents car to a higher end, used Petrol one quite quick!
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Old 19th January 2013, 19:39   #1097
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

I do not know if this is good for the country or not. For someone who recently started driving 70kms a day to office, and was driving a petrol vehicle, I had started test driving diesel vehicles.
Now, I am confused as to what has to be done.

OT: If this is the case, Honda might not even bother getting Honda City diesel here.

Edit: If I am upgrading to a better petrol car, its a no-brainer: I will go with the Honday City!

Last edited by vasanthn21 : 19th January 2013 at 19:52.
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Old 19th January 2013, 20:45   #1098
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by vasanthn21 View Post
I do not know if this is good for the country or not. For someone who recently started driving 70kms a day to office, and was driving a petrol vehicle, I had started test driving diesel vehicles.
Now, I am confused as to what has to be done.

OT: If this is the case, Honda might not even bother getting Honda City diesel here.

Edit: If I am upgrading to a better petrol car, its a no-brainer: I will go with the Honday City!
When you are doing 2000 km a month on office commute alone, it's a no brainer - you need to go for a diesel vehicle. You should think about petrol only when your monthly running is around 1000 km or lesser.
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Old 19th January 2013, 20:56   #1099
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Originally Posted by wildsdi5530 View Post

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.
Moreover the cost of power backup has increased by 30% for people living in apartments. At least here in gurgaon power backup works for 5 hours a day on an average in summers.

I also don't understand why dual pricing policy can be applied for bulk buyers but not the car owners. Bulk buyers also buy from regular pumps.

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Originally Posted by longhorn View Post

When you are doing 2000 km a month on office commute alone, it's a no brainer - you need to go for a diesel vehicle. You should think about petrol only when your monthly running is around 1000 km or lesser.
By year end When the difference between petrol and diesel comes down to a mere 8-10 rs.
Then would the higher capital cost as well as extra maintenance still justify the diesel.
I would say over 2000km may be good but not below it.

Last edited by k2max6 : 19th January 2013 at 21:02.
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Old 19th January 2013, 21:56   #1100
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I guess soon a day might come where diesel will be expensive than petrol just like in some places abroad! Though diesel engines give a better mileage than petrol counterparts it will just not make sense to buy a diesel car if prices are going to be a whopping 1-1.5Lakh more than than petrol engines. Maybe there are chances of manufactures getting down prices of diesel cars in the future if this happens.
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Old 19th January 2013, 22:22   #1101
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

I have a Diesel and a Petrol vehicle.
I welcome the Diesel move.

But what the hell happens to Kerosene and LPG, free those too.
I do not want to pay for LPG subsidy and kerosene subsidy.
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Old 20th January 2013, 02:48   #1102
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by zwift1819 View Post
I guess soon a day might come where diesel will be expensive than petrol just like in some places abroad! Though diesel engines give a better mileage than petrol counterparts it will just not make sense to buy a diesel car if prices are going to be a whopping 1-1.5Lakh more than than petrol engines. Maybe there are chances of manufactures getting down prices of diesel cars in the future if this happens.
I do not think it is going to make a difference to those doing high mileage.
Even if the gap is reduced, the running costs difference would still warrant a diesel.
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Old 20th January 2013, 08:42   #1103
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

And then, there would be some people like me who think, "High capital cost and low running be damned, I want to go for a diesel because it feels better when I shell out less at every refill and I have higher resale than my petrol counterpart".
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Old 20th January 2013, 08:57   #1104
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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And then, there would be some people like me who think, "High capital cost and low running be damned, I want to go for a diesel because it feels better when I shell out less at every refill and I have higher resale than my petrol counterpart".
Yeah, sure. But it wouldn't make financial sense. Also if the petrol prices and diesel prices are similar, the resale value as a percentage of the initial cost would also be similar.
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Old 20th January 2013, 09:59   #1105
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by hrman View Post
And then, there would be some people like me who think, "High capital cost and low running be damned, I want to go for a diesel because it feels better when I shell out less at every refill and I have higher resale than my petrol counterpart".
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Originally Posted by carboy View Post
Yeah, sure. But it wouldn't make financial sense. Also if the petrol prices and diesel prices are similar, the resale value as a percentage of the initial cost would also be similar.
Some random "predictions", but this is what I believe

- Price differences between petrol & diesel to go down, either the base price changes or the discounts will ensure that
- Expect the diesel resale values to take a similar hit for diesel cars like petrols in the coming days, but probably with lesser damage
- Expect the resale differences that apply between Honda/Maruti/Hyundai and the rest to have the same aspect for diesel cars too

Opinions?
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Old 20th January 2013, 10:12   #1106
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

The after effects of de regulation of diesel prices have started affecting our daily lives. IOC has marked Indian railways and other state transport corporations as high volume customers and started charging them approximately Rs60 + a litre. For example KSRTC(Kerala) which buys 4.5 lakhs litres of diesel for their day to day operations is having to bear an extra burden of 50 lakhs per day or annually Rs180 crores. The oil minister himself has clearly said that there will not be any rollback on the decision , the days are numbered for KSRTC unless government steps in. Those who favour deregulation of diesel prices citing the usage of diesel in luxury cars, what do they feel now. I think one time charges for all the cars and diesel consuming generators used by the mobile companies and the likes should have been implemented .

Last edited by ganeshtvpm : 20th January 2013 at 10:13.
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Old 20th January 2013, 10:40   #1107
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Originally Posted by ganeshtvpm View Post
IOC has marked Indian railways and other state transport corporations as high volume customers and started charging them approximately Rs60 + a litre. For example KSRTC(Kerala) which buys 4.5 lakhs litres of diesel for their day to day operations is having to bear an extra burden of 50 lakhs per day... Those who favour deregulation of diesel prices citing the usage of diesel in luxury cars, what do they feel now.
I don't think anyone with any knowledge of economics has been primarily concerned about the 10-15% of diesel used by cars (or the much smaller fraction used by luxury cars). The concern has been about the wasteful use of diesel by the bulk consuming sectors - trucks, buses, tractors, pumps, DG sets etc.

What people often miss is that the real problem with subsidising fuels is that it leads to inefficient use. For example, at low diesel prices, the total cost of transporting 18 tons of goods by two fuel guzzling, polluting old 9 tonne trucks may be less than the cost of buying a new 18ton cargo truck to carry the same material - the relative economics shift towards the higher capital cost but more fuel efficient option at higher prices. Similarly, for a mobile tower, the trade off between the capital cost of a solar power unit or inverter vs the variable cost of a DG set changes at higher diesel prices.

Preventing the price signals from being sent to the market through fuel subsidies encourages wasteful use of fuel and adds to the future subsidy bill. Which is the main reason why imposing a higher excise duty on diesel cars was a stupid idea - it may bridge part of the subsidy cost on the GOI's balance sheet, but would do nothing to discourage use of fuels. If the government of Kerala wants to subsidise KSRTC (a bad idea in my view since subsidised transport encourages wasteful journeys), it should do so directly - not have the tax payers from the rest of India bear that cost through cheap diesel.
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Old 20th January 2013, 10:54   #1108
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

I think from the looks of it , Diesel will be priced at Rs.60/- about 15-18 months down the line. It will never be at par with petrol. I have been hearing this story of price parity of petrol and diesel for the past 10 years. There has always been a price difference of at least Rs.10/- I can safely say, the next 10 years is not going to be any different.

12-15 months down the line, the subsidy from LPG will only be restricted to people with annual incomes of Rs.2.5-3 lakh and below. Which means most of us will have to buy LPG cylinders at unsubsidised rates, once Aadhaar becomes compulsory for continuing the Gas connection.

The above measures will help in reducing the Subsidy bill to a large extent, but will push up prices of all commodities. The same story will repeat where the common man is going to suffer even more, incomes not rising at par with prices. A grim scenario indeed.
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Old 20th January 2013, 11:10   #1109
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by hrman View Post
...The above measures will help in reducing the Subsidy bill to a large extent, but will push up prices of all commodities. The same story will repeat where the common man is going to suffer even more, incomes not rising at par with prices. A grim scenario indeed.
+1. This is what my concern too. While I have a diesel car, I am NOT too bothered about the fuel prices raising. But this move to de-regulate the diesel price will have an effect on every damn thing around me, right from personal transportation to food to what not!

What I don't understand is why the "real" common people who do NOT have a diesel car is also subjected to suffer by this move. I feel that the bus fares are already high. They should have done better ground work to tackle the segments which don't qualify for subsidised fuel and spared the other segment.

Price of every bloody thing goes up and another reason for the employers NOT to give a hike in the coming year, stating their bottom lines have taken a hit.

Last edited by swiftnfurious : 20th January 2013 at 11:11.
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Old 20th January 2013, 11:22   #1110
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Originally Posted by Hayek View Post
If the government of Kerala wants to subsidise KSRTC (a bad idea in my view since subsidised transport encourages wasteful journeys), it should do so directly - not have the tax payers from the rest of India bear that cost through cheap diesel.
Okay, I have not gone through the full posts. But a couple of contradictions from me -

Wasteful journeys on a public transport system? And that too on the KSRTC? You could be joking.

Not only the KSRTC, the TN transport has also asked for a similar rebuttal. My opinion is that the govt. should keep public transport subsidized to encourage the same. And no doubt about the railways too. At the very least, initially.

EDIT:

Quote:
Originally Posted by swiftnfurious View Post
What I don't understand is why the "real" common people who do NOT have a diesel car is also subjected to suffer by this move. I feel that the bus fares are already high. They should have done better ground work to tackle the segments which don't qualify for subsidised fuel and spared the other segment.
Exactly my concern. "why the "real" common people who do NOT even have a car is also subjected to suffer by this move".

Generalizing, to earn, one has to travel. Not everyone can afford to sit at home to make an earning. The "real" common people uses public transport for the same. Now this is like, the rich can still afford to travel in their cars and make them more rich, and the poor staying where they are.

Last edited by Eddy : 20th January 2013 at 13:21.
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