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Old 20th January 2013, 11:42   #1111
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by swiftnfurious View Post
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!
If you and every other person who owned a diesel car sold it and bought a petrol car instead, the govt would not be able to use the reason of personal diesel cars to hike diesel prices.

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Originally Posted by thoma View Post
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.
Do you use public transport? Would you stop using it if prices were raised by 10%?

Last edited by carboy : 20th January 2013 at 11:45.
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Old 20th January 2013, 12:48   #1112
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Ok so since the petrol price is raised to subsidize diesel, not that diesel prices are being raised by 50p every month, shouln't petrol prices come down by 50p or atleast 25p every month ?
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Old 20th January 2013, 13:11   #1113
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by carboy View Post
If you and every other person who owned a diesel car sold it and bought a petrol car instead, the govt would not be able to use the reason of personal diesel cars to hike diesel prices.
Why does gober-ment blame us? You should blame stupid gober-ment which runs on crutches called subsidy. A lot of us purchased Diesel cars because of mileage and running. It is cheap is just a side effect.

And why blame only Diesel car owners. Blame people who run stoves or other kerosene consuming utilities too. Blame cell towers, huge Diesel generators which use far far more Diesel than what personal cars use.

The post is directed at people who think personal car users are at wrong here. No we are not, gober-ment is. I did not ask for this subsidy in the first place. It was goberment's choice. Either they should fix their exploitable model or should stop cribbing about us.

Why don't they improve their refineries with modern technologies. Why don't have efficient ways to transport fuel across cities?Why don't provide better roads and traffic conditions which result in lesser fuel wastage. Perhaps goberment should do some introspection before sounding like a economics geek with a gold medal. "Theek Hai?"

They should decontrol Diesel, but they should not use Diesel and petrol as scapegoat to fuel subsidies in Kerosene and LPG. They should stop misusing taxpayer's money by pumping more money to organisations like Air India and alike. I can go on and on but I ll stop.

Sorry for long OT and rant. This was not directed at you @carboy, but just wanted to vent it out.

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Old 20th January 2013, 13:26   #1114
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by carboy View Post
Do you use public transport?
My personal mode of transport is not much related to the topic. Still, for the record, I do.

Quote:
Would you stop using it if prices were raised by 10%?
It is anybody's guess what one will do then. I will be forced to travel with the hiked fare.
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Old 21st January 2013, 11:17   #1115
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Hello All,

We all know that bulk buyers of Diesel will now have to pay market rates for the fuel. Thus the cost of running State Transport Corporation Buses will increase to a large extent & they are under tremendous pressure to increase the (already very low) fares, which the political class will always oppose.

But today I read in one of the local news paper that the Private Transport Buses (read all the intercity Volvo buses) are not considered as Bulk Buyers & will continue to get Diesel at Subsidized prices.

Is this really true? I have my doubts.

But if it is really true then it is gross injustice. Because if Railways & State Transport Corporations (who truly do service to people without thinking much of profits) have to pay market rate for Diesel & Private Buses Companies which are making huge profits continue to get subsidized Diesel.

Can someone throw some light on this matter?

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Old 21st January 2013, 11:27   #1116
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by Jignesh View Post
...............
Can someone throw some light on this matter?

Thanks,

Adding to that would be the Mobile telephone tower operators who use Diesel Gensets to power the towers. These guys are using more diesel than road and rail transport combined. Just read through the factual report below. 2 Billion Liters per Year!!! Alarming!!! Yes! That too subsidized fuel to make their own profits. Lobbying has been taken to a new level here. No one. Not the media, not the ministers , No One has taken up this issue or even mentioned it anywhere.

Do have a look at the link below-

http://www.vnl.in/blog/2012/diesel-t...e-big-problem/
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Old 21st January 2013, 11:41   #1117
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by Jignesh View Post
Hello All,

We all know that bulk buyers of Diesel will now have to pay market rates for the fuel. Thus the cost of running State Transport Corporation Buses will increase to a large extent & they are under tremendous pressure to increase the (already very low) fares, which the political class will always oppose.
Anyone who does not buy from the oil companies directly are not affected. These private buses go to the petrol station to get their fuel. But the govt owned transporters get them from their own depot to which oil companies deliver.

Last edited by GTO : 22nd January 2013 at 11:36. Reason: Please quote ONLY the relevant bits of a post. Quoting an entire long message inconveniences our mobile users
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Old 21st January 2013, 13:57   #1118
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by Mortis View Post
Ok so since the petrol price is raised to subsidize diesel, not that diesel prices are being raised by 50p every month, shouln't petrol prices come down by 50p or atleast 25p every month ?
Petrol prices have dropped by 30p in Chennai. There should be a similar drop +/- 5p depending on state taxes all over India.
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Old 21st January 2013, 14:44   #1119
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by Mortis View Post
Ok so since the petrol price is raised to subsidize diesel, not that diesel prices are being raised by 50p every month, shouln't petrol prices come down by 50p or atleast 25p every month ?
Why ? Petrol has different levels of taxation and Oil companies are making a profit but not 10rs profit for them to keep reducing the prices

Key is to look at the tax percentage. If they had only adjusted the tax %, even diesel at current price can turn profitable for oil companies.

But its not that easy
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Old 21st January 2013, 14:51   #1120
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

They are selling petrol at a small profit is what the OMC's claim. The actually scenario is that they are not reducing petrol prices bi weekly when the price of international crude drops, but they are very much interested in increasing the prices at the drop of a hat. So although they claim to be making only a small profit, in reality they are clearing the accumulated losses on the balance sheet which was acquired when they used to sell petrol at a loss. That is why price reductions happen in 25p-50p while hikes are in 4-5 Rs. range.
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Old 21st January 2013, 15:28   #1121
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

All this talk of subsidized diesel (and petrol when available) and govt loosing money due to that is truly hilarious. The govt first taxes the hell out on the commodity and throws in a small change as subsidy and cries over losses due to it. The worst part is the whole country is falling for it.

The best joke was when raising the diesel rate, it was 45p/month and with taxes, its 50p/month. There also they wont leave the taxes.
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Old 21st January 2013, 15:45   #1122
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by navpreet318 View Post
That too subsidized fuel to make their own profits. Lobbying has been taken to a new level here. No one. Not the media, not the ministers , No One has taken up this issue or even mentioned it anywhere.
That's bad economics. Any additional input costs, including additional fuel costs, would be passed on to the consumers and would not be adjusted in the profits.

However, higher input costs would drive up the prices, thereby reducing consumption,thereby bringing down the profits. That is why all industries lobby for policies that lower input costs.
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Old 21st January 2013, 16:35   #1123
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

I wholly support any policy whereby the Government does away with subsidies of all kinds. Instead of regulating prices it is far better to regulate policy implementation and compliance to norms.

Now that the Government has taken the step in the right direction, it must avoid wasting the funds freed up by starting grand and impractical populist social programs. Utilize the funds to fix the "system" - Political, Executive, Judiciary, Bureaucracy & Police reforms!
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Old 21st January 2013, 18:33   #1124
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Using public transport and reducing own fule bill is a good option but provided, there is one. My office is 6.5 km from my home, if I take my car, with the avg I get I can do 3 journey in 52 Rupees, in 30 minutes. The kind of Public transport available to me, if I use it, it will take 26 Rupees per journey(2 share auto, one BMTC) and minmum 25 mins per trip.

So for me if Diesel price goes till 80 Rupees also, I will prefer my car which will save me 45 mins(3 journey), not to mention dust, sweat, smell etc..

And I live in the so called one of the major IT hub in Bangalore - Electronic City. So those who are in favour of public transport and bashing diesel car owners, please look at reality also. And if you are so strict about diesel subsidy, then my next question will be - why do you take subsidized gas? You may not like that question, the reality is, the subsidy was there to take we took it, we never forecd Govt to provide it for eternity.
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Old 21st January 2013, 19:49   #1125
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Post Re: Rationalising diesel prices. *Update: 50p rise/month announced*

It is a not a question of Diesel car owners vs. the rest. The very same Govt which cries foul of private diesel cars is the one that allowed usage of diesel as private vehicle fuel. (Even now, if it is such a crisis, Govt can mandate to register all Diesel cars as Yellow board?). But, it is very lucrative to shift the blame from mobile companies, private malls to obvious symbols of well being (cars!).

With so called losses and subsidies too, Govt's revenues are only increasing with every liter of Diesel sale. The revenue deficit, expense surplus Govt is making the kill in the guise. If Govt can control its expenses (drop the fancy employment schemes?), taxes on both Diesel and Petrol (and what not). End of the day, there is no medicine for Govt not having spending discipline!
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