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Old 29th June 2013, 16:59   #1246
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by coolkurt View Post
With the petrol prices going up again, I thought it was the right time to bump this thread.
Why is the government not increasing the price of diesel as decided by it, every month? When will politics not play a role in fuel pricing? As a Petrol car owner, firstly I pay fuel which is taxed higher, the additional tax being like an indirect subsidy to rationalize diesel prices. Diesel is the more economical fuel so it is a further disappointment. Why do we bear the brunt?
Your concern is valid and I share the disappointment to the matter that despite a valid policy framed by the Govt. , diesel prices are not increased in tandem with petrol prices. What is also disheartening is the fact that the Govt. using the petrol buyers as a source to cross-subsidize diesel buyers which include oil burner taxis, luxury SUVs guzzling diesel at alarming rates, etc.

But the only brighter side that we can take out from this is that escalation in diesel prices has a much more cascading effect than petrol as diesel is the fuel used in public transport, agricultural activities, logistics, generators, etc. Hence, increase in diesel prices will result in further price rise which will only come back to haunt us and hit back again.

I think its high time that the Govt formulates a better arrangement/ policy so as that the poor petrol buyer does not finances a part of the trips undertaken in luxury SUVs by ministers and by those who can ACTUALLY afford it and the subsidized fuel is sold to only relevant consumption points.

Regards,
Saket

Last edited by saket77 : 29th June 2013 at 17:02.
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Old 1st July 2013, 12:19   #1247
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Guys something is amiss. Have the diesel prices come down?

The last I fueled up in Pune a couple of weeks back, the diesel price was 57.70 & today it was dispensed @ 56.90 - same fuel bunk.
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Old 1st July 2013, 18:23   #1248
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Quote:
Originally Posted by coolkurt View Post
With the petrol prices going up again, I thought it was the right time to bump this thread.
Why is the government not increasing the price of diesel as decided by it, every month? When will politics not play a role in fuel pricing? As a Petrol car owner, firstly I pay fuel which is taxed higher, the additional tax being like an indirect subsidy to rationalize diesel prices. Diesel is the more economical fuel so it is a further disappointment. Why do we bear the brunt?
No offense CoolKurt, but are you living on the dream that somehow rising the diesel prices will bring down petrol prices ? The Government just plays the age old divide and rule policy by pitting the petrol users against the diesel ones. Fuel cost increases purely on dollar exchange rate and global fuel costs. I see news articles of oil refineries stating losses based on subsidies. I would like to know how ALL of the Indian OIL companies figure in the Fortune 500, if they were incurring losses ?

Also Please realize that increase in Diesel cost also results in increase of food inflation. Also, even if the government removes the so called " Subsidy", there is no guarantee that Petrol will be sold cheaper. And even if Petrol gets cheaper, it can be to the effect of INR 2-3 per liter. So please don't get into the bandwagon of Diesel versus Petrol.
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Old 1st July 2013, 19:27   #1249
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

@dreadknight

None taken. All I want is that diesel should be deregulated completely, in line with market prices. The inflationary condition will autocorrect itself and stabilize over time. It makes no sense to continue a subsidy while being in deficit.
As far as the govt's games, anyone who follows the market is well aware. When they launched CNG at 20/kg, they proclaimed its a byproduct and will always be cheap. As soon as they found out that there is huge demand, they bumped up the price. Now it's more than double and it's set to increase further.
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Old 1st July 2013, 19:42   #1250
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Diesel price hiked by 50 paise per litre from midnight.

Diesel in Delhi will cost Rs 50.84 per litre from tomorrow as against Rs 50.26 currently.

http://timesofindia.indiatimes.com/b...w/20861183.cms
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Old 1st July 2013, 19:55   #1251
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by coolkurt View Post
@dreadknight

None taken. All I want is that diesel should be deregulated completely, in line with market prices. The inflationary condition will autocorrect itself and stabilize over time. It makes no sense to continue a subsidy while being in deficit.
As far as the govt's games, anyone who follows the market is well aware. When they launched CNG at 20/kg, they proclaimed its a byproduct and will always be cheap. As soon as they found out that there is huge demand, they bumped up the price. Now it's more than double and it's set to increase further.
First of all "What is deregulation ?". The act of slapping INR 20-25 as taxes as opposed to INR 10 ? Wouldn't the act of cutting down the taxes on Petrol from 20-25 to 10 be a better option ? I don't see anything that justifies INR 25 tax in the first place.

2nd of all , what is Deficit ? The target profit that the government is not reaching by raising the Diesel Prices ? If you observe , there is NO LOSS to the government by selling Diesel or Petrol.

That's why I said, ALL INDIAN OIL COMPANIES figure in Fortune 500 companies of the world. They are making a profit of INR 10 on Diesel and INR 25 on petrol. The Subsidy is that the government is not making INR 25 profit on Diesel. We all know where our hard earned tax money goes.

Yes, lot of people have been buying Diesel vehicles of late. But if you observe , pvt Diesel vehicles contribute maybe 5-10% of the Diesel consumption.
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Old 1st July 2013, 23:43   #1252
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Quote:
Originally Posted by volkman10 View Post
Diesel price hiked by 50 paise per litre from midnight.

Diesel in Delhi will cost Rs 50.84 per litre from tomorrow as against Rs 50.26 currently.

http://timesofindia.indiatimes.com/b...w/20861183.cms
Here in Bangalore , petrol pumps have already increased the price by 50 paise ! It's 54.80 INR now.
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Old 2nd July 2013, 13:08   #1253
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

After a long time, I tanked up at Shell last weekend and was surprised to see a rate of Rs. 60.xx per liter. That is 10% more than other fuel suppliers. Any regular Shell diesel users here who can point to some justifications around such a premium being charged by Shell?
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Old 2nd July 2013, 13:38   #1254
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

I filled up my car here in Sohna Road, Gurgaon yesterday. Was surprised to see diesel price was just Rs. 45.xx here, where as in Delhi it is Rs. 50.25. Difference of Rs 5!!!
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Old 2nd July 2013, 13:41   #1255
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Quote:
Originally Posted by dreadknight5 View Post
No offense CoolKurt, but are you living on the dream that somehow rising the diesel prices will bring down petrol prices ? The Government just plays the age old divide and rule policy by pitting the petrol users against the diesel ones. Fuel cost increases purely on dollar exchange rate and global fuel costs. I see news articles of oil refineries stating losses based on subsidies. I would like to know how ALL of the Indian OIL companies figure in the Fortune 500, if they were incurring losses ?

Also Please realize that increase in Diesel cost also results in increase of food inflation. Also, even if the government removes the so called " Subsidy", there is no guarantee that Petrol will be sold cheaper. And even if Petrol gets cheaper, it can be to the effect of INR 2-3 per liter. So please don't get into the bandwagon of Diesel versus Petrol.
Yep you are correct petrol is not going to get cheaper and Diesel will indeed almost match petrol prices in time.

That said the Fortune 500 company status is simply linked to the size of the company (turnover value) not the amount of profit it makes.
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Old 2nd July 2013, 14:52   #1256
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Originally Posted by ACM View Post
Yep you are correct petrol is not going to get cheaper and Diesel will indeed almost match petrol prices in time.

That said the Fortune 500 company status is simply linked to the size of the company (turnover value) not the amount of profit it makes.

Thanks for the clarification on Fortune 500 companies. Yeah I found about it as well few hours after posting this.

Quote:
Originally Posted by cool_dube View Post
After a long time, I tanked up at Shell last weekend and was surprised to see a rate of Rs. 60.xx per liter. That is 10% more than other fuel suppliers. Any regular Shell diesel users here who can point to some justifications around such a premium being charged by Shell?

If I am not mistaken, the general consensus I have read so far is to avoid using Shell for Diesel. I have been reading about something not gelling between Shell Diesel and Indian Vehicles.

Last edited by khan_sultan : 2nd July 2013 at 17:05. Reason: back to back posts. please use multiquote feature to quote & reply to multiple posts
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Old 2nd July 2013, 15:42   #1257
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by speedsatya View Post
Here in Bangalore , petrol pumps have already increased the price by 50 paise ! It's 54.80 INR now.

AFAIK from June 2nd onwards the price of Diesel /ltr was 54.82 INR across HP, IO and BP bunks. So that means another 50 paise increase from today will take it to 55.32 INR
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Old 2nd July 2013, 16:18   #1258
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by ACM View Post
Yep you are correct petrol is not going to get cheaper and Diesel will indeed almost match petrol prices in time.

.
Even if the Govt removes the subsidy on Diesel it will never cost near to petrol since taxes on diesel is less. So Diesel will always be cheaper, Isn't it?
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Old 2nd July 2013, 17:28   #1259
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by srishiva View Post
Even if the Govt removes the subsidy on Diesel it will never cost near to petrol since taxes on diesel is less. So Diesel will always be cheaper, Isn't it?
SriSi -- if I am not mistaken, someone has posted the breakup on Petrol and Diesel prices. Government's Definition of SUBSIDY is lower taxes on Diesel.

I doubt if the government would reduce their taxation on Fuels by a good amount. I doubt if Petrol users are being taxed for Diesel usage in the country. The breakup doesn't suggest any additional money, the government is imposing on Petrol due to Diesel consumption.

Would you prefer incurring 10-20% more cost on Food Items and additional cost all other services( hotels, Movies, Maids etc) in exchange for maybe 2-3 Rs/liter discount On petrol ( at best)? IF yes, then yeah please go ahead with your support of taxing Diesel the same amount as Petrol.
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Old 4th July 2013, 22:50   #1260
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

The local news channel says that petroleum companies are asking for INR 2-3 increase per liter for diesel in view of the falling Rupee. And the Govt. planning for a round of discussions soon.
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