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Old 5th July 2013, 11:03   #1261
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by thoma View Post
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.
The oil marketing are asking for hike in Diesel prices because the loss on sales of Diesel has gone up from Rs. 3.5 per lliter couple of months back to Rs. 8.5 currently. This is mainly because, falling Rupee against USD & rise in International crude prices.

Probably by 15th July 2013, we can expect another round of hike in Petrol & Diesel prices.

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Old 7th July 2013, 18:54   #1262
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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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.
I would say, the Govt is cutting these jokes to entertain / divert people. When the chunk of the "losses" to oil companies is coming from taxes, the "discussion" should be within the Govt.
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Old 20th November 2013, 16:10   #1263
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

There is new reports about deregulation of diesel prices, as per the article diesel will be deregulated in six months.
However I doubt if any of this will happen due to elections and high rate of inflation.
TOI article
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Old 20th November 2013, 17:10   #1264
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by mpksuhas View Post
There is new reports about deregulation of diesel prices, as per the article diesel will be deregulated in six months.
However I doubt if any of this will happen due to elections and high rate of inflation.
It would be political suicide at this time of the year. I don't expect even the 50P hikes to continue for much long until the elections are over.
As a diesel car user, I quite like this idea of 50p hike as it never really pinches but gradually and slowly gets the job done.
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Old 20th November 2013, 19:31   #1265
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Please read the article carefully. He was hoping that at the current rate of price increase, if rupee appreciates and prices fall, diesel will be deregulated in six months.

Last edited by sumannandy : 20th November 2013 at 19:32.
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Old 20th November 2013, 19:52   #1266
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

No way rupee will strengthen unless a major scam is in the planning, or RBI actually uses up forex reserves to shore up rupee. Also elections are near, so take all this with pinch of salt. After elections, they can raise prices of diesel or whatever and people can start raising bullocks and horses. Maybe there is a reason why Kalki comes in on a white horse, the govt put petrol and diesel way out of reach of common man.
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Old 21st November 2013, 14:58   #1267
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

The Government has decided to deregulate diesel prices in six months.

Link to our News Article
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Old 21st November 2013, 15:21   #1268
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

What is required is to get the BJP states to agree to bring fuel under GST. Right now they are opposing. Then at least we are more sure the pump prices track international crude pricing.
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Old 21st November 2013, 15:38   #1269
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by Aditya View Post
The Government has decided to deregulate diesel prices in six months.

Link to our News Article
What "NEWS" is the minister is sharing?
  1. What they are really saying is that "the Govt will not do nothing". The 50p per month hike has been there and will continue.
  2. Beyond this the oil minister is only "hoping" that the currency and crude price movement will be in India's favour and thereby result in deregulation.
The first point is known already and the second one only a "hope" or pure speculation!

Unless I interpret this as "Govt is committed to continue 50p hikes on Diesel and will not stop until the fuel is fully deregularized", there is no news here.

Or Am I missing something?
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Old 21st November 2013, 16:16   #1270
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Looking at Moily's hopes the old Hindi proverb,'Bhagwan Ganje ko Nakhoon Nahin Deta'. If wishes were horses ....
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Old 21st November 2013, 16:22   #1271
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

At the current rate of 50p increase, the Govt. is only hopeful of deregulation in 6 months provided the rupee gains and dollar falls.

Thats a good thing, as it will eliminate subsidy for Diesel. But is anyone talking of doing away with the petrol surcharge, which was for diesel subsidy?
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Old 21st November 2013, 19:14   #1272
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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At the current rate of 50p increase, the Govt. is only hopeful of deregulation in 6 months provided the rupee gains and dollar falls.
I feel it will not be possible to wipe-off entire Diesel subsidy in 6 months.

This is because Oil Minister has clearly said that one time hike of Rs. 3 - 4 will not be done. Now going by 0.50 paise hike every month it will take atleast 18 months to wipe out the current subsidy burden of Rs. 9.50 per liter of Diesel.

I feel the Oil Minister was only trying to gauge the response of regional political parties to his statement. With the general elections round the corner, I do not think rulling government has guts to take the decision of completely de-regulating diesel prices.

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Old 21st November 2013, 19:16   #1273
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

How exactly are they going to normalize the carrier freight prices which transport essential commodities across cities/states? Subsidize the taxes levied? There has to be a broader outlook towards this so that we know what it means for the common public.

Internationally, diesel is priced more than petrol. Best case scenario is have the diesel price go up and not affecting the common commodities we use.

P.S. I do not own a diesel vehicle.
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Old 21st November 2013, 21:32   #1274
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

Quote:
Originally Posted by Jignesh View Post
I feel it will not be possible to wipe-off entire Diesel subsidy in 6 months.

This is because Oil Minister has clearly said that one time hike of Rs. 3 - 4 will not be done. Now going by 0.50 paise hike every month it will take atleast 18 months to wipe out the current subsidy burden of Rs. 9.50 per liter of Diesel.

I feel the Oil Minister was only trying to gauge the response of regional political parties to his statement. With the general elections round the corner, I do not think rulling government has guts to take the decision of completely de-regulating diesel prices.

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First of all , the government shouldn't be looking at Fuel commodity as means of making money. It is an essential commodity and it should have minimal taxes in my opinion.

Second of all, Government's definition of Subsidy in general terms is " Making LESS PROFIT On the Sale of Fuel"

Third, " There really is no real connection between prices between different fuels in terms of the so called Subsidy". Did you ever hear " we will be raising price of Fuel X just because we cannot raise price of Fuel Y ?"
Yes, there have been instances when price of Fuel X was raised and Fuel Y was sheltered ( Dollar value changes/ Crude Oil price changes). But there is no connection between the cost of the 2 fuels.

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Originally Posted by nkishore_007 View Post
How exactly are they going to normalize the carrier freight prices which transport essential commodities across cities/states? Subsidize the taxes levied? There has to be a broader outlook towards this so that we know what it means for the common public.

Internationally, diesel is priced more than petrol. Best case scenario is have the diesel price go up and not affecting the common commodities we use.

P.S. I do not own a diesel vehicle.
Internationally, Diesel and Petrol doesn't cost as much as here either ( in terms of living cost).

How can you ensure price of essentials not going up with Diesel? You really can't. If Fuel cost makes up 10% of a product/Service cost, increase of Fuel encourages the providers to collectively increase by a much higher amount. After all, nothing wrong in making more money and blaming fuel rise cost right ?

Its a wicked chain really . Diesel goes up, price for manufacturing product/service goes up by some value, the difference along with additional profit is passed to the next level. The next level does the same and eventually it comes as a much higher number to the end customer.

The end customer also happens to be the one in the manufacturing chain. He/she demands more since his/her expenses have gone up.
The manufacturing process increases the product/service cost to offset this demand by some amount again, and the chain continues.

Ofcourse , this chain doesn't happen overnight. But if you think about it , it happens repeatedly over a period of time.

Please search times of india article, where it contains a breakup of the Diesel fuel consumption. if I am not mistaken, the consumption by pvt vehicles was around 15% .

Last edited by dreadknight5 : 21st November 2013 at 21:35. Reason: added additional information
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Old 21st November 2013, 22:34   #1275
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Default Re: Rationalising diesel prices. *Update: 50p rise/month announced*

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Originally Posted by dreadknight5 View Post

Internationally, Diesel and Petrol doesn't cost as much as here either ( in terms of living cost).

How can you ensure price of essentials not going up with Diesel? You really can't. If Fuel cost makes up 10% of a product/Service cost, increase of Fuel encourages the providers to collectively increase by a much higher amount. After all, nothing wrong in making more money and blaming fuel rise cost right ?

Its a wicked chain really . Diesel goes up, price for manufacturing product/service goes up by some value, the difference along with additional profit is passed to the next level. The next level does the same and eventually it comes as a much higher number to the end customer.

The end customer also happens to be the one in the manufacturing chain. He/she demands more since his/her expenses have gone up.
The manufacturing process increases the product/service cost to offset this demand by some amount again, and the chain continues.

Ofcourse , this chain doesn't happen overnight. But if you think about it , it happens repeatedly over a period of time.

Please search times of india article, where it contains a breakup of the Diesel fuel consumption. if I am not mistaken, the consumption by pvt vehicles was around 15% .
Right!

where does that end us (common people) with? Someone decided (probably with good intentions), "lets subsidize diesel". Over time, loop holes were found and utilized to the maximum extent as you had rightly stated. So, in your any other fellow T-BHPian's opinion, where exactly is this heading or supposed to head? Vote bank gimmick? Or a bigger propaganda? Someone might have thought and came out of the loooong tunnel of light. Yes? No? Maybe?

The diesel car owners are only basking in the glory of the decision made quite some time back, which is perfectly fine of course.

What scares me are the consequences of deregulating the price. duh!
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