[supremeBaleno]

Yawn !!! Do we even need a thread for something like this which we have been hearing of since oil was first found in Digboi, but never ever moving further to concrete action ? Heck, when they chickened out on the extra taxation for diesel vehicles, is there any point in thinking they would de-regulate diesel ?

[drmohitg]

Originally Posted by patil

It should definetely happen in a phased manner at least. The subsidy culture is very bad and we Indians are being made parasites by the government by feeding us with various subsidies and schemes. In an open market where every commodity price is dependant on demand and supply and international market prices then why petroleum products should be regulated and subsidised.

But if they want to act smart and talk about open market fair prices then shouldn't they also take a look at the taxes? How right are they in charging so much tax on Petrol and making the prices rise up so drastically? I am fine with paying the market price but there has to be a limit to the taxation % also. Until then I am happy being a parasite.

[nkrishnap]

Though logically correct of deregulating the prices, will this get through is another question all together.

@Mods: I think a similar thread already exists "Rationalizing Diesel Prices" This thread can me merged.

[lohithrao]

Diesel price rise will have cascading effect on every commodity/service and they will shoot up, already price rise is draining common man..

Why government is not considering reducing of taxes?

I think this thread can be merged with "official Fuel price" thread.

Originally Posted by patil

It should definetely happen in a phased manner at least. The subsidy culture is very bad and we Indians are being made parasites by the government by feeding us with various subsidies and schemes. In an open market where every commodity price is dependant on demand and supply and international market prices then why petroleum products should be regulated and subsidised.

[mayankjha1806]

Read this news on TOI today, i doubt this will happen, as Govt definition of common man is tightly linked to diesel prices and everything else is linked to that. With food inflation raising its head again i don't think this govt has the courage to do something at this scale.

A question, does this mean the petrol prices will go down? As i believe the higher taxes on petrol is compensating for lower prices in diesel and LPG?

[amitoj]

Originally Posted by mayankjha1806

Read this news on TOI today, i doubt this will happen, as Govt definition of common man is tightly linked to diesel prices and everything else is linked to that. With food inflation raising its head again i don't think this govt has the courage to do something at this scale.

A question, does this mean the petrol prices will go down? As i believe the higher taxes on petrol is compensating for lower prices in diesel and LPG?

Judging by the amount of space TOI gave to this news item, i dont think even TOI believes it is going to happen.

Petrol prices to go down? That happens only in Goa!!

[civic-sense]

Originally Posted by ninjatalli

I find it quite amusing that a lot of petrolheads start making noise (about subsidies) on one of these threads everytime the news channels/blogs/websites bring out some new input on de-regulation of diesel.

Yes, we do. And that is because we fund the cash that is used to subsidize diesel. So I have the right to say: "I don't want to buy food for them anymore".

What is more amusing is that (probably) most of these petrolheads would have bargained to all ends possible, stating the fuel cost difference when they bought their petrol cars, but still out here would crib about diesel car owners taking "benefit" of the price difference

Buying diesel cars to make use of diesel subsidy is more like buying a cow seeing the grass in the neighbour's land. One fine day, the neighbour decides that there would be no free grass any more, and you cry: "Injustice!!!".

Also, please understand the tax structure should/would remain the same, so we'll still see a good difference in the price of diesel and petrol post de-regulation.

True. Prices are not going to change much. I see an increase by a rupee or two. To truly rationalise, the taxes on diesel has to be increased, or those on petrol has to be reduced.

[urajkumar]

No use discussing this! Nothing will happen till 2014 elections! Even after that only if we get a single party winner, there is a slim chance of deregularizing diesel prices which is almost impossible considering how fractured our mandate is always.

Only chance is Congress understands that they will anyway lose 2014 elections & so might as well rush in some reforms before thier tenure ends. Signnn! Fat chance of that happening!

So the Diesel subsidy is here to stay! Period!

[aditya@pune]

Originally Posted by lohithrao

Diesel price rise will have cascading effect on every commodity/service and they will shoot up, already price rise is draining common man..

Why government is not considering reducing of taxes?

Completely agree with this. Diesel price hike means transport charges go up and mango man will suffer badly. Don’t know how government will negate the cascading effects on commodities.
Interesting to see the reaction of Mamta Banarjee and Akhilesh Yadav.

[eyesice]

Originally Posted by amitoj

Judging by the amount of space TOI gave to this news item, i dont think even TOI believes it is going to happen.

Petrol prices to go down? That happens only in Goa!!

This article was found on The Hindu also - The Hindu : News / National : Govt. to free diesel prices; no such proposal for LPG . And you are right, What happens in Goa, stays in Goa!

[ninjatalli]

Originally Posted by civic-sense

and you cry: "Injustice!!!".

I believe you are the one crying (again and again and again) "Injustice". As for my "crying", read my post again. I'm all in for de-regulation.

Originally Posted by civic-sense

Yes, we do. And that is because we fund the cash that is used to subsidize diesel. So I have the right to say: "I don't want to buy food for them anymore".

Buying diesel cars to make use of diesel subsidy is more like buying a cow seeing the grass in the neighbour's land. One fine day, the neighbour decides that there would be no free grass any more, and you cry: "Injustice!!!".

Oh no, not again. I am not even going to try writing back a reply, sir. My previous replies are more than enough! Anyway, for all that matters, I doubt we'll ever have a conclusion, so why go through it all again!

Originally Posted by ninjatalli

And no sir, you are not footing the bill for my travels. You and me and so many more are being robbed every time we take that vehicle out so that A Raja and many others more can fleece the country and we still keep paying. None of the oil companies are losing cash. That is the bottom-line. We have and are a funding source for the government which keeps thinking it is like an unlimited source.

The fact is the diesel vehicles have never had the same tax structure because the government till now had a perfect model to distinguish the tax payers and the vote banks/lobbies. Till a decade back, none of us would wish to buy a diesel car. Not anymore.

Stop believing in that "fact" of yours.

Originally Posted by ninjatalli

The point I was trying to make to you is that you are being unjustly taxed, while you seem to consider it a necessity. Kudos to the government for making you believe in it. Please remember this - the taxes on the fuel are a percentage. So even if the actual crude price increases, the price of the de-regulated price should go up. But the taxes shouldn't. But they do. But I guess that doesn't matter to you now.

Originally Posted by civic-sense

True. Prices are not going to change much. I see an increase by a rupee or two. To truly rationalise, the taxes on diesel has to be increased, or those on petrol has to be reduced.

Finally, a petrolhead agreeing with a bit of what I & several more have been advocating.

[Harbir]

From the Hindu

During the 2011-12 fiscal, the government has paid Rs 65,000 crore to OMCs on account of under-recoveries,

thats $13billion of loss to the exchequer every year!

Deregulation may not happen now, but it will happen eventually. The diesel price issue is a drag on the Indian economy that will sooner or later have to be tackled.

Enjoy the party while it lasts.

[vikrantj]

No industry survives without subsidy. I think rather than removing subsidy on diesel they should keep the subsidy as is and increase the taxes on the car/ancilliary manufacturers. This reduces the cars on roads and increases the demand foe having a proper public transport.

[indian21r]

Not this drama again. If they are going to do this they have to take into consideration that it will create a huge inflation and may actually push down growth in the near term. What with all the noise of recession around the globe, it will be a difficult task.

Anyway if they can let diesel prices be determined by market but reduce the taxes, it should be ok (with marginal hike in price). They missed the golden chance of taxing diesel cars upfront if they are so worried about personal cars using diesel. Infact I believe market is more prepared for costly diesel cars than costlier diesel. Again how they approach this was a big question.

Differential pricing is not a viable option as it will surely lead to black market sales

[fuel_addict]

Now, haven't we heard this umpteen times before? I don't see this happening for the plain reason that commodity prices, freight and inflation will all rise if diesel prices are allowed to rise. If the State Governments can consider reducing the taxes on fuel, a small increase on diesel prices might not hurt much. This again may never happen unless you are based in Goa.