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Old 4th February 2010, 12:54   #16
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I hope the media does something good this time about the price hike. If i remember correctly, Last year Kerala state govt reduced taxes on fuel by Rs 1/- to reduce the burden on people when the prices shot up
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Old 4th February 2010, 13:33   #17
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If prices are deregulated, Petrol, Diesel and kerosene will have to retail at roughly the same price. Do you really think it will happen?
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Old 4th February 2010, 13:34   #18
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The high price of petrol is due to the extortionate tax imposed by the central and state governments on the so called affluent class.

On the other hand they subsidise kerosene and LPG to such an extent that it 1)promotes wasteful use of these products 2) leads to adulteration of Petrol and Diesel on a massive scale.

The prices of kitchen fuels are a holy cow and the UPA government has never had the courage to touch these.

Why should Kerosene be sold at Rs 9 when a people in a country poorer than ours ( Bangladesh) pay close to 20 bucks.

It is the same in case of fertiliser subsidy .

POLITICAL CONSIDERATIONS HAVE DICTATED THE PRICING OF FUEL AND FERTILIZERS IN INDIA THAN SOUND ECONOMIC SENSE.
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Old 5th February 2010, 02:03   #19
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Originally Posted by Mayavi View Post
May be something to do with the fact that they have their Army stationed in couple of middle-east countries?

What are the fuel costs in UK like?
Having an army in middle east countries wouldn't entitle cheaper fuel. I far one does not think so.

I heard sometime back from one of my ex-colleague in germany, that the german govt. makes more money taxing the petrol than the saudi's do, producing the same.
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Old 5th February 2010, 05:49   #20
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Let me throw a little light on this topic, since I have some exposure to the oil industry here in Canada. Retail gasoline is heavily taxed by the Government everywhere, even in Alberta which is one of the largest oil producing regions in North America. On an average in Canada where fuel prices are not regulated by the Govt, about 30% of the price of gasoline comprises of some kind of taxes.

As a result, sometimes it's simply cheaper to import oil from the US or the Gulf countries to offset the higher producing costs, even with the transportation costs factored in. And also due to the high taxes involved, gasoline prices in oil producing provinces like Alberta are not that much different from non producers like Ontario or Quebec.

Check out this link from Petro-Canada.

Gasoline taxes Across Canada - Petro-Canada
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Old 5th February 2010, 10:59   #21
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Default Kirit Parikh plans to make diesel cars unviable for producers and buyers alike

A proposed tax of Rs 70000 to Rs 1 lakh by the Kirit Parikh committe on the diesel cars being sold in India is likely to affect manufacturers and buyers of diesel vehicles. Full details in the link below :

Parikh's flat tax deflates diesel carmakers' plans: Rediff.com Business

I am like and lost for words
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Old 5th February 2010, 11:41   #22
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Originally Posted by kpbhatt View Post
A proposed tax of Rs 70000 to Rs 1 lakh by the Kirit Parikh committe on the diesel cars being sold in India is likely to affect manufacturers and buyers of diesel vehicles. Full details in the link below :

Parikh's flat tax deflates diesel carmakers' plans: Rediff.com Business

I am like and lost for words
It is a Flat tax of Rs. 80000 on all cars. Not Rs. 70000 to Rs 1 Lakh. Bhattji at least read the report before posting.

I do not get the reason for flat tax on all cars from Swifts to Mercs. Not at all justified.
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Old 5th February 2010, 11:43   #23
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Originally Posted by DieselFan View Post
It is a Flat tax of Rs. 80000 on all cars. Not Rs. 70000 to Rs 1 Lakh. Bhattji at least read the report before posting.

I do not get the reason for flat tax on all cars from Swifts to Mercs. Not at all justified.
my bad -- i was too consumed by the recommendation title -- think of all the investment firms have done till date on diesel tech to improve it and make it environment friendly
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Old 5th February 2010, 11:53   #24
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Originally Posted by kpbhatt View Post
A proposed tax of Rs 70000 to Rs 1 lakh by the Kirit Parikh committe on the diesel cars being sold in India is likely to affect manufacturers and buyers of diesel vehicles. Full details in the link below :

Parikh's flat tax deflates diesel carmakers' plans: Rediff.com Business

I am like and lost for words
What else can they do? People who buy diefsel cars can very well afford to pay the unsubsidized price, but there is no foolproof way of making them pay without affecting all the other sections that use diesel (buses/trucks etc). So, the only way for them to recover is to levy an upfront charge. BTW, the automakers already do that by pricing the diesel cars way over their petrol variants
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Old 5th February 2010, 11:57   #25
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Has anybody noticed that if prices were deregulated, even then diesel would be much cheaper than petrol.
From a crude import point of view, if more people started using diesel cars, due to higher efficiency, import bill would reduce. Thats why europe encourages diesel cars. Their carbon footprint is less, and they give better efficiency!
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Old 5th February 2010, 11:59   #26
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Originally Posted by jaganm View Post
What else can they do? People who buy diefsel cars can very well afford to pay the unsubsidized price, but there is no foolproof way of making them pay without affecting all the other sections that use diesel (buses/trucks etc). So, the only way for them to recover is to levy an upfront charge. BTW, the automakers already do that by pricing the diesel cars way over their petrol variants
Diesel cars are priced higher because it costs more to produce one. Not that the manufacturers are making more money out of it. Engine, Fuel pumps, transmission, clutches, turbos are expensive. more expensive than the petrol counterparts.
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Old 5th February 2010, 12:03   #27
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Originally Posted by tsk1979 View Post
Has anybody noticed that if prices were deregulated, even then diesel would be much cheaper than petrol.
From a crude import point of view, if more people started using diesel cars, due to higher efficiency, import bill would reduce. Thats why europe encourages diesel cars. Their carbon footprint is less, and they give better efficiency!
This isn't true. It takes more money for the oil companies to produce 1 Lt of Diesel as compared to One lt of petrol. If you see in other countries Diesel prices are higher than petrol. So Despite deregulation, Diesel is subsidized in India today. So more people use diesel more would be the loss to Oil companies.
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Old 5th February 2010, 12:10   #28
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Quote:
Originally Posted by kpbhatt View Post
A proposed tax of Rs 70000 to Rs 1 lakh by the Kirit Parikh committe on the diesel cars being sold in India is likely to affect manufacturers and buyers of diesel vehicles. Full details in the link below :

Parikh's flat tax deflates diesel carmakers' plans: Rediff.com Business

I am like and lost for words
It is not at all justified to subsidize diesel for every one. And they cannot manage to sell at two different prices (for cars and commercial vehicles). To an extent,above scheme seems to be viable.

Think it this way, A guy who uses his moped to transport goods pays more tax than a guy who uses his Q7 3.0 TDi to hang out with his friends!

Diesel fans need not worry you have to pay roughly 10K per year, if you drive a diesel car. If your running is more than 8000 kms per year, Diesel car will be profitable over a petrol.

PS: I don't think this will happen soon as our babu's kids also have modern luxury diesel cars. They will not let this happen any time soon, Because it will be a burden on babus to pay 10K from their 1.2 lakh annual salary
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Old 5th February 2010, 12:31   #29
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First broad subsidies like on diesel down work, it gets misdirected and abused, for instance it doesn't make sense to subsidise car owners including luxury car owners so that's a situation that needs to be corrected, diesel car owners can afford to pay market prices for diesel, and shouldn't complain. Similarly the well off don't need subsidies on gas.

Helping meaningfully requires better targeting of aid and assistance rather than spraying subsidies, as it is there are too many people who need help and access to basic necessities and any extra resources can be better used. Moreover wages are too low here and anyone who is working shouldn't need subsidies, and should be able to afford basic necessities or the government of India is simply subsidizing employers and businesses.

The underemployed, unemployed and other weaker section who genuinely need help need to receive not subsidies but full assistance to help them and get them on their feet. However the real deal here is inspite of all the plans, rules, laws, regulations, and mushy thoughts we are unable to implement anything because of greed and corruption.

Last edited by raul : 5th February 2010 at 12:34.
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Old 5th February 2010, 12:32   #30
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The reason diesel was being subsidised by petrol was because it was used by trucks to carry essential goods and used by buses of state run transport operations.But now, almost all cars run on diesel. So all the petrol car owners are subsidizing the diesel folks. I don't think its fair to continue with this trend.
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