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Old 14th February 2008, 14:19   #1
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Default Fuel Price Hike Again

Just saw this on t.v.
The govenment has decided to increase the fuel prices again. Petrol by Re.2/ litre and Diesel by Re. 1 per liter. This will be enforced by midnight on 14'th Feb i.e. today , (great Valentine's day gift from the government )

What I fail to understand is why the govenment always keeps on increasing the fuel prices to cut back the losses on the govt. owned fuel distribution companies, every time there is a fuel price hike internationally.

What they should be doing is to reduce the taxes on the fuel (it is almost 60% of the total price we pay at the pump). They have kept the tax ratio on the fuel same as it was 8 yrs ago (even increasing the taxes in some states) , where as due to increase in the number of people buying newer vehicles, the fuel consumption (retail) in India has increased by over 300 percent .


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Old 14th February 2008, 14:23   #2
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they increase fuel price and car companies dont even give out nice cars to drive. useless government everything useless. i miss dubai man 10-15 bucks for 1 liter fuel plus all the sexy cars are available in all showrooms too
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Old 14th February 2008, 14:23   #3
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Is the fuel price hike official yet? It hasnt come in any of the internet sites till now.

Cheers!!
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Old 14th February 2008, 14:25   #4
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Quote:
Originally Posted by car_crazy1400 View Post
What I fail to understand is why the govenment always keeps on increasing the fuel prices to cut back the losses on the govt. owned fuel distribution companies, every time there is a fuel price hike internationally.
I also fail to understand the accuracy of this statement. Every time there is a fuel hike internationally: fact, crude oil prices go up and down everyday, but Indian prices do not.

Second: Prices were last hiked in 2/07 when Dubai crude (relevant to India imports) was US$52-55/barrel. Avge in 1/08: US$87 per barrel

The accuracy of most of your statement is in question, except for the middle part.
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Old 14th February 2008, 14:34   #5
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What I meant to say was ,they did not increase the prices & let the oil marketing companies go into the red when the oil price was hovering around $100/barrel, just because they had to face elections in some states. Why do it now, when the oil prices have cooled down since?

Plus , given the price that we pay per litre of fuel, the Goverment owned companies fail to provide us even non spurious , cleaner fuel.
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Old 14th February 2008, 14:38   #6
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Plus , instead of increasing the burden of increased fuel costs on the common man, the govenment should cut down on the taxes on basic things such as fuel & rather concentrate on raising more revenues due to the increased consumption.
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Old 14th February 2008, 14:41   #7
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this is cheating man...they eariler said no hike until budget...
both my bike and car are almost empty :(
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Old 14th February 2008, 14:42   #8
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Yes the fuel price has come in the rediff.com site.

Cheers!!
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Old 14th February 2008, 14:44   #9
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Thank God. I just topped up this morning.
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Old 14th February 2008, 14:49   #10
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Originally Posted by car_crazy1400 View Post
Plus , instead of increasing the burden of increased fuel costs on the common man, the govenment should cut down on the taxes on basic things such as fuel & rather concentrate on raising more revenues due to the increased consumption.
With the number of cars in your garage, you hardly seem like a common `Indian' man to me.

Crude oil has cooled down!!! From what-US$100 to 90. Most countries have had to dramatically increase prices over the last year (even China did). Somebody has to pay the Sheikhs in cash for their oil. Unfortunate that you want the taxpayer to pay (through fiscal deficits that crowd out other spending) for the below cost petrol that fuels the cars in my or your garage.

You can say reduce taxes. That is easier said, but again sensible countries and sensible economics tell to tax a resource that you do not have enough of and whose excessive consumption should be discouraged.

No fan of the oil companies, but they have to pay the sheikhs in cash. The Govt. gives them oil bonds for losses, but that is no cash. Result, cash out to the sheikhs, and bonds in the balance sheet. As any accountant will know, that is a prescription for bankruptcy. Soon enough, no cash to pay for oil.
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Old 14th February 2008, 14:50   #11
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You (and all other citizens) were paying a higher fuel price even before this hike. The oil companies were losing money so the Govt. had to bail them out by issuing interest bearing bonds. So who paid for the bonds and the interest thereon? Surely not the ministers. Its the citizens which paid in some other form.
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Old 14th February 2008, 14:58   #12
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Quote:
Originally Posted by amohit View Post
this is cheating man...they eariler said no hike until budget...
both my bike and car are almost empty :(
I got done in as well. Instinct told me to fill up yesterday, but i didnt care.
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Old 14th February 2008, 14:59   #13
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our neighbouring country the fuel price is Rs.17/- per liter as what ive heard.. and why only India is having the costiliest fuel???till my knowledge
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Old 14th February 2008, 15:03   #14
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Originally Posted by jesal View Post
they increase fuel price and car companies dont even give out nice cars to drive. useless government everything useless. i miss dubai man 10-15 bucks for 1 liter fuel plus all the sexy cars are available in all showrooms too

Leave the nice cars... There are not much good roads to drive even for the current generation of cars here. The other day my friends Camry was booked for overspeeding when he was doing 50Kmph in(Speed limit was 40Kmph).... Guess what?? 2nd gear!!

Plus the taxes are in % meaning, everytime they hike the fuel price, the tax amount only gets increased. Govt gets so much money from the taxes and they still claim the oil companies are running high loses. If the taxes are cut and the price kept same, then oil companies will have profit.Simple.

Now since the Fule price is increased, every other thing will also increase. Right from Public transport tickets to vegetables. Sigh!! Not to mention the chennai Auto-Walla. Already they demand fares as if the petrol price is 100/- per liter, now they have one more reason to demand more. Plus all the bad roads and the absurd mountain speed-breakers only help in reducing the FE of the car and nothing else. What do they expect us to do?? Sit tight at home and do nothing??
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Old 14th February 2008, 15:10   #15
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I don't think its costliest in India, Have paid nearly a pound per litre in U.K. this summer for petrol, now i think its increased even higher than a pound.
1 pound (u.k) = nearly 82 INR (i am guessing)

Dear Vasudeva, when I said common man , I did not specify my self as one, did I?

But still if you were put off by my posts in any way, I apologise.

And the fact remains that the Government lets our ministers gorge on huge piles of Black money (with out any income tax) and free petrol for cars and free high end cars even (IIRC, Ministers in Punjab have a Government owned 'sarkari' Toyota Camry at their disposal), with out bothering about it, where as the normal tax paying citizen gets to pay even more taxes.
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