[alpha1]

Originally Posted by ad3952n

Here are a few pics from my Paa's 1993 personal diary.

The petrol costed INR 250-to-350 for 15-20 L.


Seeing the above, It is nothing less than a herculean task to meet the petrol expenses in today's time.

Thanks

AD

But to do an honest comparison, we also need to see the average income levels of an indian (2 wheeler + 4 wheeler owners) compared to the times today.

If the incomes has risen proportionally (though I have a feeling it has not) - then perhaps it is not as difficult as the numbers may suggest.



veering offtopic: your Paa's got a lovely cursive handwriting! You must see the westerners (and perhaps today's kids in India) - absolutely horrible and non cursive.

[blacksport]

Originally Posted by alpha1

But to do an honest comparison, we also need to see the average income levels of an indian (2 wheeler + 4 wheeler owners) compared to the times today.

If the incomes has risen proportionally (though I have a feeling it has not) - then perhaps it is not as difficult as the numbers may suggest.



veering offtopic: your Paa's got a lovely cursive handwriting! You must see the westerners (and perhaps today's kids in India) - absolutely horrible and non cursive.

Actually, if you look at inflation, you would see that petrol prices has just kept up with it.

Year | Inflation | Price
----------------------------------
1993 | 6.31% | 16.25
1994 | 10.24% | 17.28
1995 | 10.22% | 19.04
1996 | 8.98% | 20.99
1997 | 7.25% | 22.88
1998 | 13.17% | 24.53
1999 | 4.84% | 27.77
2000 | 4.02% | 29.11
2001 | 3.77% | 30.28
2002 | 4.31% | 31.42
2003 | 3.81% | 32.78
2004 | 3.77% | 34.02
2005 | 4.25% | 35.31
2006 | 5.79% | 36.81
2007 | 6.39% | 38.94
2008 | 8.32% | 41.43
2009 | 10.83% | 44.87
2010 | 12.11% | 49.73
2011 | 8.87% | 55.76
2012 | 9.30% | 60.70
2013 | 10.92% | 66.35
2014 | 6.89% | 73.59

[Hayek]

Hope that we will see more sensible fuel pricing policies going forward - moderately high and equal taxes on petrol and diesel to account for the costs of the carbon emissions from them, and to encourage fuel efficiency; no subsidies being dumped on listed OMCs; up gradation of refineries to make better quality fuels; encouragement of modern technology such as hybrids and Diesel Particulate Filters etc.

[wanderernomad]

How soon do we see the effect of the lessening price difference of fuels translating into the rational pricing of petrol and diesel models of cars as well? Will the diesels continue to command a premium even now?

[gsurya]

Originally Posted by wanderernomad

How soon do we see the effect of the lessening price difference of fuels translating into the rational pricing of petrol and diesel models of cars as well? Will the diesels continue to command a premium even now?

Diesels are priced higher not because of fuel pricing, but simply because the assemblies & equipment inside are more expensive! Its purely a costing issue.

FYI, the Etios Cross Petrol 1.5 & 1.4 Diesel are priced the same OTR in Mumbai because of about 40k higher taxes on 1.5 Petrol that covers for cost differential.

[sgiitk]

@blacksport; Looking at your table the early 2000's were the most sensible, with low inflation! Then things went haywire. One can also attribute to the monetarist vs Keynesian finances.

I will like the difference between Diesel and Petrol down to under 2%. Given differential taxation it may not go much below that. Then rationality will return.

[blacksport]

Originally Posted by blacksport

Actually, if you look at inflation, you would see that petrol prices has just kept up with it.

Year | Inflation | Price
----------------------------------
1993 | 6.31% | 16.25
1994 | 10.24% | 17.28
1995 | 10.22% | 19.04
1996 | 8.98% | 20.99
1997 | 7.25% | 22.88
1998 | 13.17% | 24.53
1999 | 4.84% | 27.77
2000 | 4.02% | 29.11
2001 | 3.77% | 30.28
2002 | 4.31% | 31.42
2003 | 3.81% | 32.78
2004 | 3.77% | 34.02
2005 | 4.25% | 35.31
2006 | 5.79% | 36.81
2007 | 6.39% | 38.94
2008 | 8.32% | 41.43
2009 | 10.83% | 44.87
2010 | 12.11% | 49.73
2011 | 8.87% | 55.76
2012 | 9.30% | 60.70
2013 | 10.92% | 66.35
2014 | 6.89% | 73.59

To clarify, the prices in the tables is the price that should have been based on inflation. Actual prices are as below. Petrol prices does not depend on inflation. But if, Rs 16.25/L was affordable in 1993, Rs 71.42 is equally affordable.

Year | Inflation| Price | Act Price
---------------------------------------------------------
1993 | 06.31% | 16.25 | 16.25
1994 | 10.24% | 17.28 | 16.78
1995 | 10.22% | 19.04 |
1996 | 08.98% | 20.99 | 21.13
1997 | 07.25% | 22.88 | 22.84
1998 | 13.17% | 24.53 | 23.94
1999 | 04.84% | 27.77 | 23.80
2000 | 04.02% | 29.11 | 25.94
2001 | 03.77% | 30.28 |
2002 | 04.31% | 31.42 | 27.54
2003 | 03.81% | 32.78 | 29.93
2004 | 03.77% | 34.02 | 33.70
2005 | 04.25% | 35.31 | 40.49
2006 | 05.79% | 36.81 | 43.51
2007 | 06.39% | 38.94 | 42.85
2008 | 08.32% | 41.43 | 45.52
2009 | 10.83% | 44.87 | 40.62
2010 | 12.11% | 49.73 | 47.93
2011 | 08.87% | 55.76 | 58.37
2012 | 09.30% | 60.70 | 73.18
2013 | 10.92% | 66.35 |
2014 | 06.89% | 73.59 | 71.42


src:
http://in.reuters.com/article/2010/0...6130E720100204
http://indiatoday.intoday.in/story/p.../1/192328.html
http://www.mypetrolprice.com/2/Petrol-price-in-Delhi
http://www.inflation.eu/inflation-ra...ion-india.aspx

[vrajaram]

Originally Posted by blacksport

To clarify, the prices in the tables is the price that should have been based on inflation. Actual prices are as below. Petrol prices does not depend on inflation. But if, Rs 16.25/L was affordable in 1993, Rs 71.42 is equally affordable.

Year | Inflation| Price | Act Price
---------------------------------------------------------
1993 | 06.31% | 16.25 | 16.25
1994 | 10.24% | 17.28 | 16.78
1995 | 10.22% | 19.04 |
1996 | 08.98% | 20.99 | 21.13
1997 | 07.25% | 22.88 | 22.84
1998 | 13.17% | 24.53 | 23.94
1999 | 04.84% | 27.77 | 23.80
2000 | 04.02% | 29.11 | 25.94
2001 | 03.77% | 30.28 |
2002 | 04.31% | 31.42 | 27.54
2003 | 03.81% | 32.78 | 29.93
2004 | 03.77% | 34.02 | 33.70
2005 | 04.25% | 35.31 | 40.49
2006 | 05.79% | 36.81 | 43.51
2007 | 06.39% | 38.94 | 42.85
2008 | 08.32% | 41.43 | 45.52
2009 | 10.83% | 44.87 | 40.62
2010 | 12.11% | 49.73 | 47.93
2011 | 08.87% | 55.76 | 58.37
2012 | 09.30% | 60.70 | 73.18
2013 | 10.92% | 66.35 |
2014 | 06.89% | 73.59 | 71.42


src:
http://in.reuters.com/article/2010/0...6130E720100204
http://indiatoday.intoday.in/story/p.../1/192328.html
http://www.mypetrolprice.com/2/Petrol-price-in-Delhi
http://www.inflation.eu/inflation-ra...ion-india.aspx

Very good analysis blacksport. However, price of oil (diesel in particular) has a major effect on inflationary trends. The new government might deregulate both completely very soon.

http://www.business-standard.com/art...1900297_1.html

[paw1]

Isn't the price of fuel a (major?) component of the inflation calculation? After all, many of the components of CPI / WPI calculation are either directly or indirectly dependent on the price of fuel. So saying that the price of petrol has "kept up" with inflation is a bit misleading.

[vrajaram]

Paw1 - i don't think he made that statement, i re-read blacksport's post few times before posting my response, that inflation depends very heavily on fuel prices. I do agree that it was a bit confusing at first glance.

[jessie007]

After the latest round of diesel price hike and reduction in price of petrol - the difference is down to just Rs 14 or approx 22% (Delhi). It will be interesting to see the trend of car sales (diesel vs petrol) in the coming months.

Following is a screenshot of the updated comparison sheet (click on sheet to zoom):

[Pedaltothefloor]

It is not just down to the exact difference in cost per liter of diesel vs petrol. Petrol cars typically deliver 10 KMPL vs 15 KMPL from diesel in the same segment.

[aseem]

In addition the diesels are turbo diesels with more torque and generally more fun to drive. In UK I believe diesel is more expensive, still mile crunches go for diesels due to more FE.

[robimahanta]

What if the monthly running is less than 1000kms and the difference is around 10 bucks in 6 months time? Better still you get a turbo petrol car. Would you still choose to drive around with all the clatter hoping you will get a good resale value after 5 years or choose refinement and better NVH over it?
Its like choosing between a race horse and a work horse!

[Pedaltothefloor]

Originally Posted by robimahanta

What if the monthly running is less than 1000kms and the difference is around 10 bucks in 6 months time? Better still you get a turbo petrol car. Would you still choose to drive around with all the clatter hoping you will get a good resale value after 5 years or choose refinement and better NVH over it?
Its like choosing between a race horse and a work horse!

Wow, that is an extremely uninformed point of view. Did you ever drive a diesel car?

You should read this http://www.topgear.com/india/blog/sr...cars/itemid-86