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Old 21st March 2020, 16:21   #106
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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So this is an opportunity to have enough reserves for socio-economic packages which may be needed in the near future.
Well, the Government has just cleared the proposal for the redevelopment of Rajpath or the Central Vistas in Delhi. It's going to cost us only 20,000 Crores. So much for socio-economic packages.
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Old 23rd March 2020, 22:00   #107
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

Excise On Petrol, Diesel To Go Up By Rs 8/Litre To Fund Covid-19 Fight

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The government has decided to raise excise duty on petrol and diesel significantly, by up to Rs 8 per litre, to mobilise additional resources that would be required to fight the Covid-19 pandemic.
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As per the amendments introduced in the Finance Bill 2020, the Finance Ministry has proposed to raise special additional excise duty on petrol to Rs 18 per litre from present Rs 10 per litre and on diesel to Rs 12 per litre from the present Rs 4 per litre. The said changes have been made by amending the eighth schedule of the Finance Act 2002.
https://www.ndtv.com/business/excise...-fight-2199450
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Old 23rd March 2020, 22:31   #108
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Excise On Petrol, Diesel To Go Up By Rs 8/Litre To Fund Covid-19 Fight





https://www.ndtv.com/business/excise...-fight-2199450


From what I have read in similar articles they are going to increase the SPECIAL excise duty by 8 rs. They have increased the CAP UPTO which the SPECIAL Excise Duty can be raised and not the prices of the fuel by 8 rs in go. It seems the central couldn't have increased special excise duty without an amendment. I guess they are preparing for further crash in crude oil prices. The way pump prices haven't fallen in the last week such a move was expected.

Last edited by CrAzY dRiVeR : 25th March 2020 at 00:02. Reason: Typo
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Old 23rd March 2020, 22:47   #109
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Excise On Petrol, Diesel To Go Up By Rs 8/Litre To Fund Covid-19 Fight
Don't these buffoons know that the people of India also have to fight against the consequences of covid-19? Instead of helping the people by reducing the price as per international prices, they are increasing it!

Education does matter.

Last edited by romeomidhun : 23rd March 2020 at 22:50.
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Old 23rd March 2020, 22:53   #110
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

Does this apply to gas vehicles as well? If not, this could be an impetus to improve the gas supply infrastructure in India. Tonnes of gas gets flared in refineries daily and using it could power a lot of vehicles.

Also, any increase in fuel prices affects the poor and middle class the most. Bus fares increase, cost of vegetables and produce increase because of diesel price rise. If the government cares even a bit about improving consumption (like most real economists who are sadly not in the finance ministry have been recommending for over a year), they should resist from burdening consumers further.

Last edited by Nissan1180 : 23rd March 2020 at 22:57.
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Old 23rd March 2020, 23:03   #111
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@mods why do we have two threads for fuel price discussion. Please merge the two.

I agree with some members that the plan to excise duty further 8 rupees is a disastrous and disappointing step. I don't see any way out for the government as COVID has crashed the economy further and the fight has just begun. If we can't get out of COVID in next 1 month which means we flatten the curve like Japan has done, then we are in for a troubling time and government is going to need a war chest to fight COVID and the economy will need more stimulus. Where will that money come from ? Excise duty on petrol and diesel only.

Discussion is pointless in my opinion as there isn't any way out.
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Old 23rd March 2020, 23:07   #112
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Originally Posted by romeomidhun View Post
Don't these buffoons know that the people of India also have to fight against the consequences of covid-19? Instead of helping the people by reducing the price as per international prices, they are increasing it!

Education does matter.

How exactly does reduced fuel price help the common man when the directive is to confine in their homes as much as possible?
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Old 23rd March 2020, 23:48   #113
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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How exactly does reduced fuel price help the common man when the directive is to confine in their homes as much as possible?
It lowers the cost of basic commodities like food which are primarily transported from one part of the country to another. Hiking food prices via increase in fuel costs will make every commodity more expensive.
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Old 24th March 2020, 05:55   #114
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Originally Posted by karan0009 View Post
Excise On Petrol, Diesel To Go Up By Rs 8/Litre To Fund Covid-19 Fight


https://www.ndtv.com/business/excise...-fight-2199450
What a mockery of democracy?! Words can't describe the arrogance and incompetence behind such a move.

But what the hell? There's always a reason, right? That includes reasons like paying back the previous government's debt, building infrastructure and now COVID-19.

I sincerely hope there are enough people to continue to ask questions.
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Old 24th March 2020, 06:48   #115
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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How exactly does reduced fuel price help the common man when the directive is to confine in their homes as much as possible?
Just like how the fuel help to "fund Covid-19 Fight" when the directive is to confine in their homes as much as possible.

Last edited by vb-san : 24th March 2020 at 20:49. Reason: Clearing a political debate kick-off
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Old 24th March 2020, 07:30   #116
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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It lowers the cost of basic commodities like food which are primarily transported from one part of the country to another. Hiking food prices via increase in fuel costs will make every commodity more expensive.
We don't have the privilege of the rupee being the reserve currency so as to keep the Central Bank printers busy 24 x 7; so the government of the day is desperate to find ways to make money and they are doing it in this crisis time.

2 days back, bought tomato at 11 per kg; yesterday it was 28. Fuel prices have remained constant for the past one week so what is it that spiked this?

Coconuts in the farm are being procured at 15 per piece citing 'corona' but somehow in the supermarket it is 45 because again, corona. It's the same case with vegetable growers.

A 709 carrying 5 tonne vegetables from Ooty to Bangalore (250 km) would burn 45 liter diesel, so even a 10 rupee hike per liter is only going to add 10 paise per kg.

There's record grain production in the country and stored in the warehouses but no, you aren't going to see the price stability because Everybody loves a good corona and the intermediates are going to make a killing no matter what, and the common man will pay through the nose while all his attention is fixated only on the price per liter.
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Old 24th March 2020, 10:02   #117
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

I remember it was about 74 rs sometime ago and now it is 71.7 rs. It has reduced a bit, don't know the reason though.
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Old 24th March 2020, 10:33   #118
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

Its not one truck delivering food across 250kms. There are tens of thousands of vehicles delivering across the country. Furthermore delivering food items from one city to warehouse doesn't end the job. There are more vehicles that have to do end distribution across towns to various dealers.

Oil prices dictate food inflation. And FCI has been sitting on double the inventory they are supposed to incase of natural calamities. FCI works under government not middlemen.

https://www.thehindubusinessline.com...le29112375.ece

Last edited by Nithesh_M : 24th March 2020 at 10:36.
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Old 24th March 2020, 10:45   #119
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Originally Posted by romeomidhun View Post
Just like how the fuel help to "fund Covid-19 Fight" when the directive is to confine in their homes as much as possible.
Clearly your aren't sensitized to see the fallout of this outbreak. There's going to be a huuuuge economic cost, some say worse than the 2009 recession. There's a related thread on this at TBHP itself, see https://www.team-bhp.com/forum/india...off-staff.html

Pretty soon the govt (quite rightly) will be expected to provide stimulus, tax breaks, etc to get the economy back on track. It's going to be a huge cost. All that requires funds, and can surely be categorised as "funding the Covid-19 Fight".
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Old 24th March 2020, 11:28   #120
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Default Re: Crude oil prices crash, but India refuses to slash fuel prices

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Clearly your aren't sensitized to see the fallout of this outbreak.
I am aware of the consequences. It will be much more horrible than we think. And to what extend it will go - only time can tell. But the world won't be the same post the corona era.

What I am saying is; govt is not going to compensate for all the losses people suffered. They may announce some stimulus packages, but won't be beneficial for all - especially for the poor people. (Do you know that the aircraft fuel is just Rs 50 per litre even now?)

Earlier govts were giving subsidies on fuel but was still running the nation pretty similar compared to the current one even with all those financial mismanagement. How did they manage? Or, the financial management is worse now?

They have to reduce the burden on the people. No politics in that. As simple as that.

Last edited by SDP : 25th March 2020 at 07:54. Reason: Typo
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