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Old 2nd July 2020, 08:20   #226
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

The usage is going to go beyond the previous covid period actually. Even though schools and colleges are closed and vehicles related to them are not running, there has been a substantial increase in demand for private vehicles be it two wheeler or car. Three colleagues of mine have bought new two wheelers for daily commute for which they earlier used public transportation. This can be extrapolated. Also people with private vehicles who seldom used them have started to use them regularly now. Petrol and diesel demand is going to soar.
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Old 2nd July 2020, 12:02   #227
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Make Petrol Rs 100 and Diesel Rs 80 as fixed rate for next 1 year. It will make sure to reduce people roaming on roads unnecessarily (Hopefully) and strengthen our Economy. In current situation government needs more money to make better provisions for Covid-19. Also when economy is strong, government can spend more money on other projects which will in turn create more jobs which will strengthen economy more. I know this will increase inflation little bit but that's okay i guess. Anyways many people saving lot on fuel expenses as we are mainly at home.
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Old 2nd July 2020, 13:10   #228
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

It doesn't work like that. Major consumption is commercial/transport. There is no saving there if there is no work.
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Old 2nd July 2020, 13:45   #229
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

So glad to see a balanced debate using facts and figures. Head says fuel hike is necessary - we are paying the price for governmental incompetence and unaccountability. Heart asks why we must suffer continuously for someone else's sins.

My Rs 1.5-

Why this hike is necessary
- Yes, the government has run out of money, and needs to squeeze everyone for fuel tax. This is starkly clear.
- The writing has been on the wall for a while now. Covid has exacerbated the situation by decreasing industrial output and collection of GST and other levies, but we were headed for disaster. A lot of this is mismanagement, but still, we need to survive.
- Most people on this forum own one or multiple vehicles. Even with high mileage usage, you are unlikely to see a drastic difference to overall spending. Anyone privileged, not just on this forum or in India, takes taxation as a personal affront (I do). Most are happy to spend 250 bucks on a cup of coffee while cribbing about a 10 rupee price increase in fuel. Buy one pizza less, maybe?

Why this hike is usurious
- This government was voted in on the promise of development for everyone. It came with huge tailwinds - historically low oil prices and an absolute majority in Parliament, enabling passing of any legislation. It wasted both of them. If done properly, we would have seen 8%+ growth (old figures, not new jugaad) consistently for 5 years, which would have negated this entire debate.
- We have not had any significant improvement in business environment. Don't talk about skyscraper city (not being personal), ask business people who employ and generate revenue. Our finance minister does not seem to know what to do, and the current dispensation seems allergic to professional advice, relying instead on grandiose statements and optics.
- Any talk of using this money for Covid or ventilators is eyewash, IMHO. Major cities are still out of beds and medical facilities. GoI's own admissions are that a very small fraction of the total promised ventilators have been delivered in 4 months.
- Please remember that the biggest consumer of diesel is the Indian armed forces. You are essentially hobbling their budget by increasing prices.


What pisses people off:
- VJM spent a few millions (~15 cr) on a birthday party, when he owed 9000 cr. This turned the national mood against him. Sitting RBI gov Rajan also called him out in the press. Now if you spend thousands of crores on statues and random new buildings, and tax the hell out of everyone for it, is it not the same? Yes the percentage may be small, but optics matter. This dispensation has mastered optics except in this case.
- We have an extremely corrupt bureaucracy and political class, that swallow hundreds of billions every year. If our government was serious, they would crack down on that and use that money for good. 15 lakhs for every Indian, maybe. Instead, the silent and small middle class get squeezed every year. And they're the ones on this forum.
- A 10% hike in fuel prices may be very good for the nation, and bearable for us, but ask Swiggy riders what they think. You're essentially taking that STRAIGHT out of their net income. And before you think they're a minority, Swiggy is (pre-Covid) projected to be the second largest employer in India, after the Railways.
- Don't even get me started on that new govt fund being floated that has a couple of billion dollars in it that will remain unaccounted.
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Old 2nd July 2020, 20:11   #230
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Railways have increased freight charges. Be ready for trickle down effect of this. Road transport prices will also start increasing soon.

https://m.rediff.com/money/report/fr...e/20200630.htm
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Old 3rd July 2020, 07:13   #231
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Quote:
Originally Posted by v1p3r View Post
- Please remember that the biggest consumer of diesel is the Indian armed forces. You are essentially hobbling their budget by increasing prices.
From what I know, defence gets all bills with respect to fuels reimbursed.

(please feel free to correct me if I am wrong).
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Old 3rd July 2020, 16:20   #232
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

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Originally Posted by Sheel View Post
From what I know, defence gets all bills with respect to fuels reimbursed.
The question is - who does the reimbursing? If you mean individual users get reimbursed by Defence Accounts / CGDA, then it's still out of the armed forces' budget. If you mean CGDA is reimbursed by GoI, well then double whammy for us poor tax payers, no?
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Old 8th July 2020, 14:07   #233
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

For the past eleven days the petrol and diesel prices have been holding I guess. Only a nominal Rs. 0.05 rise in petrol and Rs. 0.33 increase in diesel price, on two occasions combined. Have the govt. finally decided not to kill the golden goose or is this just a breather before the next hike? Hope I have not jinxed it by talking about this.

Rates today in Kochi are;
Petrol - Rs. 80.73
Diesel - Rs. 76.45
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Old 30th July 2020, 12:53   #234
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Diesel prices in Delhi reduced by VAT cut to 73.
This is an unexpected move for any govt. Kudos.
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Old 30th July 2020, 13:32   #235
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

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Originally Posted by mayankk View Post
Diesel prices in Delhi reduced by VAT cut to 73.
This is an unexpected move for any govt. Kudos.
It was expected. They couldn't keep charging more than other ncr cities. Still a commendable job. Ideally fuel prices should not have been increased in the first place but then we know how the government works. Hopefully, fuel prices will be cut further in the coming days
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Old 30th July 2020, 13:36   #236
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

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Originally Posted by harry10 View Post
It was expected. They couldn't keep charging more than other ncr cities. Still a commendable job. Ideally fuel prices should not have been increased in the first place but then we know how the government works. Hopefully, fuel prices will be cut further in the coming days
That's true. But it's commendable more so because I've never seen anyone remove taxation once it's been put in place for fuel. The increases are always passed on, though.
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Old 30th July 2020, 15:08   #237
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

The Delhi government has decided to reduce VAT on diesel prices from 30 per cent to 16.75 per cent and reduced diesel prices in Delhi from Rs 82 to Rs 73.64. Delhi CM Arvind Kejriwal on Thursday announced the decision to slash diesel prices in Delhi by Rs 8.36 per litre.

As on Thursday (30-07-2020) morning, the price of diesel was Rs 81.94 per litre. The diesel price will now come down from Rs 82 to Rs 73.64 in Delhi.

Source: https://www.indiatoday.in/india/stor...972-2020-07-30
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Old 18th September 2020, 19:17   #238
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Andhra Pradesh government levies Re 1 road development cess on petrol, diesel.

Quote:
Amaravati: The Andhra Pradesh government on Friday promulgated an ordinance providing for levy of a Road Development Cess of Re 1 each per litre on petrol and high- speed diesel that would net around Rs 500 crore annually. The ordinance cleared by Governor Biswabhusan Harichandan amended the AP Value Added Tax Act, 2005.

The state Cabinet, at its meeting on September 3, had approved the decision to impose the Road Development Cess. Considering the necessity of allocating dedicated funds for the development of roads in the state, the government decided to levy the Road Development Cess, in addition to the existing levies on petrol and diesel, in public interest.

Proceeds of the cess will be around Rs 500 crore per annum, Special Chief Secretary (Revenue) Rajat Bhargava said.

The cess amount would be transferred to the Andhra Pradesh Road Development Corporation for exclusive use in developing road infrastructure, he said.

This is the second time in two months that the Y S Jagan Mohan Reddy government has increased the tax on the automobile fuel.

On July 20, year the government revised the tax structure on petrol and diesel, thereby increasing their price by Rs 1.24 and Rs 0.93 per litre respectively, to mop up an additional revenue of about Rs 600 crore per annum.
ET Auto
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Old 7th December 2020, 13:10   #239
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

Mumbai petrol price has crossed 90 rs. And this is with Global Brent Crude at $ 50, all that talk of a recovery / record GST revenues goes down the drain if govt keeps needing money by raising Petrol prices.
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Old 13th December 2020, 00:53   #240
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Default Re: Fuel prices increase 16 days in a row. What the hell is happening?

For the first time there are television commercials of Electric Scooters of Ather.. High fuel prices bringing opportunities to the Electric 2 Wheeler market?? I feel having an Electric 2 Wheeler for Daily short commutes will be much more economical in the long run if fuel prices don't come down..
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