[m8002?]

Originally Posted by bosem123

But what about running time then? You only get to use a diesel for 10 yrs as per NGT, but a petrol for 15 yrs. My guess here is that turbo petrol is a wiser investment. Also, how many people can actually afford turbo petrol? Most would purchase variants with base engines.

There is a much bigger India outside Delhi where diesel cars can also run for 15 years.

If you run both the cars for 10 years, how are you justifying a a turbo petrol with the below:
1. Cost is same if not more.
2. Diesel cost is approx. Rs. 10 cheaper than petrol
3. Diesel gives you a 20% more mileage per litre for the same class of vehicles.

[norhog]

Originally Posted by dvr08

I would like to respectfully differ with this opinion. If Govt's aim is to push people towards using public transport, there are a 100 other ways to do it.

Govt can think of making it costly to own a personal vehicle, especially cars. To name a few measures..

4. Make EV's a lot cheaper

!

Thank you for the disagreement.
But pray tell, how does making EV's "cheaper", help in pushing more people towards public transport?

Metro rail should be used in areas where there is higher number of people travelling. There is BRTS, METROLITE, regular bus service that will augment public transport. And of course rickshaws in "auto" and other forms.

[dvr08]

Originally Posted by norhog

Thank you for the disagreement.
But pray tell, how does making EV's "cheaper", help in pushing more people towards public transport?

It doesn't. I agree. My only intent was just to point out the current problems where there could be a possible solution that's not very hard to implement (at least environment friendly one).

We all know how practical it is to have METRO as a solution for traffic problems or as an encouragement to use it as main source of commutation. Anyone from Bangalore will understand the pain of living and commuting whilst the metro work is going on. I understand it is a solution to the problem but only when completed. Public transport system in India has to be improved 10 folds in terms of quality, connectivity to get people think that as an option.

Increasing the fuel price only for personal white board vehicles could be an option but very hard to implement. Think about this, a person who doesn't own any motor vehicle is also impacted due to fuel price hike. Isn't that cruel?

It also goes without saying that only blaming govt is not going to help anyone. We as citizens of India should make the change.

[AirbusCapt]

As it is with frequent lockdowns the GDP has fallen into the negetive region and now this ever increasing fuel prices will mean a big spurt in inflation. With incomes down by 20/30% on an average, fixed emi costs and now rising food and utility pricing thanks to the highest fuel price in the world, how on earth is the economy supposed to revive?

If we speak about businesses, these too have seen almost zero demand over the last few months, now with increased transport and raw material costs how are they supposed to even recover, forget making money?

I wonder what must be the though process of the government intentionally keeping the fuel prices high? If they be transparent about it, may be common folks like us can appreciate it.

[IP_Man]

Instead of giving solace to the Corona struck economy, government has fuelled inflation by increasing price of diesel.

We have plenty of foreign exchange reserve that could have been used to stabilise fuel prices for some time.

[AZT]

Oil prices are expected to increase further and the govt has only so much time left before upcoming elections. I think the goal is to inflict maximum pain now before campaigning starts.

Iran sanctions being lifted can get in more supply but until then I don't see prices softening. I'm also tempted to think taxes on fuel will be lowered next year at the opportune moment, it's too soon now.

Options Traders Bet on Return of $100 Oil - WSJ article (paywall)
No pay wall short brief - https://cbnc.com/options-traders-bet...rn-of-100-oil/

[ruzbehxyz]

Fuel prices as of 14th June 2021.


Source: MirrorNow

[Arjun Bharadwaj]

Government should Beef up the PSUs if they need to earn more income!

They could have strengthened companies such as BSNL to compete with private sector and generate them income - good for the government and good for its citizens.

Milking the common man due to lack of any other source of income is sad to say the least.

[RaghuVis]

Shameful that despite repeated requests, people still write politically motivated posts like they are champions of free speech challenging team-bhp moderators. I think infractions should be more severe for political commentary. This is one last bastion where trolls have not captured the community. Wish it remains like that.


Coming back to main topic, can any economics expert (Not Keyboard activist) explain how government is able to keep a check on Inflation despite this much of increase in fuel prices? By now, we should have started paying very high money for all commodities (not little high but very very high), commodity transportation associations should have started nation wide strikes, commodities would have gone in scarce in turn which would again jack up prices of stuff etc. Is there something missing? How is government, be it state or central government able to manage this?

[pkk077]

Originally Posted by VKumar

So, effectively, isn't this a simple cycle of increasing the inflation, and then provide free food to the lower rung. But letting the middle class pay through their nose?

Very aptly described. My biggest grouse against taxation is that we get nothing in return. (Yes yes I do understand why taxes are required).

** rant **
Recently, an ex colleague passed away due to Covid leaving behind a wife and 2 young kids. Guy must be 40-45 and was paying taxes for last 15-20 years - basically all his working life. And what did the govt. contribute to his family's future and well being? ZERO. We middle class taxpayers are like a host to the parasite (govt). They suck life out of us and then move on to the next target.

[m8002?]

Originally Posted by RaghuVis

Coming back to main topic, can any economics expert (Not Keyboard activist) explain how government is able to keep a check on Inflation despite this much of increase in fuel prices? By now, we should have started paying very high money for all commodities (not little high but very very high), commodity transportation associations should have started nation wide strikes, commodities would have gone in scarce in turn which would again jack up prices of stuff etc. Is there something missing? How is government, be it state or central government able to manage this?

Cross-posting from the other thread:

https://www.team-bhp.com/forum/india...ml#post5081572 (The Official Fuel Prices Thread)

We are at 12.9% WPI. If you think that is very low, then good for you.

Meanwhile, appreciate if you could enlighten us why you think inflation is very low.

[greenh0rn]

Originally Posted by m8002?

Cross-posting from the other thread:

https://www.team-bhp.com/forum/india...ml#post5081572 (The Official Fuel Prices Thread)

We are at 12.9% WPI. If you think that is very low, then good for you.

In fact, the retail inflation is still low, and the simple reason is that aggregate demand itself has fallen on account of falling incomes, particularly in non-metro small towns and villages. Here is Economics 101: retail inflation is a function of rising input costs OR rising demand. Now if retail inflation is still low despite all-time-high fuel and other input costs, clearly the demand for goods has gone down. In other words and as an example, the poor are now buying 1 kg of foodgrains if they were buying 2 kg before, or buying 1 sachet of shampoo per week instead of 2 before, and so on.

I didn't want to get into low inflation discussion because it reflects even more poorly on the current government, and then suddenly the fanboys would start screaming about 70 years like broken records and all hell would break loose and people would start getting banned left right and centre. Let's avoid this discussion here. :Peace

[RaghuVis]

Originally Posted by m8002?

Meanwhile, appreciate if you could enlighten us why you think inflation is very low.

I think greenhorn has already mentioned about retail inflation. I read one more article about how RBI looking at this.

https://theprint.in/economy/wholesal...i-much/677327/

Given a choice, I would not agree with 99 things out of 100 that most governments do! But it also does not matter whether you or me agree with this. Government or RBI simply is looking at another way to tackle. God knows where this is going to!

Originally Posted by Technic90

Do not mind if moderators think otherwise.

Well Moderators have been working hard for years to MIND what everyone writes. So be assured they will do the needful.

[greenh0rn]

Originally Posted by RaghuVis

I read one more article about how RBI looking at this.

https://theprint.in/economy/wholesal...i-much/677327/

I don’t think this government would be foolish enough to accept the 6-9.5% range for retail inflation, bank interest rates being what they are. Even 6% inflation will rob people of savings as FD rates are around 5% before tax. 9% or more will be pandemonium.

But then with its past record, if any government would do it, it is this government

[SN88]

Originally Posted by norhog

This will save unnecessary travel with the options available for doing most things on line.
I think this is a move to push the middle class more and more towards public transport.

Most cities in India now have METRO railways. Either fully functioning or soon to start. This will definitely make the middle class person use public transport for regular transportation and private vehicles only for occasions.


So with good public transport in cities and metropolitan areas and walk/cycle to work and work from home, this price rise should be OK.

This was personal transportation. Now economics of the household.
Money saved from regular personal transport, by way of work from home and using public transport, basically NOT using private transport, some percentage of it can be used to absorb cost of increase in grocery and food price, owing to increased transport cost.

So in the NET SUM game, it won't be so bad as it is being made out to be.

Also, as our country, INDIA, becomes more affluent and number of middle class persons increase in the population, we do not have the infrastructure to absorb so many private vehicles. Getting people used to public transport at middle class levels will surely help.
If you look at Asian cities like Tokyo, Singapore, vast majority, even presidents and CEOs, use public transport for daily transportation, even though they have nice cars parked in their garages for occasional use for a trip to golf course or out of town.

Hi,
1. The govt does not get to decide what is necessary and unnecessary travel for anybody. Let that discretion be with ones own mind.
2. Your defence of the govt hiking prices so that the middle class will use public transport makes no sense. If the infrastructure was supportive of the local busses and trains then it is a no brainer that everyone will travel by public transport, but the point is can public transport support every person in a city? Of course not. The govt has no right to decide how the middle class or rather anyone chooses to travel. If all of Mumbai starts travelling by trains and metros then guess the catastrophe.
3. So as per your understanding of the govt's intent, people who do not have the luxury of work from home in so many work fields should bear the brunt of this increase in fuel costs? This at gains of the ones who are saving money by not using private transport and using that gains for increased grocery expense? What ?
4. Your examples of Tokyo, Singapore, Hongkong if I may add to your list have a complete different demograph and work culture to most of Indian cities. Their work places are designed concentrated in certain areas where metros connect beautifully from every part of a city unlike Mumbai where work areas are spread in every corner and not a particular " business area". Out there you can literally walk from any place into a metro station within 10 minutes. Can you do that in the major Indian cities ? forget about tier 2 and tier 3 cities.

All I can say is we are tax paying citizens and we should get BASIC products , services etc at a reasonable cost. We can choose how to manage our expenses rather than forced by a Shepherd into a cramped train!!