[LLL]

Originally Posted by suvi

All the three OMCs are Public Sector companies with considerable ownership (30% or so) held by general public (direct or through mutual funds).
It is technically incorrect for Government to force these companies to go into loss, since loss is shared not only by them but also by the investors. if they want to have price control they must reduce taxes / pay directly the difference to the OMCs.

technically correct. Even the remaining 70% is owned by public indirectly as the other 70% capital is provided from tax income.

Its the same for every other loss making govt company. Most of govt depts are run using tax payers money..so indirectly we are bearing the loss.

[nitrous]

When these oil giants were making tons of crores of profits, were they giving us a discount on fuel?
No!
So, why do we have to pay "premium" when they're suddenly incurring losses?

[jesal]

no matter how much we crib if it outght to go up it shall. does anyone have a clue around when the hike is coming ?

[bharanidharang]

the cost could be minimum if the tax/duty on fuel is withdrawn. why does the govt. need to earn tax on the basic requirements of this nation.

[Jeep]

Correction! Oild bonds are issued by the Govt usually at attractive interest rates. This is done to raise money (it's akin to borrowing money when you are in need). These bonds can then be traded as securities in the market.

The one that you are talking of is a 'forward contract'

Originally Posted by aaggoswami

Rs. 50/ltr of petrol and 35 rs. go to government. What is this?! The oil bonds are such that, even if the cost of crude oil goes up in the world, a speicific person/company/counrty will provide oil for three years( India has three year bond ) at a fixed price ( the price will be fixed at the time when the deal is made).

[ATRONIX]

If only premium fuels will be available from now on what will happen to all skodas.Skoda cars require normal fuel right?

[LLL]

Originally Posted by ATRONIX

If only premium fuels will be available from now on what will happen to all skodas.Skoda cars require normal fuel right?

uhh...a car manufactured by premium brand does not require premium fuel? must be an oversight on Skoda's part.

Anyways, its also going to hit auto-industry hard. They are already suffering from rising interest rates and expensive raw material. Lets see how they react.

Since fuel prices will increase, every commodity will become costly...

[Eddy]

Got myself normal BP diesel yesterday. Is this "only premium petrol" thing going to happen sometime in the future ?

[SumitB]

Zee Business carried a story in the evening news that the decision has now been withdrawn and that ordinary fuel will be available in the metros. So rejoice.

[ankit.jhamb]

zee news had earlier said that govt oil companies are incurring losses and due to which they have sent a proposal for
1.to sell only premium fuel
2.stop new gas connections

now i think govt has reject the proposal

[arunmur]

Originally Posted by mjothi

Then we know if govt is providing subsidy or taking from tax payers...

Subsidy is tax payers money, even tax reduction will be tax payers money. Any good government likes to show increase in tax collection(like companies show increasing profits), just that Government tax collection rate of change is more stable(indicative of economy, longer cycle periods). So if they reduce tax they would be charging from tax payers pockets(to equate the reduction in tax due to Fuel) and this might mean that some one never using or enjoying benifit of a personal transport(using local train/bus/cycle/walk) will have to pay for people going around in Big SUVs or Luxury cars(more so because these would give you 2-7kmpl consuming three or more times the fuel of a small car and more tax payers money).

Frankly they should aim to protect who they want rather than pulling the leg of others, if they want to protect farmers and truck drivers, it is best to provide cheap fuel individually to them, rather than overcharging City dwellers(There are other beautiful solutions, if the oil companies / governmennt ever recognises them). To the rest the fuel must be avaiable at market price not government controlled.

But this year our government will make away doing nothing, as summer will come to an end soon(1/2 months) reducing the world oil demand or price, providing relief to the fuel operators. They will however have to be prepared to implement some thing of this kind next year. But considering that it will be the first year of the new government they will go for tax reduction or variable over the year tax kind of thing. Letting fuel prices go up is an EGO problem for our government.

[LLL]

Originally Posted by arunmur

Frankly they should aim to protect who they want rather than pulling the leg of others, if they want to protect farmers and truck drivers, it is best to provide cheap fuel individually to them, rather than overcharging City dwellers(There are other beautiful solutions, if the oil companies / governmennt ever recognises them). To the rest the fuel must be avaiable at market price not government controlled.

This soln will not work as you will find farmers/truckers becoming fuel resellers overnite.

The only viable long term solution is to strengthen & improve public transport so that people prefer public transport over private ones.

Also moving towards CNG and hybrid vehicles is another step but for some strange reason, our govt is moving slowly on it. Why not give a discount in duty to CNG vehicles and waive off duty on hybrid ones?

I havent done the calculations for lack of data, but a hybrid vehicle might save the govt more money (via less loss from fuel ) than the govt earns from the excise duties on the vehicle.

[sahakar]

The govt doesnt want the sales of CNG to skyrocket.

That would mean they would earn less taxes with people moving away from petrol/diesel to CNG.

One of the reasons why CNG is currently so cheap is that the taxes on it are miniscule compared to petrol/diesel.

[revved_up]

Has there been a formal announcement of these oil companies selling only premium fuel????

I checked at 3 pumps today(all IOC) and 2 of them said normal diesel has been stopped and i tanked up at the third one which was still selling normal one.

So.. has there been a formal announcement yet.. and has the govt got any control over these stupid decisions????

[theMAG]

Personal car ownership is fast becoming unviable at this rate. Maybe the government intended it be head towards this.