[akash_m]

If petrol increases by Rs 17/ltr, sale of banana leaves will definately rise. Because that is exactly what i would be wearing after selling my cloths!

[srishiva]

What if the government invests the amount the PSUs lose in a day on CNG powered buses ? You can put on road thousands of them (provided we have that amount of CNG). Then de-regulate petrol/diesel. When will the government do the right things at the right time ? Well, I know never.

[rajshenoy]

Time to start walking and/or buy cycles.. trust your own energy :-)

jokes apart, i am seriously making it a point to cut my fuel expenses and use car only when i have a real need(or 4-5 people)

and with petrol touching 70Rs!! god forbid.. i might as well stop using my bike as even that will workout expensive...

[Technocrat]

This 16-17 Rs hike seems to be a eyewash. they will create a hoopla for such a figure & then hike it by 5-8 rs & say that they prevented the major hike & everybody will be happy.

[indian21r]

True it is high time we start using cycles. One thing probably the gov. should do is make foot paths a little more wide and suitable for bicycle riding too

[karanraheja]

Seriously this fuel price hike is gettin on everyone. But with crude oil touching 200 $ per barrel in near future Petrol price of Rs. 70/ litre aint far away. I wonder what will AAM JANTA do when prices go sky high. Apparently
Petroleum Ministry had requested Finance Ministry to reduce excise duty or abolish it. Finance Ministry has withdrawn the request. How i hope i could slap Chidambaram!

[hondadude]

Got this in a mail today. If only cars can do this we wouldn't be worrying about the petrol prices :-)

[redfire]

Today morning when I went to fill (the petrol bunk I am going for last 8 years), guys told me that from June 1st onwards there will be only Speed petrol and the ordinary will be stopped. And the Speed will be charged more (now it is Rs. 50 p/l) regardless what Govt. decides as basic price. The normal petrol will be supplied only when the price hike is made sufficient to petrol companies. Is it that they are going their own way?

[Lord Lucan]

Originally Posted by karanraheja

I wonder what will AAM JANTA do when prices go sky high. Apparently Petroleum Ministry had requested Finance Ministry to reduce excise duty or abolish it. Finance Ministry has withdrawn the request.

Now it looks like, the FM will reduce the excise duty for petrol. But, to make up for the shortfall in funds, govt will levy an additional cess in the Income tax, in this way AAM JANTA need not spend more on the petrol bunk but tax payers will be feeling the punch a lot more as they will contributing for the AAM JANTA's share as well.

Originally Posted by karanraheja

How i hope i could slap Chidambaram!

[srishiva]

Originally Posted by indian21r

True it is high time we start using cycles. One thing probably the gov. should do is make foot paths a little more wide and suitable for bicycle riding too

Huh, In Bengaluru, big footpaths were just broken to widen the roads. Now they need to undo that !

[LandCruiser]

Originally Posted by praveen_v

It's hardly a month since I got a petrol fiesta and this comes as a shocker. Hoping that hike will not be so much.

But what I dont understand is the govt policy of subsidising petrol and then taxing it heavily. By doing this govt is earning more at the cost of oil companies running huge losses. Now the govt expects people to pay up more to coverup the Losses of oil companies and it's not ready to cut down the taxes. I really wonder what they are thinking.

Selling petrol at market rates and still taxing it so heavily is really absurd. The loss due to due to selling diesel at subsidised rate can never be overcome by selling petrol at market rates.
.

That is so that the Govt can squeeze us tax payers by our neck and kill us.

Source CNN-IBN:
State oil firms BPCL, HPCL and Indian Oil are suffering losses amounting to Rs 580 crore daily because of skyrocketing global fuel prices. The Petroleum Ministry has proposed to raise the prices of petrol, diesel and LPG but that is not acceptable to Government’s Left allies. Therefore, the Government is considering the option of imposing a cess on income tax to make up for the losses suffered by the oil firms.

Well I don't have more words if this will come into practice. Eventually it will !

[suvi]

'Govt mulling oil cess on income tax' -India Business-Business-The Times of India

This will hurt the tax payer a lot. i favour raising petrol prices compared to this. the guy who consumes petrol/diesel more should pay more. not the guy who pays his tax honestly.

[bharanidharang]

We have been given a good deal in the income tax this year... so why not the cess. i am not in favour of the education cess. Nothing seems to be happenning on that front with the money collected. (Note: I am just talking about the usage of money collected via education cess).

[revved_up]

Originally Posted by Technocrat

This 16-17 Rs hike seems to be a eyewash. they will create a hoopla for such a figure & then hike it by 5-8 rs & say that they prevented the major hike & everybody will be happy.

Spot on!!!
I am sure this is going to happen.

[suvi]

Originally Posted by bharanidharang

We have been given a good deal in the income tax this year... so why not the cess. i am not in favour of the education cess. Nothing seems to be happenning on that front with the money collected. (Note: I am just talking about the usage of money collected via education cess).

Cross Subsidy is not good. if the price of petrol is more, people will drive less and market will find the correct balance. the latest report in CNN says Gasoline consumption in US has come down by 4.3% this year. However if you pay cess, you will be paying a higher amount irrespective of your consumption and will not have a motive to reduce.