Quote:
Originally Posted by rangaraj Petrol likely to cost you Rs 10-16 more- Oil & Gas-Energy-News By Industry-News-The Economic Times
Petrol likely to cost you Rs 10-16 more
26 May, 2008, 0503 hrs IST,Rajeev Jayaswal, TNN
Petrol price hike
NEW DELHI: Petrol, a fuel used primarily by urban consumers, could soon be selling at market prices. This would mean an increase of Rs 10-16 per litre at current prices.
Officials told ET that a proposal to sell petrol at market prices, while keeping diesel, cooking gas and kerosene at subsidised rates was under consideration. According to a Union minister, some Cabinet members are in favour of market-determined petrol prices. The Cabinet is likely to take up the proposal at a meeting soon, which will discuss a bailout package for state-owned oil marketers.
“With crude oil prices breaching $132/barrel, nothing can be ruled out in the domestic market. Some members in the Cabinet favour prices of petrol to be market-determined, while regulating prices of diesel, cooking gas and PDS kerosene to safeguard the poor and avoid stoking inflation,” he said.
“I strongly believe that subsidising petrol not only encourages its misuse but also discourages use of public transport. Having a market-determined price would help in the survival of oil cos without any significant inflationary impact. The poor, anyway, don’t use personal vehicles,” added another Cabinet minister. He added that there were other members with similar views.
While there is a case for petrol, a similar move is not recommended for diesel due to its impact on inflation, the member said. According to an internal oil ministry exercise, petrol has insignificant weightage in the wholesale price index (WPI). The WPI consists of three major groups — primary articles (with 22.02% weightage), manufactured products (63.75% weightage) and fuel, power, light and lubricants (14.23% weightage).
The third group is subdivided into three categories with following weightage assigned — coal mining (1.75%), electricity (5.49%) and mineral oil (6.99%). Among the mineral oil category, diesel has the highest weightage of 2.02%, followed by LPG (1.88%). Petrol has only 0.88% weightage, an official source said. |
Misuse: Well if the price increases, then we cant even afford USING PETROL, and he talking about misuse ? And what public transport he is talking about ? Do we have one with proper quality and security ? If we dont have the public transport, how are we going to use one ?
Why is he not talking about the bad quality and less quantity given by the pumps ? This move is definatley going to put pressure in economy. Quote:
Originally Posted by asr245 What is this going to achieve? After this more and more people will go for diesel vehicles thereby increasing diesel consumption even more and increasing the subsidy budget. What's wrong with putting an extra 10-15% tax on diesel vehicles (cars & MUVs) and using that to partly subsidize diesel? Will also put a check to ever increasing number of private diesel vehicles on roads. |
Excatly, private diesel vehicles and taxi diesel vehicles ( such as Tavera, Qualis, etc and only busses and mainstream trucks are not included ) must be now made to pay completely unsubsidzed and market determined cost of diesel. Its high time. And the private diesel car and muv owners wont be suffering a loss.
Figure out this. A pertol verna gives 10kmpl ( this is just comparative suppossotion ) and diesel will give 12 in city. And on the highway, petrol will give 15-16, diesel can extent it to 18-20kmpl. So even if the cost of petrol and diesel become same, then aslo diesel will be cheaper to run.
In case of samller diesels like Swift the diesel will still be cheaper to run.
The road conditions, if improved, can also help in reducing our fuel consumption along with disciplined traffic.
OT: Looks like our government has one ever green and fool proof technique to earn money. Tax fuel a lot and give the worst possible roads and traffic. So the fuel consumption of each and every automotive vehicle using road will increase and so they will buy more fuel. So the government earns more money. |