How much is affordable for one Litre?

agbenny · 22nd May 2008, 23:10

How much can we afford for one Litre of petrol/Diesel? The fuel prices are serious worry now across the globe, Not sure where will it end. What's the price we can afford now for a litre of Petrol or Diesel? Rs.100 or Rs.150?..?

What price will really bother us, and stop us to go back to old commuting style?

This is a Question which has come out of fear.

aaggoswami · 22nd May 2008, 23:13

The limit for me is 65rs, after which my Hercules TopGear goes for repair and will carry me, no, sorry, I will have to carry its dead mass!

pgsagar · 22nd May 2008, 23:18

Government of India has been milking its citizens since indipendence over price of petrol and diesel. Today fuel may be expensive everywhere but even in cheaper days Indians paid the most for fuel anywhere in the world, thanks to ridiculously high taxes on automotive fuels.

I read it somewhere recently that even today cost price of refined petrol in India is Rs 11 a litre. They take it up to Rs.50 after loading it up with all kinds of taxes.

agbenny · 22nd May 2008, 23:21

Quote:

Originally Posted by pgsagar

Government of India has been milking its citizens since indipendence over price of petrol and diesel. Today fuel may be expensive everywhere but even in cheaper days Indians paid the most for fuel anywhere in the world, thanks to ridiculously high taxes on automotive fuels.

I read it somewhere recently that even today cost price of refined petrol in India is Rs 11 a litre. They take it up to Rs.50 after loading it up with all kinds of taxes.

Its one clear reason, why our Growth is slow till date.

I think I can afford Rs.100/Litre, and then..Can't even think aboutit.

joslicx · 22nd May 2008, 23:23

Quote:

Originally Posted by pgsagar

Government of India has been milking its citizens since indipendence over price of petrol and diesel. Today fuel may be expensive everywhere but even in cheaper days Indians paid the most for fuel anywhere in the world, thanks to ridiculously high taxes on automotive fuels.

I read it somewhere recently that even today cost price of refined petrol in India is Rs 11 a litre. They take it up to Rs.50 after loading it up with all kinds of taxes.

When did you read that? I wonder if its still true (the 11 rupee figure). Crude prices have more than doubled in last 1 year itself!!! Add to that cost of refining, transportation etc. Crude price now is 130 USD a barrel and a barrel is about 160 litres. So that is almost 1 dollar a litre ~ 40 rupees a litre (unrefined oil price!)

danlalan · 22nd May 2008, 23:25

Ahhh cant wait for my NANO to come and then modded it..ummmm LPG that is.

phamilyman · 22nd May 2008, 23:29

YAWN.

Human beings adjust all the time.

@PGS: Nope. More like 25-30 bucks.

BAKIYA_2K12 · 23rd May 2008, 00:15

it is just 35inr a liter. why don't the government reduce the tax on the fuel.

aaggoswami · 23rd May 2008, 00:20

Quote:

Originally Posted by pgsagar

Government of India has been milking its citizens since indipendence over price of petrol and diesel. Today fuel may be expensive everywhere but even in cheaper days Indians paid the most for fuel anywhere in the world, thanks to ridiculously high taxes on automotive fuels.

I read it somewhere recently that even today cost price of refined petrol in India is Rs 11 a litre. They take it up to Rs.50 after loading it up with all kinds of taxes.

Quote:

Originally Posted by BAKIYA_2K12

it is just 35inr a liter. why don't the government reduce the tax on the fuel.

Out of the cost of 50Rs. per ltr, Rs. 35 goes for government tax.

theMAG · 23rd May 2008, 00:32

Quote:

Originally Posted by aaggoswami

The limit for me is 65rs, after which my Hercules TopGear goes for repair and will carry me, no, sorry, I will have to carry its dead mass!

Same here! Only I'll have to buy a new cycle since the earlier one was sold 15 years ago. Either that or I switch completely to the BMTC Volvos.

fiery enzyme · 23rd May 2008, 01:10

Don't forget that due to inflation the cost actually wont be a true reflection.

Meaning: Hypothetically if we pay Rs 100 for a litre after 4 years, that 100 wont be of the same value as a 100 today. what I'm saying it is a kick, neverthless not as painfull as it seems.

Come on guys be realistic no matter what the price is we wont stop using our cars and bikes. We are used to it, we will grumble and mumble but in the end pay up and use it all the same.

ddd08 · 23rd May 2008, 02:06

People at times can be really ignorant. Crude Oil is $130 a barrel (1 barrel = 42 US gallons = 34.972 Imperial gallons = 158.987 litres) that means its $ 0.8177 per litre which is Rs. 35.12 (42.945 Rs = 1$ Yahoo currency conversion). That would mean that the increase in price we from crude to refined oil is roughly Rs 15.38. In that there has to be
1) Refinement cost
2) Transportation cost
3) Profit Margin
4) Govt Tax
I guess people are just too consumed by paying more. I have never heard people complain when they get a raise in their salaries. So why complain when prises rise. Ignorance is a major factor. And all of us want to buy bigger cars, add turbo, bigger engines, etc. They don't mind paying excess for that but if something like fuel price increase its a problem.

I feel the price rise for fuel is a convincing move to curb people's usage. Nothing else seems to work. Awareness is for noobs. Only when people can't afford it, will they start to respect it more. And I'm sure once prices reach Rs 150/litre, there will be a lot of people who would suddenly prefer walking smaller distances rather than use vehicles. And then many would like smaller engine cars.

I know may get a lot of resentment for what I have written. But I speak my opinion and the world has always had problems with those who think different.

chncar · 23rd May 2008, 04:12

Quote:

Originally Posted by phamilyman

YAWN.

Human beings adjust all the time.

@PGS: Nope. More like 25-30 bucks.

No offense, but that just doesnt make sense. Do you have any links or sources to prove it?

The PSU oil companies are running at a heavy loss due to being unable to hike the price, which is the reason the govt is thinking of upping the price anyway. If the real cost of petrol was 25 Rs and the rest taxes and margins, the private petrol bunks would not have to shut down and close business because of the high cost and inability to match the govt prices.

At some point in time the taxes were perhaps high, but right now the situation is that the govt is heavily subsidising the PSU oil companies and they are still making huge losses, and even that is becoming ubearable to both the govt and the oil companes which is why they are forced to consider raising prices even in an election year.

GenuineOptimist · 23rd May 2008, 07:18

If there is a demand surge (India grows at 10% with inflation at 6%), so prices should rise at 16% per year approximately if the supply of oil is assumed to be constant. This will happen if there is a frictionless market and no government.

So anything less than 16% price rise is going to cause supply side issues. There will be rationing, unavailability of fuel in any pumps, black market, heavy adulteration and so on, a Russia like situation. I'm sure there are intelligent brains in the government who will resist going down this road..

Let the prices rise and supply be smooth. We will pay more and still enjoy!

sahakar · 23rd May 2008, 07:47

I completely second dd08 and chncar. Its time not ony for the government to wake up but us consumers too. Government has to increase prices immediately and us consumers have to take the price hike.

Like I have mentioned in my other posts, get ready for rationing if you do not want to pay the full price of fuel.

I hope none of us wants to get back to the 70/80's ration economy again, do you?

22nd May 2008, 23:10	#1
agbenny Senior - BHPian Join Date: Sep 2006 Location: TN38 Posts: 1,069 Thanked: 276 Times	How much is affordable for one Litre? How much can we afford for one Litre of petrol/Diesel? The fuel prices are serious worry now across the globe, Not sure where will it end. What's the price we can afford now for a litre of Petrol or Diesel? Rs.100 or Rs.150?..? What price will really bother us, and stop us to go back to old commuting style? This is a Question which has come out of fear.
	() Thanks

22nd May 2008, 23:13	#2
aaggoswami Senior - BHPian Join Date: May 2007 Location: Vadodara Posts: 4,982 Thanked: 2,931 Times	The limit for me is 65rs, after which my Hercules TopGear goes for repair and will carry me, no, sorry, I will have to carry its dead mass!
	() Thanks

22nd May 2008, 23:18	#3
pgsagar Senior - BHPian Join Date: Nov 2006 Location: Vizag Posts: 2,627 Thanked: 3,561 Times View My Garage	Government of India has been milking its citizens since indipendence over price of petrol and diesel. Today fuel may be expensive everywhere but even in cheaper days Indians paid the most for fuel anywhere in the world, thanks to ridiculously high taxes on automotive fuels. I read it somewhere recently that even today cost price of refined petrol in India is Rs 11 a litre. They take it up to Rs.50 after loading it up with all kinds of taxes.
	() Thanks

22nd May 2008, 23:25	#6
danlalan Senior - BHPian Join Date: Nov 2005 Location: mumbai,JUHU Posts: 1,636 Thanked: 263 Times View My Garage	Ahhh cant wait for my NANO to come and then modded it..ummmm LPG that is.
	() Thanks

22nd May 2008, 23:29	#7
phamilyman Senior - BHPian Join Date: Jul 2007 Location: Gurgaon Posts: 5,968 Thanked: 4,642 Times	YAWN. Human beings adjust all the time. @PGS: Nope. More like 25-30 bucks. Last edited by phamilyman : 22nd May 2008 at 23:32.
	() Thanks

23rd May 2008, 00:15	#8
BAKIYA_2K12 BHPian Join Date: Nov 2007 Location: CHENNAI Posts: 190 Thanked: 4 Times View My Garage	it is just 35inr a liter. why don't the government reduce the tax on the fuel.
	() Thanks

23rd May 2008, 01:10	#11
fiery enzyme BHPian Join Date: Jun 2007 Location: TN 01 Posts: 413 Thanked: 27 Times View My Garage	Don't forget that due to inflation the cost actually wont be a true reflection. Meaning: Hypothetically if we pay Rs 100 for a litre after 4 years, that 100 wont be of the same value as a 100 today. what I'm saying it is a kick, neverthless not as painfull as it seems. Come on guys be realistic no matter what the price is we wont stop using our cars and bikes. We are used to it, we will grumble and mumble but in the end pay up and use it all the same.
	() Thanks

23rd May 2008, 02:06	#12
ddd08 BHPian Join Date: Nov 2007 Location: Mumbai Posts: 50 Thanked: 0 Times	People at times can be really ignorant. Crude Oil is $130 a barrel (1 barrel = 42 US gallons = 34.972 Imperial gallons = 158.987 litres) that means its $ 0.8177 per litre which is Rs. 35.12 (42.945 Rs = 1$ Yahoo currency conversion). That would mean that the increase in price we from crude to refined oil is roughly Rs 15.38. In that there has to be 1) Refinement cost 2) Transportation cost 3) Profit Margin 4) Govt Tax I guess people are just too consumed by paying more. I have never heard people complain when they get a raise in their salaries. So why complain when prises rise. Ignorance is a major factor. And all of us want to buy bigger cars, add turbo, bigger engines, etc. They don't mind paying excess for that but if something like fuel price increase its a problem. I feel the price rise for fuel is a convincing move to curb people's usage. Nothing else seems to work. Awareness is for noobs. Only when people can't afford it, will they start to respect it more. And I'm sure once prices reach Rs 150/litre, there will be a lot of people who would suddenly prefer walking smaller distances rather than use vehicles. And then many would like smaller engine cars. I know may get a lot of resentment for what I have written. But I speak my opinion and the world has always had problems with those who think different.
	() Thanks

23rd May 2008, 07:18	#14
GenuineOptimist BHPian Join Date: May 2008 Location: Bangalore Posts: 134 Thanked: 31 Times	let the market work.. If there is a demand surge (India grows at 10% with inflation at 6%), so prices should rise at 16% per year approximately if the supply of oil is assumed to be constant. This will happen if there is a frictionless market and no government. So anything less than 16% price rise is going to cause supply side issues. There will be rationing, unavailability of fuel in any pumps, black market, heavy adulteration and so on, a Russia like situation. I'm sure there are intelligent brains in the government who will resist going down this road.. Let the prices rise and supply be smooth. We will pay more and still enjoy!
	() Thanks

23rd May 2008, 07:47	#15
sahakar BHPian Join Date: Sep 2007 Location: LA <--> Bombay Posts: 473 Thanked: 213 Times	I completely second dd08 and chncar. Its time not ony for the government to wake up but us consumers too. Government has to increase prices immediately and us consumers have to take the price hike. Like I have mentioned in my other posts, get ready for rationing if you do not want to pay the full price of fuel. I hope none of us wants to get back to the 70/80's ration economy again, do you?
	() Thanks