![]() | #1516 |
BHPian ![]() Join Date: May 2010 Location: goa
Posts: 341
Thanked: 58 Times
| ![]() What we need to look out for is how much change will be made in central and state taxes of both the fuels. IMO, diesel taxes will continue to be less for fears of rising inflation due to commodity transport costs. When totally unregulated, the price of diesel will be approx Rs 10 cheaper than petrol because the central excise on diesel is about Rs 10 less than petrol. |
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![]() | #1517 | |
BHPian ![]() | ![]() Quote:
![]() OT: The Government needs taxes to run, but instead of burdening the salaried class who pay the most taxes, they should do a better job of catching the tax evaders and making them pay. How many of our celebrities for instance actually pay the correct tax? ![]() Last edited by KRRaj : 1st July 2010 at 11:18. | |
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![]() | #1518 | |
Senior - BHPian Join Date: Apr 2010 Location: New Delhi
Posts: 1,186
Thanked: 655 Times
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Here comes the real controversial set of statements: This is possible in Bangalore because: 1) People belong to mostly service class (read IT) and thus are more open minded. Generally, the more the middle/upper middle class, the more such initiatives. 2) Huge traffic congestion leads to hours of frustration in traffic jams. 3) Great weather conditions. 4) People like to 'save' money (I refrained from using any other term). Usually will prefer Cycle>Bike>Car (Small)>Car (Sedan). A person earning 1 lakh a month will generally save more money in Bangalore than in Delhi (Just an observation, not a comment!) 5) People have a tendency to buy automobiles based on 'requirement' rather than 'aspiration'. This is both good and bad. This is not possible in Delhi because 1) Dominated by Businessmen. They generally don't entertain such ideas. 2) In Delhi, the impression is that you buy a bike when you can't afford a car. Very seldom do people ride motorbikes (let alone) cycles, by choice. Junta buy a car before they buy a house. Do you think they will ride a bicycle ?? 3) Huge distances to cover. Very impractical unless you have office nearby, which is seldom the case in Delhi. Remember, unlike Bangalore, Delhi does not have much 'floating population'. Most people have permanent residence. They all prefer to commute and not change their homes. 4) Way better infrastructure. You can actually drive if you want. I mean, in India, we don't have much infra anyway, but Delhi is probably the best. PS: I am a Delhiite who lives in Bangalore. I have actually seen these trends. BTW, I like both cities. Last edited by Abhi_Automobile : 1st July 2010 at 11:28. | |
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![]() | #1519 | |
BHPian Join Date: Jan 2008 Location: Bangalore
Posts: 97
Thanked: 10 Times
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Overall refining costs are more or less the same, which means that in an ideal and non taxed world diesel should be slightly more expensive than Petrol. In western free markets there are hundreds of factors which determine the pump price of both fuels 1) The distance traveled by fuel from refinery to the pump: Remember not all fuels are distilled in the same refinery. In many cases Diesel travels larger distance. 2) Govt. taxes. In US (and in many countries of Europe) both fuels suffer different rate of taxation. In India however the taxation on petrol and diesel is ad valorem (at value). So even though the Govt. shouts from rooftops that the oil companies lose crores due to rise in crude oil prices, what they hide from all of us is that 1) They collect higher customs and excise on higher landed cost of crude 2) State Govts. collect higher sales tax. Why can't the Govt. fix a fixed amount per unit of fuel sold and then freeze the price of petrol/diesel. That way everytime crude prices go up we won't face a triple/quadruple whammy in form of 1) Higher Customs duty paid by Oil Cos 2) Higher excise duty paid by refiners 3) Higher sales taxes collected by State govt. So a one rupee price increase in cost of fuel translates to 1.67 increase in price of pump. So unfair... but then who said life is fair. | |
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![]() | #1520 |
BANNED Join Date: Nov 2006 Location: Bengaluru
Posts: 4,370
Thanked: 2,247 Times
| ![]() Diesel costs more in the U.S because the refineries are setup towards refining petrol more than diesel. This is the case in U.S and am not sure about other countries. It should generally not cost more than petrol otherwise. |
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![]() | #1521 |
BHPian ![]() Join Date: May 2010 Location: goa
Posts: 341
Thanked: 58 Times
| ![]() Just for everyone's info: 1 oil barrel = 158.987295 liters how many liters in oil barrel - Google Search So, if oil barrel is at $80, each liter of crude oil is about $0.50 (about Rs 23) |
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![]() | #1522 | |
BHPian Join Date: Feb 2010 Location: Bangalore
Posts: 208
Thanked: 214 Times
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![]() | #1523 |
BHPian ![]() Join Date: May 2010 Location: goa
Posts: 341
Thanked: 58 Times
| ![]() Someone mentioned that factory gate price of Petrol currently was approx Rs 23. This is after refinery costs. Not sure if it involves company profits and transportation. Current crude oil barrel is hovering around $74 for a while, which means: $74/159 liters = $0.465/liter = Rs 21.4 / liter Additional cost/liter = Rs 23-21.4 = Rs 1.6/liter? Does that number make sense if we consider the volume of usage? Its more than just refinery costs: crude oil liter: ? (depends on oil barrel) refinery cost/liter: ? transport cost/liter: ? marketing cost/liter: ? dealer profit/liter: ? company profit/liter: ? what else??: ? |
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![]() | #1524 |
BHPian ![]() | ![]() Diesel prices to go up by 3.14. Soruce Rediff.com Diesel likely to cost Rs 3.14 more: Rediff.com Business |
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![]() | #1525 | |
Senior - BHPian ![]() | ![]() Yes, that means difference between diesel and petrol price is getting reduced. I was thinking of a diesel car and fuel price was one of the key reason for it, now i guess need to think of a cycle ![]() Quote:
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![]() | #1526 | |
Senior - BHPian ![]() | ![]() Quote:
Btw, when is the next lok sabha election ![]() | |
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![]() | #1527 |
Senior - BHPian Join Date: Jun 2007 Location: Kochi
Posts: 2,477
Thanked: 571 Times
| ![]() @lohitrao - think of the FE and turbo kick. You will be happy even if diesel is more expensive than petrol. |
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![]() | #1528 | |
Senior - BHPian ![]() Join Date: Sep 2009 Location: Chennai
Posts: 1,400
Thanked: 121 Times
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You need not worry, the deruglation of fuel prices especially the diesel is only going to reduce the inflation. It surely wont grow higher. Note that in a short term it will probably shoot up, but in long run, all the prices are going to stablize post deregulation. | |
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![]() | #1529 |
BANNED Join Date: Nov 2006 Location: Bengaluru
Posts: 4,370
Thanked: 2,247 Times
| ![]() If diesel price equals petrol price, the cost of diesel cars will ensure that whatever FE gains are made are useless. Unless it encourages our local auto makers to continue churning out worse diesel engines and the toothless emission norms support them. |
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![]() | #1530 |
Senior - BHPian ![]() Join Date: Dec 2007 Location: Gurugram
Posts: 7,940
Thanked: 4,690 Times
| ![]() I think the Parikh committee considered that the diesel taxation will have to be kept lower. This is why they propose a Rs.80,000 one time levy on Diesel cars. |
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