[sidindica]

Why do we have to pay in mere instalments of 1,2 or 5 rupees? Just hike the price of the petrol to Rs. 100 once and for all....

[ethanhunt123]

Originally Posted by sidindica

Why do we have to pay in mere instalments of 1,2 or 5 rupees? Just hike the price of the petrol to Rs. 100 once and for all....

Dude, bachon ki haan loge Kya Atleast for some days let's us still tank up at 78, then 85, then 90

[mohandas]

Originally Posted by Ali

Someone needs to step up against this, it will pinch everyone, but what about the poor people who dont use a bike or car, but have to pay more for essential commodities.

Just saw in Hindustan times that Didi (Mamatha ) is going to withdraw her support from UPA 2 govt. I sincerely hope that the govt collapses in a mouth or two.

[drmohitg]

No the PM gave his statement yesterday from Cannes that he stands firm on the fuel hike. So I am guessing Didi will also mellow down her threat and will probably convert it into do not repeat in future kinds.

But I am still having some doubt regarding all this. I have always felt Dr Manmohan Singh is a man of integrity and he is an economist. A part of me wants to believe that the govt is being forced to do this to compensate for the increasing subsidy budget. Just Imagine the consumption of LPG ( heavily subsided) is growing exponentially with the ever increasing population of our country. They can remove that subsidy but then that will be disastrous for the Govt and I am sure it will fall and not get re-elected. Hence they choose to hike the Petrol prices whenever possible.

[mohandas]

OT:
MMS is a man of integrity and he is a economist --- haha.
dude, he is not only a puppet but also a fool. He said that inflation is a sign of prosperity. So that mean - Zimbabwe with 100% inflation is a prosperous country. On the other hand, Switzerland, with 0.5% inflation is a backward country.
Nowadays, I really feel ashamed that I voted this fool.

[Hayek]

Originally Posted by Fordmanchau

Here atleast someone has made a start against this irrational petrol price hikes.
Read this.
Petrol price hike: Kerala high court slams decision - The Times of India

Frankly, the said High court judges are stupid - they have no business getting into commercial decisions taken by oil companies or policy decisions taken by the government. Such hubristic judges must be impeached.

Originally Posted by Fordmanchau

Imagine what these extra oil can do to prices if it comes into market. Petrol pricing is seriously a scam.

Nothing. oil is a global commodity and Cairn's production is too small to make a difference.

The real scam is that listed oil marketing companies' minority shareholders are being fleeced by the government - directors of oil PSUs are violating their fiduciary duties by asking the majority shareholder (viz GOI) for directions on oil prices instead of acting in the interest of all shareholders by charging what the market will bear. Forcing the OMCs to subsidise diesel, LPG and Kerosene is also a criminal act - if a private company did this based on the whims of the promoter, everyone would be up in arms. If the government wants to subsidise fuels, it should be done through the budget, not through listed PSUs.

Solution: Fully decontrol all fuels - let the price be set by market forces with normal rates of CENVAT, VAT and customs duties (or even fixed per liter subsidies given to anyone who wants to retail fuels). Let Big Bazaar or anyone else retail fuels, like Wal-mart does. Prices would change every day, and vary from pump to pump - and would probably end below where inefficient oil PSUs who pay their employees way more than market salaries set them.

[arin_12]

Diesel, Petrol, LPG will be Decontrol said by Pranab Mukherjee. Don't know where will head for for the pricing

[Sheel]

Originally Posted by arin_12

Diesel, Petrol, LPG will be Decontrol said by Pranab Mukherjee. Don't know where will head for for the pricing

I say go ahead and dare to make this move. The Government will fall and the country would be burdened with another election sooner rather than later.

A coalition Government will be formed again resulting in the same chaos prevailing today.

Is it so hard to reduce the taxes a bit?

[sunnyworld]

Karnataka Govt is "planning" to cut sales tax on petro products Government planning to cut sales tax on petro products

I have my doubts whether this "planning" will actually lead to anything but if it does it will be much needed relief for the people in bangalore/karnataka.

[benbsb29]

Originally Posted by sunnyworld

Karnataka Govt is "planning" to cut sales tax on petro products Government planning to cut sales tax on petro products

I have my doubts whether this "planning" will actually lead to anything but if it does it will be much needed relief for the people in bangalore/karnataka.

Yesterday's TOI mentioned nothing of the sort was being considered. They had a rethink so soon?

[ethanhunt123]

I don't think the BJP govt is going to reduce taxes, all these are just sound bites to try and divert attention. If DVS/BSY were so worried about common people, we wouldn't be paying highest road tax and fuel prices in the country.

And I read the reasoning given by DVS why its difficult to reduce petrol tax - loss of revenue due to ban on mining. Almost fell off my chair laughing - why can't he impound the palatial houses and wealth of Reddy brothers - probably more than entire yrs Karnataka tax revenue.

[anu21v]

Originally Posted by Sheel

I say go ahead and dare to make this move. The Government will fall and the country would be burdened with another election sooner rather than later.

A coalition Government will be formed again resulting in the same chaos prevailing today.

Is it so hard to reduce the taxes a bit?

I do not believe reducing the taxes help anyone. As for economics go, reducing taxes only leads to Base price increase by seller. So any amount saved on price reduction will lead to further profiteering by Oil producing nations by increase in price. Consumer doesnt benefit at all by this. So Not good to me.

In fact the other way round works better. If one increase the price and government increases the taxes, the usage goes down and hence the Oil producing nations are under the pressure to cut price to maximize their profits.


In USA they dont put any taxes on Petro products which is the reason why US is the highest user of Petro products per capita and drives global demand of crude. There has been demand in US by economist to put Taxes on petro products in order to check the profiteering of OPEC nations.

[anu21v]

Considring Government is anyway Charging such a high Tax on Petrol Vehicles, Government should allow the Private Cars and jeeps scooters and Motorcycles to be used as Passenger vehicles even without registering them as Taxis. Now when private cars can be frequently used as taxi vehicles

a) atleast the owners will recover some costs of fuel and
b) India will see a better seat utilization of petrol vehicles capacity.
c) more transportation options to people who do not own vehicles.
d) Government getting additional taxes anyways due to tax-differential on Petrol and Diesel.
e) Ofcourse urban consumers will figure out a better dignified way of attracting customer to fill their seats, (Read FB/Twitter/Websites dedicated to attracting customers) leading to further innovation in the field of urban mobility.

so it is win-win for all.

Current practice is people go their office alone, it leads to 75% seat space vacant which is akin to a great wastage; also since The Trafic inspectors are authorize to put penalty on such vehicles used as carrying passengers , in the name of govt revenue loss, people rather drive it alone than even bothering to carry any passengers at all to the extent of not even giving free lifts.

Government should think of it as better utilization of resources rather than tax or revenue loss situation. In fact this practice should be promoted just like they used to promote Car-Pooling in 80s and 90s

[antz.bin]

Originally Posted by anu21v

I do not believe reducing the taxes help anyone. As for economics go, reducing taxes only leads to Base price increase by seller. So any amount saved on price reduction will lead to further profiteering by Oil producing nations by increase in price. Consumer doesnt benefit at all by this. So Not good to me.

In fact the other way round works better. If one increase the price and government increases the taxes, the usage goes down and hence the Oil producing nations are under the pressure to cut price to maximize their profits.


In USA they dont put any taxes on Petro products which is the reason why US is the highest user of Petro products per capita and drives global demand of crude. There has been demand in US by economist to put Taxes on petro products in order to check the profiteering of OPEC nations.

IMHO The bold bit does work with Products, but not with commodities.

Imagine that they increase the price of Soap and Shampoo so much that it pinches you everytime you take a bath eg.Rs.2000 for a bar of Lifebuoy soap etc. At such a time, we will try to use as little soap and shampoo as possible so that the same bar of soap lasts for much longer. Consumption is reduced. Expenditure is reduced.

But consider a commodity like Salt. Imagine salt is now sold at 10 grand a kilo instead of 12 bucks a kilo. You still have to add the same amount of salt to your food or the food will become tasteless. It doesn't matter if it is now sold at 10 grand instead of 12 bucks. Consumption and hence expenditure cannot be reduced unless a cheaper alternative to salt is found(In this case, Alternative fuels).

[anilisanil]

Originally Posted by antz.bin

IMHO The bold bit does work with Products, but not with commodities.

while I agree with you on your theory, it is only fair to think that Petrol consumption would be more if the petrol prices were to be at the same level as they were a year ago, well heck even a few months ago.

We cannot deny the fact that Petrol is something that moves the middle class (bikers and a/b segment cars). While the poor does not care about petrol prices for lack of access, the rich hardly think about all this. So it is a bit weird but true that this commodity petrol acts up as a product here.

I really do not know if the government is doing this to get the international crude prices reduced. But it is too evident that it is definite effort to shrink the demand supply gaps. May be an intentional effort to not to consume more than so many barrels/day? As I said in the other thread, there is more than what meets the eye and it is defintitely got nothing to do with profitability of PSUs, had that been the case, AI/IA would have been history by now!