[simplyself]

Mod Note : Please use the EDIT or MULTI-QUOTE buttons instead of typing one post after another!

One major fact that we generally do not take note of is the increase in Auto LPG prices.
In Feb, 2012 it was about Rs.45.20/litre; since March it was Rs. 48.64/litre . A couple of days ago the price was hiked by about Rs. 7/litre, taking the price to Rs. 55/litre.

While every one is harping on 'going green' why this haphazard treatment to Auto LPG, which isnt in any way subsidized? Why hike the prices by such huge quantum there by discouraging petrol-LPG dual users and making them look towards diesel which in turn is heavily subsidized. Worse, this increases the already rampant diversion of highly subsidized domestic LPG to cars.

Cut down on taxes. Why fleece the common man to pay for fat expense accounts? It is about time the fuel users should take some radical action against government's irresponsible pricing of fuels.

Originally Posted by shankar.balan

Thats a bit of a drop eh?
Hope its sustainable.

I dont mind paying 50bucks for a litre of Diesel. And I wish they would make Petrol equitably priced at the same 50bucks. All they need to do is to be a little less greedy on the taxes and excise.

If there was a legislation that all taxes on Petrol and Diesel would be used for roads, infrastructure and public transport systems, I would very happily pay whatever they ask - provided there is a guarantee of implementation, transparency and of course, proper ethics and accountability.

Well said. Let both the fuels be priced equitably. Let the customers decide on their fuel preferences depending upon their riding patterns and not by very unfair fuel pricing policies.

AP slaps a 33 % tax on petrol, 22.5 % on diesel. And the taxation on supposedly green fuel Auto LPG is unknown but most probably would be the same as that of petrol.

[el lobo 6061]

Petrol pump operators threaten strike on April 23

NEW DELHI: Petrol pump operators today threatened to go on a one-day strike on April 23 demanding a hike in commission they get on fuel sales.

"It has been decided that all petrol pumps of public sector oil marketing companies in the country shall observe one day protest closure in the first instance from midnight of April 22-23 till the midnight of April 23-24," Federation of All India Petroleum Traders (FAIPT) general secretary Ajay Bansal said here.

Further, FAIPT, which claims to represent dealers of over 40,000 petrol pumps in the country, will go on an indefinite strike from midnight of April 29-30, if their demands are not met.

He said the oil ministry has not implemented recommendation of its own committee that was constituted to go into the issue of commission paid to dealers.

The committee headed by joint secretary (marketing) in ministry of petroleum and natural gas had recommended a dealer commission of 0.39 paisa per litre on petrol and 0.17 paisa a litre on diesel. But the ministry gave only 0.27 paisa for petrol and 0.15 paisa for diesel.

"Our demand for 5 per cent commission on the invoice value of petroleum products has been turned down by the committee without any proper reason," he said.

Source: TOI

Million dollar question "Will the prices of fuel rise further?".

Seems like everyone is now holding common man for ransom with their strike for fulfillment of demands, just like auto rickshaw strike here in Mumbai today.

[Sportygellar]

Cut excise or we hike petrol price by Rs 10/L, says IOC

NEW DELHI: Taking a cue from the RBI governor D Subbarao, market leader Indian Oil Corporation indulged in grand standing on Tuesday by saying state-run retailers would raise petrol price by almost Rs 10 per litre, if the government did not reduce excise duty or did not compensate their Rs 49-crore daily loss on the fuel.

"We have been very patient, not raising prices since December despite our cost of production spiraling. But there is a limit to which we can borrow money and produce fuel for the country," said chairman R S Butola.

The bold public stand by a state-run oil marketing company chief on fuel prices is unusual. No wonder many industry insiders say the oil ministry, using Subbarao's statement earlier in the day, could have engineered it with the aim of pressuring the finance ministry to cut excise duty. An excise duty cut would help avoid raising petrol price too steeply.

[selfdrive]

Originally Posted by Sportygellar

Cut excise or we hike petrol price by Rs 10/L, says IOC

Let IOC begin with some austerity measures by clearing up their own house first. Anyone has an idea of the accomodation and other perks being provided to the higher ups in IOC, in relation to other relevant in the industry? (opening a pandora's box here, am I?)
Will IOC reduce prices if cost of acquiring/ producing goes down?

In a twisted way, its a good move because it focuses the spotlight on all the duties and taxes that are levied on petrol by our Govt.

[fre2bpowerless]

Why not just figure out a way to implement dual pricing?

I'd hate to ever 'have' to make the switch to diesel, petrol head sounds way cooler!

@selfdrive - If the cost of acquiring/producing goes down, they will maintain the price stating "we wan't to cover our losses and then pass on the benefits to the customer", this has been done before. By the time we get the price benefit, either the crude goes up or we have another budget by some new dumb ****

[speedmiester]

The Govt has partially agreed to deregulate diesel prices.
If this happens, the inflation will spiral out of control with prices of all essential commodities head north.

At least could we hope for a sizable cut in excise duty?

Govt agrees in-principle to free diesel prices, no such proposal for LPG

[lohithrao]

this will be a disaster for common man! prices of every damn commodity will shoot up!

Originally Posted by speedmiester

The Govt has partially agreed to deregulate diesel prices.
If this happens, the inflation will spiral out of control with prices of all essential commodities head north.

At least could we hope for a sizable cut in excise duty?

Govt agrees in-principle to free diesel prices, no such proposal for LPG

[vineethvazhayil]

Originally Posted by lohithrao

this will be a disaster for common man! prices of every damn commodity will shoot up!

They might still be working out a method to control this deregulation - like controlled prices for transportation and public sector only. Anyway, it may take time to get this rolling. Also, there is going to be very strong political opposition.

[libranof1987]

I think this is the first time the PM has spoken about fuel price hikes.

PM hints at rise in fuel prices, cites import bill - The Times of India

Let's hope some political party makes objections and tries to not have the prices hiked.

[SafeDrive]

Originally Posted by libranof1987

I think this is the first time the PM has spoken about fuel price hikes.

PM hints at rise in fuel prices, cites import bill - The Times of India

Let's hope some political party makes objections and tries to not have the prices hiked.

This is silly . Any under recovery or loss at the end of the day is made up with a tax some where else. If fuel is deregulated then at least the burden of that will fall on the folks using it and not on another group.

[drmohitg]

Originally Posted by SafeDrive

This is silly . Any under recovery or loss at the end of the day is made up with a tax some where else. If fuel is deregulated then at least the burden of that will fall on the folks using it and not on another group.

Well I pay for so many of those useless schemes being run by the Govt where most officials loot all my money in disguise of upbringing of weaker sections of the society. So why not let me too enjoy a little subsidy/help/low taxes on Fuel?

[libranof1987]

Originally Posted by SafeDrive

This is silly . Any under recovery or loss at the end of the day is made up with a tax some where else. If fuel is deregulated then at least the burden of that will fall on the folks using it and not on another group.

I am all for de-regulation.

But, how about reducing taxes a bit rather than continuously hiking fuel prices; the whole logic hiking fuel prices for every hike in int'l crude prices is skewed. Crude prices will only go up, something should be done to maintain it at levels where petrol is still within sensible prices.

[Vid6639]

I don't understand. PM said that we need to think of the poor and needy. If diesel is deregulated won't the price go up for the poor and needy as well or only for the well off guys?

[infotech58]

what i do not understand is how the PSU oil companies keep on changing their under recovery amounts; few weeks ago, they were saying petrol price should be hiked 4 rupee to a litre, now they want a 9 rupee hike; price of crude in international market has not gone higher by that percentage, and moreover the crude price movement does not affect the govts. immediately as the import happens at an already negotiated price for a given term. anybody smell another scam in this area?

[SafeDrive]

Originally Posted by infotech58

what i do not understand is how the PSU oil companies keep on changing their under recovery amounts; few weeks ago, they were saying petrol price should be hiked 4 rupee to a litre, now they want a 9 rupee hike; price of crude in international market has not gone higher by that percentage, and moreover the crude price movement does not affect the govts. immediately as the import happens at an already negotiated price for a given term. anybody smell another scam in this area?

PSU oil companies are just pawns at the hands of the government. The price of petrol on paper is deregulated but in reality is still controlled by the Government. The PSU oil companies should just be declared as "not for profit" companies so that they are not pressured on profits and dividends to the government