[sgiitk]

Inflation worries are a just mirage. The Rs.5 hike added 0.1% to inflation, so Re.1 per month adds zilch!

Also, the most holy cow aka Kerosene also is being hiked by Rs.10 over two years.

[woodcrawler]

Originally Posted by bigron

@ woodcrawler - ....The fuel is the back bone of the major sectors of the economy namely agriculture and transportation. ........ I am an agriculturist and I know if the price of diesel goes up it will have a cascading effect on my produce.
Now coming to your opinion of " taking lesser holidays and fancy gadgets " . Are you doing moral policing here ? ........Two separate economic strata having same aspirations. In short , lets talk about how things actually work and not how you "think" they should work.

I agree bigron, that fuel prices decide how the economy moves. The issue is that wise men running the government decades ago, decided that diesel is a poor mans fuel and decided to subsidize it. Succeeding Governments did not have the guts to correct the imbalance when the time was right. Now the price disparity is so much that everything is so skewed.

I'm not here to start a debate, but I'd like you to understand that I have only mentioned the consequences of the hike in a jovial way. There is nothing personal in it. For your information, though I happen to be a health professional, I also run businesses in automobiles and petroleum retailing, besides retaining and running my family agricultural holdings. I guess I will have enough inputs from my varied professional interests to understand the impact of a hike in diesel prices.

Let me assure you I'm not here to do 'moral policing' as you say. It has never been my intention to make inappropriate comments on this dignified forum. I request the moderators to delete my comment if they feel it is not appropriate.

[mohandas]

Originally Posted by sgiitk

Inflation worries are a just mirage. The Rs.5 hike added 0.1% to inflation, so Re.1 per month adds zilch!

Also, the most holy cow aka Kerosene also is being hiked by Rs.10 over two years.

100% disagree with this statement. I do not know about Kanpur but in Hyd, things are started crumbling. On average - we saw 40% rise in food prices (combined with veg and non-veg items).

[sgiitk]

@mohandas; Maybe, but what I am quoting are the official inflation figures.

If we continue to be profligate and do not rein in the deficit I think even God Almighty may give up on us.

[bigron]

@ woodcrawler -All taken in healthy vain buddy.
@ sgiitk - Let me assure you nation this big will take alot more than a handful of skewed economic policies to crumble financially . Now since we are talking financial crunch let me quote an acquaintance economist and a member of the planning commission . He is of the view that as long as we are even buying a simple packet of biscuit or a toothpaste from the market our population size shall ensure that the ecomomy will maintain or stay around the current GDP. Now i dont want to get too technical on this as economics is not my field but we can take this through private messages. What I am saying is diesel as a fuel has a far reaching effect on economic parameters that petrol. What Inida may be heading to within the next decade is debatable but increasing the price of diesel is definitely going to effect the transportation and agriculture sector which could lead to massive inflation.

[sgiitk]

@bigron; You believe the 'Sarkari Economist'. To me being a member of the Planning Commission is a sure sign of a dyed in the red Nehruvian mindset. Only thing worse is the NAC.

I wonder where the rupee and inflation will be if India is further downgraded. Yes, you will still get the biscuits but at the cost of a few hundred rupees. Your savings will become naught.

[bigron]

@ sgiitk - My father works for the Government , so does my uncles and yes i will believe the " sarkari economists " if you are the other option i have. What you have is a heard mentality and frankly I meet a bunch like you every now and then. Not every government official is incompetent . The majority yes maybe but the ones who are not are ensuring this nation stays afloat. Sitting on an automotive forum dissing government functioning , does not say too much about your repertoire.

[sgiitk]

@bigiron; I have also been with Bharat Sarkar (at least an autonomous body) since 1977, so I should also know. Only thing is I have a very healthy of scepticism. I retire in less that a year and a quarter. Maybe as a Monetarist I do not like the Keynesian economics.

Let us agree to disagree.

[Sowmya]

What will be the future of the Diesel price and Diesel mill.

NEW DELHI: The oil ministry has moved two separate cabinet notes - one to raise cap on supply of subsidised cooking gas cylinders and the other to increase fuel prices, particularly diesel, by less than a rupee per month to pair it with market rates and eventually deregulate it in next 15 months.

Full article.

http://economictimes.indiatimes.com/...w/17879306.cms

[rajshenoy]

Originally Posted by Sowmya

What will be the future of the Diesel price and Diesel mill.

NEW DELHI: The oil ministry has moved two separate cabinet notes - one to raise cap on supply of subsidised cooking gas cylinders and the other to increase fuel prices, particularly diesel, by less than a rupee per month to pair it with market rates and eventually deregulate it in next 15 months.

Full article.

http://economictimes.indiatimes.com/...w/17879306.cms

Interesting churn. This was expected since elections are there in 2014 and Govt does not want to give us last min reason to blast them. so increase now was always on the card.

What is more interesting to see is the sales of Diesel vehicles. popular models have been selling like 80:20 in favor of diesel. Even if it changes, we might only see change in this ratio but overall numbers of sale wont change. realistic figure ideally should be 60:40 still in favor of Diesel because of the high running and FE.

[sgiitk]

@rajshenoy; Seems that PC has rejected the one about increasing the LPG cap. Nothing from Finance on the Diesel front though.

[sameerg001]

CNG rates to be increased by 1.55 rupees in Delhi, Just saw it in the news. It's pretty much near the diesel territory now, Currently it's 38.35, with 1.55 rs hike, it will retail at 39.90/- after the hike.

Link- http://www.financialexpress.com/news...-39.90/1054586

[S_U_N]

Is there any petrol price change expected between now and 20 January?
Diesel pricing is in the news for last few days and CNG rates have changed as indicated by sameerg001.

Is there any petrol price change expected between now and 20 January?

[supremeBaleno]

Originally Posted by DRIV3R

Well, I have seen this trend with petrol car owners even.
As long as he is paying for his fuel, it is his problem.

No denying that there could be exceptions, but if one does even a casual look around, you could see that the misuse is more common among diesel-users. It is human tendency not to value something that comes free or at a lower cost. And while the money is mostly his (again debatable due to the subsidy part), my concern is only about a rapidly depleting non-renewable resource being wasted. Using is good, wasting is not. Applies not only to petro-products, but other resources like water / electricity etc.

Originally Posted by DRIV3R

Btw, diesel cars take a 5km drive to reach operating temperature. Even if it idles for ten minutes, the needle just nudges over C, in this season.

Even petrol cars need a few kms of drive before the temp-needle settles at the mid-way position. But I don't think modern cars need to be idled before driving off to reach this state - be it petrol or diesel. Most manufacturers suggest that after starting the car, the best way to reach optimum state is to drive off slowly and they debunk the idle-for-few-mins theory which used to be the norm for previous generation cars. There could be some specific instructions for starting/stopping for TC cars, but again it would be at best a minute or so. What does your car manual say ?

[sgiitk]

Now they seem to have their knickers (or should I say Dhotis and caps) in a twist, and are speaking with multiple voices. The deficit is snowballing (likely to be 6.5% or so) and a ratings cut is again on the horizon. Now to rein in the inflation fuel prices (Diesel, Kerosene, LPG) have to go up. One school says that Re.1 per month over 10months may take them too close to the election, while the other says this may be less painful politically. I am even hearing of Re.0.20 per week over the same 10 months.

As for petrol even though NYMEX is going up the differential to Brent is coming down. The point to watch is the Rupee rate. ATF is a good bellwether.