[rajshenoy]

I am running empty tank and now there will be mad rush at the pumps. !!

[dass]

In Bangalore.. the diesel price is 61.33. An increase of Rs.1.33 including taxes as per deccan herald. The petrol prices have remained unchanged, though they are still losing 50 paise on every litre. Who are they kidding??

[supremeBaleno]

Good to see the price disparity between petrol and diesel come down slowly, but surely. Looks like the 50p per month increase technique is working to plan.

[sgiitk]

@supremebaleno; yes, except they added up two increases in a single shot. Parting Shot of the UPA?

[supremeBaleno]

They did not hike for last 2 months - so this two-increase only covers the missing months. Another way of looking at it.

[drmohitg]

So can we expect the new govt to ease out taxes on Fuel just like what they did in Goa? At 63.15 rs/ ltr, its slowly becoming quite expensive now.

[sgiitk]

Originally Posted by drmohitg

So can we expect the new govt to ease out taxes on Fuel just like what they did in Goa? At 63.15 rs/ ltr, its slowly becoming quite expensive now.

The point is that the Excise (Central) is not that high esp on Diesel, it is the Sales Tax (by whatever name) which is not in the control of the Centre which is the killer. Maybe they can get the BJP/NDA states to play ball, but as for the others ?? I think GST also does no include fuel in the common taxation list.

[supremeBaleno]

Originally Posted by drmohitg

So can we expect the new govt to ease out taxes on Fuel just like what they did in Goa? At 63.15 rs/ ltr, its slowly becoming quite expensive now.

What they did in Goa was for the state to forego its tax on petrol and I believe they made up for the loss in revenue by hiking tax on liquor. Smart move IMO. And I believe this was done only for petrol. Or did they give up state's tax on diesel also ?

[gsurya]

Originally Posted by sgiitk

The point is that the Excise (Central) is not that high esp on Diesel, it is the Sales Tax (by whatever name) which is not in the control of the Centre which is the killer. Maybe they can get the BJP/NDA states to play ball, but as for the others ?? I think GST also does no include fuel in the common taxation list.

Haha.. Gujarat is one of the states with highest state taxes on fuel despite producing a lot of oil & gas & earning huge royalty on that too. Feel sorry for those expecting a miracle here

[Mr_Bean]

My feeling is that at one point of time even if the government is ready or inclined to reduce taxes, their hands will be tied badly due to automotive lobby objecting to it.

Car manufacturers in India have invested lot of money on diesel plant and technology, they would not want this to happen.

[lurker]

there is a massive difference in fuel efficiency in between diesel and petrol engines. One tankfull of diesel (45L) gives one around 850 kms while a tankful of petrol hardly gives 300-350 kms depending upon traffic conditions. I am talking real time conditions here, and not ARAI fantasy averages.

[saket77]

Originally Posted by Mr_Bean

My feeling is that at one point of time even if the government is ready or inclined to reduce taxes, their hands will be tied badly due to automotive lobby objecting to it.

Car manufacturers in India have invested lot of money on diesel plant and technology, they would not want this to happen.

May be I am missing something in your point, but why will manufacturers object if taxes are reduced on Diesel or even petrol? Won't it be a positive move for them as lower fuel costs will push car sales?

[supremeBaleno]

Originally Posted by lurker

there is a massive difference in fuel efficiency in between diesel and petrol engines. One tankfull of diesel (45L) gives one around 850 kms while a tankful of petrol hardly gives 300-350 kms depending upon traffic conditions. I am talking real time conditions here, and not ARAI fantasy averages.

Diesel is indeed inherently more FE than petrol as you said. But did not quite understand the context of your statement. Are you saying that price of diesel should be higher since it gives more kmpl ? Or the other way round ?

BTW, are the 2 cars in your comparo peers in terms of size/engine etc ? Asking because the petrol car seems to be a real guzzler at around ~8kmpl.

[Mr_Bean]

Originally Posted by lurker

there is a massive difference in fuel efficiency in between diesel and petrol engines. One tankfull of diesel (45L) gives one around 850 kms while a tankful of petrol hardly gives 300-350 kms depending upon traffic conditions. I am talking real time conditions here, and not ARAI fantasy averages.

Totally agree with your point under city conditions (15kmpl for diesel vs 10kmp for petrol on an average). However on the highways, there won't be much difference when we compare vehicles from the Maruti (K-series), Honda (Vtec) stable.

Originally Posted by saket77

May be I am missing something in your point, but why will manufacturers object if taxes are reduced on Diesel or even petrol? Won't it be a positive move for them as lower fuel costs will push car sales?

If you pick a car in the 5-10 lakh category, the ex-showroom price of diesel vs petrol vary by at-least 80-100k INR. That's a fat margin on every diesel unit sold in the country for Maruti, Honda, Toyota, TATA. Manufactures have set-up the infrastructure and fined tuned it to produce more diesel vehicle to capitalize on the demand owing to lower pricing of the fuel.

The diesel buyer always thinks of immediate returns and that is happening every-time a full tank of diesel is filled at the bunk . Now if the disparity between petrol and diesel cease to exist in future, it would be hard to convince the buyer to buy a diesel vehicle by paying 1 lakh upfront on ex-showroom and also account in the long term maintenance cost.

The recent Celerio launch by Maruti is a small indication of things to come, if petrol are made as fuel efficient as diesel, there will be more buyers who will line up to buy.

[saket77]

Originally Posted by Mr_Bean

I
The diesel buyer always thinks of immediate returns and that is happening every-time a full tank of diesel is filled at the bunk

Probably I overlooked that you were talking about lowering petrol prices, instead thought of lowering diesel prices. However, I feel that the manufacturers might not have much say (even informally) while deciding fuel prices. Even if they object, looks like the Govt. hardly heard them as both diesel & petrol prices have been increased drastically in last few years.