[PMK-MoJo]

Looks like another price cut on fuel soon as the crude prices are still falling.

https://in.finance.yahoo.com/news/mo...180004918.html

[ankan.m.blr]

Filled up Shell regular petrol this weekend @ Rs. 70.95/- per liter. Have promised wifey that I'll throw a party if petrol comes down to 68.XX (2010 price).

[sgiitk]

Originally Posted by PMK-MoJo

Looks like another price cut on fuel soon as the crude prices are still falling.

Very likely, the adjustments are fortnightly now. So wait for the 15th for the next one. There has been some cribbing about under recoveries though.

[dass]

Originally Posted by sgiitk

Very likely, the adjustments are fortnightly now. So wait for the 15th for the next one. There has been some cribbing about under recoveries though.

It is a tried and tested formula, crib about the 'perceived losses' to prepare the aam junta for the increase in cost and then finally start cutting down the subsidies.

I for one, would like to see kerosene deregulated at the earliest, would help in having cleaner fuels for sure as the margin on proliferation is much less.

[dean5545]

97octane is retailing for 88.xx/ltr at BP pump Juhu circle. :o

[longhorn]

The Saudis have reduced the price of Brent (read: price of oil for American market) and compensated for it by increasing the price for Asian markets. We need to look at the price movement of Indian basket of crude and rupee appreciation/depreciation vis a vis the dollar. I still believe the govt is maintaining a margin of 3-4 Rs on petrol at current crude oil prices unlike what is made out to be. Petrol is currently retailing in Chennai at Rs. 67.01. I see no reason why it should be more than Rs. 63 keeping in mind the fact that in June 2010 when crude was at ~80-85 dollars, retail price of petrol was Rs 55-58 here.

[mohan41]

Just now came across this news.

Higher duty on crude & petroleum products on cards to boost government finances


http://economictimes.indiatimes.com/...w/45103375.cms

[sgiitk]

Now the latest news
http://economictimes.indiatimes.com/...w/45108514.cms

Se even with the duty raise we may still get a cut!

[prateekm]

http://www.thehindubusinessline.com/...cle6594436.ece

[ghodlur]

There seems to be a price cut in the offing with effect from Saturday of Rs 1 for both petrol and diesel. Had seen the news flashes in the morning on TV. Is that going to be true or with the hike this is not going to be the case?

[gsurya]

With falling fuel prices come falling tax revenue; so Govt has now increased excise duty by 1.50 Rs on both petrol & diesel to reduce its tax revenue losses. Else CAD for this fiscal would have gone for a toss.

2 minutes silence for those who expected duty cuts from this Govt

[speedmiester]

Don't rejoice too much.
Government hikes excise duty on diesel and petrol
The govt has increased the excise duty on both diesel and petrol. This will negate the price decrease mulled for this Nov 15th.

[rnidumolu]

I don't understand the logic here. If the government is not ready of selling the Petrol & Diesel at the market rate, if the prices are coming down what is the meaning of deregulation?

I felt like I got cheated by the government with this move of increasing the excise duty by not passing the falling fuel prices benefit to me.

[gsurya]

Originally Posted by rnidumolu

I felt like I got cheated by the government with this move of increasing the excise duty by not passing the falling fuel prices benefit to me.

States & Central Govt get a huge amount of revenue from fuel taxes. Only Goa was stupid enough to remove taxes on Petrol (but not diesel) for publicity sake, but are now struggling due to revenue losses. Any Govt can forego / reduce fuel taxes only at peril of financial stability. Wont happen.

[commonman]

Originally Posted by rnidumolu

I don't understand the logic here. If the government is not ready of selling the Petrol & Diesel at the market rate, if the prices are coming down what is the meaning of deregulation?

I felt like I got cheated by the government with this move of increasing the excise duty by not passing the falling fuel prices benefit to me.

Governments change,but the officials (Babus) ,remain the same.They can't think of general public getting the fuel at low cost and they would have mooted this idea to the new government.
Taxing people here and there ,is not the right way of governing. Reduction in fuel price would have affected the tax kitty of the government ,so some super brainy would have found this solution.The problem here is ,the next time fuel price increases ,the tax also goes up.
In effect ,the common man will never get the actual benefit of falling fuel prices.