So what's the verdict going to be today? I believe crude price and $ was less volatile in last couple of weeks.
Saw a ticker in NDTV that Maharashtra government is introducing "drought tax" - 5% tax on petrol and other commodities that are not considered as essential - all the soft targets. So expect petrol prices to rise in MH !!
Similarly for Maharashtra- drought relief. They can all thank Saudi Arabia for this windfall. Good time for govt's to correct their fiscal conditions and/or come up with some good public friendly projects. As long as these amounts are utilised well ...
They are obviously trying to progressive deter diesels. However, until taxation is rationalised not much will happen.
Doesn't seem to be the case if you look at the excise duty. It's around Rs 17.25 for petrol and somewhere between Rs 5 - 7.50 (can't recall the exact figure) for diesel. Moreover, if you look at the last few revisions(barring the current one and the one just before this), it was petrol rates that actually took the beating irrespective of whether prices got hiked or dropped. The gap between both fuels is still around 15-16 Rs now instead of being around Rs 10.
They are obviously trying to progressive deter diesels.
I highly doubt that they are trying to deter diesels.
I think this is due to the ongoing elections in Bihar where there is a close contest. They don't want to give another point to the talking-heads. Diesel price rise does not directly impact most folks who are using 2 wheelers or petrol cars. Whereas petrol price increase will have a direct negative impact on those users.