[sgiitk]

Originally Posted by M00M

With fuel being left out of GST it is another cause of concern but then they (the governments) need a cash cow to fund their increasing expenditures and therefore this is the easiest. If we go to war with Pak, there is another chance of rapid increases in fuel to fund everything and the inflation it causes.

I only hope that Rupee Strengthens over a period of time, Electrics like Tesla and Hybrids attract a very low GST and we the people continue to receive better Infrastructure, better facilities so that there is some solace that we are directly funding the growth of our nation.

Fuel was kept out of the GST at the insistence of states. This was a 'price' which had to be paid to get GST through. The other major non-GST stuff is Ethanol.

Originally Posted by longhorn

Current govt does not know the meaning of the word 'budget'. Every govt worth its salt will first find the means(funds) and then declare the schemes. The means may come from tax/cess/surcharge introduced during the annual budget exercise.

This is the only govt I have seen first declaring schemes and then introducing tax/cess/surcharge to raise funds for the same, and it kicks in on any random day as and when they please.(does krishi kalyan cess / dynamic ticket pricing for railway tickets ring a bell?)

Also, now that this govt is partly funding all new/ongoing road projects, isn't it high time the tolls are revisited and revised downwards?

I guess it is an act of God that inflation is down to the current levels. CPI is under 4.5%.

Originally Posted by Chetan_Rao

Aren't they all the same? They act like the quintessential credit card wielding spendthrift: swipe card for instant gratification, knowing full well one doesn't have money in the bank to cover the bill. Then indulge in financial gymnastics to somehow meet minimum obligations, and continue to rack up debt one has no intention to fully repay, but just enough to keep the credit line open. The govt. is the spendthrift, the tax payer the card. No credit limits either, so swipe away to glory

I think my answer has been given out above. Also, by the looks of it subsidies are down, and also far better targeted.

However, defence expenditure has to go up to tackle the neighbors. I see no options here. In addition the neglect of a decade has to be made up in a hurry. I hear that our special forces used arms which were a decade old in the cross border strikes.

[1lokesh]

Welcome to the festival season. Congratulations everyone.

Petrol +1.34
Diesel +2.37

[TorqueyTechie]

Its hike time again. Fuel prices has been hiked effective tonight. Petrol has been hiked rs 1.34 per litre while diesel has been hiked rs 2.37 per litre.

[embee]

Official Times of India article dated 15/10/2016

NEW DELHI: Petrol price was today hiked by Rs 1.34 a litre, the fifth increase in two months, and diesel by Rs 2.37 a litre on back of spike in global rates.

The hike announced by oil companies is excluding state levies.

After including local VAT, petrol will now cost Rs 66.05 a litre in Delhi from midnight tonight as against Rs 64.72 per litre currently. Diesel will cost Rs 55.26 per litre as against Rs 52.61 a litre at present.

Also, petrol prices in the other major cities will be: Rs 69.08/litre in Kolkata; Rs 72.83/litre in Mumbai, and Rs 65.96/litre in Chennai. And, diesel prices will be: Rs 57.64/litre in Kolkata; Rs 61.05/litre in Mumbai, and Rs 56.95/litre in Chennai.

http://m.timesofindia.com/articleshow/54870206.cms

http://m.ndtv.com/profit/petrol-pric...-litre-1474634

[gsurya]

In October 2014, the price of crude oil was $80.54 a barrel, price of petrol in India was Rs 66.65. (INR/USD was 61)

In October 2016, the price of crude oil is $50.32 a barrel, price of petrol is Rs 66.06. (INR/USD is 67)

The numbers dont add up. So how is this 'fuel price is now decontrolled', can someone explain?

[sgiitk]

@gsurya; One thing the price is based on the International Price Parity, whatever that is?

also, it is the average for the past fortnight and not just the last day.

These are the reasons which come to mind.

[gsurya]

@sgiitk : So why this divergence only now?

[NetfreakBombay]

Analysis from financial point of view. All data is available at http://ppac.org.in/content/149_1_PricesPetroleum.aspx

Originally Posted by gsurya

The numbers dont add up.

This example mentions only two variables (Crude rate and USDINR rate) and compares petrol price at the pump.

Few other variables need to be added to complete the picture :

1. "Under recovery" cost carried forward (from 1.4 lakh crore in FY2013 to expected cost of 50k crore in current financial year)
2. Dealers' Commission
3. Central Taxes
4. State Taxes
5. Processing and manpower cost of OMCs

All these variables have changed as compared to October 2014.

Originally Posted by gsurya

how is this 'fuel price is now decontrolled'

Under recovery for Diesel is Zero for last month. This would not have been possible (unless petrol prices subsidized the diesel prices).

Decontrolled prices have a very technical meaning specified in act. My attempt at simplifying that is "OMCs are allowed to set rates to keep under/over recover near Zero for Petrol and Diesel".

[itwasntme]

Petrol back to >70 in BLR. Just filled up at HP for 71.29.

[Vik0728]

Petrol back to >70 in BLR.

I filled Diesel from Indian Oil bunk en-route work today morning and lo behold, it was:

INR 59.3 !!

I can still live with this coz I know, no price hike or dumb gimmicks by Government can take away the stupendous mileage my GT gives, every single time

[gsurya]

A bit more insight into why the price at the pump is much more than it used to be compared to the crude price & dollar rate:

[mtnrajdeep]

Do COCO pumps sell fuel cheaper? I tanked up both my cars on 16-Oct at IOCL COCO pump near kr puram and paid only 58.87 per liter. As per IOCL website, it should have been 59.2 per liter. Has anyone else observed such a thing?

[sumzup]

Originally Posted by mtnrajdeep

Do COCO pumps sell fuel cheaper? I tanked up both my cars on 16-Oct at IOCL COCO pump near kr puram and paid only 58.87 per liter. As per IOCL website, it should have been 59.2 per liter. Has anyone else observed such a thing?

Hi there, there is no such thing as the coco selling it for less. The marginal difference is primarily due to transportation cost varying with distance from the filling/supply point, which in case of Bangalore is in Hoskote Taluk. The other thing that could be possible is that the automatic update feature that is part of automation would have generalized the rate across a certain radius.

[longhorn]

Its very obvious that now, taxes (VAT/Excise/Cess/(you name it)) accounts for more than 50% of the cost per litre of fuel. This has been the case since a certain FM who has no idea of budgeting/funding, managed to take charge of a very important portfolio called the finance ministry, inspite of having received a massive drubbing at the poll booth. Guess he is out to take revenge on the common man for this.

Its funny to see how people are supporting this daylight robbery in the name of inflation / floor VAT / dealer commision / IPP and what not as if no such thing existed prior to the last two years. Fact of the matter is the govt is way short of funds for all the schemes they have declared and fuel is their cash cow. What happened to all that talk of cushion / buffer / pillow /mattress etc that the govt was creating and that the taxes would be reduced if crude prices go up?

[jetsetgo08]

Originally Posted by longhorn

Its funny to see how people are supporting this daylight robbery in the name of inflation / floor VAT / dealer commision / IPP and what not as if no such thing existed prior to the last two years.

Should we add GST to that list? I presume that it would be the biggest Hogwash.