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Old 21st May 2018, 09:47   #6226
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Quote:
Originally Posted by The Rationalist View Post
I don't find any issues with the fuel price. All of us can look back to our salary in 2011 and the present salary. If your salary haven't increased you have a point in arguing against fuel hikes. You can't expect your wages to go high and prices of commodities stay at the level of 2010! Definitely it will pinch if you are looking it like ,when you are too close to the trees you miss the forest.
If I go by the above logic then onion reached prices close to 100 Rs sometime back and now salaries have increased after that, so should the government add taxes and keep the price of onions above 100 Rs now?
The way I see it, petrol is also a similar commodity whose prices got hiked in 2011 due to some reasons. I don't see a valid reason to tax fuel more than 100% its manufacturing cost now.
Some commodities prices are not linear with inflation, just my 2 cents.

Last edited by y448 : 21st May 2018 at 09:49.
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Old 21st May 2018, 09:56   #6227
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Everybody doesn't live off wages, for eg I use diesel for cultivation, for irrigating, for harvesting and then hauling produce to the market on guzzlers. Every bit increase in price hits my profitability hard.

A learned man said, and I quote 'A country of sheep begets Govt of wolves', and thats what has been our misfortune for last half a century.
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Old 21st May 2018, 10:51   #6228
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Quote:
Originally Posted by The Rationalist View Post
This chart show that fuel prices have increased at the normal rate of inflation. While I can find many problems like religious intolerance with the present government and poor governance, I don't find any issues with the fuel price. All of us can look back to our salary in 2011 and the present salary. If your salary haven't increased you have a point in arguing against fuel hikes. You can't expect your wages to go high and prices of commodities stay at the level of 2010! Definitely it will pinch if you are looking it like ,when you are too close to the trees you miss the forest.
All of us should also look at the crude prices from 2011 to crude prices in 2018 too, not just inflation, along with that we should also look at the amount of taxes imposed on 2011 to the ones imposed in 2018, that is the real picture. Inflation I understood but blatant loot in the name of 'development' I can't get through my throat!
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Old 21st May 2018, 11:14   #6229
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Quote:
Originally Posted by The Rationalist View Post
This chart show that fuel prices have increased at the normal rate of inflation. While I can find many problems like religious intolerance with the present government and poor governance, I don't find any issues with the fuel price. All of us can look back to our salary in 2011 and the present salary. If your salary haven't increased you have a point in arguing against fuel hikes. You can't expect your wages to go high and prices of commodities stay at the level of 2010! Definitely it will pinch if you are looking it like ,when you are too close to the trees you miss the forest.
The oil price is the deciding factor here, not inflation, prices kept going up even when oil bottomed out and shale fields went out of production. Actually you can expect your salary to increase and commodity prices to go down, the latter are cyclical. Take tyre prices, adjusted for inflation, I paid about 40 percent less in 2017 versus 2013, same brand and size. The increased taxes led to more wasteful expenditure and now, its driving up inflation. State and country central governments have always used fuel taxes as ATMs, very difficult to get off that gravy train
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Old 21st May 2018, 11:21   #6230
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Quote:
Originally Posted by The Rationalist View Post
This chart show that fuel prices have increased at the normal rate of inflation.
Hint: Prices contribute to inflation/deflation, not the other way around.
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Old 21st May 2018, 11:51   #6231
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Default Re: The Official Fuel Prices Thread

The Fuel price saga -reaches the highest price in Delhi since September 14, 2013.

The Official Fuel Prices Thread-0_578_872_0_70_http___cdni_autocarindia_com_extraimages_20180521115718_fuelx1x.jpg


The Official Fuel Prices Thread-64252955.jpg

The Official Fuel Prices Thread-64252971.jpg

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Size:  50.5 KB

Source:ET

Price differential over the years,

Name:  petroldieselpricedifferential21may18.jpg
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Price break-up

The Official Fuel Prices Thread-pricebuildup.jpg

Link

Last edited by volkman10 : 21st May 2018 at 12:06.
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Old 21st May 2018, 12:56   #6232
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Quote:
Originally Posted by The Rationalist View Post
This chart show that fuel prices have increased at the normal rate of inflation.
Prices have increased not because of inflation but because of increase in excise duty. Govt increased increased excise duty on fuel at least 10 times. I think overall there is 15-20 Rupee increase because of increase excise duty.
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Old 21st May 2018, 18:24   #6233
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The price in neighboring countries is wrong. I have been to Srilanka & the prices of petrol was very high over there compared to India. Indian Oil is the major supplier of petrol there.
I think similar situation is there in Bangladesh, Pakistan also
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Old 21st May 2018, 20:30   #6234
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Default Re: The Official Fuel Prices Thread

If you look closely, the gap between Petrol and Diesel is diminishing, which takes me back to an article I read in ET a few years back that Petrol and Diesel will retail at almost the same price. Whether it's good or bad, can't choose.
Good because it will promote the sales of Petrol vehicles in the Indian market and automatically eliminating the Diesel-dominant market. Let's face it, Indian cities are the most polluted and guess it's high time to take care of it. Even though the Industries and factories contribute to it as well, but let's not forget the all-time high sales of passenger vehicles in the Curren scenario.
Bad because most of the commercial vehicles are Diesel powered. Including the ones which transport essential commodities like Vegetables, Fruits, Grains, etc. Their price includes a steep transportation cost as well, and the effects are already visible right now.

/QUOTE=carboy;4403235]Prices have increased not because of inflation but because of increase in excise duty. Govt increased increased excise duty on fuel at least 10 times. I think overall there is 15-20 Rupee increase because of increase excise duty.[/quote]

I don't think this is accurate enough, because earlier, government used to provide subsidies on fuel prices. However, now, they had changed this and now the prices depends on the crude oil prices of the world. Thus, there is a direct correlation. The duty however has to stay because of the sole fact that it is a huge revenue for the government. Can't decide who to blame, the government or the crude oil prices. Whatever the reason might be, the population takes the hit.
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Old 21st May 2018, 20:38   #6235
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by dextor View Post
The price in neighboring countries is wrong. I have been to Srilanka & the prices of petrol was very high over there compared to India. Indian Oil is the major supplier of petrol there.
I think similar situation is there in Bangladesh, Pakistan also
Maybe its because 1 Indian Rupee is 2.32 Sri Lankan Rupee.

Source

Price in INR, 14th may 2018, Source:
The Official Fuel Prices Thread-screen-shot-20180521-8.37.06-pm.png

The Official Fuel Prices Thread-screen-shot-20180521-8.37.26-pm.png
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Old 21st May 2018, 21:22   #6236
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Quote:
Originally Posted by Akshitsi View Post
...., the gap between Petrol and Diesel is diminishing, ....... that Petrol and Diesel will retail at almost the same price. sales of Petrol vehicles in the Indian market and automatically eliminating the Diesel-dominant market. ......
Bad because most of the commercial vehicles are Diesel powered. Including the ones which transport essential commodities like Vegetables, Fruits, Grains, etc. Their price includes a steep transportation cost as well, and the effects are already visible right now.
It's not the cost of petrol v/s diesel that will dictate the 'elimination' of diesel powered vehicles.

European markets have long had diesel priced higher than petrol, it didn't end up with diesel vehicles becoming unpopular.

Its more about the high torque and more rugged/robust attribute of a diesel engine that make them the better suited for heavy vehicles.
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Old 21st May 2018, 22:01   #6237
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Quote:
Originally Posted by carboy View Post
Prices have increased not because of inflation but because of increase in excise duty. Govt increased increased excise duty on fuel at least 10 times. I think overall there is 15-20 Rupee increase because of increase excise duty.
Definitely the excise duty increase is a big factor, though not 15-20 Rupees. The current government increased excise duty by about Rs. 10 on Petrol, from 9.48 in April 2014 to 19.06.

http://economictimes.indiatimes.com/...w/50013931.cms
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Old 21st May 2018, 22:47   #6238
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Oil minister Dharmendra Pradhan expressed hopes of excise duty cut to soften the impact of oil prices.

Quote:

"The Centre is sensitive towards the rising*fuel prices. Various alternatives are being explored. I hope something will work out soon," Pradhan told reporters in Bhubaneswar.
The minister blamed "the unilateral decision of Organisation of the Petroleum Exporting Countries(OPEC) to reduce production, political instability in Venezuela and the prospect of US sanctions against Iran" for the steady rise in fuel prices. Last week, global benchmarkBrent hit $80/barrel, the highest since November, 2014.

Source
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Old 22nd May 2018, 10:14   #6239
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An excellent infographic shared by ET Auto:


The Official Fuel Prices Thread-64267103.jpg
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Old 22nd May 2018, 11:52   #6240
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I think now the time has come to reduce duties on Petrol which the government increased when crude prices were low. Not doing this can damage their prospects of retaining the throne.
Its a new challenge that this government never faced after 2014 as crude prices kept falling until now: Keeping the fiscal deficit and current deficit in check while importing oil at higher prices. It will be interesting to see how things work out in the next 10 months or so. One thing is for sure, if they government reduces duties on oil, they will do so with a lot of noise and media publicity.
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