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Old 23rd May 2018, 15:07   #6256
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sibot View Post
Somehow under this government, people have a higher threshold for such high tax imposition and inflated fuel prices.

Not really, it's just that people have lost faith on any kind of governance at all. No amount of hue and cry will solve our problems, if any it will just be a political opportunity for the selfish oppositions(whoever it is) to build themselves.
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Old 23rd May 2018, 15:30   #6257
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Originally Posted by Stratosphere View Post
I agree that the government has the whole pricing system in shams and can do a lot to bring prices down in the short term. That is what everyone wants. But, realistically, how much should they cut the prices? What do we expect?

The country needs funds to run and taxes on fuel are the safest source of funds. Even if they reduce the duty by 4/5/6 units, they cannot assure that international crude prices will remain the same or go down. What if they reduce duties and crude crosses $80? Then we, as a country, lose twice. The government loses funds and we still pay the same price.

Even I'm frustrated with this scenario but I'm also thinking of the realities. Short-term, the fuel is only going up. So we need to do something concrete. Something which will have a lasting effect. Favourable for us and acceptable to others.

As for OPEC being a group of powerful nations, I agree. I may not know enough about it to discuss. But I also know that we just need to do something to break one of them. If anyone starts producing over their quota, everyone stops the supply glut and flood the market with oil. The prices fall back to $40 levels. It's a very fragile partnership, it seems to me.

On a lighter note, taking on other nations through diplomacy will be considered short term if we compare it to the time our government will take to work efficiently and stop using public funds according to their whims and fancies. 😁
The government should get the taxes back to where they were before the Modi regime. That is straight 22-23 rupees off the petrol price and 15-18 rupees off diesel price, That is the amount that is bludgeoned in the name of development.

If the same tax regime on fuel that the Congress had kept would be effective now, Petrol would be 60 and diesel would be 50-52 rupees, we don't want the government to give us peanuts, reduce the excise by 2 bucks and say 'Ah we are doing everything we can'.
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Old 23rd May 2018, 15:44   #6258
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Default Re: The Official Fuel Prices Thread

Petrol prices touch Rs 80 mark in Chennai today.

The rate display board outside BPCL bunk Meenambakkam was displaying Rs 80.12 for normal petrol and Rs 83.xx for Speed.
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Old 24th May 2018, 03:17   #6259
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Default Re: The Official Fuel Prices Thread

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Originally Posted by volkman10 View Post
Amul's jibe on the fuel hike
Amul some how manages a nice print ad for any situation we face. Be it a celebration or the dreaded fuel price hike.

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Originally Posted by humyum View Post
But look at the per capita income of NZ vs Per capital income of India? India is 6690 Dollars a year, NZ is 38000 dollars a year. Government here has increased the taxes 150% since it came into power, when the crude was going down, the excise kept going up, now when the the crude is going up, the excise is not going down!
You could argue about the per capita income being a lot higher but that does take away the fact that the fuel price rise does not hurt people here. They do. The only difference, as I was told by someone who has been living in NZ a lot longer than I, every time there is a sharp increase, it almost always comes down. Let me see if that happens. Probably only around the time it hits the $3 mark.

What is happening in India is well beyond me to understand. As you rightly said, when crude drops, the cost of fuel does not. Looks like another way the government is trying to make up for taxes that don't get pumped back to in to the system.
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Old 24th May 2018, 09:21   #6260
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Default Re: The Official Fuel Prices Thread

Fuel gets dearer as petrol, diesel prices rise to new heights .

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Mumbai continue to shell out the most for petrol. On Wednesday, petrol was priced at Rs 84.99 per litre. This increased by 30 paise and touched Rs 85.29 per litre on Thursday morning. Diesel too registered a hike of 20 paise in Mumbai with the commodity being sold at Rs 72.96 per litre.
Quote:
Chennai and Kolkata are not insulated from the soaring fuel prices. Petrol is being sold for Rs 80.42 per litre in Chennai while the price in Kolkata was Rs 80.12 per litre.
link

Last edited by volkman10 : 24th May 2018 at 09:23.
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Old 24th May 2018, 09:36   #6261
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Petrol price in Pune : ₹84.90.
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Old 24th May 2018, 11:22   #6262
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Default Re: The Official Fuel Prices Thread

justifying the hike , statement from Minister,

Quote:
Subsidising petrol, diesel will be at the cost of welfare schemes
Quote:
if petrol and diesel are subsidised, “all the money from our social security schemes will vanish
Link
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Old 24th May 2018, 12:03   #6263
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Default Re: The Official Fuel Prices Thread

Read an article this morning stating that Saudi Arabia has targeted $80 as their target price for crude. This would help set a good price level for their Aramco IPO.

The article also stated that the US and EU have also noticed the sharp increase in crude and are pressuring OPEC to produce at higher levels.

Give the following link a read.

https://www.ndtv.com/india-news/pm-n...ing-80-1856711
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Old 24th May 2018, 12:29   #6264
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Quote:
Originally Posted by volkman10 View Post
justifying the hike , statement from Minister,





Link
An MP is entitled to unlimited road travel, an MLA in my state gets 600 litres of petrol everymonth, no doubt they give such platitudes.
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Old 24th May 2018, 15:20   #6265
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Default Re: The Official Fuel Prices Thread

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if petrol and diesel are subsidised, “all the money from our social security schemes will vanish
Such statements are just adding further insult to a rotten wound, with as such no tangible benefit to any society.
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Old 24th May 2018, 18:16   #6266
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Default Re: The Official Fuel Prices Thread

I am not sure if this is highlighted in the thread or not.
Gujarat has one of the highest State VAT on Diesel. Coupled with lower VAT on Petrol brings unbelievable prices which are very different from the country.

Fuel prices as of today In Ahmedabad,
Petrol - INR 76.62
Diesel - INR 73.51

The difference is only INR 3.11
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Old 24th May 2018, 19:24   #6267
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Default Re: The Official Fuel Prices Thread

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Originally Posted by humyum View Post
The government should get the taxes back to where they were before the Modi regime. That is straight 22-23 rupees off the petrol price and 15-18 rupees off diesel price, That is the amount that is bludgeoned in the name of development.

If the same tax regime on fuel that the Congress had kept would be effective now, Petrol would be 60 and diesel would be 50-52 rupees, we don't want the government to give us peanuts, reduce the excise by 2 bucks and say 'Ah we are doing everything we can'.
@humyun, have you checked these numbers:

Name:  CrudevsRetail.jpg
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I didnt understand the equivalent price in the sheet. For the middle years where crude was very high, the retail prices were still subsidized. This must be seen as an aberration. The prices now being quite deregulated, the retail prices look on par with international crude prices.

On another note, during 5-6 years upto 2013-14, payments for oil imported from Iran was not paid for. If we consider this, then this is a double whammy - artificially maintained prices, and not paying for it either.

IMHO, considering the numbers in this sheet, where international crude prices, dollar rate, inflation rate are all taken into consideration, the retail prices are on par with international prices today.
Quote:
Originally Posted by zalaps View Post
I am not sure if this is highlighted in the thread or not.
Gujarat has one of the highest State VAT on Diesel. Coupled with lower VAT on Petrol brings unbelievable prices which are very different from the country.
Did you check the posts on previous page ?

Last edited by condor : 24th May 2018 at 19:35.
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Old 24th May 2018, 20:01   #6268
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Default Re: The Official Fuel Prices Thread

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Originally Posted by condor View Post
On another note, during 5-6 years upto 2013-14, payments for oil imported from Iran was not paid for. If we consider this, then this is a double whammy - artificially maintained prices, and not paying for it either.
IMHO, considering the numbers in this sheet, where international crude prices, dollar rate, inflation rate are all taken into consideration, the retail prices are on par with international prices today.
1. The Iran payments were held in Indian banks without exposure to the USA. Its not like they were trying to do any creative accounting.

2. Remove the inflation adjusted prices and focus on real prices and exchange rate. Commodities work in a boom bust cycle, not on inflation rates particular to one country. Though, 100 rupee petrol is theoretically more affordable today than 10 years back.

3. The fact is the government raised excise duty by around 20% over and above the existing extortionist rates.

The least the government should do is roll back the tax hike to previous levels. Ideally they should use the amount collected to lower the taxes to below the 2014 levels to compensate for the high crude prices.

At the end of the day, most economies around the world slow down when oil prices rise.
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Old 24th May 2018, 20:37   #6269
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Default Re: The Official Fuel Prices Thread

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Originally Posted by condor View Post

On another note, during 5-6 years upto 2013-14, payments for oil imported from Iran was not paid for. If we consider this, then this is a double whammy - artificially maintained prices, and not paying for it either.
Hi Condor,

Can you share the link for this information?

Thanks.
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Old 24th May 2018, 20:51   #6270
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Default Re: The Official Fuel Prices Thread

How would it be if Mukesh Ambani did a Jio with Reliance Petroleum?
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