[BigBrad]

Meanwhile, Kerala govt shows some mercy:

The LDF government in Kerala has decided to cut petrol and diesel prices by Re 1, with effect from Friday, June 1, Chief Minister Pinarayai Vijayan announced Wednesday.

Source

[Vitalstatistiks]

7th consecutive day of fall in price, 7th consecutive day of inactivity on this thread. Definitely not a good indicator of reasons and rationale for our outages.

Anyway- SUPER INTERESTING- If you remember, on May 30th, the initial news was that petrol price will be reduced by 60 paise. Which was then hasitly retracted, and price was reduced by only 1 paisa. Well guess what? After today reduction in petrol prices, the total reduction since 30th May is---guess guess--- YES, 60 paise ! How many of you believe in this being a coincidence?

I've asked this before and I ask again if any knowledgable member can throw some light on this- What is the exact formula used by Oil Cos which helps them to determine the daily movement? What is it? We know the broad components (being amount imported, rate of crude, forex rate) but that does not always explain the price movement, we need to understand the formula, the ratio in which these are factored in. In fact many a times we have seen petrol and diesel prices move in different directions, which boggles my mind.

In addition, does anyone have knowledge about the form of contracts entered into by OilCos to import crude? Since forever, it was shoved down our throats (and it made sense, to be honest) that there will be a little lag between price movement in international crude v. petrol diesel prices on the street, since the OilCos enter into short term agreements (say 15 days) for supply of crude at a certain price as on that date. So any price change in crude during that period does not affect the price being paid by OilCo and consequently the retail consumer. But, what happens now? Did the Oil Cos change their contracts for supply of crude, and now their supply is priced on a daily basis? Or is this daily price movement a sort of hedging mechanism for OilCos?

I hope someone can enlighten me (or us) on the above, because I find it shocking that we (at least some of us) do not understand (or even know) such a fundamental aspect of what takes up so much of our money on an everyday basis. We just don't know, we just keep paying whatever is asked for

[lurker]

total collection of central/state taxes before GST used to be in range of 110,000 crores per month. After GST introduced the collection ranges from 92-95,000 crores per month. To cover up net revenue shortfall petrol prices are increased arbitrarily. Because taxation on petrol is percentage of dealer price and not fixed amount. So when price is increased, percentage increase means more than proportional increase in taxes, so taxes also increase along with increase in price. So net tax revenue *increase* maybe by some ₹5000 crore with every ₹1 increase in petrol and this amount is used to cover up GST shortfall.

this is the formula

Very poor fiscal management and planning is behind this because the salaried class paying income tax is punished far more in proportion to one paying no direct tax and only contributing via indirect tax.

Also some charts have cropped up showing oil retail prices prevailing in India is same as that of developed countries like France, Sweden, Netherlands, Singapore, Denmark, Finland, Iceland, Norway, Japan, Portugal, Greece, Luxembourg, Switzerland etc. It says implicitly that India is now in the top league of nations and thus public need to expect that prices will also be commensurate with them and not our neighbourhood bumpkins.

Few flaws in this thinking
1. these developed countries have extremely advanced, efficient, end-to-end public transport systems.

2. shipping distance from persian gulf, to most of these countries are farthest and also they are far away from other oil export hubs like venezuela, nigeria, north america etc.

3. per capita incomes of populations of these countries are in OECD range of $50,000/annum.

compare with our situation.

1. obvious
2. less than 1000kms shipping distance. Thus most countries in India's neighbourhood can charge local taxes and still sell ₹30/litre lesser than India. But Indian govt wants to pooh pooh them saying Sri Lanka,pakistan, nepal, bangladesh, bhutan, etc are underdeveloped countries. Even China sells for lower price than ours.
3. pci $6000/annum

[RM Motorsports]

Birthday Boy Raj Thackeray's Gift To Maharashtra - Fuel Upto Rs. 9 Cheaper

Maharashtra Navnirman Sena President Raj Thackeray turns 50 today. Two-wheeler owners get a discount of Rs. 4-9 per litre on petrol at selected fuel pumps on the occasion.

https://www.ndtv.com/india-news/raj-...-lateststories

[PGA]

Today may be the day to tank up, oil price is back on boil.
OPEC though has agreed to raise production but it is falling below what the countries were producing unofficially till now. The move of OPEC is kind of post facto sanction of earlier excess production by some countries.

[condor]

And all those who were complaining about high fuel prices - get ready again. Another month, or so and you will see crude prices going up even more.

[lurker]

Originally Posted by condor

And all those who were complaining about high fuel prices - get ready again. Another month, or so and you will see crude prices going up even more.

Saudi has been asked by Trump to increase production and King faisal has complied. Shortly oil prices will crash.

[Vitalstatistiks]

Originally Posted by lurker

Saudi has been asked by Trump to increase production and King faisal has complied. Shortly oil prices will crash.

Sorry, is this correct? It sounds strange for US President to do this. Given that the US shale oil projects, generating crude through fracking, are only economically viable at prices north of USD 50 pb. Also- now the US is a net importer of oil, meeting most (if not all) of its own demand through internally.Why does Trump want the prices to fall or crash?

[sairamboko]

Brace up for more hikes!

https://economictimes.indiatimes.com...w/64819314.cms

[dailydriver]

Karnataka folks set to be penalised with increased tax rates on petrol and diesel.

Proposal to increase the rate of tax on petrol from the present 30% to 32% and diesel from 19% to 21%, so petrol price will be increased by Rs.1.14/ltr and diesel by Rs 1.12/ltr.

Source

[rajshenoy]

Originally Posted by dailydriver

Karnataka folks set to be penalised with increased tax rates on petrol and diesel.



Source

Ironical isn't it, the CM who enjoys huge fan following among the cabbies decides to hurt them the most.

This was coming, the govt needs revenues to fund the developement. Subsidy based model and last minute splurging on Bangalore potholes must have wiped all the funds.

[AutoNoob]

Originally Posted by dailydriver

Karnataka folks set to be penalised with increased tax rates on petrol and diesel.

Originally Posted by rajshenoy

Ironical isn't it, the CM who enjoys huge fan following among the cabbies decides to hurt them the most.

This was coming, the govt needs revenues to fund the developement. Subsidy based model and last minute splurging on Bangalore potholes must have wiped all the funds.

Here's the connecting link.

NDTV: HD Kumaraswamy Government's Loan Waiver For Farmers to Cost 34,000 Crores

The Chief Minister has also proposed to increase power tariff by 20 paise per unit and levy a higher tax on fuel. Petrol fare will go up by Rs. 1.14 per litre and diesel by Rs. 1.12 per litre.

"I also propose to increase excise duty on Indian made foreign liquor by 4 per cent to raise additional revenue for meeting the budget expenditure," said Mr Kumaraswamy.

[srishiva]

I remember ESCOMs asking govt to increase power tariff and govt saying no. Its ironic that the govt itself has proposed it this time. Even motor vehicle tax is increased.

Giving money to one and taking that from somebody else ! What could these massive loan waivers have done for irrigation uplifting with right investments in that area ?

[Desi Dybuk]

Originally Posted by dailydriver

Karnataka folks set to be penalised with increased tax rates on petrol and diesel.



Source

Until & unless the salaried middle class Mr/Mrs/Ms Taxpayer realizes that he/she is being take for a ride & starts demanding better value of services for all that he/she is paying for, they'll continue to be exploited.

Look at a city like Bangalore in Karnataka. In spite of being the 2nd highest Income Tax paying city in the country & one of the top 3/5 indirect tax paying city, the quality of infrastructure is worse than that of a sub-Saharan African country.

The glorified Metro took 12 years to complete a meager 40km stretch. Heck, traveling on the Metro during peak hours is worse than being on Mumbai local trains. The less is said about the condition of the Metro stations the better. Not even 2-3 years have passed since these were inaugurated, the false ceilings are falling over, escalators don't work, no toilets.

So, pray tell me, what are these ever rising taxes on fuel paying for? Definitely not the roads since other than throwing some cheap asphalt on the roads every summer, nothing long-term is done. Definitely not for the highways because we still have to pay tolls.

I heard someone say that how do we know an NRI is smart? Because he left India the first chance he got!

My generation's time is over. All I can advice the younger lot is to emigrate.

[bhavik.1991]

https://timesofindia.indiatimes.com/...w/64979673.cms

May be the final blow to the sales of diesel PVs? Meanwhile, MSIL & Honda would be extremely happy having class leading petrol engines. MSIL somehow is always prepared for the new government policies. Skipping new 1.5L diesel & just focusing on new 1.5L petrol for new ciaz makes sense now.