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Old 9th March 2020, 13:14   #6751
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sairamboko View Post
Oil falls down to $31, a 31% drop as OPEC and Russia engage in a price war.
Will we see any drastic price cut benefits?

https://economictimes.indiatimes.com...w/74544022.cms
Win win situation for oil companies. They will not pass the benefit to the customers, additionally they will be increasing the price by 1-2 rupee to recover BS6 fuel cost.
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Old 9th March 2020, 15:07   #6752
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sairamboko View Post
Oil falls down to $31, a 31% drop as OPEC and Russia engage in a price war.
Will we see any drastic price cut benefits?

https://economictimes.indiatimes.com...w/74544022.cms
Quote:
Originally Posted by carboy View Post
How drastic would you consider a 24 paise price cut?
I looked back at the fuel price I paid in the past 5 months. It has fallen net by Rs.2.5/Lt since Nov 2019 and Rs.6.1/lt since Jan 2020 (it rose between Nov and Jan).

Price for Diesel per Litre in Hyd:

Nov 9: Rs.71
Nov 21: Rs.71.7
Dec 27: RS.73.6
Jan 13: Rs.75.3
Feb 03: Rs.71.95
Mar 08: Rs.69.1

All prices recorded at the same fuel bunk during my refueling.


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Originally Posted by carboy View Post
International oil prices have fallen down to 45$ a barrel, but we are still paying 77 Rs a litre for petrol. Even if oil price falls to 30$, we will not see much diff at the pump.
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Originally Posted by strawhat View Post
I am pretty sure state/central govt.'s will never let prices fall below 70/- and 65/- for petrol and diesel respectively. The govt.'s strategy is to announce a 1-2 rupee price cut once in a while to appease the masses which in the long term will offset price increases every budget in the name of <insert your own tax name> tax. This strategy is working well for all parties (except one of course).

I have long put the hope of seeing petrol/diesel come under GST, to rest. The day might come in future if income tax fund becomes surplus, which you and I know the chances of. Anyway that is a topic for another day. For now, if you can excuse me, I have to go to petrol bunk to refill my bike .
Quote:
Originally Posted by karan0009 View Post
Win win situation for oil companies. They will not pass the benefit to the customers, additionally they will be increasing the price by 1-2 rupee to recover BS6 fuel cost.
Even though the oil prices have fallen in the past two months, we consumers might not see any more fall. The governments have taken note of the falling prices and started announcing additional taxes (or rate hikes) to hike the prices again.

Indirect tax revenue is the major source of income for the Govt. Tax on fuel is part of the indirect tax. Since the tax on fuel is ad-valorem, the tax receipts are dependent on the price of fuel. During the budget itself, the state and central governments must have accounted for the revenue based on certain value of fuel to arrive at tax collections. If this value falls, the net tax revenue falls. Hence we see the repeated rise in taxes.

However, later once the global fuel prices rise, we don't see any tax roll-back. This is windfall gain for the governments.

Another point to note here. The Rupee is falling against Dollar since past few months. This wipes off some of the gain of falling crude oil prices when the overall purchase price is considered in terms of rupee.

Quote:
However, this calculation is based on average crude price of $64 a barrel for April-December of current fiscal while the January-March import has been worked on the basis of crude price of $66 a barrel. It is worth noting that crude oil prices slipped to below $60 and now around $30 a barrel from highs witnessed in first week of January. Analysts say that this would bring big savings on oil imports that generally surge in the later part of the financial year.

Source:
https://economictimes.indiatimes.com...campaign=cppst
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Old 13th March 2020, 17:50   #6753
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Default Re: The Official Fuel Prices Thread

I just had a thought that I wanted to validate with fellow petrolheads.
Fuel is heavily taxed in India at at least 130%. There is a finite end point to the taxes that can be levied. I don't think it will go above 230% taxes.
There is no real shortage of fossil fuels in the world. It's all just good marketing.
Electricity is subsidized by the govt. We are always in a shortfall. And taxes on electricity is probably not too high. So there is a lot of room overhead to raise electricity rates.
There is a lot of push for electric cars and even the govt. supports it.
So will there be a day soon when petrol cars will become cheaper to own and run than electric cars?
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Old 13th March 2020, 18:58   #6754
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Default Re: The Official Fuel Prices Thread

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Originally Posted by wildsdi5530 View Post
So will there be a day soon when petrol cars will become cheaper to own and run than electric cars?
Petrol cars already cheaper to own and overall cost of ownership (including running) of electric cars will be higher than a equivalent petrol car for most private buyers. What this lower oil price will do is postpone the day when electric cars become cheaper overall.
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Old 13th March 2020, 19:11   #6755
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Originally Posted by wildsdi5530 View Post
So will there be a day soon when petrol cars will become cheaper to own and run than electric cars?
Even if crude is available at 50% of current price, those sucking companies won't allow to reduce the petrol, diesel prices. Such is the hold they have, it seems.
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Old 14th March 2020, 09:12   #6756
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Default Re: The Official Fuel Prices Thread

Govt increases excise duty on petrol, diesel by Rs 2/litre

The government has increased excise duty on petrol and diesel by Rs 2 per litre.

The special excise duty hike comes into effect on March 14.

The decision will help the government mop up additional money, as it battles weak revenues and an already-slow economy, which is likely to be hit further by the coronavirus outbreak.

Source
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Old 14th March 2020, 09:41   #6757
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Default Re: The Official Fuel Prices Thread

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Originally Posted by mukeshgoel View Post
Govt increases excise duty on petrol, diesel by Rs 2/litre
The decision will help the government mop up additional money, as it battles weak revenues and an already-slow economy, which is likely to be hit further by the coronavirus outbreak.
It is Rs. 3 actually. There is just no respite for us. The reasons are always quite interesting. First mess up the economy and then raise taxes in name of everything to try and make up. We lose money either way.
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Old 14th March 2020, 09:56   #6758
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Default Re: The Official Fuel Prices Thread

Not a single anna paisa of advantage for the consumer for oil price crash. Where are the postors who claimed that daily price revision was godsend for consumers ? Have they vanished into thin air ?? India charges higher for petrol diesel than bankrupt pakistan and nepal. What a shame ??
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Old 14th March 2020, 10:48   #6759
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Default Re: The Official Fuel Prices Thread

Excise duty on petrol has now risen to ₹22.98 from ₹19.98 and that on diesel to ₹18.83 from ₹15.83. This is in addition to the value added tax that states levy on auto fuel.

Last edited by vb-san : 14th March 2020 at 11:11. Reason: Please avoid political discussions or points which can initiate a political discussion. Thanks!
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Old 14th March 2020, 10:59   #6760
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Default Re: The Official Fuel Prices Thread

Excise duty was Rs.2 per litre pre 2014 wasn't it? In 6 years its 23 per litre. And yet we are being squeezed to pay more taxes and our FD interest rates slashed to fill govt treasury.
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Old 14th March 2020, 11:31   #6761
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Default Re: The Official Fuel Prices Thread

Its so disappointing.. no respite in any way to commoner, even if he could benefit with something outside of govt. control.

Sad part is, crude oil prices will go up, but govt. will not reduce taxes then. It will conveniently point to raising prices and will ignore these hikes. Or worse still, reduce these hikes and call it people friendly measures (just when elections are around).

“Minimum government, minimum governance, maximum tax.” Seems to be the motto of this government.

Apologies for the rant like post!
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Old 14th March 2020, 11:35   #6762
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This is stupidity on another level. Government wants private sector to do well, start factories, if there was more money in the hands of consumer they would buy more goods and services therefore more tax therefore more factories. Here to maximise the gain from cash cow of petrol diesel the tax keeps going up. Short term thinking of MODI Gov. While I support its initiatives but financial planning direction is lacking. I think it would have been better to let prices drop below 60 also and let inflation come down and then raise excise duty if required. Here it is artificially being kept at 70-80.

Unfortunately no good EV in this country. Kona has no rear legroom and bumpy ride. Somebody has mentioned herein few days back what is stopping gov from raising electricity rates, well once EV adoption is widespread and massive pressure on electricity I think electricity prices will go up and we will eventually pay the same rate as we pay for petrol just that our sky will have less pollution.
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Old 14th March 2020, 14:15   #6763
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Default Re: The Official Fuel Prices Thread

electricity prices going up is not an issue, because there is solar energy. Makes no sense to subsidise the govt to this degree when they are giving nothing in return.
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Old 14th March 2020, 15:03   #6764
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Default Re: The Official Fuel Prices Thread

Off topic but fuel is a major factor which directly / indirectly affects inflation numbers. Sadly, inflation hits those at the bottom of the pyramid more as they spend more on food and other essentials as a percentage of their income. Small savers are the worst hit.
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Old 14th March 2020, 16:10   #6765
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Default Re: The Official Fuel Prices Thread

I do not think any of us remember when fuel prices were cut due to crude prices rising. We tend to forget these.

With the economy on a slowdown and the additional costs of Covid-19 this was inevitable. As they say बकरे की अम्मा कब तक खैर मनायेगी. Also, inflation is low. Remember MH recently hiked up the taxation

So Rs3 pr litre is what it is. Add the ST etc. and it is worse.

Last edited by sgiitk : 14th March 2020 at 16:17.
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