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Old 3rd May 2020, 16:28   #6796
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Default Re: The Official Fuel Prices Thread

Does that mean airfare will drop once the airlines are up and running after the covid19 lockdown. Or will they keep it the same or increase it to recover the losses they have faced now.?
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Old 5th May 2020, 10:15   #6797
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Tamilnadu and Delhi hike fuel prices steeply!!

https://www.indiatoday.in/business/s...988-2020-05-03

https://twitter.com/TimesNow/status/...111927810?s=09

What's surprising is the Delhi's steep hike on Diesel prices , more than ₹7 / litre
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Old 5th May 2020, 10:24   #6798
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by sairamboko View Post
Tamilnadu and Delhi hike fuel prices steeply!!

https://www.indiatoday.in/business/s...988-2020-05-03

https://twitter.com/TimesNow/status/...111927810?s=09

What's surprising is the Delhi's steep hike on Diesel prices , more than ₹7 / litre
This is going to stay - higher fuel prices inspite of lower crude prices will be staple for mopping up revenue by governments. So will be the case with liquor, cigarettes and many other discretionary spends where govt is likely to fiddle with GST or impose cess or find ways to raise taxes at least for the medium term. And I can't find fault with this in today's times given the current scenario.
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Old 5th May 2020, 10:29   #6799
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Default Re: The Official Fuel Prices Thread

This was expected. Karnataka has increased the Tax on Petrol, Diesel before the lockdown. 45 days without any price change, despite fuels prices crashing worldwide to 20 year lows is unheard of in our recent history, virus or not.
It is indeed surprising that Delhi has steeply hiked Diesel prices, thereby reducing the gap between Petrol and Diesel to less than 2 Rs. This will encourage those on the outskirts to fill up from the neighboring UP and Haryana border areas.

This will mark a slow death to the Diesel passenger car segment IMHO.
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Old 5th May 2020, 11:25   #6800
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Default Delhi- Diesel prices hiked by Rs.7.10

I think this is a desperate step for the state which is running low on funds. It has increased the diesel cess from 16.75% to mind blowing 30% in a day. The petrol prices is increased by a meager Rs. 1.67. We all know the funds reservoirs are depleting fast. However, is this the only major source of revenue generation option for the state? Not to forget, the movement of public is already restricted!

a) The prices of oil per barrel is all time low.

b) The consumption of petrol and diesel has gone down in the country by almost 60% to 70%.

c) A state which has been giving free rides to public and relief of electricity has run out of funds. Need retrospective review? Better management?

d) The increase hike in diesel would result in overall commodity price hike as well. As of now, the prices would hit the transportation industry in the state.

e) Once the lockdown is removed, I think neighboring states like UP and Haryana would benefit more as all the people travelling in between NCR would try to tank up there itself.

My personal take - this is absolute comical decision without putting the thinking hats on. Let us discuss this. I know we have some knowledgeable TBHP members who can share some light on the impact and motive behind this.
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Old 5th May 2020, 12:06   #6801
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Default Re: The Official Fuel Prices Thread

My monthly running is extremely low due to office-provided car. May be 300-400 km a month and that too just for the sake of driving. And, yet, I am tempted to buy an EV just to cock a snook at GOI fuel-price policies.
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Old 5th May 2020, 12:30   #6802
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by pgsagar View Post
My monthly running is extremely low due to office-provided car. May be 300-400 km a month and that too just for the sake of driving. And, yet, I am tempted to buy an EV just to cock a snook at GOI fuel-price policies.
Do you think this govt will let you go without much taxes on an EV for long time? Once EVs become common, they will tax you exorbitantly to compensate for the lost tax from fuels. The current global crude price + Indian fuel price scenario is a very clear indicator. They need money to "buy" a lot of "unconventional items". That's it.

Last edited by romeomidhun : 5th May 2020 at 12:52.
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Old 5th May 2020, 16:19   #6803
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Default Re: The Official Fuel Prices Thread

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Originally Posted by volkman10 View Post
Coronavirus Lockdown: Nagaland Government Imposes COVID-19 Cess On Fuel Prices.
Would it trickle down to other states too?
Delhi government hiked the value-added tax (VAT) on auto fuels.

Now Petrol, Diesel Costlier In Delhi From Today. Differential cost between the two narrows down to ₹ 1.87.


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Old 5th May 2020, 16:58   #6804
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Default Re: The Official Fuel Prices Thread

Unpopular Opinion:

They did the right thing by increasing the taxes and keeping fuel prices high! While off and on I am at times opposed to higher fuel prices, this time I think it is the right thing to do.

With reduced direct and indirect tax collections (partly a necessary step and partly debatable), the GoI needs some measure to have some revenues coming in / building up. On one hand we clamor for better government support towards less privileged (in particular) on the other we cry foul with some, admittedly questionable, GoI practices for improving their revenues.

We do all understand the repercussion in terms of inflation for essential goods, hopefully though, some taxes will come down there and owing to the lockdown experience of ours, we can still manage to chug along with a slightly reduced consumption to possibly offset some aspects of that inflation!

PS - I am well aware of other challenges in the process - gross mismanagement; corruption; lack of vision; etc on part of the GoI. Still, in spite of those failings, I still think it is a right thing to do to have the fuel prices on the higher side at this point in time.
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Old 5th May 2020, 23:49   #6805
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Default Re: The Official Fuel Prices Thread

Central Government has increased excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel. Retail sale prices of petrol and diesel will, however, not change on account of this increase in duties. These duty rate changes shall come into effect from 6th May, 2020.

https://twitter.com/ANI/status/12577...7Ctwgr%5Etweet
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Old 5th May 2020, 23:50   #6806
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Default Re: The Official Fuel Prices Thread

The government has raised additional excise duty in the form of road cess on petrol and diesel by Rs 8 per litre. On total petrol price goes up by 10/ltr and diesel by 13/ltr.

I understand that corona lockdown has hit the economy hard and govt revenue is an all time low but so is international crude price and income of common man. Demand for fuel is almost non existent today due to lockdown but today or tomorrow we'll have to bear the burnt. Instead of giving stimulus packages the govt is only thinking about its own purse. I'm really surprised. Annd if their previous trend is considered, not all of this extra duty will be rolled back. Difficult times for petrolheads for sure.
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Old 6th May 2020, 14:02   #6807
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Default Re: The Official Fuel Prices Thread

Fuel Prices Hiked To Rake In More Funds To Fight Covid-19.

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Old 6th May 2020, 22:02   #6808
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Default Re: The Official Fuel Prices Thread

I don't know if this is a good strategy to absorb all the profits in oil price crash but definitely the money needs to come from somewhere !!

I am sure the funds are drying up without consumption of petroleum and liquor. While i can't comment on the later, i can definitely share my consumption figures. I spend around 6-7K per month and my last refuelling was in beginning of march. So that translates to around 20K saved. Never thought this is how i will celebrate BS-VI fuel
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Old 7th May 2020, 10:20   #6809
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by pgsagar View Post
My monthly running is extremely low due to office-provided car. May be 300-400 km a month and that too just for the sake of driving. And, yet, I am tempted to buy an EV just to cock a snook at GOI fuel-price policies.
Quote:
Originally Posted by romeomidhun View Post
Do you think this govt will let you go without much taxes on an EV for long time? Once EVs become common, they will tax you exorbitantly to compensate for the lost tax from fuels. The current global crude price + Indian fuel price scenario is a very clear indicator.
Just to elaborate and add to your confusion:

Note that the number of parts in an EV is just 10% of a motor car - there is no engine, gear box or associated complex parts. A battery, a motor and the accessories, mainly. Even then the EVs are priced very high currently - mainly because of the battery pack. Once the EVs become mass-market cars, the price of batteries may come down and so should the vehicle price. And there is not much running cost for EVs other than electricity charges but there may be a significant amount to be spent on battery replacement.

Now, assume a fuel car runs about 1.5L KMs in its lifetime with an average FE of 15KM. In its life time, it will consume 10K litres of fuel. With the present tax structure, the total fuel tax will be around Rs 4 lakh (10K x Rs 40). Since our govt mainly runs on fuel tax (as per the current explanations) and this amount can't be collected from fuel, they may tax the EVs with this amount upfront while buying. So, whatever price reduction we expect when the EVs become mass market cars, may remain as a distant dream.

Last edited by romeomidhun : 7th May 2020 at 10:22.
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Old 9th May 2020, 13:34   #6810
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Default Re: The Official Fuel Prices Thread

Indian Economy wasn't doing too well before COVID struck. So if we look at the GST numbers, they were either moderating or falling.

With COVID, the challenges are huge:
1. Everyone is asking the Central Govt to cut taxes, forgive loans, provide incentives or print money.
2. State govts are bearing the brunt of COVID with their finances being severely hit.

altert!
Its just a question of who gets there first but all taxes will increase in near term(as even PM said only 4% of Indians pay taxes) including but not limited to road tax, property tax, registration charges, road cess and so on. So being one who is paying taxes, I want GST rates to be doubled on all items with no distinction or exemption whatsoever. Moreover COVID cess should be introduced to suck out whatever is left with middle class. If thats not enough may be enough, Govt should double income taxes. Why should I have all the fun?

With that, I hope Govt has enough money for building monuments to revamping parliaments and if something is left, we might get few AIIMS announcements in lucky few cities/towns.
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