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Old 18th June 2021, 11:02   #7186
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Hayek View Post
The fact is fuel prices don’t matter unless you are a taxi operator.
Well fuel prices do matter as fuel is directly /indirectly used as energy in procurement, production, transportation, delivery etc. of almost all goods and services. Thus it impacts each one of us whenever we consume any goods or avail any services by paying indirect taxes on it.
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Old 18th June 2021, 19:34   #7187
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Hayek View Post
The fact is fuel prices don’t matter unless you are a taxi operator.
Actually Fuel prices don't matter to a Taxi operator or any other commercial vehicle. It does temporarily affect the guys who have yearly contracts or fixed rate slabs. But they would have factored in the price hikes along with their profit margins and thus may have a temporary dip in profits.
All commercial vehicles will pass on the price hike of fuel, engine oil, maintenance costs, etc. to their customers.
Fuel price hike mainly affects the end users, namely private vehicles which are used for personal needs and the costs cannot be transferred to anyone else.
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Old 18th June 2021, 20:09   #7188
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Default Re: The Official Fuel Prices Thread

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Originally Posted by wildsdi5530 View Post
Actually Fuel prices don't matter to a Taxi operator or any other commercial vehicle.
It may not affect commercial vehicle operators in Karnataka, but it does affect in other states where the Govt decides the rate of taxi fares and bus tickets .
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Old 20th June 2021, 14:30   #7189
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Hayek View Post
Unfortunately for you, that is correct. The 12.94% inflation is a statistical artefact caused by a low base - inflation in the 12 months to May 2020 was -3.37% (negative 3.37%); so WPI inflation over the last two years averages just 4.5%. Further, WPI is not a good metric since it is influenced too much by commodity price fluctuations - CPI which is the metric people look at is also up a lot due to base effects but is just 6.8%. The fact is fuel prices don’t matter unless you are a taxi operator.
I really want to believe this data, , what to do, when I see the steel prices are at highs never seen, transportation expenses have gone up by atleast 60 percent over last one year, the other kind of oil which fuels our bodies is up from Rs 100 per litre to Rs 220, but that's perhaps due to foreign hand. Even the raw material for plastic industry is at its highest ever.

97 percent of our countrymen faced erosion in their incomes over last one year, how does one tell them that based on data the inflation is quite benign. The psychological impact of the price rises is even greater than what the figures may want us to believe.

I will not mind prices if I can pass them on but what to do if I am one amongst 97 percent of Indians, the consumer, right at the end be it GST or at the toll on the road.
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Old 20th June 2021, 15:54   #7190
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Default Re: The Official Fuel Prices Thread

Off topic:
I feel with ever increasing fuel prices, salaried people who are using their own vehicle to commute to office should ask their employers for free x litres of petrol/diesel instead of conveyance allowance thereby negating fuel price impact. Btw My father used to be entitled for 80 litres of petrol or diesel per month by his company instead of conveyance allowance

Last edited by FrozeninTime : 20th June 2021 at 15:56.
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Old 20th June 2021, 20:18   #7191
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by FrozeninTime View Post
Off topic:
I feel with ever increasing fuel prices, salaried people who are using their own vehicle to commute to office should ask their employers for free x litres of petrol/diesel instead of conveyance allowance thereby negating fuel price impact. Btw My father used to be entitled for 80 litres of petrol or diesel per month by his company instead of conveyance allowance
How does that help? It just moves the cost from the employee to the running operations of the company. The company will then increase the cost of the product to offset that price. The end customer(you!!) will then pay additional cost.
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Old 20th June 2021, 21:51   #7192
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Default Re: The Official Fuel Prices Thread

Well at least we can have a laugh now.
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Old 23rd June 2021, 20:20   #7193
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Default Re: The Official Fuel Prices Thread

Blame:

Petrolium and Gas Minister Dharmendra Pradhan now blames Congress for petrol, diesel prices hike


Fact check:

Have UPA-era oil bonds prevented Modi government from reducing oil prices?


If they are still charging such massive tax on the fuel cost for 'repaying' the pending oil bonds then its one of the biggest scam is being carried out I guess.
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Old 23rd June 2021, 23:53   #7194
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Default Re: The Official Fuel Prices Thread

For each 100 rupees we spend on fuel, we pay about 31 rupees for the fuel, and rest 69 rupees as tax! And as a salaried employee in the 30% bracket, I have to earn Rs.145 and pay Rs.45 as Income Tax to buy the fuel for Rs.100 in the first place.

Effectively, I'm paying 114 rupees tax to buy 31 rupees worth fuel. That's 300%+ tax on the fuel cost.

But but, the silver lining is we are no.1 in the world.

https://energy.economictimes.indiati...world/75590141
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Old 23rd June 2021, 23:54   #7195
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by tbppjpr View Post
Fact check:

Have UPA-era oil bonds prevented Modi government from reducing oil prices?


If they are still charging such massive tax on the fuel cost for 'repaying' the pending oil bonds then its one of the biggest scam is being carried out I guess.
Not justifying the current tax levels, but quoting from the link you shared for the sake of clarity :

PS: the linked article is dated Sept 16, 2018, so we need to keep that timeframe in mind while reading/ analysing it.

Quote:
CLAIM: NDA repaid the pending bills of oil bonds worth Rs 1.4 lakh crore.
FACT: False.


Out of the Rs 1.44 lakh crore bonds issued by the United Progressive Alliance between 2005 to 2010, only two bonds amounting to Rs 3,500 crore matured during the current government’s term. The next one will mature only in October 2021.

The current government had inherited an outstanding bill of Rs 1.3 lakh crore because of oil bonds. And the total payment towards repayment of oil bonds and interest between 2014-’18 amounts to approximately Rs 44,000 crore (Rs 3,500 crore as principal amount and the rest as interest).

Can the government pre-pay these oil bonds or set aside money for these future payments?

No, say experts, as it is not feasible in the Indian budgeting system. This is because, “Indian government budgets are prepared based on cash and not accrual basis,” said former oil secretary SC Tripathi to BOOM. “The government will budget for the payment in the year when it is due and not in advance,” Tripathi said.

Economist Ajit Ranade was also of the same view. Speaking to BOOM, he said, “You never pre-pay bonds. Especially a government which is fiscally strapped would never pre-pay bonds.”
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Old 24th June 2021, 01:52   #7196
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by AutoNoob View Post
Not justifying the current tax levels, but quoting from the link you shared for the sake of clarity :

PS: the linked article is dated Sept 16, 2018, so we need to keep that timeframe in mind while reading/ analysing it.
So as per the economic experts like demonetisation, high fuel tax is also a master stroke. So please tax more and make the diesel & petrol at Rs.200 per litre so that India will be an economic super power in near future.

Last edited by anb : 24th June 2021 at 01:54.
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Old 24th June 2021, 09:00   #7197
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Default Re: The Official Fuel Prices Thread

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So as per the economic experts like demonetisation, high fuel tax is also a master stroke. So please tax more and make the diesel & petrol at Rs.200 per litre so that India will be an economic super power in near future.
This may very well be their stand.

Anyways, these idiots are claiming that all ill was done before 2014 and after that everything is a masterstroke. Escuses and IT cell army is ever ready to justify anything.

The article shared by tbppjpr was another eye opener for me. Earlier, I too had bought into the oil bond payout excuse. But, as usual, it turns out to be false. May be, since they had claimed to have paid oil bolds fully, can't use that excuse now. Need to come up with new excuse. Oh they already have one. COVID.

Last edited by AutoNoob : 24th June 2021 at 09:21.
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Old 24th June 2021, 09:01   #7198
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Default Re: The Official Fuel Prices Thread

Our government has always ran deficit budgets, most developing nations do that. Governments borrow all the time. And borrowing isnt necessarily a bad thing. The oil bonds were one such thing. The government of that time could have extended a subsidy at that time, passed on the increasing prices to customers or issues bonds with maturity spread over a period of time (though it is not as simple as that). Which is what they did. As an end user I have no complaints.

I have no particular liking for any party (though I am a fan of Manmohan Singh as an economist). But what gets my goat is;
- Projecting oil bonds as a crime. It is not. It is duly passed by the parliament. The present government has been borrowing a lot more than the previous governments, the burden of which will need to be borne by subsequent governments
- Trying to project the increased oil prices as a consequence of oil bonds. No it is not. They start maturing from this year onwards till 2026 in tranches. So far the government has been making only interest payments which has been only about 10K a year. The first trach of 20K matures I think this year.
- And finally get this, the Excise Duty collection on petroleum products is expected to be 3L crores this year (that is more than twice the value of oil bonds issues over 6 years by the previous government) compared to about 70K in 2014. None of this is going towards bond maturity yet. Only 10K of this goes towards interest payments

What I would prefer is, be honest about why you are doing what you are doing. If the government comes with the honest explanation of why they are raising taxes on oil products I am likely to be more okay with it than a false explanation.
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Old 24th June 2021, 09:39   #7199
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by AutoNoob View Post
PS: the linked article is dated Sept 16, 2018, so we need to keep that timeframe in mind while reading/ analysing it.
Back dated article was posted intentionally to make it clear that if existing pendency is already clear and no new payments against oil bond are need to be made in urgency then why the Indian public is forced to buy the fuel twice as expensive than New York due to more than double the taxes? And how a govt can be insensitive during such tough times of pandemic? There are many more unnecessary expenditures which can be put of hold to support the public is such tough times.

Any country can only progress if they have energy available at affordable cost. But in our case, electricity and fuel both are super expensive. So anyone believing the social media forwards of false beliefs of development keep living in the day-dreaming mode to make themselves happy.

This is not development, its crony capitalism, top 1% creamy layer had captured the 73% of the total wealth in 2017 from 53% of 2015. Latest figures must have changed drastically by now.

Last edited by tbppjpr : 24th June 2021 at 09:56.
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Old 24th June 2021, 12:06   #7200
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Default Re: The Official Fuel Prices Thread

With the price of petrol being hiked yet again today by 26 paise, Kerala has also joined the list of states to hit a century with a litre of normal petrol retailing at Rs.100.04 at a town called Parassala in Trivandrum, the state capital.

https://www.theweekendleader.com/Hea...tury-mark.html
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