[ABHI_1512]

Originally Posted by AutoNoob

And the moment we thought some relief was in sight, it goes for a toss.

You must be a very optimistic man to expect relief from the fuel prices !! Jokes apart, the fuel prices were hiked 34 times during the last two months. I am yet to come to terms with the fact that someone in the decision making process didn't thought of reducing the tax component even once during a time when a pandemic is raging and a large number of populace is still trying to make a living

Fuel stations are scurrying to upgrade dispensers to display three digit figures because they too didn't anticipate prices rising so fast and that says something. Overall prices of every commodity has gone up manifold and we have a pandemic to take care off as well. It's a double whammy and I guess we have to endure everything apart from finding ways to not get infected and just live !!

[Venkatesh]

Petrol has crossed the Rs 100- litre mark in Delhi, joins Mumbai (Rs 106.25), Chennai (Rs 101.06) & Kolkata (Rs 100.23). Diesel getting there too – Rs 97.09 a litre in Mumbai.





Source

[firstguri]

Originally Posted by pingme

but market forces driving prices does not consider our incomes... Europian country also needs to buy a barell for $57 as India...just remember our current prices are still subsidized...imagine when all subsidy will vanish

As far as I know, there is no subsidy. On the contrary there's 265% tax on fuel in India!

[shebin]

SUBSIDY???
For purchasing 35rs/barrel and selling for 105!

[batish]

Originally Posted by pingme

but market forces driving prices does not consider our incomes... Europian country also needs to buy a barell for $57 as India...just remember our current prices are still subsidized...imagine when all subsidy will vanish

I don't think they're subsidized at all. Zero is the amount of subsidy being provided. No need to imagine. We are facing the reality.

[FrozeninTime]

Originally Posted by firstguri

As far as I know, there is no subsidy. On the contrary there's 265% tax on fuel in India!

You have quoted an old post dating circa 2005
I feel petrol prices will moderate in coming weeks with advent of new Minister Hardeepji.

Contrary to popular perception, the ever increasing petrol prices hasn't affected drastically anyone atleast in NCR.

P.S
I must admire government for keeping key food item of wheat, rice, onion, potato within acceptable price limits despite fuel price hikes.

[N.A.GTC]

Originally Posted by FrozeninTime

Contrary to popular perception, the ever increasing petrol prices hasn't affected drastically anyone atleast in NCR.

I'd like to see the citation for that.

[batish]

Originally Posted by FrozeninTime

Contrary to popular perception, the ever increasing petrol prices hasn't affected drastically anyone atleast in NCR.

P.S
I must admire government for keeping key food item of wheat, rice, onion, potato within acceptable price limits despite fuel price hikes.

Where do I sign up for the other list- 'the drastically affected ones'? You'll have atleast one then.

Originally Posted by wildsdi5530

Of course Fuel in India is still subsidized.

The Govt first taxes the fuel at around 150% of base rate. The taxman has to be paid first. Then the dealer commission is next. Finally the cost price is given to the OMCs.

This cost price is lower than the production costs and thus the OMCs claim an under recovery. That is the sum total of the subsidy. The govt is protecting us consumers from the OMCs which want to work a profitable business by making us pay more.

Can we have the source for this information?

[wildsdi5530]

Of course Fuel in India is still subsidized.

The Govt first taxes the fuel at around 150% of base rate. The taxman has to be paid first. Then the dealer commission is next. Finally the cost price is given to the OMCs.

This cost price is lower than the production costs and thus the OMCs claim an under recovery. That is the sum total of the subsidy. The govt is protecting us consumers from the OMCs which want to work a profitable business by making us pay more.

[FrozeninTime]

Originally Posted by N.A.GTC

I'd like to see the citation for that.

You can't have citation for visibly observable things. Anyway I have quoted an indirect citation.

https://www.google.com/amp/s/m.econo...w/81140729.cms

[pavanmadhini]

Even as fuel cost fell by more than 5%, we see no respite in India. The whole "we adjust the fuel prices daily based on cost" argument is really starting to feel like a facade now.

https://www.hindustantimes.com/busin...04921-amp.html

Originally Posted by wildsdi5530

Of course Fuel in India is still subsidized.

The Govt first taxes the fuel at around 150% of base rate. The taxman has to be paid first. Then the dealer commission is next. Finally the cost price is given to the OMCs.

This cost price is lower than the production costs and thus the OMCs claim an under recovery. That is the sum total of the subsidy. The govt is protecting us consumers from the OMCs which want to work a profitable business by making us pay more.

With all due respect, this makes no sense. The base rate on which we pay the tax is the production cost. The dealer commission is fixed by the govt and is currently less than 5% of the per litre price which consumers pay. Clearly, the tax is the largest component. To whom is the government paying any subsidy then?

As far as I know, there are subsidies on LPG and Kerosene, but no subsidies right now for diesel or petrol.

[ABHI_1512]

Originally Posted by wildsdi5530

Of course Fuel in India is still subsidized.

The Govt first taxes the fuel at around 150% of base rate. The taxman has to be paid first. Then the dealer commission is next. Finally the cost price is given to the OMCs.

This cost price is lower than the production costs and thus the OMCs claim an under recovery. That is the sum total of the subsidy. The govt is protecting us consumers from the OMCs which want to work a profitable business by making us pay more.

If the OMC’s are under recovering, how come their balance sheets remain oblivious to the same fact ? Also, you are saying that the government is protecting the consumers, so why wasn’t the prices were reduced when oil fell to an historic low of 1$ per barrel ??

Also, the prices of subsidised LPG is at a record high and I don’t remember the last time people getting the subsidy in their bank accounts either !!

[AutoNoob]

Originally Posted by FrozeninTime

Contrary to popular perception, the ever increasing petrol prices hasn't affected drastically anyone atleast in NCR.

P.S
I must admire government for keeping key food item of wheat, rice, onion, potato within acceptable price limits despite fuel price hikes.

Sir, without knowing your income, assets, liabilities & priorities; and comparing with mine/ others, "hasn't affected drastically" & "acceptable price limits" cannot be judged.

Originally Posted by FrozeninTime

You can't have citation for visibly observable things. Anyway I have quoted an indirect citation.

https://www.google.com/amp/s/m.econo...w/81140729.cms

This is classic case of reading headlines out-of-context.

You missed the very important line from the article, which summarizes the whole discussion.

While passenger vehicles do not see much dampening in demand in the short term, it is two wheeler sales that is being hurt as the price conscious buyer is staying away, experts said.

Even for passenger cars, as per my friends in automotive industry, the foremost reason for such increase in demand is personal safety (fear of COVID). Also, lack/ limitations of public transport (trains, buses, metros) is another factor. So, people who can afford/ stretch to spend are doing so under fear. While I say this, I do not mean the 8~9 Lakh + segment (ex-showroom) as vehicles above B2 segment form only smaller share of sales.

[AutoNoob]

Originally Posted by FrozeninTime

You can't have citation for visibly observable things. Anyway I have quoted an indirect citation.

https://www.google.com/amp/s/m.econo...w/81140729.cms

Originally Posted by AutoNoob

Even for passenger cars, as per my friends in automotive industry, the foremost reason for such increase in demand is personal safety (fear of COVID). Also, lack/ limitations of public transport (trains, buses, metros) is another factor. So, people who can afford/ stretch to spend are doing so under fear. While I say this, I do not mean the 8~9 Lakh + segment (ex-showroom) as vehicles above B2 segment form only smaller share of sales.

Rather than hearsay, you may believe more in the following article. It made prediction in Apr 2020 and by June 2021, we are seeing prediction coming true.

Source : Reuters
Date : 16-Apr-2020

China’s coronavirus past is fuelling hope for global automakers. Car sales in the People’s Republic got a boost during the 2003 SARS outbreak, as commuters avoided public transit and purchased personal vehicles for the first time. That same psychology could soon play out in markets where car ownership is low, and perhaps elsewhere.

India’s $20 billion Maruti Suzuki sees a potential lift in demand when the dust from Covid-19 settles. “If buyers become apprehensive of sharing space with another passenger it will increase demand for vehicles,” R.C. Bhargava, chairman of the country’s largest carmaker, told Bloomberg in comments published this week.

[N.A.GTC]

Originally Posted by FrozeninTime

You can't have citation for visibly observable things. Anyway I have quoted an indirect citation.

https://www.google.com/amp/s/m.econo...w/81140729.cms

You can have citations for visibly observable things - that's literally how scientific method works. What you have on the other hand is anecdotal evidence, which (a) contradicts the experience of other people who have commented here, including me (again, anecdotal); and (b) does not hold good for the reasons mentioned by AutoNoob.