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Old 20th August 2021, 11:38   #7321
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Default Re: The Official Fuel Prices Thread

I haven't posted on this thread for a while but then today, please let me pour my emotions in here.

This is really absurd to have fuel retailing at the levels that they are. It is more of greed of Govt than failure to control fuel prices. I don't see any base for this increase, except lower tax revenues during the COVID phase. But then most of the population was also affected economically in one way or other during the COVID; so common sense says don't burden the population which is already grappling with pay cuts or worse- job losses, covid disease and the spending towards its treatment or even losing a loved one.

Since the demand for fuel was low during the COVID, India's purchase bill for fuel must have had also gone down. Also, there was a time when crude was selling for a pittance and there are reports that India bought and stored a humongous quantity back then. BHPians correct me if I am wrong- I am not quoting any source. Fuel is an easy tax collection point. You and me can complain, curse but ultimately cannot do anything even if it retails at 200 per liter. We still need to buy it, right? So, Center has done a very bad job when it comes to pricing the fuel. Yes, they can say all like building India/ better tomorrow and all, but it is taking too much toll on us today. Rich nation, poor nationals anyone?

Secondly, State Govts. Yes- the State Govt. Fuel price has always been a matter of politics since times immemorial. And still it is. Opposition (of Center) state Govts talk and make a lot of noise but they never say that they have been profiting too from this price rise. Again correct me if I am wrong, if the prices are increased, the states also benefit as VAT is charged as a percentage on price. So, State earnings from fuel has also gone up vastly with the increase in fuel prices. If they were so concerned about the public, they could have cut down their VAT percentage which would have brought the prices down- but that is too much of asking. So, rather than blaming the Center, lets think it as- 'is hamam mein sab nangey hain!!'

Also coming to blending of ethanol issue. There are talks of blending 20% ethanol. I am sure almost everyone here on TBHP knows very concisely that this is not what our engines are designed for. If the ultimate aim of Govt is to reduce harmful emissions and saving the planet et al, then why do you want to destroy our vehicle engines with E20 which in turn will increase the harmful emissions? This probably just helps the Govt cut their import bill (with no relaxation being forwarded to us) and the sugar industry as their by-product finds more use.

Now let's talk about the future- the EVs. The fuel taxes currently act as a big source for the Govt's kitty. When the EVs start gaining traction as mainstream cars and there is a mass shift towards it (which, by the way, is just a matter of time) this revenue stream will dry up for the Govt. But the greed (& some need) of taxes will not. I don't believe that you will be able to go for those lusting highway runs without paying under your nose for it, just like today. Now, will the Govt increase the electricity unit prices multiple fold burdening all the electricity users? Or they will mandate a separate electricity meter for charging our EVs so that these units towards charging are priced separately at a much higher rate? Or, all the current subsidies will be pulled back and we will be required to pay an additional upfront amount towards some head as taxes to govt to make up for the money we will be saving on fuel expenses. I don't know which way but we will pay in some way or the other for sure.

Closing notes, India is not a very rich country and most of the middle class Indians are working hard to build a better future for themselves and for their children and to uplift the living standard of their families. The Govt needs taxes too to build the nation. But please look at including those in this building program who are flying under the radar. Please do not hold us on hook as we are just an easy target.

Hffff...vehicle ownership is now an expensive affair. End of rant.

Last edited by saket77 : 20th August 2021 at 11:40.
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Old 20th August 2021, 12:25   #7322
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by carboy View Post
Note what I said - "Most states haven't really increased the State tax on Fuel. As a matter of fact, some of them have reduced it." Yes, Maharashtra did increase fuel taxes during 2014-2020. However, that's not the case with most state govts. Some have even decreased it.
There are 29 states in India, I'm not tracking all of them. I really only track the taxes in my state, since that affects me directly.

My point was that fuel prices in India are much higher than all our neighbouring countries and are an outcome of high taxation, both by the center and the states. This viewpoint is buttressed by numerous articles I've read, and some of which have been quoted extensively on this thread.

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Originally Posted by carboy View Post
TN under the previous govt also increased it but the new Govt has decreased it partially now.
In June 2021, the FM of TN explained that the state's finances were in a bad shape and hence the TN govt could not reduce VAT on fuel.https://www.thehindu.com/news/nation...le34874640.ece


Now in Aug 2021, the same govt has gone ahead and reduced VAT, (which is commendable), but the financial condition of the state hasn't improved yet. Instead the Deficit Interim Budget Estimates of Rs.41,417.30 crore is now expected to shoot upto Rs.58,692.68 crore in the Revised Budget.
https://www.dtnext.in/News/TamilNadu...e-reduced-.vpf

I can understand why governments (both central and state) are struggling to improve finances, and this pandemic is not helping one bit. I also support reducing taxes for the common man, where possible. However increasing the fiscal deficit and postponing the problem to the next government is not something I agree with.

Hence, no choice but to grin and bear it my friend.
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Old 20th August 2021, 12:40   #7323
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Default Re: The Official Fuel Prices Thread

I was calculating fuel costs as i am driving to Ladakh next month and have stops in Jhansi, Jalandhar, Srinagar, Kargil before reaching Leh. Was surprised to find quite a lot of difference in diesel prices among states. I thought my state Chhattisgarh was on the lower end and this pricing should be similar there.

Raipur (CG)- 96.53
Jhansi (UP) - 89.31
Jalandhar (PUN) - 91.37
Srinagar (J&K)- 92.97
Kargil (J&K) - 93.93
Leh (J&K) - 95.96

*prices as per mypetrolprice and as on 20-08-21

As a transporter i so wish our state could lower taxes as Centre doesn't plan to and help with these ridiculous prices.

Last edited by AnandB : 20th August 2021 at 12:41.
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Old 20th August 2021, 13:33   #7324
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It seems that some journalist did indeed ask the question to our respected leader.



Edit: Unfortunately, I don't think there are flights to Kabul at this time.

Last edited by JithinR : 20th August 2021 at 13:34.
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Old 20th August 2021, 15:26   #7325
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Lalvaz View Post
There are 29 states in India, I'm not tracking all of them. I really only track the taxes in my state, since that affects me directly.
My comment wasn't particularly about your state, so you should have ignored it.

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Originally Posted by Lalvaz View Post
My point was that fuel prices in India are much higher than all our neighbouring countries and are an outcome of high taxation, both by the center and the states.
The major increases have come from the center. Central Tax has gone up from 9 Rs per litre to close to 33 Rs per litre.

Quote:
Originally Posted by Lalvaz View Post
However increasing the fiscal deficit and postponing the problem to the next government is not something I agree with.
There are multiple ways to reduce the deficit

- Increase taxes (may be counter productive - may wreck the economy thereby lowering revenues even with higher tax rates).

- Improve the economy, so with same or lower taxes, you still have a higher revenue (Laffer Curve)

- Reduce expenditure.

Last edited by carboy : 20th August 2021 at 15:30.
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Old 21st August 2021, 23:05   #7326
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Default Re: The Official Fuel Prices Thread

Someone in government should explain the meaning of de-regulation to us.

Your fuel should have become cheaper. This is why it didn't - https://m.economictimes.com/industry...w/85509291.cms
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Old 21st August 2021, 23:33   #7327
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Default Re: The Official Fuel Prices Thread

I am happy that despite only driving a Nano, I haven't found it necessary to rant about high fuel prices. I wonder sometimes why the owners of cars priced 25 times more do.
I have chosen to accept certain things in life and move on.
At one time I used to find the pricing of the Maruti 800 ridiculously high; that was a carmaker stealing from the hapless customer. I made peace with that. The GoI and the State Govts aren't profiteers and have roles of responsibility. I have made peace with that too.
Shanti Shanti Shanti!
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Old 22nd August 2021, 00:10   #7328
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Originally Posted by matizcrazy View Post
The GoI and the State Govts aren't profiteers and have roles of responsibility. I have made peace with that too.
You are right. They are responsible people who just lie on the face and blame previous governments for the hike, heck, once even the winter season IIRC. They're surely not profiteers as we know due to some unforeseen circumstances fuel hikes are stopped for a certain time period before elections. We also know since deregulation of fuel, the government honestly passes on the benefits whenever price of crude drops.

You are spot on sir! They aren't profiteers. We, the consumers are at fault somewhere.
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Old 22nd August 2021, 00:34   #7329
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Originally Posted by matizcrazy View Post
I am happy that despite only driving a Nano, I haven't found it necessary to rant about high fuel prices.
But you did find it necessary to rant about the people who are ranting on this thread. Welcome to the club!

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Originally Posted by matizcrazy View Post
The GoI and the State Govts aren't profiteers and have roles of responsibility.
So do other governments in the world. Fuel is available at nearly same cost price (give or take) for every importing country globally. Why do other comparable countries have cheaper fuel then?
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Old 22nd August 2021, 03:00   #7330
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Default Re: The Official Fuel Prices Thread

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Shanti Shanti Shanti!
You may want to look into selective distortion, it's the reason why mankind is so fractured today and even is, cruel to each other today.

We always write what suits us best, be it in terms of religion, policies or lifestyle choices, and assume that, that covers pretty much all of mankind.

I won't go too deep into economics today, and you're probably right, much of this forum consists of the 1% that are either deeply established business people or the work at home techies and probably, this price may not affect us much, but economy being the co-related organism that it is, will show signs of de-growth because of these prices, since pretty much everything is linked to transport costs, be it hotel bills, medicines, FMCG, durables etc.

Boring and obvious right? But we still do have democratic rights, however much it gets trampled in the name of compliance/ patriotism /helplessness, the push-pull of opinions is very important in a democracy, too much shanti will have us living in an Orwellian world, not that it isn't happening already.
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Old 22nd August 2021, 06:09   #7331
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Originally Posted by matizcrazy View Post
I have chosen to accept certain things in life and move on.
...
Shanti Shanti Shanti!

Very convoluted and specious logic. And according to you, the moment a human is "government", they miraculously become saints and start serving humanity! It may be necessary to raise fuel prices now as a result of a chain of events precipitated by this very (saintly?) government, but we should not accept it as inevitable and become fatalistic.

We need competent people in leadership roles and do whatever is required to replace unsuitable ones. No one should have to accept the incompetence of people running this government for any reason, certainly not "fate"! What next? Leave your car by the wayside when it runs out of petrol and walk away blaming your fate?
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Old 22nd August 2021, 08:19   #7332
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Default Re: The Official Fuel Prices Thread

I just haven’t been able bring myself to fill up a tank full of fuel these days! Fortunately, my trips to the fuel station were very limited from February this year until July, so when I did visit, the prices were a huge reality check! In Bangalore, Shell outlets are retailing regular petrol for around Rs.110 and then on top of this the fuel attendant was convincing me to buy the premium version! Anyway, I checked with Indian Oil and the prices were Rs.106/-.

Luckily Petrol is for my wife’s car which is now rarely used since my son attends school online, and my daily ride is a Creta diesel, and the only relief is that the efficiency of diesels are still way higher, hence at Rs.96/ for a litre of diesel I can still breathe a bit. However all this is not a big issue when everyday running is low, the moment you start driving 30-40 kms in Bangalore peak traffic, well, that would be the true reality check!

Last edited by motorworks : 22nd August 2021 at 08:21.
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Old 22nd August 2021, 10:29   #7333
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Originally Posted by matizcrazy View Post
I am happy that despite only driving a Nano, I haven't found it necessary to rant about high fuel prices. I wonder sometimes why the owners of cars priced 25 times more do....The GoI and the State Govts aren't profiteers and have roles of responsibility. I have made peace with that too.
Shanti Shanti Shanti!
But ...are you not a Government employee?

At least for me increasing fuel prices are a additional expense that I could do without on top of rent, utilities(everything from paid mobile subscription, internet, electricity, even cooking gas has become insanely expensive etc).

Last edited by JithinR : 22nd August 2021 at 10:31.
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Old 22nd August 2021, 12:26   #7334
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Crude oil and Petrol price since July 5. Oil companies registered record profit in FY 21.

https://www.business-standard.com/ar...y%20the%20firm.
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Old 22nd August 2021, 13:43   #7335
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But ...are you not a Government employee?
Even cooking gas has become insanely expensive etc).
Hehe, I am not a Govt employee !

If anything, mobile subscriptions, cable TV, internet data etc have become very cheap over the last decade.
Being from a generation that stood in queues for buying kerosene oil, cooking oil, grains and sugar, stood in long queues for paying electricity bills, radio license fees, sending telegrams, booking trunk calls etc, I don't find today's life and all the facilities that it offers very expensive. Petrol was never cheap at anytime; people just got used to higher consumption because of temporary lower price in the 2000s coupled with higher incomes.
The moment income levels dropped a bit and petrol prices continued rising, there is unease. I have weathered tougher storms and this petrol price doesn't shake me.
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