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Old 23rd March 2022, 20:23   #7816
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Re: The Official Fuel Prices Thread

Why is the government not paying heed to the current inflation. By increasing diesel daily, won't it further accentuate the inflation. Even now it is beyond the RBI targets. I don't see increase in salaries in that proportion. How on earth are they going to control this pressure on people?
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Old 23rd March 2022, 20:30   #7817
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Re: The Official Fuel Prices Thread

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Originally Posted by wildsdi5530 View Post

Nice to see how global crude prices are so dependent on Indian elections.
I guess we are screwed once the one nation-one election thing comes in. Now, at least there are multiple phases of elections so the government has to show some restraint. Once that change comes in, it is a five-year uninterrupted window to pull off any policy changes without worrying about state elections.

To be fair to them, some part of global price increase has to get transferred to the users. I don't see any way government can keep the prices at the current level, considering what is happening globally. I hope they intervene at some point and decide to absorb a part of it.

Last edited by padmrajravi : 23rd March 2022 at 20:32.
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Old 23rd March 2022, 21:12   #7818
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Re: The Official Fuel Prices Thread

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How on earth are they going to control this pressure on people?
There is no immediate solution, other than hope that rising prices help quell demand.

Long run India needs a stubborn policy shift from continuing to rely on imported crude for power the country's transport.
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Old 23rd March 2022, 22:28   #7819
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Re: The Official Fuel Prices Thread

I remember at one point of time, when the oil prices were at their record lows, duties were hiked saying that we need to keep a buffer if and when oil prices rise. We never got the benefit of low crude prices at all. While it’s too much of an ask to expect that the OMC’s to absorb the rising prices, those high duties can certainly be expected to absorb some of the burden from the people already dealing with high inflation, but then wishful thinking !!

Last edited by ABHI_1512 : 23rd March 2022 at 22:29.
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Old 23rd March 2022, 22:36   #7820
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Re: The Official Fuel Prices Thread

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I remember at one point of time, when the oil prices were at their record lows, duties were hiked saying that we need to keep a buffer if and when oil prices rise. We never got the benefit of low crude prices at all. While itís too much of an ask to expect that the OMCís to absorb the rising prices, those high duties can certainly be expected to absorb some of the burden from the people already dealing with high inflation, but then wishful thinking !!
If they want to they can. We still have the highest taxes on fuel in the world. They are the same people who were on streets when cylinder price rose a little back when they were in opposition. I hope they don't have to face a situation where they have to issue oil bonds.
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Old 23rd March 2022, 22:43   #7821
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Re: The Official Fuel Prices Thread

Not to sound even remotely political, but if we have re-elected the current leadership model, with a thumping majority, have we not lost the moral ground to crib about irrational and often cruel policies?
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Old 23rd March 2022, 23:08   #7822
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Re: The Official Fuel Prices Thread

My take on this -

Current FY tax collection has exceeded the target in direct taxes. I believe Indirect tax like GST is also stabilized now. There is a huge windfall of excise revenue as well last year which means the revenue exceeded the Budgetary and revised estimates.

A prudent government should have budgeted a scenario with optimum excise revenue for the next FY and beyond with the above factors in mind to avoid over allocation or utilization of one particular avenue of revenue.

However if we look at the Budget numbers of FY22-23, the revenue from Central excise is estimated as 3.35Lakh crore which is only marginally less than the 3.94Lakh crore Revised estimate of FY21-22 which is closer to actual. In fact, it is the same as last year BE. I presume this includes the additional excise duty on non blended fuel that will kick in October 2022. So I can hazard a guess that there may be some cut in excise duty factored in.

Last time there was an excise cut in the name of 'Diwali' gift (everyone knows the actual reason) and unfortunately there is no big festival around the corner. So looks like we have to wait till the next big festival called elections towards the end of the year (December for Gujarat and few others) for the excise cuts to kick in.

I (and my 1.0 TSI) will be more than happy if I am proven wrong

OT: More disturbing thing is GST cess which is supposedly gone by the July 2022 is also projected in Budget estimate. The extension is mostly a foregone conclusion but adding it in BE without statutory backing is not correct, in my opinion.
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Old 23rd March 2022, 23:11   #7823
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Re: The Official Fuel Prices Thread

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Originally Posted by lapis_lazuli View Post
Not to sound even remotely political, but if we have re-elected the current leadership model, with a thumping majority, have we not lost the moral ground to crib about irrational and often cruel policies?
No actually, one can still question the wrongs despite the voting behaviour. Thatís what democracy is all about, you have every right to question. The sad part is, asking questions has become obsolete now !!
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Old 24th March 2022, 01:01   #7824
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Re: The Official Fuel Prices Thread

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There is no immediate solution, other than hope that rising prices help quell demand.
Thatís not at all feasible, >90% of the fuel is consumed for the real needs in our country. The only thing a rising fuel price will do is to push the cost of everything we consume north. The first manufacturer to come up with an EV costing between ₹7-10 lakh is going to hit a jackpot for sure!
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Old 24th March 2022, 09:40   #7825
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Re: The Official Fuel Prices Thread

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Isn't that just shifting money from one pocket to another? I know that public services are now being run as corporates with a profit motive, but any profit or loss goes back to the govt only and not to any stake holders (Tax payers).
Not exactly. There are private bulk customers too who buy directly. Example being big transporters , industries & logistic companies.
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Old 24th March 2022, 10:23   #7826
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Re: The Official Fuel Prices Thread

It's possible that my query is rudimentary. Will it make a difference if the oil is purchased using our Indian currency, the rupee?
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Old 24th March 2022, 11:04   #7827
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Re: The Official Fuel Prices Thread

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It's possible that my query is rudimentary. Will it make a difference if the oil is purchased using our Indian currency, the rupee?
Technically, we spend in Rupees to fund all our imports. The issue is we first need to convert it to Dollar as most countries accept international trade settlements in Dollar. That's where the pinch is. Which is why India is trying to see if it could have a direct Rupee-Rouble arrangment for oil import settlement with Russia.
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Old 24th March 2022, 16:11   #7828
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Re: The Official Fuel Prices Thread

So yes, here it is finally. After the dust of the state elections have settled, the State owned oil companies which are independent of their ways to change (read hike) the pricing, had suddenly gone in to slumber during the election period and have come back alive.

Once the psychological 100 rupee per litre barrier is breached for both petrol and diesel there was a big shift happening in the middle class mindset. They accepted this quietly and cut other expenditures. So the situation is that we import 80% of the crude oil. 80% of all our vehicles being two wheelers driven by middle class, its very clear who bears the most brunt of this.

Though this is not a political discussion, strictly making sure its not. But there is one big hole. The absence of any fuel pricing policy. Petrol and Diesel are kept out of the GST brackets. I am wondering how difficult it will be to implement the following:

Create a new type of petrol - colour it like we did it for kerosene. Make is exclusive only for two wheelers less than or equal to 150cc. Allow them the benefit of GST. Or for that matter create a lower bracket, remove all the duties, VAT etc and only put that GST for them. Let the middle class have the benefit. This will also regenerate our economy when the same middle class getting cheaper petrol will be spending on other stuff.

I know with the logistics its difficult to maintain. And without blinking twice the issue of "Siphoning off cheap petrol into cars" will come. But then there has to be something done. Just cannot burn out one full generation of middle class by keeping them waiting on electric vehicles until we get the infra.
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Old 24th March 2022, 17:06   #7829
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Re: The Official Fuel Prices Thread

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Originally Posted by lapis_lazuli View Post
Not to sound even remotely political, but if we have re-elected the current leadership model, with a thumping majority, have we not lost the moral ground to crib about irrational and often cruel policies?
You can peel off the feathers of a bird and still attract it near to you if you give some food which it likes. But that doesn't make you a saint, or reduce the pain of the bird.

Last edited by romeomidhun : 24th March 2022 at 17:23.
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Old 24th March 2022, 18:32   #7830
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Re: The Official Fuel Prices Thread

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Originally Posted by RunGaDa View Post

Create a new type of petrol - colour it like we did it for kerosene. Make is exclusive only for two wheelers less than or equal to 150cc.
The idea has been proposed few times, but we are not a self-disciplined nation. We fill up with the less expensive petrol, transfer to our automobiles and drive. The only way (as previously considered) is to use a new fuel nozzle and fuel input apertures.

Another possibility is to use the PDS system to supply petrol (for two-wheelers only).

This is what I was thinking, but it might be absurd. For two-wheelers, buses, and trucks, cheaper fuel should be sold in specified outlets at all towns/cities. Only the pump man should be able to access the gasoline cap lock (electronic lock), which is depending on the number of kilometres driven since the last fill.

Last edited by RGK : 24th March 2022 at 18:54. Reason: Added a sentence
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