[Chetan_Rao]

Every single hike is taking the situation closer to breaking point, where it would no longer be viable to let Petrol prices spiral out of control and keep subsidizing Diesel.

Private diesel consumption is creeping up to a dangerous percentage overall, and subsidy is becoming a noose that will only get tighter around the govt's neck, the longer they hold on to it. People won't suffer silently forever.

[Fordmanchau]

Originally Posted by bblost

Maybe the Govt should reduce the tax on Petrol vehicles instead. That would be much better IMHO

Nor , would I protest on that.
But I would still like the taxes on fuel to be rationalised and subsidy on diesel ,LPG and kerosene to be removed.
I know that's too much of an ask from our lame duck Government who are only interested to save their seats in the Lok Sabha

[Gansan]

Originally Posted by Chetan_Rao

Every single hike is taking the situation closer to breaking point

Not for Babus and even company officials at high positions, for whom the conveyance allowance is fixed at X litres of fuel per month, irrespective of price.

[mjothi]

Originally Posted by Gansan

Not for Babus and even company officials at high positions, for whom the conveyance allowance is fixed at X litres of fuel per month, irrespective of price.

And yes. We public still have the tax laws that says Rs800 pm is the conveyance allowance

And this is almost from those British period and never even changed

[vina]

Originally Posted by mjothi

And yes. We public still have the tax laws that says Rs800 pm is the conveyance allowance

And this is almost from those British period and never even changed

?? Rs. 800/- conveyance allowance from british period ?! I thought in british days if you had Rs. 800 in annual income you would be considered rich.

[jagan0677]

In Bangalore, even a monthly pass for a Volvo Bus costs 1450 INR ++. For the non-AC buses it could be a bout 200-250 INR lesser. There is no reasonable justification for the 800 INR value.

Cheers,
Jagan.

[lohithrao]

its very interesting to see how the fuel prices are playing on with the automobile market(Cars) and overall on the usage pattern, its getting to a point where one may not consider a pertol option at all, on the other hand people are picking diesel cars paying the premium price blindly and for the sole reason it is cheaper then petrol,...

[msdivy]

Originally Posted by lohithrao

its very interesting to see how the fuel prices are playing on with the automobile market(Cars) and overall on the usage pattern, its getting to a point where one may not consider a pertol option at all, on the other hand people are picking diesel cars paying the premium price blindly and for the sole reason it is cheaper then petrol,...

Considering both fixed & variable costs, for a period of 5 years, petrol cars works out cheaper for most private car owner. But people want to keep variable costs lower than worry about high fixed cost. So if for a model, if both diesel & petrol are available, diesel will sell far more than petrol.
Govt seem to riding a tiger when it comes diesel prices. They have to get down sometime but don't know where.
For diesel car manufacturers, make hay when the sun shines.

[amit1234singla]

Originally Posted by msdivy

Considering both fixed & variable costs, for a period of 5 years, petrol cars works out cheaper for most private car owner. But people want to keep variable costs lower than worry about high fixed cost....

Sorry, but I disagree. Between petrol and diesel cars, fixed part is the investment (extra payment to buy a diesel) and variable part is the running cost. The extra you pay to buy a diesel, more or less gets recovered when you go out to sell it. There are many examples where forum members sold their diesel cars relatively easily and at a decent price.

Now coming to the variable part, with the current situation of petrol vs. diesel price, annual running of mere 10k km's saves you about 1 lac rupees over a period of 5 years. That is almost equal to the extra you pay at the time of buying. So higher resale value is actually saving at the end of 5 years. With the current gen common rail diesels, I believe and have experienced that maintaining a diesel costs the same as maintaining a petrol.

Specifically in Punjab, price per litre of normal diesel is 37.xx and petrol is 70.xx. The difference is probably the maximum than any other state in India. For a C segment sedan, the running cost comes to about Rs.5/km for petrol and Rs.2/km for diesel.

These numbers will change slightly if the diesel price is increased but that will also happen if petrol is also increased any further.

[Antonian]

The newly elected Kerala State Cabinet has decided to reduce the sales Tax on Petrol.
Petrol price will reduce Rs 1.25. Great move.!!!!


The Hindu : States / Kerala : New Kerala Cabinet to decide on petrol tax reduction

[Sowmya]

Taxes on Petrol/Diesel.

[sgiitk]

There is a Re.0.40 increase on the cards, on account of dealer margins.

[Gansan]

In my office, the eligible monthly conveyance allowance can be drawn irrespective of whether we come by our vehicles or public conveyance. It is enough to own a vehicle and produce proof to HR. Actually >50% people come by suburban train/bus and still claim the allowance. Since the allowance is linked to petrol prices, these people are always happy with every price revision!

[DieselFan]

Originally Posted by msdivy

Considering both fixed & variable costs, for a period of 5 years, petrol cars works out cheaper for most private car owner. But people want to keep variable costs lower than worry about high fixed cost. So if for a model, if both diesel & petrol are available, diesel will sell far more than petrol.
Govt seem to riding a tiger when it comes diesel prices. They have to get down sometime but don't know where.
For diesel car manufacturers, make hay when the sun shines.

Wrong information. The break even between petrol and diesel cars is 12 months now if a person runs at least 1000 kms a month and 2 years if he runs the car 500 kms a month.

Here is the calculation -

A C segment sedan gives 10 KMPL for petrol while it gives at least 15 kmpl for diesel. so the car consumes 100 lts of petrol or 67 lts of diesel for a 1000 km run in a month.

Cost of petrol per month - 7000 Rs.(70rs/lt)
Cost of Diesel per month - 2900 Rs. (43Rs/lt)
Savings per month on Diesel running - 4100Rs.
Savings per year - 49200Rs.

Difference in diesel and petrol sedan with same configuration - 1L Rs.
Difference in selling price of a diesel sedan vis-a-vis petrol sedan after 1 years of use - 60000 Rs (Very conservative here as diesel cars will fetch much higher than petrol counterparts on used car sale).
Additional expense on Diesel sedan maintenance for 1 year - 10000 Rs (Even here i am conservative one need not spend 10K a year additional for modern diesels).
So overall additional costs of Diesel sedan over petrol for 1 year - 50000Rs.

QED.

[selfdrive]

Originally Posted by DieselFan

Wrong information. The break even between petrol and diesel cars is 12 months now if a person runs at least 1000 kms a month and 2 years if he runs the car 500 kms a month.

Here is the calculation -

A C segment sedan gives 10 KMPL for petrol while it gives at least 15 kmpl for diesel. so the car consumes 100 lts of petrol or 67 lts of diesel for a 1000 km run in a month.

Cost of petrol per month - 7000 Rs.(70rs/lt)
Cost of Diesel per month - 2900 Rs. (43Rs/lt)
Savings per month on Diesel running - 4100Rs.
Savings per year - 49200Rs.

Difference in diesel and petrol sedan with same configuration - 1L Rs.
Difference in selling price of a diesel sedan vis-a-vis petrol sedan after 1 years of use - 60000 Rs (Very conservative here as diesel cars will fetch much higher than petrol counterparts on used car sale).
Additional expense on Diesel sedan maintenance for 1 year - 10000 Rs (Even here i am conservative one need not spend 10K a year additional for modern diesels).
So overall additional costs of Diesel sedan over petrol for 1 year - 50000Rs.

QED.

Dieselfan, IMHO it is a little more than 1 year as you also need to consider the inflated version of the 1 L. Even a simple FD for a year fetches around 9%
Moreover, maintenance/ costs of spares may be different too, so it cannot be a simple linear calculation