[aks2010]

Diesel price hike means more inflation, more strikes and in short, more trouble for the government!

[download2live]

Diesel dearer by Rs 3. Finally.
Let the drama begin now. We all await for transporter strikes and CPI-M bandhs.

Diesel car owners can still rest easy. Not a radical increase as such.

[RavenAvi]

Diesel -- from Friday midnight -- will cost Rs 3 per litre more, while the price of cooking gas cylinder has been increased by a whopping Rs 50 per cylinder.

The price of the poor man's fuel -- kerosene -- too has been hiked by as much as Rs 2 a litre.


The decision to hike fuel prices was taken by the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee. The increase was announced by Petroleum Minister Jaipal Reddy in New Delhi late Friday evening.


Reddy also said that excise duty on diesel reduced from Rs 4.60 a litre to Rs 2 a litre. Customs duty on diesel has been cut from 7.5 per cent to 2.5 per cent, while the 5 per cent customs duty on crude has been abolished.
He said that the revenue loss to the government due to cut in excise and customs duties would be to the tune of Rs 49,000 crore (Rs 490 billion) for 2011-12.


The increase in fuel prices will see the public sector oil companies' under-recoveries decline by Rs 21,000 crore (Rs 210 billion), Reddy said.
This is the tenth hike in the price of fuel in just over a year.



With this hike, inflation is likely to rise sharply once again.




SOURCES - PTI, Rediff.

[ghodlur]

Originally Posted by aks2010

Diesel price hike means more inflation, more strikes and in short, more trouble for the government!

As is the Govt still grappling to control the ever growing monster called inflation, this diesel price hike is surely going to fuel the inflation even more. End of the day the common man is going to suffer even more.

We can now see the rickshaws, buses flexing their prices and making travelling even more frustrating.

[CBlazer]

Originally Posted by RavenAvi

Reddy also said that excise duty on diesel reduced from Rs 4.60 a litre to Rs 2 a litre. Customs duty on diesel has been cut from 7.5 per cent to 2.5 per cent, while the 5 per cent customs duty on crude has been abolished.

I'm assuming duty cuts are across the board and the pvt companies will benefit from it too. Does this mean that Shell, Reliance will actually reduce their diesel prices?

[partha379]

I think in this thread a lot of folks wanted a reduction of taxes on fuel instead of a price hike - With the reductions of customs and excise duty we have a revenue collection shortfall of 50,000 crores now. Don't you all feel that this is going to be overcome by raising taxes or adding a surcharge? Paying as a tax is slightly unfair as it affects ppl who are not using these fuels while before only those who used the fuel would have paid the tax..

The query/comment is not to offend anyone, but I am just trying to discuss the fact that we will anyway pay - either at the pump or as taxes :-), there is no escape for us.

P.S: I don't want to go OT with discussions about stopping wasteful schemes, thats a topic for a new thread.

[libranof1987]

Another aspect of the cut of the excise and customs duty on crude oil is that the ~ Rs. 1.93 hike in petrol price that was once necessary is no longer required.

PS : KSRTC is all set to increase prices in 2 days. Expect a whole lot of others to follow suit!

[shankar.balan]

diesel is at 46 per litre for normal diesel in blr
yesterday it was 42.96.

i guess it was needed.
but still it will hit us in some other way as well with increased food and commodities prices which are already at a super high!

[ghodlur]

Can someone post the comparative diesel and petrol prices for the metros post yesterdays hike?

I am asking my company management for that extra allowances for the fuel.

[Sheel]

What losses are they talking about?

As if the prices won't be increased, they shall stop supplying and its time gubmint did away with their taxes & subsidies.

[DicKy]

The price of crude oil per barrel has drastically decreased.
Now let's see if the govt. is truely free market or not if it keeps the present prices with the decrease in 'international' crude oil prices, a thing that they used as an excuse for increasing prices in the first place.

[RavenAvi]

Originally Posted by ghodlur

Can someone post the comparative diesel and petrol prices for the metros post yesterdays hike?

(All prices in Rs./ ltr as updated on June 24th, 2011, and might be subject to changes depending on the area)

Delhi -

Petrol - 63.37
Diesel - 41.12

Mumbai -

Petrol - 68.33
Diesel - 45.84

Kolkata -

Petrol - 67.71
Diesel - 43.57

Chennai -

Petrol - 67.22
Diesel -43.80


SOURCE - mypetrolprice

[libranof1987]

My my! Look at those figures.

B'lore pays Rs. 71.05 for normal petrol! I bet the Pune guys understand the pain.

Originally Posted by RavenAvi

Chennai -

Petrol - 67.22
Diesel -43.80

Are you sure about this? The Chennai fellows complain that they pay fuel on par with B'lore.

[bnzjon]

Yeah, thats true.
My recent trip to Bangalore/Mysore, i paid Rs. 71.05 for petrol at Bangalore and 67.20 at Chennai. The difference was approx Rs.4 cheaper at Chennai.

[Gansan]

B'lore fuel prices are more than Chennai, the lone exception being Shell.