[W.A.G.7]

There was a mad queue on the Karve road's 3 petrol pumps to fill in diesel today evening. To tell the truth I have stopped thinking about fuel expenses (petrol/diesel/LPG cylinder). What's the point anyway? As natural resources get scarcer, these costs are bound to increase sooner or later.

[apachelongbow]

Originally Posted by W.A.G.7

There was a mad queue on the Karve road's 3 petrol pumps to fill in diesel today evening. To tell the truth I have stopped thinking about fuel expenses (petrol/diesel/LPG cylinder). What's the point anyway? As natural resources get scarcer, these costs are bound to increase sooner or later.

You are right! No point! What will you achieve if you stand in the queue for 3-4 hours for a tankful of diesel? How much is a tankful? 70liters max? which is a saving of Rs 350. So for 350Rs one needs to waste 3-4 productive hours of his/her life, which will give about 60km more range? Absurd!!!

[hellmet]

The fact that they skipped increasing prices of petrol now, when just last week they were crying about losses of upto Rs.5/- makes me very suspicious about how the subsidies are being handled and how much of the burden is unfairly being put (cross subsidy) on petrol users. What was all that hoopla about then?

Edit: Just read they cut Rs5.5 in excise duty per liter of petrol.

[karan86]

What a novel idea that our houdinis in the parliament have come out with, to divert attention from coalgate and let everyone get talking about the hike in prices, since both the government and the opposition are involved, a few days and a few protests later, they will rollback the prices a wee bit, a'la petrol, and everybody gets back to business.

[vikram_d]

Originally Posted by hellmet

Just read they cut Rs5.5 in excise duty per liter of petrol.

Can you post the source? From what I just read diesel prices have been increased by 5 rupees.

Edit: Found source - http://m.thehindu.com/business/Econo...ce/?secid=2780

[pulsarmaniac]

Originally Posted by hellmet

The fact that they skipped increasing prices of petrol now, when just last week they were crying about losses of upto Rs.5/- makes me very suspicious about how the subsidies are being handled and how much of the burden is unfairly being put (cross subsidy) on petrol users. What was all that hoopla about then?

Edit: Just read they cut Rs5.5 in excise duty per liter of petrol.

So is petrol going to get Rs 5.5 cheaper?

[download2live]

Mathematics Manmohan style:

Teacher: Raju, if the price of Diesel is increased by rupees 5 then how much is the actual increase in price of diesel.

Raju: Madam, We have to factor in the Mamta coefficient of protest which gets fixed before the price hike. Usually it is 0.6. So that gives the actual figure as rupees 3. After that we have to factor in CPI and BJP factor. This is a highly fluctuating variable and usualy has a value of 0.9 to 0.7 (depending on the number of scams they are involved in at the moment). So we have to take average e.g. 0.8. Then we get the actual hike as Rs 2.4.

Madam: Awesome.

[RS_DEL]

Originally Posted by souravc

Lets take a step back - why do we seek mobility at a personal level so desperately when people in cities like Singapore / HK / London happily survive without it . If the govt can't provide proper public transportation (not the over-crowded Mumbai local kind) and the peripheral infrastructure associated with it , its the govt's duty to lend a helping hand if the situation so demands.



Just like we should stop subsidising & support to the following industries too ?
1. IT & ITES - Massive Tax subsidy
2. Textile - Duty drawback
3. Iron & Steel - Anti-dumping duty support, capital subsidy. If the Indians cannot make cost effective steel so be it , let the Chinese dump better steel at cheaper rates
4. Power - Coal subsidy , capital subsidy , tax holiday
etc

Where do we go from there ? Can you imagine the job losses ? Its a very real economy , not a funky bank or stock market trading transaction which makes paper profits / commissions .

Any industry needs a stable regime and the same holds true for automobile industry too - more so given that its requires huge capex investments . The need of the hour is a firm policy direction and gradual movement towards it- one cannot have issues such as the penal tax on diesel cars hanging on for months .

It is not my intent to be disagreeable but all I can say is your observations border on the rhetorical .

[] Any industry that does not have the ability to survive within the constraints of the "very real economy" is actually eating resources which are best employed elsewhere.

[] Massive tax subsidy to the IT/ITES industry resulted in what? Jobs? Yes very true. What kind of jobs? Wage rate arbitrage. Any major intellectual property assets created? No, not that I am aware of.

[] What is duty drawback? A subsidy? Last I remember it used to be an attempt to provide some semblance of a level playing field to industrial entities in line with their international peers.

[] Coal subsidy, tax subsidy this subsidy that subsidy- why? Crony capitalism at work. Quid pro quo for the businessmen by the administrators and politicians . Why not have effective regulation to contain anti-competitive measures and let the market do it's work? I pay for what I use you pay for what you use. Provide a social safety net for the unfortunate till they are strong enough to face the harsh realities of the real world.

[gauravkcec]

Originally Posted by pulsarmaniac

So is petrol going to get Rs 5.5 cheaper?

No sir. They needed to raise prices by 5 rupees to cover the "Under recovery" and have decreased the taxes by Rs. 5.5 so OMCs can get there 5 rupees extra per liter.
Good move I say since the taxes were forming too large a component of the total price as tax is per liter of liter and increases with every increase in the base price.

[R-Six]

Originally Posted by pulsarmaniac

So is petrol going to get Rs 5.5 cheaper?

No sir! As per the report in ibnlive, Govt. just saved us from 6rs Pertrol hike by reducing the excise duty by 5rs 50 paise.

Source: Govt cuts excise duty on petrol by Rs 5.50 per litre, spares price hike

best,
r-six

[vvrchandra]

Originally Posted by R-Six

No sir! As per the report in ibnlive, Govt. just saved us from 6rs Pertrol hike by reducing the excise duty by 5rs 50 paise..

In that case, is there any chance of reduction in the petrol prices at Shell outlet since their prices are already high? Thanks

[ninjatalli]

Originally Posted by vikram_d

Can you post the source? From what I just read diesel prices have been increased by 5 rupees.

Edit: Found source - http://m.thehindu.com/business/Econo...ce/?secid=2780

He's probably talking about this

Link

Govt cuts excise duty on petrol by Rs 5.50 per litre, spares price hike


The government, which hiked the diesel price by Rs 5 per litre on Thursday, spared an increase in petrol price by cutting excise duty of Rs 5.50 per litre. While the government announced the diesel price hike to be effective from midnight, it left kerosene and LPG rates untouched.
The Cabinet Committee on Political Affairs, headed by Prime Minister Manmohan Singh, this evening decided to raise diesel prices by Rs 5 per litre, excluding VAT (value-added tax).


It also decided to restrict supply of subsidised cooking gas to six cylinders per household in a year.
Diesel in Delhi costs Rs 41.32 a litre and after this hike, it will cost Rs 46.95, after considering 12.5 per cent VAT on the hike.
Petrol needed a hike of Rs 6 per litre but the government offset that by reducing excise duty by Rs 5.50 per litre from existing rate of Rs 14.78 per litre.

Edit: Didn't see @R-Six's post on the same.

[sgiitk]

There may be a hidden message in this - they finally want to reduce the gap between Diesel & Petrol, maybe one day price them at Par.

Also, LPG reduction in cheap cylinders should hopefully cut the diversion to other sector and improve availability and delivery times. We barely consume six a year, so it does not affect me directly. Only now I see arguments between the customer and the dealer - you have used up your quota, no I have not!

[MCR]

Originally Posted by sgiitk

Only now I see arguments between the customer and the dealer - you have used up your quote, no I have not!

Should not be a problem if one keeps the receipts and also ensure entry into the Consumer book for records.

But the increase in Diesel rates is a good move. The money saved, hopefully will be utilised for the overall development of the Country!
Peolple will now be really objective in choosing the Car. Earlier, everybody would just go for Diesel considering low tank-up costs. This should put some sense.
According to GOI statistics the increase in cost of Diesel will increase the inflation by about 0.50%!

I think its better to go with private companies which supplies LPG once the quota of 6 cylinders is complete. This way you can get a far better service for the money paid.

[ghodlur]

Although the Govts decision to reduce the taxes on Petrol comes as a relief to the Petrol consumers, but I guess this is a short term relief. I for one am looking forward to real petrol price reduction esp in Thane where a decision to reduce the octroi charges on petrol was announced few weeks back. This will bring the petrol prices in Thane at par with Mumbai prices.