[nkrishnap]

The price of diesel have silently gone up by 20 odd paisa in Bangalore. Not sure what is the reason behind this. Any clue?

[Sheel]

I believe petrol was to be revised as per markets rates prevailing. Is the rate not down because of rupee falling against $$$ or something else?

[sgiitk]

Now with the LPG cap being hiked, it is high time they put another Rs.10 on diesel, so that the fuel can also be deregulated at the next dip in oil prices. Also, will compensate the loss of LPG. I think they have realised the aam admi whosoever he be, is for more bothered by LPG than Diesel. Also the last hike on Diesel added barely 0.2% to the inflation.

[ghodlur]

There were rumours of the fuel prices being lowered by a rupee or so, I guess this is now at the back burner. Is the rupee devaluation back to rs 55/$ the reason for the drop being on hold.

[lurker]

Yes, Rupee will fall whenever global fuel prices fall so that then the fuel prices need not be slashed.

[Neel]

I notice that the Petrol Pumps still charge the old (higher) rates after a cut has been announced. We may not pay attention to the details but need some information on the web or somewhere letting us know the current price.

[supremeBaleno]

Originally Posted by sgiitk

Now with the LPG cap being hiked, it is high time they put another Rs.10 on diesel, so that the fuel can also be deregulated at the next dip in oil prices.

Looks like they are headed in the direction you suggested. Last Monday while tanking up petrol at 71.77/litre, saw that diesel was 50.16/litre. Won't take much to slowly up the diesel price and maybe correct the petrol price a bit, so as to have parity in pricing and eventually for the subisdy to be wiped off. The decision to reduce the subsidised LPG cylinders to 6 per year is a welcome move.

Originally Posted by Neel

I notice that the Petrol Pumps still charge the old (higher) rates after a cut has been announced. We may not pay attention to the details but need some information on the web or somewhere letting us know the current price.

If you doubt such a practice, just go to http://www.bharatpetroleum.in/YourCo...rice.aspx?id=5 and check the price in your city to know if your corner-pump is over-charging you. I doubt they would - I see 71.77 for Chennai and that is what I paid last week.

[sgiitk]

Now a new one

http://economictimes.indiatimes.com/...w/17643739.cms

Can they not be honest and just hike diesel by Rs.5-10 and be done with administered prices.

[ghodlur]

Originally Posted by sgiitk

Now a new one

http://economictimes.indiatimes.com/...w/17643739.cms

Can they not be honest and just hike diesel by Rs.5-10 and be done with administered prices.

This is highely unlikely as the winter session of the Parliament is in progress. They migh want to test the waters first by raising the issue int he Parliament and see the response Mamta & Co display and then post the session make an announcement.

[vkaul1]

Originally Posted by sgiitk

Now with the LPG cap being hiked, it is high time they put another Rs.10 on diesel, so that the fuel can also be deregulated at the next dip in oil prices. Also, will compensate the loss of LPG. I think they have realised the aam admi whosoever he be, is for more bothered by LPG than Diesel. Also the last hike on Diesel added barely 0.2% to the inflation.

Isn't the Petrol price artificially regulated to be high so as to compensate for the diesel, LPG, kerosene subsidy?

This whole subsidy talk IMHO is just an eyewash for the "aam aadmi". If you see the cost breakdown there are already a large amount of taxes that are levied on diesel to bring it to the current retail level (and they are more so on petrol). The subsidy (deemed) is the taxes not levied by the various govt bodies - central, state, municipal etc on diesel - which is what they harp about as the subsidy burden. These taxes/levies a large steady source to fill the coffers of our esteemed politicos to be squandered on ...... (don't even want to talk about it) & the whole subsidy lip service given just to garner votes.

[praveengupta]

This whole subsidy talk IMHO is just an eyewash for the "aam aadmi".

Rightly said vkaul1!

See the links at the bottom to know how the web of taxes and subsidies have been created.
Petrol is sold to pumps at Rs.45, rest all are taxes.
Diesel is sold to pumps at Rs.37 after deducting a subsidy of Rs.9, but then taxes of Rs.9 are added to neutralize the subsidy. In effect there is zero subsidy in diesel, and loads of taxes on petrol. Now tell me who is fooling around and who is getting fooled

http://www.bharatpetroleum.in/Admin/...ber%202012.pdf
http://www.bharatpetroleum.in/Admin/...ber%202012.pdf

[fiat_tarun]

^^ Interesting post there Praveen. I was under the assumption that only the Excise duty is different for Petrol & Diesel. The mark up from RTP to Dealer selling price is also much more for Petrol. Dealer commission is also more.

Since Diesel is the transport fuel, I don't see this changing for a long time...

[sgiitk]

With Oil headed southwards and the Brent - NYMEX differential down from $23+ to under $21 I expect a petrol price cut.

There was also a report that they are planning to bit the bullet and hike Diesel by Rs.10 or so. I guess that will also be the end of APM for Diesel as well. With the last hike of Rs.5 adding only 0.1% to inflation they may be emboldened.

[supremeBaleno]

Apart from the illogical price-differential between diesel and petrol, another issue that irks me is to see people waste something just because it is cheap. For this reason alone, the price of diesel should be raised to same as petrol.

An example of wastage observed today morning. Around 6AM, I am on my morning walk through the streets of Gill Nagar (a nice residential area), when I see a Punto being loaded with bags for a holiday trip by 2 guys and 1 woman. The engine is running, so I assume they would be driving off soon. I complete a round of the locality and when I am back there after 10mins, the engine is still running, a door is open and all 3 are standing beside the car talking. I don't see the point of keeping the engine running when there is no one inside the car. For whatever it is worth, it is winter in Chennai and the morning air is nippy - so a/c being needed is also ruled out. Also this is a new-gen car, not an old Amby that would need to be run for a long time before starting out. So, it is a waste of fuel to keep that engine running - I doubt they would have done that on a petrol car.

[DRIV3R]

Originally Posted by supremeBaleno

Apart from the illogical price-differential between diesel and petrol, another issue that irks me is to see people waste something just because it is cheap. For this reason alone, the price of diesel should be raised to same as petrol.

An example of wastage observed today morning. Around 6AM, I am on my morning walk through the streets of Gill Nagar (a nice residential area), when I see a Punto being loaded with bags for a holiday trip by 2 guys and 1 woman. The engine is running, so I assume they would be driving off soon. I complete a round of the locality and when I am back there after 10mins, the engine is still running, a door is open and all 3 are standing beside the car talking. I don't see the point of keeping the engine running when there is no one inside the car. For whatever it is worth, it is winter in Chennai and the morning air is nippy - so a/c being needed is also ruled out. Also this is a new-gen car, not an old Amby that would need to be run for a long time before starting out. So, it is a waste of fuel to keep that engine running - I doubt they would have done that on a petrol car.

Well, I have seen this trend with petrol car owners even.

As long as he is paying for his fuel, it is his problem.

Btw, diesel cars take a 5km drive to reach operating temperature. Even if it idles for ten minutes, the needle just nudges over C, in this season.

Also diesel is not exactly cheap. 20 bucks less a litre, while the car itself costs a lake more than the petrol version.