The Official Fuel Prices Thread

sgiitk · 13th October 2014, 22:26

As per Rajat Sharma's channel the cut in Petrol may be Rs.1.50 and Diesel as much as Rs.4.50. Of course it will be announced only at the end of the code of conduct. If polling is fine then it will be 15th evening, or if there are some repolls then after them.

I hope this comes. There is an oil glut, over production by OPEC, Libya back in production (possibly not obeying quotas as well), and reduced demand. I for one do not think the cut will be as high on Diesel.

remember Brent is now under $89.

I also hope that deregulation actually takes place, and not a controlled modulation. Then only the hard nuts LPG and Kerosene will remain.

longhorn · 13th October 2014, 22:38

Crude is under $90 and petrol price is still ~ Rs 71 per litre. Back in 2010 when crude was about the same price, petrol costed around Rs 55. Why is there such a huge difference when they claim they price it at cost. I agree the rupee has devalued from 2010 levels, even then the difference seems to be quite high after accounting for the devaluation of the rupee.

NetfreakBombay · 13th October 2014, 22:38

Quote:

Originally Posted by sgiitk

I hope this comes. There is an oil glut, over production by OPEC, Libya back in production (possibly not obeying quotas as well), and reduced demand. I for one do not think the cut will be as high on Diesel.

One thing that is on the radar is winters. With winters, demand for oil (to be used for heating) shoots up. That might soak up this floating supply and might send crude back to $100.

sgiitk · 14th October 2014, 09:02

Apparently India's crude basket is now $83.23 or so.

saket77 · 14th October 2014, 11:13

Saw in news yesterday that the OMCs are making a good profit of Rs. 3/- to 4/- per liter on diesel. This could have been the best time to deregulate diesel.

blacksport · 14th October 2014, 11:43

Quote:

Originally Posted by saket77

Saw in news yesterday that the OMCs are making a good profit of Rs. 3/- to 4/- per liter on diesel. This could have been the best time to deregulate diesel.

I think it is the right time to raise taxes on diesel to bring it to levels on petrol. Deregulation could be done even without reducing the price.

rajshenoy · 14th October 2014, 11:56

Quote:

Originally Posted by blacksport

I think it is the right time to raise taxes on diesel to bring it to levels on petrol. Deregulation could be done even without reducing the price.

What pleasure do we get in Raising taxes ?

Firstly, is it needed ? Without taxes fuel would have been around 30-40s so my friend we are already paying enough taxes both central and state.

sgiitk · 14th October 2014, 12:12

Quote:

Originally Posted by blacksport

I think it is the right time to raise taxes on diesel to bring it to levels on petrol. Deregulation could be done even without reducing the price.

Politically a drop at the time of deregulation may be good. If I recall when crude was in the $140 region taxes were cut, so some can be clawed back. We can have both, price cut and higher taxation along with deregulation.

I do not think India will support same taxation for Diesel and Petrol even though I tend to agree.

dass · 14th October 2014, 12:21

Quote:

Originally Posted by blacksport

I think it is the right time to raise taxes on diesel to bring it to levels on petrol. Deregulation could be done even without reducing the price.

Why? How would that benefit anyone? Instead of this, should we not be hoping for a tax cut on petrol to bring it on par with Diesel?

rajshenoy · 14th October 2014, 12:41

I think here is what will happen. 3-4 rupee cut is just a carrot for the election. Once its over, we might get may be a rupee cut and tax adjustment on diesel so that Govt fleeces more from us.

Looking at some messages above, It looks like it will also make the petrol car feel relaxed that others are also paying more tax !!

blacksport · 14th October 2014, 12:45

Quote:

Originally Posted by dass

Instead of this, should we not be hoping for a tax cut on petrol to bring it on par with Diesel?

Revenue losses. They would have to resort to the age old practice of taxing beedi and cigarettes to make up for the loss, which would be paltry.

Quote:

Originally Posted by rajshenoy

Looking at some messages above, It looks like it will also make the petrol car feel relaxed that others are also paying more tax !!

We would be happy that everybody is treated equally, and not taxed more for not polluting.

girimajiananth · 14th October 2014, 13:00

Quote:

Originally Posted by blacksport

I think it is the right time to raise taxes on diesel to bring it to levels on petrol. Deregulation could be done even without reducing the price.

If you raise diesel prices , won't the prices of milk , clothes ,vegetables and basically every other essential commodity increase ? Raise the cost of milk by 50p , hotels will increase the coffee price by 2Rs. How would you control that ? Don't you think it will have a cascading effect ?

I am just asking , I hope you will not take this offensively.

dass · 14th October 2014, 13:04

Quote:

Originally Posted by blacksport

We would be happy that everybody is treated equally, and not taxed more for not polluting.

Err.. Not polluting? Is that so?

http://www.transportenvironment.org/...-dirty-diesels

and...

http://en.wikipedia.org/wiki/Exhaust_gas

blacksport · 14th October 2014, 15:06

Quote:

Originally Posted by girimajiananth

If you raise diesel prices , won't the prices of milk , clothes ,vegetables and basically every other essential commodity increase ? Raise the cost of milk by 50p , hotels will increase the coffee price by 2Rs. How would you control that ? Don't you think it will have a cascading effect ?

I am just asking , I hope you will not take this offensively.

No. That myth has been debunked at various occasions, particularly when they went for the Rs 5 hike a year ago. Transportation costs does not even constitute 1% of a product cost, so an increase of 10% in fuel price would not result in an appreciable increase in product price.

Somebody had done the math and posted here in team-BHP. Too lazy to search.

Quote:

Originally Posted by dass

Err.. Not polluting? Is that so?

http://www.transportenvironment.org/...-dirty-diesels

and...

http://en.wikipedia.org/wiki/Exhaust_gas

Ha, studies...

http://www.telegraph.co.uk/motoring/...y-diesels.html

http://newscenter.berkeley.edu/2012/...uting-to-smog/

gsurya · 14th October 2014, 15:38

When crude price was at this same low levels last in December 2010, Diesel was priced at Rs 37.75 per litre.

Will be fun to see what the new Govt does given their stand when in opposition

13th October 2014, 22:26	#4006
sgiitk Senior - BHPian Join Date: Dec 2007 Location: Gurugram Posts: 7,971 Thanked: 4,796 Times	Re: The Official Fuel Prices Thread As per Rajat Sharma's channel the cut in Petrol may be Rs.1.50 and Diesel as much as Rs.4.50. Of course it will be announced only at the end of the code of conduct. If polling is fine then it will be 15th evening, or if there are some repolls then after them. I hope this comes. There is an oil glut, over production by OPEC, Libya back in production (possibly not obeying quotas as well), and reduced demand. I for one do not think the cut will be as high on Diesel. remember Brent is now under $89. I also hope that deregulation actually takes place, and not a controlled modulation. Then only the hard nuts LPG and Kerosene will remain. Last edited by sgiitk : 13th October 2014 at 22:31.
	() Thanks

13th October 2014, 22:38	#4007
longhorn Senior - BHPian Join Date: Nov 2009 Location: Chennai Posts: 1,537 Thanked: 1,604 Times View My Garage	Re: The Official Fuel Prices Thread Crude is under $90 and petrol price is still ~ Rs 71 per litre. Back in 2010 when crude was about the same price, petrol costed around Rs 55. Why is there such a huge difference when they claim they price it at cost. I agree the rupee has devalued from 2010 levels, even then the difference seems to be quite high after accounting for the devaluation of the rupee.
	(1) Thanks

14th October 2014, 09:02	#4009
sgiitk Senior - BHPian Join Date: Dec 2007 Location: Gurugram Posts: 7,971 Thanked: 4,796 Times	Re: The Official Fuel Prices Thread Apparently India's crude basket is now $83.23 or so.
	() Thanks

14th October 2014, 11:13	#4010
saket77 Distinguished - BHPian Join Date: Dec 2012 Location: India Posts: 4,589 Thanked: 13,200 Times	Re: The Official Fuel Prices Thread Saw in news yesterday that the OMCs are making a good profit of Rs. 3/- to 4/- per liter on diesel. This could have been the best time to deregulate diesel.
	() Thanks

14th October 2014, 12:41	#4015
rajshenoy Senior - BHPian Join Date: Apr 2006 Location: bangalore Posts: 2,903 Thanked: 2,268 Times View My Garage	Re: The Official Fuel Prices Thread I think here is what will happen. 3-4 rupee cut is just a carrot for the election. Once its over, we might get may be a rupee cut and tax adjustment on diesel so that Govt fleeces more from us. Looking at some messages above, It looks like it will also make the petrol car feel relaxed that others are also paying more tax !!
	() Thanks

14th October 2014, 15:38	#4020
gsurya BHPian Join Date: Feb 2008 Location: Mumbai Posts: 781 Thanked: 694 Times	Re: The Official Fuel Prices Thread When crude price was at this same low levels last in December 2010, Diesel was priced at Rs 37.75 per litre. Will be fun to see what the new Govt does given their stand when in opposition Last edited by gsurya : 14th October 2014 at 16:08.
	(1) Thanks