[longhorn]

Originally Posted by AshBabu

I read in news today that Oil prices and tobacco prices will come under GST and almost agreement has been reached between Center and States.

Will this mean that uniform tax will be levied on petrol/diesel throughout the country? No extra taxes will be levied by the states?

No. It means that the central govt will fix the centre's share and the state govt will add whatever it wants to that to get its share. Fuel and tobacco are cash cows for both the centre and the state. States are not willing to let go of it just yet.

[selvagp]

Originally Posted by gomzi

I think the comparison of retail petrol price vs crude prices in India in previous years, while interesting, isn't relevant as the retail fuel was subsidized back then.

May I ask, what would have been the petrol price in 2009 if they weren't subsidized then.

[sgiitk]

Originally Posted by selvagp

May I ask, what would have been the petrol price in 2009 if they weren't subsidized then.

Remember the exchange rate was far more favourable then. Also, I feel the tax structure may also have changed.

[gomzi]

Originally Posted by selvagp

May I ask, what would have been the petrol price in 2009 if they weren't subsidized then.

Originally Posted by sgiitk

Remember the exchange rate was far more favourable then. Also, I feel the tax structure may also have changed.

While I do think it would be interesting to do this calculation it might be a exercise in futility as too many things have changed between 2009 and now regarding the govt's subsidy %, exchange rates, global oil prices, tax structure?, inflation? et al.

Main thing of concern is whether the current govt keeps on increasing the excise and 'cushioning' the public from the steep fuel price drop further. Sorry for the

[sgiitk]

Originally Posted by gomzi

Main thing of concern is whether the current govt keeps on increasing the excise and 'cushioning' the public from the steep fuel price drop further. Sorry for the

The FM said so, mny states were hiking up the VAT and taking most of the price drop away from us. This apparently encouraged the excise hike!

[saurabhkum]

In the last few days many of the News agencies have started reporting that Govt has not cut the fuel prices as per the International Market. Will like to see if they announce any reduction today. The media has even reported that De-regulation is only on paper and is a lip service. I hope Govt takes the cues and start behaving in the right manner.

[sgiitk]

Originally Posted by saurabhkum

In the last few days many of the News agencies have started reporting that Govt has not cut the fuel prices as per the International Market.

the price adjustment is done every fortnight so the 15th is the due date. Today being Sunday it may be delayed a day or so.

[lurker]

Yes, the massive Rs. 1 cut is eagerly awaited.

[sachinayak]

Consider the last 3 months (12-Sept-2014 to 12-Dec-2014)

Petrol is deregulated over this entire period. So no conflicts there.

BRENT crude prices have fallen from 97.96$ to 61.85$
USD to INR has inched up from 60.655 to 62.525
Petrol Prices in Bangalore has gone down from 75.13Rs to 69.45Rs.

If things were "TRULY" deregulated, we would be paying 48.898 Rs for a liter of petrol. Acche din, really?

Sources
http://www.investing.com/commodities...istorical-data
http://www.investing.com/currencies/...istorical-data
http://www.mypetrolprice.com/6/Petro...e-in-Bengaluru

[ramzsys]

Originally Posted by sachinayak

If things were "TRULY" deregulated, we would be paying 48.898 Rs for a liter of petrol. Acche din, really?

Acche din, particularly for this overpopulous country is a comfortable/dependable public transportation system. Not the surge of private vehicles running on imported fuel.

[sachinayak]

Originally Posted by ramzsys

Acche din, particularly for this overpopulous country is a comfortable/dependable public transportation system. Not the surge of private vehicles running on imported fuel.

Absolutely, but then if fuel prices would have been 15Rs lower than what they are currently (and what it should ideally be, if not lower) then it would mean

1. Cheaper transportation (public transportation included)
2. Lower inflation
3. Lower interest rates (resulting from 2)
4. Higher growth (resulting from 3)

Easier said than done surely, but in the current scenario of falling crude prices, not passing on the benefit to the end user is criminal. I do not expect the petrol price to fall 21 Rs, but if govt can lap up Rs 5-10 and reduce by 10-15 Rs, isnt that what one would expect specially in a "deregulated" environment.

[sgiitk]

All is fine, but also take into account the refining and fixed costs, and the estimated drop will not be that steep. I will suggest make the whole country BSIV and up the Diesel BSIV to EuroIV. Force them to invest some money in Refinery upgradation.

[saurabhkum]

No news on price cut yet, looks like this time also there is not going to be any major changes. At the same time crude has touched the lowest level since June 2009. Opec in another statement states they are not worried even if crude touches 40$. I'm eagerly waiting to see what is the cut which happens today.

[rajshenoy]

Originally Posted by saurabhkum

No news on price cut yet, looks like this time also there is not going to be any major changes. At the same time crude has touched the lowest level since June 2009. Opec in another statement states they are not worried even if crude touches 40$. I'm eagerly waiting to see what is the cut which happens today.

Govt will silently hike the taxes. If not central, it will be the state govt for sure.
Other worrying part is rupee is at all time low !!
High oil imports were always pulling our economy down, irrespective of the oil prices now, that has not changed !! infact our exports will take a hit due to low global demand which only means that Rupee will fall further ??

[sgiitk]

PTI reports a Rs.2/- per litre cut in both Petrol and Diesel.