[deepv]

Originally Posted by sdp1975

Excise hiked on both petrol and diesel, looks like only partial benefits of the lowered prices have been passed to the end customers.
..

Looks like these excise hikes are going to continue for some foreseeable future, govt needs to cover more of fiscal deficit.
See the counter view that explains/favors these hikes - Why Government Must Not Drop Petrol Prices For Us.

Also came across this LiveMint article that shows with calculations if excise duty and OMCs markup would have remained at June 2013 level,
the on road petrol prices should have been around 10% lesser (I thought it should have been further less but never mind).

[pramodpk]

Excise duty on Petrol and diesel increased.

http://timesofindia.indiatimes.com/b...w/50198968.cms

[reverse_gear]

Originally Posted by deepv

Also came across this LiveMint article that shows with calculations if excise duty and OMCs markup would have remained at June 2013 level,
the on road petrol prices should have been around 10% lesser (I thought it should have been further less but never mind).

This article is a year old, when Brent was $77. If the maths is redone today with Brent lower than $40, the gap will be significantly more.

[johannskaria]

Brace for the Excise duty hike by the government.
The excuse is that the OMC's are not passing the benefits to consumers.

But at the end of the day it is us who suffers.
The crude is at around 35$. (Even after considering the Rupee depreciation we still have space for ample cuts)
look at the price cut space the OMC's had for the last revision :-

[sourabhzen]

Originally Posted by poloman

I am not at all being sarcastic. The country has already paid a heavy price for keeping the price of diesel less than that of petrol. This has lead to the explosion in the number of diesel cars.

I was quoting to your point that fuel prices are kept high to keep two wheeler owners away from buying cars. Do you honestly believe that majority two wheeler owners own them due to fuel prices?

[Carpainter]

Another excise duty hike. I believe the Government don't want to let the price of oil fall too low so that sale and usage of cars i.e. luxury goods can be restricted. This is after the Government have decided to deregulate pricing in the market!!! Really sad.

[sgiitk]

I think with the States defining floor VAT this is but expected. Only, is this a stage in rising Diesel prices. We expect the same or higher price for Diesel (Diesel has a higher calorific content).

[deepv]

Originally Posted by reverse_gear

This article is a year old, when Brent was $77. If the maths is redone today with Brent lower than $40, the gap will be significantly more.

Right .. which is why I was wondering about difference being less.
But all of other factors mentioned seems perfectly relevant to this December as well, except being more stretched - excise duty in one direction and crude prices in other, still our prices are around the same.

[sgiitk]

Originally Posted by deepv

Right .. which is why I was wondering about difference being less.
But all of other factors mentioned seems perfectly relevant to this December as well, except being more stretched - excise duty in one direction and crude prices in other, still our prices are around the same.

Even here the Akali's are crying. I think they should bite the bullet and make all taxes and levies the same on Diesel and Petrol. See the sales of Diesel cars drop by say two thirds. States should be goaded to equate VAT. With about ten states under the BJP this will be another nail in the coffin of the Diesel. If I drive 50,000km a year I will buy a Diesel, else Petrol!

[sgiitk]

One more point. It seems the US is seriously mulling allowing oil exports. This should make the difference between Brent and WTI/NYMEX near zero. Also, it will add to the oil glut. I do not see the US joining OPEC!

It seems that the cost of Shale derived oil is $40 or so per bbl, so that is out of the reckoning for the moment. The highest cost of production from wells is about $20, while the old ones in Saudi etc produce at about $8.

[babu.sundaram]

I have a non enthusiasts view.

It is time that the oil prices are hiked or at least retained at the same level as we need to limit consumption:
- With low oil prices, many economies are in turmoil (and our exports should go down too)
- With so much pollution, higher oil price probably drives people to more efficient vehicles
- Higher oil prices would probably drive more people to public transport. For e.g. Volvos in Blr are costlier than my car for one person, with three or four, car becomes cheaper!

[lurker]

Originally Posted by babu.sundaram

I have a non enthusiasts view.

It is time that the oil prices are hiked or at least retained at the same level as we need to limit consumption:
- With low oil prices, many economies are in turmoil (and our exports should go down too)
- With so much pollution, higher oil price probably drives people to more efficient vehicles
- Higher oil prices would probably drive more people to public transport. For e.g. Volvos in Blr are costlier than my car for one person, with three or four, car becomes cheaper!

Wouldn't it be better to simply ban cars in bangalore city. Let everyone cycle or use metro to place of work. Much simpler for rest and fuel prices can be reduced or increased safely in line with global prices.

What is the meaning of this 'deregulation' if it is not applicable when prices fall. India will become the joke of the 21st century.

[rusticnomad]

Here's a press-release from the govt of the day a day back:
https://www.saddahaq.com/press-relea...rol-and-diesel

[babu.sundaram]

Originally Posted by lurker

Wouldn't it be better to simply ban cars in bangalore city. Let everyone cycle or use metro to place of work. Much simpler for rest and fuel prices can be reduced or increased safely in line with global prices.

What is the meaning of this 'deregulation' if it is not applicable when prices fall. India will become the joke of the 21st century.

Banning cars or anything would get into people' rights. Setting higher price is not . I should be able to drive when I want to, provide I pay the price.

A good that is priced higher always would be used efficiently.I heard in Saudi, people don't switch off engines as it gets hot and fuel is cheap.. this when they go shopping! DOnt know how to true it is.. but I do see people sleeping with AC on even at current prices).

Lower fuel prices -> Increased consumption -> Pollution & Forex drain.

[WorkingGuru]

After a LONG time filled diesel at Koramangala COCO bunk today. I think my Linea MJD gives 16kmpl in city, without A/c. Not the worst, I guess.

(Btw, There is an offer : If we fill diesel for Rs.1,500/- or more, we get free diesel worth Rs.100/-.
They were annoying by making me wait to collect my number, then condescendingly instructed that I park in the side. Gave them a wrong number.)

Originally Posted by babu.sundaram

...
Lower fuel prices -> Increased consumption -> Pollution & Forex drain.

Appreciate your courage to consider that as a viable solution.
Yet, I believe the excise hikes will make govt more money which will eventually be put into projects riddled with corruption.

Maybe Fuel prices should be revised only every month so that people can plan to use the money saved on significant things. The volatile price is confusing people & that unpredictability stops people from caring for fuel costs.

This is an endless topic :/