[Amey Kulkarni]

A report from rex fuels predict increase of fuel prices further in the coming fortnight -

1. Petrol (+) Rs 1 per Liter
2. Diesel (+) Rs 1.5 per Liter

Cheers,
Amey

[sgiitk]

I think we seem to be bottoming out. Also, international crude prices are softening. So let us hope we have hit a plateau.

One point to ponder. $ seems to be on the rise internationally, there is even talk of a meltdown in emerging markets. However, rupee seems to be rising.

[arun_kun]

Why have not the prices dropped in sync with the international crude prices. What is the trickle down time for the local prices?

[Chetan_Rao]

Originally Posted by arun_kun

Why have not the prices dropped in sync with the international crude prices. What is the trickle down time for the local prices?

It's a fair-weather relationship. Works efficiently only when there's money to be made.

[AutoNoob]

Originally Posted by sandeepmohan

First it was sachet pickle, then shampoo, engine oil and we shall soon see fuel too.

Originally Posted by condor

Payments were later done in INR after 2014... Let me check - was from news items

Originally Posted by embee

This information came in Times of India on 22-May-2018... Taxes account for half of the price we pay for petrol and diesel. Here is a break up of taxes imposed on fuel

Originally Posted by revvharder

Thank God within time we shifted from diesel to CNG it is really cheap to run I can today compare the running of the bike with car and the car is cheaper to maintain

Originally Posted by humyum

Taxes on Petrol - 2013 vs now

Originally Posted by sgiitk

went and bought some Diesel (for my Genset). The price was marginally below INR69. I was expecting 70 plus.

Originally Posted by sukiwa

Filled petrol in bike today at rate of Rs. 86.02 ; adds to monday morning blues.

I did some off-the-hand calculations to estimate the impact on we people due to higher taxation as compared to Sep-Oct 2013 levels. This is based on my understanding and there would be many scenarios that I may not have covered. Below are the results :



Now, I'll dare and try to be Devil's advocate (and hope that I am not bashed by my fellow BHPians, rather made to understand their perspective).

Yes, the fuel taxation is insane, and the current price levels can be eased by Governments (Centre & State) by reducing the illogically high taxes. And yes, the less fortunate ones (say monthly income below 25k) are hit. But as I tried to estimate, the impact on majority from this section (mostly bike riders) is around Rs. 500 per month. Yes, it can be high and disturb the monthly budget for the families in some cases.

Now coming to car users, yes the impact is higher, around Rs. 3000. This is considering usage 80~100 kms daily and for full 31 days. And this is the section I have a question. Since the fuel price impact is big, how many of us (me included) have tried to limit our vehicle usage only for necessary trips or tried to find alternative mobility way like using public transport, car pooling ?

Yes, the taxation method adopted by this (or any other government) of fuels is not appropriate. But are we willing to change ourselves to reduce our financial 'loss' ?

I'll not go into the argument "Where the money is going to come for development (or any other government business) where tax assesses are fraction of total population and effective tax payers are further lower ?" because it often leads to different tangent.

[neoonwheels]

Filled up Shell regular diesel today in Pune at 76.05/-

[blackwasp]

Originally Posted by AutoNoob

Since the fuel price impact is big, how many of us (me included) have tried to limit our vehicle usage only for necessary trips or tried to find alternative mobility way like using public transport, car pooling ?

But are we willing to change ourselves to reduce our financial 'loss' ?

In my case, the monthly outgo has gone up by almost the price of a full tank compared to earlier. So, in the same price if I used to get 4 tank fulls, I now get just ~3. I have already started to avoid using my car to commute since about January of this year. However, with frequent changes / delays to the bus schedule, I either have to leave quite a bit early, or I land up at office quite late. I'm not at all accounting how sweaty I end up at the end of the commute or the fact that 7/10 times I fail to get a seat for a significant duration of the trip. AC buses do help, but they are no less crowded than regular buses. The monsoon season will also see increased car usage. I try to avoid commuting on my scooter.

For nearby trips (5-10 km), I have resorted to using my cycle.

These days, I also think twice before heading out on the highways just for a drive. Unless there is any purpose, I avoid using the car.

[aniyo]

See the problem is not high taxes on fuel. We are taxed on our taxed income at every point, buying a car, toll, fuel any accessories we buy, food, clothes you name it we pay from our taxed income. This is cruel
I don't mind paying 95/l of petrol of they don't charge income tax. Current taxes is just plain cruel

[jaaz]

Originally Posted by condor

Btw, there was a 6.7b USD payment pending to Iran - for oil imported in 2010-2014. The whole amount not paid at all. Very possible that this payment is now being offset with the higher prices.

This is Fake News! The payouts are done by Oil Marketing Companies and the amounts will be lying in Escrow Accounts, nothing to do with the govt. of India.

The amounts are just lying idle, neither India can use nor Iran till the Payment channels are formalised. US Sanctions are the reason for the delay.

So, the Conclusion is India has already paid the amount, but Iran has not received.

[wildsdi5530]

Originally Posted by AutoNoob

Since the fuel price impact is big, how many of us (me included) have tried to limit our vehicle usage only for necessary trips or tried to find alternative mobility way like using public transport, car pooling ?

Car pooling and public transport is effective only for higher income groups and for leisure travelers. But a smalltime businessman, trader, utility worker, marketing guy, professional (doctor, Lawyer, CA), etc cannot depend on them. Public transport or car pooling is effective only for people with regular hours and at one place. These people don't use much fuel anyway. It's the guys who have to visit 10 places in a day and night and have uncertain schedules who spend a lot for fuel and get hurt with fuel price hikes. And other than teenagers, I don't think anyone go for unnecessary trips. Certainly no-one who is paying for the fuel from their pocket.

[catchdoon]

Originally Posted by AutoNoob

I did some off-the-hand calculations to estimate the impact ........

Reducing Daily Avg Kms run doesn't do justice.

1. People can be running less Kms due to High prices - This again defeats your math.
2. Keeping Kms run equal for both years will show the correct result.

I just want to make clear that I'm not supporting or going against the Tax etc etc.
My whole point is around the math you pulled off & came to those figures.

[murillo]

Originally Posted by AutoNoob

the impact on majority from this section (mostly bike riders) is around Rs. 500 per month.

Increased fuel prices not only mean increased fuel prices, but also mean increased prices for fruits, vegetables, provisions, milk, meat, fish, for example (also increased auto rickshaw prices, taxi fares, hotel bills, ambulance charges, drinking water prices, water tanker prices, sewerage tanker costs, increased prices of products that depend on petrochemicals such as paints, plastic goods, etc.) Bus transport corporations may hike ticket prices citing increased fuel costs. The overall impact will be more than Rs. 500/- per month.

Originally Posted by AutoNoob

Since the fuel price impact is big, how many of us (me included) have tried to limit our vehicle usage only for necessary trips or tried to find alternative mobility way like using public transport, car pooling ?

I am willing but no impact. Reasons: I am already avoiding unnecessary trips, public transport not available in my area, car pooling won't work because of my nature of work and timings.

Originally Posted by AutoNoob

But [b]are we willing to change ourselves to reduce our financial 'loss' ?

May be the impact will be a budget cut in some other area.

Originally Posted by AutoNoob

I'll not go into the argument "Where the money is going to come for development (or any other government business) where tax assesses are fraction of total population and effective tax payers are further lower ?" because it often leads to different tangent.

I will also not go into the argument "we as a nation are so poor that only a fraction of people are anyway eligible to pay taxes" because it often leads to different tangent.

[ashokrajagopal]

So, while we talk about fuel prices and the formulation, arguments like

"XXX Cr going to be used for union budget deficits, so its overall good" does not really make a lot of sense in the context, but it makes some sense and can be debated.

Suggesting not using Petrol and diesel and thereby getting back at your own home budget deficit is not even an argument.
Well, if there were alternatives usable, we wouldnt be discussing this.

In the above graphical off-the-hand calculation there is a 50% reduction of km/day.
I really do not have any clue as to what is intended out of that calculation.

[AutoNoob]

Originally Posted by catchdoon

Reducing Daily Avg Kms run doesn't do justice... My whole point is around the math you pulled off & came to those figures.

Originally Posted by ashokrajagopal

In the above graphical off-the-hand calculation there is a 50% reduction of km/day... I really do not have any clue as to what is intended out of that calculation.

In the calculation, I used two set of kms to indicate different levels of usage as per individuals' requirements (as not everyone covers 60kms or 100kms per day). It was not my intention to imply that a person reduces the distance travelled by such an amount.

e.g. Person A commuting to longer distances and Person B commuting to smaller distances. Both sets of km/day represent the impact due to increased prices (as of today w.r.t. 2013 base) for both Person A & B.

[humyum]

Originally Posted by AutoNoob

Now, I'll dare and try to be Devil's advocate (and hope that I am not bashed by my fellow BHPians, rather made to understand their perspective).

Yes, the fuel taxation is insane, and the current price levels can be eased by Governments (Centre & State) by reducing the illogically high taxes. And yes, the less fortunate ones (say monthly income below 25k) are hit. But as I tried to estimate, the impact on majority from this section (mostly bike riders) is around Rs. 500 per month. Yes, it can be high and disturb the monthly budget for the families in some cases.

Now coming to car users, yes the impact is higher, around Rs. 3000. This is considering usage 80~100 kms daily and for full 31 days. And this is the section I have a question. Since the fuel price impact is big, how many of us (me included) have tried to limit our vehicle usage only for necessary trips or tried to find alternative mobility way like using public transport, car pooling ?

Yes, the taxation method adopted by this (or any other government) of fuels is not appropriate. But are we willing to change ourselves to reduce our financial 'loss' ?

I'll not go into the argument "Where the money is going to come for development (or any other government business) where tax assesses are fraction of total population and effective tax payers are further lower ?" because it often leads to different tangent.

The thing is, why should I pay even 5 rupees more for fuel even if that is per month? At this rate we should be okay to pay 100 rupees to a cop as a bribe too who caught us speeding because it's just 100 rupees.

Did the government not deregulate diesel so that they could match the fuel price to the international crude price? What's the point of this exercise if they to add so much excise to it when the prices were going down, leading to artificially controlling it anyway and then not cutting the excise when the prices are going up?

In the hunger to meet the fiscal deficit target from a destroyed economy, fuel is their main source of income to thug and to shine their report cards, they need to loot us.

India was progressing before when taxes on fuel were low, India will progress in the future too, it just needs the right driver!