[sgiitk]

@Sheel; You may feel better but the hit remains the same unless you cut your driving. Only you pay the 500 more often. Maybe we need the electrics / hybrids quicker. At least power availability is no more a serious issue.

We who retired from the 'so called' premier institutes are still to get our 7th PC pensions. Hurts even more!

[ashtrix]

Originally Posted by drmohitg

I feel this thread has become pointless apart from serving as an outlet for our frustrations. We can talk about taxes all day, but at the end of the day they will take your money, one way or the other. Honestly, at the risk of sounding wrong, I have started feeling that fuel taxes are much better where atleast a part of the burden is shared by the majority population including the rich, middle class and upper lower class. If not this, then the government will bring in more taxes in other spheres and truth be told, I am scared it will be focussed more on just the upper middle class and rich ( which I believe forms a majority of this forum base).

The need of the hour is to seek accountability from the government. But with the wide disparity in our country, I believe this is not going to happen anytime in the near future.

Fuel prices have a cascading effect as it causes price rise in general. It will force people to consume less and thereby affecting the general economy of the country. Here, the pinch is not because of global crude prices but because of the multi fold duty increase by the central government when the oil prices were less. The public was deprived the benefits of low crude prices and the government filled its coiffures. Now the crude prices are up its expected from the government to keep the prices in control for the sake of economy.

Originally Posted by sgiitk

@Sheel; You may feel better but the hit remains the same unless you cut your driving. Only you pay the 500 more often. Maybe we need the electrics / hybrids quicker. At least power availability is no more a serious issue.

We who retired from the 'so called' premier institutes are still to get our 7th PC pensions. Hurts even more!

You are right Sir. Many countries like Norway have set a deadline to go full electric vehicle by 2025. India must also encourage electric vehicles as it will reduce our oil consumption and thereby reduce our import bill and that will help rupee to strengthen. But on flip side it will put a check on government's revenues and also profitability of oil companies like Reliance.

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[Ford5]

Nanded in Maharashtra has hit 93 bucks a pop! Doubt: Can dispenser's display 3 digit fuel prices in India?

[SJM1214]

Originally Posted by Ford5

Can dispenser's display 3 digit fuel prices in India?

Petrol Prices Can't Be Raised Above Rs 99.99/litre Because Machines Can't Display The Figure!

While the petrol users joked that this time the prices might hit a century, guess what fuel prices have already breached the Rs 100/litre mark! The good news is for those consumers who use normal petrol. Premium petrol consumers are bearing such a high cost as on September 08, the price of Octane quality petrol was increased to Rs 100.33/litre

The display machine, however, was showing only Rs 10.33 per litre. When Indiatimes spoke to a petrol pump owner, he said "We have to manually update the fuel prices every day because they keep changing. The fuel dispenser can't handle more than Rs 100 as of now.”

Full Article: https://www.indiatimes.com/news/indi...re-353062.html

[MaxTorque]

Originally Posted by SJM1214

[b]Petrol Prices Can't Be Raised Above Rs 99.99/litre Because Machines Can't

I think can easily price the fuel for lower quantities like 0.5 liter.

[sumzup]

Originally Posted by Ford5

Nanded in Maharashtra has hit 93 bucks a pop! Doubt: Can dispenser's display 3 digit fuel prices in India?

Originally Posted by MaxTorque

I think can easily price the fuel for lower quantities like 0.5 liter.

The display was never designed for the eventuality of prices crossing 100 in our country. It is also a fact that this is the first time that the price of fuel (premium petrol) has gone beyond Rs. 99.99 that includes 97 octane too. Of course, the consumers for premium fuel are relatively less compared to the mainstream fuel and in this scenario, it would not cause a lot of anguish for consumers, and as long as the rate per liter is clearly displayed and the net amount is correct then it should not be an issue to the premium customers.

This definitely will not be the case when the regular unleaded fuel breaches Rs. 99.99 as then every single fueling will take more time due to the consumer trying to double check if the amount displayed matches the rate per liter and volume taken. So, it will effect the throughput of that pump leading to pile up of two-wheelers and other vehicles too. Which means, on any given day the peak hours will cause more than usual delays.

That said, breaching 99.99 is a psychological barrier and in my opinion regular petrol won't be allowed to go beyond that as then it will cause a lot of turmoil during the election year. So, lets hope for best.

[swissknife]

Looks we have a situation similar to Y2K. The only thing is that people may want the pumps to fail.

It is quite possible that the govt would release a notification that only the right extreme digits would be displayed on the fuel pump. Life would go on.

[drmohitg]

Originally Posted by ashtrix

Fuel prices have a cascading effect as it causes price rise in general. It will force people to consume less and thereby affecting the general economy of the country.

All that you say it true. My point being only that government expenditure is going to stay and probably will only increase with all the populist policies that are a hit with every government combined with some genuine loan waivers, natural calamities and a highly corrupt machinery in place.

So now that money needs to come from us - either as high fuel prices or taxes elsewhere. What I feel is that fuel tax is still borne by a larger percentage of the population rather than let us say an increase in the income tax slabs or restaurant bills or as few people suggested here travel and tourism. Now these are going to pinch a smaller percentage and most car buyers will fall in these slabs. In our ideal world the government should decrease the fuel taxes without increasing taxes elsewhere, something which would be difficult to achieve even in candyland!

[Hayek]

Originally Posted by ashtrix

Fuel prices have a cascading effect as it causes price rise in general. It will affect the general economy of the country. Here, the pinch is because of the multi fold duty increase by the central government when the oil prices were less. Now the crude prices are up its expected from the government to keep the prices in control for the sake of economy.

This is an oft debunked false notion that many people have. The fact is that transport costs are a small part of the price of virtually all products, and fuel costs are a small part of transport costs. So a 33% rise in fuel prices which we have already witnessed has not led to materially higher inflation (CPI inflation in August 2018 was just 4.18%). There is no “wider hit” to the economy when fuel prices rise. All that happens is fuel costs for transporters, and car and bike owners rise. In the short term, that leads to car and bike owners avoiding the use of their vehicles where possible which reduces fuel demand slightly - in the longer term, it induces a switch to more fuel efficient cars, bikes, trucks and buses which reduces demand even further - which is the entire idea of a market based price mechanism. You have a hit only if the government decides to focus on headlines instead of the economy by subsidising fuels, due to which demand does not fall, and inflation rises due to the need to create money to fund the fiscal deficit. The mistake the government did was not raising taxes further when fuel prices were low. We need to get to a stage where fuel in India is priced at a level similar to that in the EU (EUR 1.4/ litre or ₹ 118 / litre right now in Finland for example) - we import all our oil and don’t have the money to give away to Arab petrostates.

Originally Posted by SJM1214

Petrol Prices Can't Be Raised Above Rs 99.99/litre Because Machines Can't Display The Figure!

Funny example of shortsightedness by fuel companies. But this can easily be handled.

[condor]

Originally Posted by Hayek

This is an oft debunked false notion that many people have. The fact is that transport costs are a small part of the price of virtually all products, and fuel costs are a small part of transport costs. So a 33% rise in fuel prices which we have already witnessed has not led to materially higher inflation (CPI inflation in August 2018 was just 4.18%). .

Thanks for sharing this. I think I have touched on this point, but not in these words. IIRC, though fuel prices went up about 30%, inflation was actually down by 10%.

[itwasntme]

Originally Posted by Hayek

This is an oft debunked false notion that many people have.

Excellently captured with data and without useless emotions!

Friedrich would be pleased

[sgiitk]

Originally Posted by Ford5

Nanded in Maharashtra has hit 93 bucks a pop! Doubt: Can dispenser's display 3 digit fuel prices in India?

By all accounts MH may be the first to cross the century. I was in the UK when Petrol crossed the £1 level. They got over it by switching to litres in place of gallons. There was a lot of speculation that the unit may be changed to 1/2 Gallon.

So yes three digit (+ decimals) pricing is a no go.

There are rumours that there is a gang trying to push the $ rate above Rs.100 by December.

[condor]

Originally Posted by sgiitk

There are rumours that there is a gang trying to push the $ rate above Rs.100 by December.

News item on Newsx. PC is said to be heading this. Btw, this point can be seen as political.

[supremeBaleno]

Originally Posted by Hayek

The fact is that transport costs are a small part of the price of virtually all products, and fuel costs are a small part of transport costs. ...All that happens is fuel costs for transporters, and car and bike owners rise.

And by your 'theory', the transporters moving goods just happily absorb the additional cost without passing it on to the end-user and everyone stays happy. Yeah, right.

Originally Posted by sgiitk

There are rumours that there is a gang trying to push the $ rate above Rs.100 by December.

Oh really, now its conspiracy theory behind exchange rates. What next ? Aliens behind the fuel price hike ?

[ksameer1234]

Originally Posted by SJM1214

Petrol Prices Can't Be Raised Above Rs 99.99/litre Because Machines Can't Display The Figure!

Can't we go from 99.XX to 100.X? Dropping second decimal thus retaining 4 significant digits. The fuel prices can then be rounded off to only one decimal place.