[JithinR]

Originally Posted by Sentinel17

[
Do you concur with this?Does this make sense?
(asking,because I am no expert in this)
Because if it does make sense,can the present government really be held responsible?And does this justify the current raging prices of fuel?

Here, read the other side of the story and come to your own conclusion:

https://scroll.in/article/894559/fac...ing-oil-prices

Here is another source posted by our fellow member:

https://vivekkaul.com/2021/06/17/pet...-of-oil-bonds/

[anb]

Crude oil price is falling, but petrol & diesel prices are increasing.

[anb]

Today petrol price is increased and diesel price is reduced. I thought both diesel and petrol are produced from crude oil. On what basis companies are changing prices daily and why no one is there to question these people ?

[FrozeninTime]

Originally Posted by anb

Today petrol price is increased and diesel price is reduced. I thought both diesel and petrol are produced from crude oil.

Actually diesel is expensive to produce compared to Petrol. But kept artificially low by government.

Last week I had seen video by a YouTuber discussing fuel price and according to him it is wise to buy diesel car in Long run because of moderation in diesel prices done by government to prevent run away inflation.
I didn't agree initially but grudgingly I accept now he is right.

[anb]

Originally Posted by FrozeninTime

Actually diesel is expensive to produce compared to Petrol. But kept artificially low by government.

Last week I had seen video by a YouTuber discussing fuel price and according to him it is wise to buy diesel car in Long run because of moderation in diesel prices done by government to prevent run away inflation.
I didn't agree initially but grudgingly I accept now he is right.

Diesel & petrol prices are proportional to crude oil price and production cost is constant. So either the prices of petrol & diesel go up or down according to crude oil price. But what is happening in India ? Where is the government to control these oil companies ? Diesel is taxed slightly lower ( VAT :23 % for diesel & 30 percent for petrol in KL).

[giri1.8]

Petrol price has crossed 103 rupees on the outskirts of Chennai, looks like they won't stop the hike till it hits 120 since there is hardly any resistance.

[yesyeswe]

Originally Posted by giri1.8

Petrol price has crossed 103 rupees on the outskirts of Chennai, looks like they won't stop the hike till it hits 120 since there is hardly any resistance.

120? Why do you think that it would stop at 120? sky is the limit man, as buzz light year says in Toy Story, "to infinity and beyond"

[mvadg]

Originally Posted by yesyeswe

120? Why do you think that it would stop at 120? sky is the limit man, as buzz light year says in Toy Story, "to infinity and beyond"

Next psychological barrier would only be at 1000. Media will try to create some noise at 200, and at every 100th mark, but it will not matter much. A domestic gas cylinder is close 1000 now, but with savvy media management the government has made it a non-issue.

I am eagerly looking forward to Rs 1000 per litre petrol, because we would be able to fly to Mars and back in our cars with that type of fuel.

[IamNikhil]

Yesterday I filled petrol at the rate of 107.8/- in Mumbai!

The Central government (irrespective of whichever political dispensation is in power) should just answer one question: For all the sound bytes claiming "Govt doesn't control oil prices" and "Oil companies have been given autonomy to fix prices", how is it that when elections are around the corner, the Petroleum Ministry unofficially nudges the oil companies to hold-off on price hikes?

Also, state and central governments routinely add various situation-specific cess components (Drought cess, Covid cess, etc) to the fuel prices, which are never withdrawn later!

The public is routinely taken for a ride by all these political parties and we just give-in and pay through our noses for everything, however grudgingly! It's a vicious cycle.

[AutoNoob]

Fuel prices set to slide soon as OPEC+ agrees to boost supply

Source : TOI

Ideally, heading should have been "Crude prices set to slide soon"; as in India, retail fuel prices are independent of global crude prices . Thanks to you know who.

Fuel prices are expected to come down shortly as the OPEC+ grouping on Sunday agreed to add more barrels to the market, averting a supply squeeze and reducing the risk of an inflationary oil price spike.

The grouping, which includes Russia, decided to raise production by 400,000 barrels per day (bpd) from August till December to restore 2 million bpd of production, or about 44% of India’s daily requirement. It also agreed on a higher production quota for United Arab Emirates, Iraq and Kuwait – all India’s major suppliers.

[m8002?]

Not sure if the govt. wants to fool us citizens or make a fool of themselves in front of OPEC.

https://www.business-standard.com/ar...1600661_1.html

India, the world's third-biggest oil consumer, has conveyed to OPEC countries its concern over high oil prices that are threatening to impact the nascent economic recovery after the devastating pandemic.

New Oil Minister has made phone calls to key OPEC nations to convey the desire for an affordable price for consumers.

I can only guess his arguement to OPEC :"Please reduce the prices so that we can increase the taxes"

[IamNikhil]

Originally Posted by m8002?

Not sure if the govt. wants to fool us citizens or make a fool of themselves in front of OPEC.

I can only guess his (Oil Minister) arguement to OPEC :"Please reduce the prices so that we can increase the taxes"

OPEC doesn't care a fig about countries like ours. Also, our fuel prices are not directly linked to global crude prices. The only reason we have skyhigh fuel prices is because of arbitrary taxation both at the Central and State levels. There has been a growing demand for including fuel in the list of items that come under GST but no political party has vocally supported this demand, because the oil lobby is very strong. The one and only way to meter fuel prices would be a uniform rate of taxation across the country, which is possible only under the ambit of GST. Till then, let's just wait for another round of elections so the government(s) acts out another gimmick of freezing the price hike and/or reducing the taxes by 1 or 2 rupees, as is the standard norm!

[carboy]

Originally Posted by IamNikhil

The only reason we have skyhigh fuel prices is because of arbitrary taxation both at the Central and State levels.

State VAT has actually been very stable. As a matter of fact, in a couple of states the VAT on fuel has even reduced a little. It's only Central taxes which keep on increasing.

Originally Posted by IamNikhil

There has been a growing demand for including fuel in the list of items that come under GST but no political party has vocally supported this demand, because the oil lobby is very strong.

Why would GST help? GST is uniform taxation but not necessarily uniform Low. Just like they have labelled some products as sin products & hence allowed themselves to charge even 200% GST, they could do the same thing for Fuel also. Else just like Luxury car has cess on top of GST, likewise they would add cess to Fuel prices giving it some new category name.

Also who is Oil Lobby & why do they want the Fuel to not come under GST - how would it harm them?

[yesyeswe]

Originally Posted by IamNikhil

Yesterday I filled petrol at the rate of 107.8/- in Mumbai!

I filled it for 109/- in Rajasthan yesterday, I win you lose! *while actually crying inside*
I have booked a Ola scooter recently and will soon install solar panels on my roof, only electric vehicles can give some relief now.

[IamNikhil]

Originally Posted by carboy

Why would GST help? GST is uniform taxation but not necessarily uniform Low. Just like they have labelled some products as sin products & hence allowed themselves to charge even 200% GST, they could do the same thing for Fuel also. Else just like Luxury car has cess on top of GST, likewise they would add cess to Fuel prices giving it some new category name.

Also who is Oil Lobby & why do they want the Fuel to not come under GST - how would it harm them?

Currently, the highest GST slab set by the GST Council is at 28%. Presently, the cumulative tax collected on petroleum products by both, Central & State governments stands at approx 60%. If the slab is fixed at 28% even, the estimated revenue shortfall would be over 2.5 lakh crore annually. As per reports from recent GST council meetings, multiple state finance ministers have vocally opposed any such move, since states are not ready to lose this revenue.

In all this, we consumers will always be at the receiving end.