Bad News - hike in petrol prices


Sandy

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Btw' date=' got tanks of my 3 cars filled to brim Yesterday![/quote']

Missed it this time, was busy enjoying 'Pongal' with my family. I'll be sure to make it the next time may be a month later. "Tighten your purse strings, pull up your socks, tighten that belt" sort of time; but life goes on. With new age 'Rajas' swindling India dry this is bound to happen; Corruption=Inflation.

Durango Dude2011-01-16 06:36:46

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Well,this price hike is something that was going to happen one day,you may see how the petroleum prices are rocketing up in the international market.

@Sarabjeet:

How about a nationwide truckers strike?Fuel prices will come down within 72 hours,govt. will be forced to do it.

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There is no point in putting this forward as a point for diesel. Govt has already indicated that those who are plying diesel vehicles for personal use will be made to pay extra.

Statements from people like Jairam Ramesh have clearly indicated that and I am pretty sure they will be implemented in near future.

There is no point comparing our markets to other markets. Differing govt policies and ideologies, we will have to compare a much bigger picture than just the price of petrol.

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There is no point in putting this forward as a point for diesel. Govt has already indicated that those who are plying diesel vehicles for personal use will be made to pay extra.

Statements from people like Jairam Ramesh have clearly indicated that and I am pretty sure they will be implemented in near future.

Very tough to implement such process. In a country like India, making a difference between commercial and personal diesel would give rise to a parallel fuel business and black money will rise tremendously. I will take a can/ bucket and buy diesel. Who will know whether I will use it for my car or my truck ?

I just hate this govt. I would not mind a few Ram mandir for some lower fuel and price level. I just hope BJP comes back. Not sure if it will make any difference, still.

This deregulation cannot be a solution. If a fuel company is running at a loss per gallon of diesel, it should not be that all of it to be compensated by petrol price.

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If you thought this hike was big' date=' IOC has come out to say that the hike required was bigger i.e. hike of 3.72 per litre instead of 2.50 per litre. This was just to cushion the blow.http://www.business-standard.com/india/news/we-needbigger-petrol-hike-ioc/422016/[/quote']

They are staggering it, so it may be increased in say a months time. Makes that much difficult for the 'aam aadmi' to get his 'Khushiyon ka Chaabi'. the way things are going running a petrol car would become the ultimate luxury. This is the Govt's way of taking a stand on Petrol vs Diesel cars. smiley21.gifDurango Dude2011-01-17 03:36:54

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Bad and sad for petrol motor vehicle users! During the pre- global economic  recession prior to 2008, oil prices had touched $147 per barrel. Even then the petrol prices did not cross the Rs 60=00 barrier anywhere in India. And none of the PSU oil companies collapsed.

Now with the crude oil prices just touching something above the $ 90 mark, the petrol prices are at Rs 62=00 per litre on an average.

We will get horrified if oil touches $ 147 per barrel again!smiley7.gif

The reason for the hike in international oil prices is the recovery of

the US economy and the increased demand. Apart from this, the real behind the

scene trigger is  SPECULATION, that makes the speculators who are

artificially prop up the prices during the trading sessions, purely

based on the fact that GRAND OLD Uncle Sam is back on his feet again!

A chart of the prices:(chart source rediffnews)

17petrol1.jpg

Inputs below from rediffnews.

Facing criticism for increasing the retail price of petrol,

government-owned Indian Oil Corporation has said the desired increase

was actually Rs 3.72 a litre but it chose to "soften the impact on

customer" by increasing the price by only Rs 2.50 a litre.It

said the company was incurring an "under-realisation of Rs 159 crore

per day" on the sales of diesel, cooking gas (LPG) and kerosene.Petrol

prices have gone up by about 13 per cent since these were deregulated

last June  and about 22 per cent in the current financial year.

Based on the current levels in the international oil market, the retail

selling prices, inclusive of the tax elements, of diesel, PDS kerosene

and LPG should have been higher by Rs 7.65 a litre, Rs 19.60 a litre

and Rs 366.28 per 14.2 kg cylinder, respectively, at New Delhi, with

corresponding increases across the rest of the country.

anjan_c20072011-01-17 15:02:23

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@ Anjan sir

 

I wouldn't blame anyone, while the world is providing higher octain petrol at lower prices why can't we ?Are our PSU's efficient enought or is it higher taxations ?

 

Why can't cemtre lower their taxes and let PSU's cover the losses? The problem is in the system not international market 

 
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I feel the day is not far when the cost of petrol will be RS 100/liter and poor aam aadmi  driving efficient petrol  engined cars will shift to public " Limited" Transport and the rich in India will be driving Diesel powered " Taxpayer subsidized" inefficient SUV, sedans - Will this Happen - Yes or will we have different scenario - I don't Know . Time will only tell. But one thing is sure that day is not far but coming soon!

Well I for one thing liked this recent  Petrol Price  hike.Strange as it sound but I feel this necessary because in this country people take everything for granted so naturally this should be taken for granted.People now days have deep income because of this speculated Indian Economy Boom so they will absorb it .Nothing to worry

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@ Anjan sir

 I wouldn't blame anyone' date=' while the world is providing higher octain petrol at lower prices why can't we ?Are our PSU's efficient enought or is it higher taxations ?

Why can't cemtre lower their taxes and let PSU's cover the losses? The problem is in the system not international market 

[/quote']

True sarabjeet. There are Central and State Excise duties and the local octroi thats multiplied with the basic price.The basic price rising sends the final price to a new high aided by these three taxes on petrol and other crude oil distillates.

So the Central Excise department, State Sales tax department and the local Municpalities never had it so good.They will prosper and fluorish as will the PSU oil companies in 2011!

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Brilliant game by the companies by rising only the petrol price... So the truckers will not jump into any strike and make the govt reduce the price.... The central govt should again have control over the petrol and diesel prices as before or should reduces the taxes, so that the prices can be reduced.... Whenever there is a rise in the crude oil, companies ask for a rise in the petrol price... But they never reduce the price once the crude oil prices reduce and the govt also never cares abt that....

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These Oil Marketing Companies follow very bad trade practice. They always announce total price hike but never disclose the basic price increase.

Actually they should announce the basic price increase, which, I suppose, is uniform throughout India. This way, at least, we will know how much each state is taxing petrol.

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The center Govt. charges 5 per cent import duty on crude oil and on petrol and diesel 7.5 per cent.

Further it charges Rs 14.35 and Rs 4.60 per litre, respectively, as excise duty on petrol and diesel.

Even after the recent hike, OMCs are losing Rs 1.22 per litre on petrol nearly Rs 7 per liter on diesel.

Besides petrol and diesel, they are losing Rs 19.60 a litre on kerosene and Rs 366.28 per 14.2-kg cylinder.

(source: Economic Times)

This seems to be a total fraud by the Govt. Whatever notional under recoveries these state run OMCs are projecting, more that that the govt. is pocketing by way of these taxes.

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The center Govt. charges 5 per cent import duty on crude oil and on petrol and diesel 7.5 per cent.

Further it charges Rs 14.35 and Rs 4.60 per litre' date=' respectively, as excise duty on petrol and diesel.

Even after the recent hike, OMCs are losing Rs 1.22 per litre on petrol nearly Rs 7 per liter on diesel.

Besides petrol and diesel, they are losing Rs 19.60 a litre on kerosene and Rs 366.28 per 14.2-kg cylinder.

(source: Economic Times)

This seems to be a total fraud by the Govt. Whatever notional under recoveries these state run OMCs are projecting, more that that the govt. is pocketing by way of these taxes.

[/quote']

Those are only center govt. taxes , State govt charges extra my friend, in Mumbai we even have octroi and other taxes levied by Maharashtra govt

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