TSiVipul

Diesel price increases by Rs 3, now ...?

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News channels have been boiling again on the hottest topic of the week.The rise in price of Diesel,LPG and Kerosene.

With the increase in price of diesel it is estimated that there will be a good rise in the price of other goods too as the transportation price is increasing too.

Yesterday night attended the Meerut transporters meet(being owner of a fleet)and the new rates were discussed there.

New final rates will be decided in one day or two,till then we are instructed as follows:-

For small pick-ups(Tata ace/207.M&M Genio etc):10-15% hike per km.

Small trucks(Tata 407/608.AL comet/Cheetah etc):10-15% hike per km.

Trucks(Two axle type)(Tata 1210/1510/1613 etc) about 10% hike per km.

Three axle type trucks(Tata 2515 etc) 15-20% hike per km.

Four axle type(Tata 3115 etc) about 15% hike per km.

Haulers/Trailers etc will have 10-15% hike per km.

Backhoe loaders(JCB etc) will now be available for Rs 800-850 per hour as compared to pre-hike Rs 700/hr.

These rates translate at an increase of Rs 2-50 hike per km for different types of trucks,which is going to have some really serious effects.As well as there is a plan of the national truck owners association to stop the operations for a day or two or against the price hike.

Now let's see how the diesel burns people's pockets but be sure that this is going to have a far bigger impact than that of petrol.

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@Sarabjeet and Durango:

This diesel vs petrol gap is due to the subsidy given on diesel by the government.Still this price is not going to affect the diesel cars owners as they say "what will happen when my car still returns 18-20kmpl"but this is going to affect the houses,this is going to affect the business this is going to affect the prices of various goods and this DIESEL PRICE DON'T KNOW WHAT FUEL YOUR CAR RUNS ON..IT SIMPLY MAKES A HOLE IN YOUR POCKET BY INCREASING THE PRICES OF YOUR EVERYDAY NEEDS.

Simple as it sounds:Now my Tata 2515 is not going to make a trip of 200 kms for 14k,now it will do the same for 16100 rs and the person who will pay this 2100 extra will make this out of his business itself.TSiVipul2011-06-25 07:54:53

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I own no diesel car but its just a sad scenario.

The only way out of this ever increasing fuel hike is the lowering of taxes and duties on fuels but then again, that will lead to a financial deficit which would then have to be filled in some other way.

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A three rupee hike is okay. A three rupee hike on RS. 40 doesn't add up to even 10%. So , why are fleet and taxi owners raising prices by 10-15%? Ripping off customers by forming associations is bad. Why don't truckers compete on price rather than a third person fixing prices?

A liter of diesel has risen by 7-8%. A liter of diesel might give 7-8 kmpl. So ,the price for trucks should be raised by only 1-2% per km. A 10-15% hike doesn't have any logic and is plain cheating by using fuel price hike as an excuse.ragav206932011-06-25 12:34:11

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@Sarabjeet and Durango:

This diesel vs petrol gap is due to the subsidy given on diesel by the government.Still this price is not going to affect the diesel cars owners as they say "what will happen when my car still returns 18-20kmpl"but this is going to affect the houses' date='this is going to affect the business this is going to affect the prices of various goods and this DIESEL PRICE DON'T KNOW WHAT FUEL YOUR CAR RUNS ON..IT SIMPLY MAKES A HOLE IN YOUR POCKET BY INCREASING THE PRICES OF YOUR EVERYDAY NEEDS.

Simple as it sounds:Now my Tata 2515 is not going to make a trip of 200 kms for 14k,now it will do the same for 16100 rs and the person who will pay this 2100 extra will make this out of his business itself.[/quote']

Vipul read the report of price hike carefully. Govt has cut taxes also, abolishing import duty on crude oil and clashed duty to 2.5 from 7.5%. GOI is also asking state govt to lower taxes. My point is when govt is reducing taxes shouldn't rates fall ?

Our Oil PSU's are against ethanolization of fuel as it will hugely result in loses to them. Infact I had an insight that shell can increase ethanol content in petrol and lower the prices of fuel but govt is reluctant for reasons best known to them

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@Ragav:

Let me explain you the reason for such hike in transportation charges:

In our fleet we have 6 Tata 2515,3 AL 2516,4 Tata buses 1613 each,2 AL 4018 and 2 Tata 4018.The truck owners association here has finalized the rates mentioned above yesterday and the main reason for such a hike is because the price hike was not enforced by us people from last 18 months despite the price hike in diesel twice.

There is no truck except pick-ups and small trucks which gives 5+.

One Tata 2515 of us gives a FE of 1-2-3 kpl depending on the conditions.AL 2516 gives 1-2.5 kpl,Tata 1613 buses gives 3-5kpl,Tata 4018 gives about 1-2 kpl overall and AL 4018 gives 1-1.5 kpl always,mostly its below or equal to 1kpl only.Now you can easily calculate the running cost of a truck+a very high maintainance and the tyres replacement which costs over 1.2lacs(good tyres costs at least 14k per piece and a truck needs ten of them) for a vehicle(2515) and is done very 20-25k kms.

Let us consider a Tata 2515 truck:-

Firstly the vehicle costs about 18-20lacs to buy one,the truck is passed at 150 quintals/15 tons of load but its overloaded up to 350-400 quintals/35-40 tons.Then what FE can you expect from the truck,in this case the vehicle gives only 1-1.5kpl then with diesel at Rs 45 per liter you can calculate the diesel price.Now there are many time broken drive shafts,accidents,police needs bribe on every check post,some arrogant people(mostly the car owners)beat up the drivers for many reasons like not giving side for them to overtake etc etc etc.And if due to any accident or any other reason the goods are damaged or delivery is late then many times the customers either cut the cost or don't pay for its transportation.we have to take care of our men too,our drivers and cleaners too need money for their living as life in a truck is worst.If you calculate the tyres replacement period then you will find that it costs about 7-8 rs per km for tyres price.The drivers are paid 8-10k per month and the maintainance of vehicle is also to be done.Then vehicle insurance etc etc...

So overall the operation of a transportation fleet is not that easy as it sounds also its not as much profitable too.

Do you people need more explanation or this much is enough?TSiVipul2011-06-26 02:05:27

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The state taxes on oil are about 20% in most states and 13.5% is Delhi' date=' right? I am not sure but I read this somewhere.

[/quote']

 

smiley36.gif State of Maharashtra imposes 34% sales tax on fuels alone + Vat + Octroi +X+x+ = around 51% tax on fuel

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Indirectly even the petrol owners suffer the increase in diesel price as the cost of living increases . We can realistically expect a rises of Rs4 and Rs 6 for diesel and petrol respectively per annum . Now its time to invest in diesel hybrid for the future but I don't think we may see a large number of diesel electric hybrids in future as in other countries diesel are little be more expensive than petrol counterparts .

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PM of India -S.Manmohan Singh urged State governments to absorb the increased fuel prices & result being WB CM slashed the price of LPG cylinder bt Rs.15.

Lets see what other state govts will be doing now, else increased freight charges(7-8%) will lead to expensive commodities again.

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Expect another hike in September-October. I am sorry that K-oil has Not gone up by Rs.10 as was rumoured. 90% of the stuff goes into Diesel adulteration. Remember the murder in MH not so long ago. Nepal jacked up the price of K-oil and diesel sales went up 30%!.

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@TSiVipul

If prices have not been raised for 18 months, then it is a reasonable hike. Factoring in inflation of 8-10% along with the rise in the price of fuel,the hike is reasonable.

Do car owners beat up lorry drivers? In TN, this doesn't happen unless its a hit and run. However, law enforcement and traffic rule enforcement in TN is better than other states in India. The roads of Banglore are much more chaotic than the ones in Chennai.

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@Ragav20693:

There are many more factors that influence this price hike.Like the expenses I have mentioned above.

This beating up of lorry drivers for no or very small reasons is frequent here in north,the reason is simple,there is no one to support the truck drivers with owners being thousands of kilometers away,police instead of hearing truck drivers just try to get money out of them and car owners know that police and locals are going to support them even if the mistake is their's.

Once my driver was gifted a fractured wrist only for not allowing the car(Santro) owner to overtake because there was less space on the road,hence the slightly drunken occupants(4) of the car beaten my driver ruthlessly.Result:-I made them pay 20k to driver+car seizure.

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Good that you made them pay. It would have been much better if they had been sent (according to the Afghans) to the father-in-laws house for a few months as well. Why the Afghans called it that, it is a place where you are housed and fed for free!

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There is infact a theory goes like we do have alternative effective fuel replacements (alternate energy sources) for petrol and diesel, but purposefully shown as costly and inefficient to keep petrol and diesel market going on

(think of this, if u find an alternate fuel efficient enough compared to petrol and diesel, and cheaper, do u think oil companies and their beneficiaries and stake holders will at least keep you going? any automobile company also cannot bring to market an alternate fuel, as it will immediately affect its petrol and diesel related technology investments, firing itself back!)

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why doesnot BJP and other parties who oppose the price hike simply cut their full sales tax on their states in which they rule???

Its like 2 persons do a joint crime, and one of them asking another to take full blame!!!

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@Parthi:

You are absolutely right.The opposition and state governments are opposing the center for the price hike but they are not at all willing to cut down the taxes at their side.Great it sounds and so it is.Now who is to be blamed-center for taking care of many factors or state govt. for politics and burning this issue even more?

Well the latest news is that the national truck owners association has written a secret letter to PM and we have been given the guidelines for a nationwide truckers strike for a day or two for warning the government and if the govt. don't pay the attention then there will be a timeless strike.Because most of the customers are also now a days quarreling with the truck operators and this is causing true inconvenience to both truckers as well as customers.

IF THIS HAPPENS,THEN RESULTS WILL BE HORRIBLE...I CAN BET.TSiVipul2011-06-29 09:49:34

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@Sgiitk:

Sir,you are absolutely right that this game of government of throwing the ball in each other's zone at the time of answering is simply making the citizens direction-less.

Just have a look at the situation,its the diesel price which has created a lot of tension in the market.Now if you go shopping then shopkeepers say that they have increased the price of goods because transportation is expensive.

Our own clients have been complaining to us for the increased transportation cost,although we give them some discount but still most of them join their hands and say "Maalik aap to bade log ho,hum to aapki gaadi ka kiraya bharne mein hi maare jayenge.Ab aap batao ki parivaar paalein ya dhandha chalayen"(Sir you are rich people,we can either pay the transportation bills or can run aour family) and I am simply out of words because I want to help everyone but cannot break the TOA(Truck owners association) rules too.

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Here is an inner news:

The letter written to the PM by the NTOA(National Truck Owners Association) has got an instant reply within 48 hours and the reply is as follows(as we are told):

PM sent a letter to the head requesting him to wait for sometime(requesting not to announce a strike of even an hour) as the govt. is trying its best to control the prices and soon a solution to this problem will be found.

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They only tell these types of words always:

"wait", "we are doing our best to control", "we are working on it"

but never a fruitful solution. They dont say they they wont or they cant, because if they say so, then it would portray them as against democracy and people. Instead they simply say "we are working on it", "we will investigate", "we are checking and discussing"..

see if they say at least they wont do, u can argue with them. but when they say the above replies, we cannot argue but wait and wait and wait forever..

Same "working on it" they were telling for 40 years for lokpall bill playing tennis with that bill and now also saying the same to Anna. Sigh.

And reduction of 0.8 or 0.7 is just namesake action.. all the tax imposed would come to 30 or 40% of the price.. that should be removed fully by the ruling party if they feel price hike is not fair. They are just doing double game, showing that they are with people and against hike but doing nothing or very negligible action from their side.

When asked, the respective state governments would say that would cause heavy loss but that loss actually would be recovered because of cheaper living and other costs by price reduction of diesel.

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