Petrol price hiked by Rs 7.29 since July 1; inches closer to Rs 80 in Mumbai

[BeautifulGame]

http://m.businesstoday.in/story/petrol-price-hike-diesel-price-delhi-mumbai-bengaluru/1/260116.html

 

Petrol and diesel prices have gone through the roof ever since the central government announced daily revision of fuel prices. Petrol price in Delhi on Tuesday was at Rs 70.38 per litre, whereas in Mumbai a litre of petrol costs Rs 79.48

 

Achhe din aane waale hain

[sandeep]

Love it.  That's one thing I respect about the current administration. They have resisted the temptation floor populist pandering at a time when it would have been very easy to cut carbon fuel pricing due to the global pricing downturn.   It's the right decision and not the easy one.  

[BeautifulGame]

Love it.  That's one thing I respect about the current administration. They have resisted the temptation floor populist pandering at a time when it would have been very easy to cut carbon fuel pricing due to the global pricing downturn.   It's the right decision and not the easy one.  

Yep ,its very populist not to sell a petrol at 80 which costs 36 rupees to produce. 

 

From being providing subsidy is being defined as populism to now not selling at exorbitant prices is now called populism .

 

Great to see we are now at a stage where we are even redefining the word populism to suit the agendas.

 

 

 

[sandeep]

32 minutes ago, BeautifulGame said:

Yep ,its very populist not to sell a petrol at 80 which costs 36 rupees to produce. 

 

From being providing subsidy is being defined as populism to now not selling at exorbitant prices is now called populism .

 

Great to see we are now at a stage where we are even redefining the word populism to suit the agendas.

 

 

 

That's a very narrow way of looking at this issue.  First off, we don't "produce" nearly enough oil for our needs.  We have to buy and import it - You must be aware that India imports more than 80% of its oil.  Historically the Indian government has spent billions in subsidizing fuel when oil prices are higher.   Causing major budgetary issues that hurt the public in the long run.   It makes a lot of economic sense to reduce the subsidies when the prices are lower, even charge a small premium, because it can be done while the prices are still bearable for the public.   This way, when the cyclical global oil prices revert to higher prices from their current historic low, the buffers that are built up can be utilized to shield the public from a major price shock.   Would you rather prefer that oil prices stay low to reflect that "36 rupee" cost today, and then when it jumps to 200 rupees, what then? Where will the money come from to protect the lower class that relies on kerosene and diesel?  Today oil prices are around 50$ a barrel, when just a short while ago, they were around $100 a barrel.  And sorry, I don't buy your claim of 36 rs cost price at all.  Got any factual basis for that?  Is that after factoring in import, transport and refining costs?   

 

Another important factor is to use pricing mechanisms to incentivize the public to move away from carbon based fuels towards home grown sources especially non-polluting ones.  The rapid growth in petrol consumption might provide convenience to the growing middle class, but is causing a lot of damage to our environment, and against the economic interests of Indians in the medium and long term.    

 

Not all subsidies are evil, they are necessary at times.  But asking for oil to be subsidized at a time when the prices are quite a bit on the lower side, is short-term thinking, and yes, any such move would be accurately described as populist pandering.   

Edited September 16, 2017 by sandeep

[sandeep]

34 minutes ago, BeautifulGame said:

Great to see we are now at a stage where we are even redefining the word populism to suit the agendas.

And before you resort to ad hominem attacks alleging agendas, you should really have some basis to your argument.  And your accusation.   I have no "agenda" other than a desire to see India prosper.   

 

Maybe I can speculate as to what your agenda is on this subject.  Maybe all you care about is your own personal wallet, and your dislike of increasing prices to fuel your personal luxuries, whether that's in the country and society's interests or not.  

[zen]

Usually, I don't look at fuel prices. I just fill up and go but gas prices would fluctuate daily:

 

 

From 08/18 to 09/16, the price has gone up

 

If the item costs INR36, most industries could add 50% contribution margin to price the item at around INR72

[randomGuy]

Good topic. Good one, @OP

 

I have to say, I have to side with Sandeep here.

 

Also, very important point here is your new car today is probably going to be your last petrol/diesel because EVs are going to take over soon.

[BeautifulGame]

That's a very narrow way of looking at this issue.  First off, we don't "produce" nearly enough oil for our needs.  We have to buy and import it - You must be aware that India imports more than 80% of its oil.  Historically the Indian government has spent billions in subsidizing fuel when oil prices are higher.   Causing major budgetary issues that hurt the public in the long run.   It makes a lot of economic sense to reduce the subsidies when the prices are lower, even charge a small premium, because it can be done while the prices are still bearable for the public.   This way, when the cyclical global oil prices revert to higher prices from their current historic low, the buffers that are built up can be utilized to shield the public from a major price shock.   Would you rather prefer that oil prices stay low to reflect that "36 rupee" cost today, and then when it jumps to 200 rupees, what then? Where will the money come from to protect the lower class that relies on kerosene and diesel?  Today oil prices are around 50$ a barrel, when just a short while ago, they were around $100 a barrel.  And sorry, I don't buy your claim of 36 rs cost price at all.  Got any factual basis for that?  Is that after factoring in import, transport and refining costs?     

Another important factor is to use pricing mechanisms to incentivize the public to move away from carbon based fuels towards home grown sources especially non-polluting ones.  The rapid growth in petrol consumption might provide convenience to the growing middle class, but is causing a lot of damage to our environment, and against the economic interests of Indians in the medium and long term.    

 

Not all subsidies are evil, they are necessary at times.  But asking for oil to be subsidized at a time when the prices are quite a bit on the lower side, is short-term thinking, and yes, any such move would be accurately described as populist pandering.   

 

Thats not a narrow way of thinking.That is called reasoning and logical way of thinking. 

Calling petrol subsided when it is sold twice the production price isn't subizidied more like looting the middle class .

 

Proof ? Have a read.

 

http://www.financialexpress.com/economy/taxes-exceed-actual-cost-of-petrol/163469/

 

This is two years back when Dollar rate was 68 and crude oil prices were high btw.

 

Now can you provide any factual date where any projection says it could hit RS.200 per litre anytime soon ?

 

 

The most ridiculous argument is alwys bringing this logic of reducing the sale carbon fuel cars .

 

It just is a lack of understanding of Indian society.Thats purely an argument based on American / European system.

 

India is a country of two wheelers not cars.Anyone who can afford a car in India can easily afford this price rise.If u can afford 7 lakhs to buy a car or pay 30k EMI can easily afford 7 rs in price rise.Its the two wheelers and those who use public transport who gets affected more.And those purchasing cars at worst will move towards buying diesel cars ? Guess what ,it's even worse for environment.

 

Populist pandering ? We are paying twice the rate and it's now called subsidized and populist pandering.Repeating a fallacy argument twice doesn't make it true.

 

We had USD depreciating nearly 4 RS against INR in last year alone, Have had a rupee based mechanism with Iran for nearly 5 years ,had oil prices bottoming out yet not once was Petrol price significantly reduced to reflect market reality.But ofcourse now roll out the excuse oil price might rise again in future so we need to increase the price .

 

 

 

 

 

 

[BeautifulGame]

This gets better and better.Apparently if you have a TVS 50 ,they are upper class according to Govt

 

 

Union Tourism Minister KJ Alphons justified the hike in petrol prices stating that the money is being used for the welfare of the poor and the downtrodden.

 

Justifies his stand to News18, Central Minister KJ Alphons said, "There is nothing wrong in what I said. People with a car or bike are in the upper class. They should pay up. How else will the poor be taken care of taken?"

 

Oh and now Indian citizens shouldn't complain as long they aren't starving .

 

http://www.news18.com/news/india/union-tourism-minister-kj-alphons-justifies-petrol-price-hike-claims-its-helping-the-poor-1519685.html

[rkt.india]

1 hour ago, sandeep said:

  And sorry, I don't buy your claim of 36 rs cost price at all.  Got any factual basis for that?  Is that after factoring in import, transport and refining costs?   

   

Oil firms sell petrol at Rs 29 litre, government adds another Rs 48 in taxes

 

http://timesofindia.indiatimes.com/city/mumbai/oil-firms-sell-petrol-at-rs-29-litre-government-adds-another-rs-48-in-taxes/articleshow/58352435.cms

[randomGuy]

We have got a CNG kit fitted to our Santro zing from past few years...on CNG, it comes to 2-2.5 rupees per km.

[surajmal]

If collections are being used for capex, I've no problem. I mean, could you imagine how much of a shitter we would be in, with private investment cycle in the pits, and little government expenditure? Having said that, 2018 budget needs to middle class focussed if Namo doesn't want any surprises in 2019.