gaurav92 Posted September 16, 2011 Posted September 16, 2011 This is madness. How can a family of 4 that has a combined monthly income of 15,000-20,000 rupees, pay 65-70 rupees for a litre of petrol? They wont have a car at first place, and even if they have, they will prefer Public transport over it anyway. The rates are going sky high.
Sachin=GOD Posted September 16, 2011 Posted September 16, 2011 Most people just start criticizing the Govt whenever there is a hike in petrol/diesel prices but they don't realize that even with so many hikes in petrol prices, Indian Oil has been suffering huge losses for a long time. Recently I read that the combined losses of Indian Oil, Bharat Petroleum and Hindustan Petroleum would be around Rs 50000 crores for this quarter.
The Outsider Posted September 16, 2011 Posted September 16, 2011 Some astonishing numbers - due to subsidies the government makes a loss of Rs. 7/liter on diesel (5 times more consumption than petrol), Rs. 19/liter on kerosene (around the same consumption as petrol), and Rs. 25/kg on LPG (around the same consumption as petrol). Can you imagine the prices of commodities and inflation if these subsidies are removed before whining about paying Rs. 3/liter more for petrol?
Trichromatic Posted September 16, 2011 Posted September 16, 2011 Govt has to spend much more than 70 rupees for the 1 lt of petrol. They lose by selling it at such price.
Holysmoke Posted September 16, 2011 Posted September 16, 2011 Some astonishing numbers - due to subsidies the government makes a loss of Rs. 7/liter on diesel (5 times more consumption than petrol), Rs. 19/liter on kerosene (around the same consumption as petrol), and Rs. 25/kg on LPG (around the same consumption as petrol). Can you imagine the prices of commodities and inflation if these subsidies are removed before whining about paying Rs. 3/liter more for petrol? Actually the govt was thinking of removing the subsidy for diesel passenger cars. Donno what happened to that.
Sachin=GOD Posted September 16, 2011 Posted September 16, 2011 These Oil companies can sustain such heavy losses only because some of the losses are offset by subsidies they receive from the Govt every quarter.
Sachin=GOD Posted September 16, 2011 Posted September 16, 2011 It’s oil marketing firms decision: Pranab Amid resentment over sharp hike in petrol prices, the Government on Friday distanced itself from the decision saying the call was taken by oil marketing firms. “So far petrol price is concerned, petrol has been deregulated. It is oil marketing companies’ review,” Finance Minister Pranab Mukherjee said when asked about Rs 3.14 per litre hike. He was talking to the reporters after launching ‘Land of Two Rivers’, a book written by Nitish Sengupta here. State-owned oil companies have hiked petrol prices stating that depreciation of rupee increased the cost of crude oil import. This is the second major hike in four months. In May, petrol price was increased by Rs 5 per litre. While the UPA ally Trinamool Congress has already demanded a rollback in the hike, CPI(M) termed it as “callous” and demanded restoration of the administrative regulation of petrol pricing. The CPI(M) said that the petrol price hike comes at a time when inflation is touching double digits and this would only have a cascading effect on price rise. The RBI in its monetary policy on Friday said that the petrol price hike would push WPI inflation up by 7 basis points, besides having cascading effect. Petrol prices were freed from the government control in June last year. the Hindu
Mariyam Posted September 16, 2011 Posted September 16, 2011 There is no free lunch - the government heavily subsidizes diesel in India. It's about Rs. 40/liter' date=' while in the US it's more expensive than petrol at around $4/gallon, which would work out to something like Rs. 50/liter.[/quote'] The reason for that is valid, IMO. Diesel vehicles have better mileage and are used in essential tasks like nation building, transporting of goods, military etc. From what Stuge mentioned in another thread, the ratio of private cars using diesel to essential usage of diesel is 15%:85%. Remove that subsidy and the costs of a whole lot of things would increase due to increase in transportation costs. I'm a nobody when it comes to economics, so my question maybe really stupid. Yet, at the risk of sounding stupid: why is this an either or scenario? Why should it even be increased at all? These Oil Companies are some of the few (semi) govt run institutions which show a big + in their p&l accounts. Why not for eg, increase the prices of cars/ road tolls etc that would deter people from using private cars unless necessary.
Shane Posted September 16, 2011 Posted September 16, 2011 i spend 25% of my salary in petrol. The rest on hookers? :)
ganeshran Posted September 16, 2011 Posted September 16, 2011 The rest on hookers? :) :hysterical::hysterical:
punjabi_khota Posted September 16, 2011 Posted September 16, 2011 SJ speed 70 se 40 karoge to jyada mileage milega :idea:
Sir john Posted September 16, 2011 Posted September 16, 2011 40 ki speed main 1 hour lagega pahunchne maain aur thrill bhi nahi aayega. 70 maain sirf 30 minute :agree:
akshayxyz Posted September 16, 2011 Posted September 16, 2011 40 ki speed main 1 hour lagega pahunchne maain aur thrill bhi nahi aayega. 70 maain sirf 30 minute :agree: Time for some real life math lesson... Unless you are driving at a stretch w/o stopping - occasional sprints of 70KMPH do not significantly improve the travel timings in the city. In the city - other factors, like stoppage at red lights, time to accelerate, decelerate, average speed of the traffic etc. are more limiting factors. Try yourself - one day do not go beyond 40-50 KMPH, and note the travel timings.. and next time drive as you usually do... On a stretch of 15-20 kms, you wont save more than 5-10 minutes....unless you driving during early morning/night hours, when there is no traffic/red lights.
Sir john Posted September 16, 2011 Posted September 16, 2011 in traffic i drive @ speed of 70, only two red light on my way, i drive in NH8. roads are broader,4 flyover on way.
akshayxyz Posted September 16, 2011 Posted September 16, 2011 Theek hai bhai - agli baar haath bhi faila lena, kya pata udan-khatola ban jaaye tumhari bike ka.
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