Rs. 1.81 petrol price hike coming soon. Government says it is upto oil firms....

[Sidhoni]

:wall:

[zen]

I haven't followed gas prices in India so don't know the frequency of hikes but I can understand a hike to help govt get more revenues but what's with oil companies wanting to hike the prices A growing and developing economy would be facing with a constant increase in demand of gas but recession is looming over Europe and threatens to engulf the whole world (USD is rising of late as investors don't have much faith in Euro). In such a scenario, you don't want gas prices to go too high unless the companies plan to reduce it too if the situation warrants

[Trichromatic]

^ I guess they are trying to decrease the loss they have to incur.

[WC2011INDIA]

I haven't followed gas prices in India so don't know the frequency of hikes but I can understand a hike to help govt get more revenues but what's with oil companies wanting to hike the prices A growing and developing economy would be facing with a constant increase in demand of gas but recession is looming over Europe and threatens to engulf the whole world (USD is rising of late as investors don't have much faith in Euro). In such a scenario, you don't want gas prices to go too high unless the companies plan to reduce it too if the situation warrants

apparently, oil companies in India are losing money....

[zen]

apparently' date=' oil companies in India are losing money....[/quote'] With the USD rising, this looks more like an exchange rate adjustment but the question is are these companies willing to pass on the exchange rate adjustment benefits to consumers when the USD falls vs INR

[Tiger80]

Dual pricing would be a disastrous idea. Would only encourage a black market. Increasing the tax on diesel vehicles would be a much better idea to bridge the gap

Black marketing is everywhere but if rule of Dual pricing is strictly implemented it will save lot of subsidy.Taxing is also good but apart from Taxing Dual pricing should be implemented .Taxing alone cannot stop 1000-2000 crore subsidy already being used by Diesal cars

[ganeshran]

Black marketing is everywhere but if rule of Dual pricing is strictly implemented it will save lot of subsidy.Taxing is also good but apart from Taxing Dual pricing should be implemented .Taxing alone cannot stop 1000-2000 crore subsidy already being used by Diesal cars

There is no way to implement dual pricing striclty without it being an inconvenience for legitimate use. Increased Road tax can certainly reduce the subsidy.

[Tiger80]

There is no way to implement dual pricing striclty without it being an inconvenience for legitimate use. Increased Road tax can certainly reduce the subsidy.

Dual pricing can be effectively implemented if Govt want .For example a Petrol pump owner cannot just show that he is selling 100% Diesel to Trucks in big city.Similarly subsidised Diesel should only be available to Petrol Pumps which are on Highway or on major road.so in big cities it could be implemented in rural areas or small towns hardly any chance

[ganeshran]

Dual pricing can be effectively implemented if Govt want .For example a Petrol pump owner cannot just show that he is selling 100% Diesel to Trucks in big city.Similarly subsidised Diesel should only be available to Petrol Pumps which are on Highway or on major road.so in big cities it could be implemented in rural areas or small towns hardly any chance

What you are saying is impractical. Neither the government wanting nor you claiming it will actually make it work.

[Tiger80]

What you are saying is impractical. Neither the government wanting nor you claiming it will actually make it work.

Why not give it a try is there anyone going to loose anything? as far govt is concerned I don't think they will implement it because a lot of Diesel car maker companies will never allow Minister to take this decision

[ViruRulez]

I haven't followed gas prices in India so don't know the frequency of hikes but I can understand a hike to help govt get more revenues but what's with oil companies wanting to hike the prices A growing and developing economy would be facing with a constant increase in demand of gas but recession is looming over Europe and threatens to engulf the whole world (USD is rising of late as investors don't have much faith in Euro). In such a scenario, you don't want gas prices to go too high unless the companies plan to reduce it too if the situation warrants

All fuel prices in India including petrol, diesel, cooking gas etc. are highly subsidized and so, the privatization resulted in a lot of frequent price increase. To be honest, the fuel price increase was essential once privatization was done as it was only resulting in massive losses as in the case of Air India. But the one thing I do not understand is that WTF are arses ruling over the nation who are not implementing right policies to battle it out. WTF do we need foreign nations for our energy and fuel requirements. Chinese are one of the worst in terms of innovation but even their govt. has invested and promoted electric cars in the last few years and has promised to become the largest electric car manufacturers in the world. The future of transportation is not going to be fuel as the oil reserve would hardly last a few decades and it's price would keep on increasing gradually too due less supply and more demand. Instead money should be invested in futuristic technologies such as electric cars, hydrogen cell cars or even hybrid cars. FFS Indians are known to be some of the most innovative people in the world and if proper investment is made in R&D then our scientists could do a lot better than US, European or Japanese scientists. Tata had created Indica Vista EV but instead of releasing in India they targeted European nations as govt. provides subsidies and benefits for creating electric cars. FFS I would never understand why we wake up a decade late always. Invest money into electric vehicles as every nation is doing instead of crying over loss due to import of fuel and power from other countries. But as always mera bharat mahaan and the govt. will never wake up and instead cringe about the losses.

[Tiger80]

All fuel prices in India including petrol, diesel, cooking gas etc. are highly subsidized and so, the privatization resulted in a lot of frequent price increase. To be honest, the fuel price increase was essential once privatization was done as it was only resulting in massive losses as in the case of Air India.

Petrol was never subsidized and still it is not subsidized .The increase in Petrol price is mainly to curb losses from LPG and Diesel.Also Just compare the price of petrol with Pakistan and Bangladesh and then you will see how much extra we are paying for it yet we make fun of Pakistan of being a destroyed economy and boast that how much India is growing

[ViruRulez]

Petrol was never subsidized and still it is not subsidized .The increase in Petrol price is mainly to curb losses from LPG and Diesel.Also Just compare the price of petrol with Pakistan and Bangladesh and then you will see how much extra we are paying for it yet we make fun of Pakistan of being a destroyed economy and boast that how much India is growing

It was subsidized till last year if IIRC. It was only last year that govt. decided to privatize it and thereby end the subsidy burden of petroleum prices.

India decided on Friday to end state control over petrol prices and allow them to move freely with global markets, a crucial first step towards reducing New DelhiÃÔ massive petroleum subsidy bill.

http://www.ft.com/cms/s/0/68a87eec-804a-11df-8b9e-00144feabdc0.html

[Tiger80]

It was subsidized till last year if IIRC. It was only last year that govt. decided to privatize it and thereby end the subsidy burden of petroleum prices. http://www.ft.com/cms/s/0/68a87eec-804a-11df-8b9e-00144feabdc0.html

Indian Govt impose heavy tax on petrolium products and then they say they subsidizing them this is toially unfair,if this is the case then why Pakistan and Bangladesh or even sri Lanka are selling Petrol is mnuch cheaper http://kshitij.com/research/petrol.shtml compare Petrol price of India with other developing countries India has the highest price for petrol

[ViruRulez]

Indian Govt impose heavy tax on petrolium products and then they say they subsidizing them this is toially unfair,if this is the case then why Pakistan and Bangladesh or even sri Lanka are selling Petrol is mnuch cheaper http://kshitij.com/research/petrol.shtml compare Petrol price of India with other developing countries India has the highest price for petrol

Agree that those countries are selling cheaper but they are also subsidizing the prices and I just searched on Google and it seems even Bangladesh has increased petrol prices twice due to the massive subsidy burden. in.finance.yahoo.com/news/Bangladesh-raises-petroleum-ians-3948783174.html As I mentioned earlier, Indian govt. was losing money while it was subsidized and govt. regulated earlier but not now since it has been privatized. And govt. still incurs massive losses in cooking gas and kerosene etc. and perhaps diesel too. That is why I say that we must go for innovative new technologies such a electric cars, hydrogen cell cars, modern cooking methods, wind energy and invest in things of the future instead of incurring losses or depending on other countries. Many European countries have already constructed electric refueling stations all over the nation and providing massive benefit for developing electric cars. Even China is planing to do that and is already making significant headway but Indian govt. is not even thinking of electric cars. The only good thing is that Mahindra, Tata etc. have said that they will create a few electric cars in the coming years and some of them might be comparable or even cheaper than cars like Nano. This might help but then who will create all the refueling stations. The govt. does not seem concerned and so, it seems private companies would need to do the work whereas in other countries govt is laying the recharging stations and also giving benefits including free parking etc. for people using electric cars. Electric cars would not only have helped in reducing our dependency on other countries but also reduced pollution by a huge margin.

[Tiger80]

Agree that those countries are selling cheaper but they are also subsidizing the prices and I just searched on Google and it seems even Bangladesh has increased petrol prices twice due to the massive subsidy burden

Bangladesh is already Selling it too cheaply 52% lower than India so its obvious they may want increase price but the fact remain Bd,Pak ,Vietnam etc all very poor countries are selling Petrol much cheaper than India.Is the so called economic grwoth of India is just to read on papers ? As your point of electric cars are concerned .Electric vehicles are total failure they are very slow Require very expensive battery replacements and can't even carry much load .Also at present we don't have much electricity too

[rkt.india]

Viru bhai...The real value of 74 rupee per liter diesel is about 38-40 rupees, rest are all different kind taxes on petrol by government. Why cannot they reduce the tax. Problem is every fuel hike indirectly increases the revenue earned by govt on petrol. if they increase it to 2 rupees per liters 70-80 paisa of that will be going into the pocket of govt. as tax. They should only apply taxes on petrol to a certain amount like 60 rupees. After that if price increases, there will be no tax on remainder of the increment.

[akshayxyz]

With the USD rising' date=' this looks more like an exchange rate adjustment but the question is [b']are these companies willing to pass on the exchange rate adjustment benefits to consumers when the USD falls vs INR

That is age old problem with these rich and ugly, who are in position to influence policies/prices, never complain when the profit margins increase... but are the first ones to cry when it is other way round. AFAIK - The only form of profit-redistribution is in publicly traded companies only, in form of dividends etc.. but that is within shareholders.. but the that profit-decrease is 'redistributed' to all consumers. whereas on the other hand - for consumers, esp salaried people - it takes years of beatings at the hand of inflation, petrol price increase etc.. and then 'fighting'/switching employers to get the salaries adjusted... and by the time it happens, it is time for next round.

[Tiger80]

I also want to add 1 more point that with such high sky rocketed price of petrol how many pumps will now sell pure petrol.There will be definately increase in mixing of Kerosene in Petrol as kerosene is much cheaper.