Petrol Price Hiked Yet Again

Discussion in 'Economy & Infrastructure' started by Singh, May 15, 2015.

  1. Singh

    Singh Phat Cat Administrator

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    Petrol and diesel prices were raised on Friday for the second straight time in a fortnight. While petrol prices were hiked by 3.13 per litre, diesel prices were raised by Rs. 2.71 per litre, tracking global crude oil prices.

    But with state levies, the retail rates at fuel pumps would be more.

    The increase in petrol and diesel prices will be effective from Friday/Saturday midnight.

    After the revision, the price of petrol in Delhi will become Rs. 66.29 per litre, while diesel would cost 52.28 per litre in Delhi

    "Since last price change, there has been a steep increase in international prices of both petrol and diesel. INR-USD exchange rate has also depreciated quite significantly during this period. Combined impact of both these factors warrant an upward revision in prices, the impact of which is being passed on to the consumers with this price increase," Indian Oil said in a statement

    Fuel prices were last revised on April 30 when petrol prices were hiked by Rs. 3.96 per litre while diesel prices were increased by Rs. 2.37 a litre.

    Oil companies review global crude prices every fortnight and revise fuel prices accordingly.

    http://profit.ndtv.com/news/economy...-rs-3-13-litre-diesel-by-rs-2-71-litre-763384
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    Yipes!

    Just when I wanted to fill up.
     
  4. Daredevil

    Daredevil On Vacation! Administrator

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    As long as the prices are linked to international crude market rates, people will get used to these hikes & reductions.
     
  5. Singh

    Singh Phat Cat Administrator

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    Indians are not stupid. They will back a winning horse, not a horse that kicks them in the face ;)

    Modi came with a promise of reducing prices and strengthening rupee.

    When Petrol was 120$ they were paying 65 Rs and now that crude is 70$ they are still paying the same.
     
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  6. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    Ask Kejri babu to reduce some taxes!!
     
  7. Singh

    Singh Phat Cat Administrator

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    Why would any CM do that ? Blame is going to goto Modi.
     
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  8. Sakal Gharelu Ustad

    Sakal Gharelu Ustad Detests Jholawalas Moderator

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    People will learn in 4 years.
     
  9. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Fascist Modi ...
     
  10. sukhish

    sukhish Senior Member Senior Member

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    remember what ever modi does is a master stroke. don't think just simply believe that it is a masterstroke.
    I do not think people ever elected modi on economic issues, infact nobody even asked about his economic policies. his policy was "INDIA FIRST". now what ever that means. ?

    he is doing one master strokes after other, I have stopped counting his masterstrokes.
     
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  11. Daredevil

    Daredevil On Vacation! Administrator

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    Dollar to Rupee exchange rate when crude was $120 (Rs 44 per Dollar) is different from now (Rs 63 per dollar). There is no subsidy now while there was subsidy during UPA era. Now everything market linked. If crude goes up, petrol/diesel price goes up & when crude goes down petrol/diesel prices goes down. This fact will trickle.

    BTW, prices are reduced by a lot. CPI is under 5 & WPI is negative. If still they stay that prices are not reduced, I can call them only dumb.
     
  12. sukhish

    sukhish Senior Member Senior Member

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    Also one more masterstrok,e india's export declined by 14% in May 2015 and in march they declined by 21%. so his list of masterstrokes increases every month
     
  13. Singh

    Singh Phat Cat Administrator

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    People never learn. Gujjus are uber smart though.

    UPA used this same logic in face of Bahut hi Mehangai ki maar ab ki baar Modi sarkar. We all know what happened.

    Rupee was at 45 in 2011, since then Rupee has been in a freefall and finally stabilized at ~60-67.

    Oil rates were in 3 figures more or less from 2011 till 2014 1st quarter.

    Modi Govt enjoyed amongst the lowest oil prices seem in recent times. They took this opportunity to de-regularize the prices and at the same time add more taxes. Ad Valorem hit has been severe.

    I think this myth of subsidy has been completely and utterly demolished.

    As an example. If I charge you a 100% profit and then give you a 20% discount and then claim 20% decrease in profits.

    I haven't seen reduction in prices of consumer goods except for in real estate. The unseasonal rains have caused increase in food prices fyi.

    Also basket of goods to measure inflation has been changed.
     
  14. Daredevil

    Daredevil On Vacation! Administrator

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    Point being?. Just check the under recoveries of oil majors (HPCL,BPCL, IOC etc) during UPA era. They were massive running tens of thousands of crores. Modi govt. only fixing all these massive holes in this area. It is being smart to increase tax when prices are down to fill coffers. It will come handy when oil prices go out of hand especially since the prices have been linked to international crude prices & only element that govt. can control is the tax levied or unlevied.


    Yeah, your word is supreme over India's statistics department. :sarcastic:


    Yeah, you cannot measure current inflation using basket of goods of 80s era. :bounce:
     
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  15. Singh

    Singh Phat Cat Administrator

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    How does it matter to me or you when Govt is making a ton of money ?? I hope you do realize that Govt makes a ton of money from oil.

    It is the Govt's imperative on how they wish to proceed. Whether they want to take a hit on revenues and help out PSU's or pretend to "bail out" PSU's by first forcing under-recoveries upon them.


    Modi was smart to de-regulate oil prices when they were falling and then add taxes. This way common man would've been happy with a small decrease and his Govt would've not taken a hit on revenues.

    And now is he being clever by not removing the additional taxes levied post oil crash, in effect making more money and letting people suffer.

    I think he will use the old Congress technique of reducing prices before election and then raising them post elections.

    ==
    Now for a practical example

    Current Price of Brent Crude is 66.6$ per barrel
    1 barrel yields approx 150 litres of diesel/petrol
    1 USD in INR is 63.4 Rs

    10-12$ is the approximate/ballpark cost of refining and transportation of the final product, lets assume it is 15$.

    So (66.6+15)*63.4/150 = 34 Rs

    34 Rs is the price of petrol.

    Now Govt is selling it for ~70 Rs

    100+% increase in prices due to taxes thanks to their smartness

    What is required is a fixed rate of tax, so that the common man isn't burdened by ad valorem taxes/pricing.

    If the oil price goes high or low, the Govt's revenues are fixed. The common man will then not be burdened by whims of the Govt.

    ===
    Are the statistics truly reflecting ground situation ? ;)


    As per statistics UPA gave good growth when the base year was changed.
     
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  16. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

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    As both diesel and petrol are decontrolled now, government should let Oil companies increase/decrease price as per prices at international market. With inflation at its lowest level in 5-6 years government should increase excise duty when get a chance and transfer that fund to road, power and railways sectors.

    Modi haters will always hate him and those looking for free stuffs should vote Kejri in 2019 general election.
    People having SUV should not complain about this hike :bounce:
     
  17. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    How can you support feku......Kejriwal can do better than him.
     
  18. NSG_Blackcats

    NSG_Blackcats Member of The Month OCTOBER 2009 Senior Member

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    Hmmm...Kejriwal in now fighting for a serious cause with LG, to appoint a CWG scam tainted officers as his Chief Secretary.

    I am supporting a policy decision of deregulation of Petrol and Diesel. GoI should reduce the excise duty if there is a inflationary situation. :cool1:
     
  19. Singh

    Singh Phat Cat Administrator

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    but when Govt increases taxes in response to lowered prices and doesn't remove them in response to increased prices it makes de-regulated prices a joke. Agreed ?

    No. Keep duties on oil and gas fixed.

    Remove funds from NREGA, Insurance, Jan Dhan Yojana and other nonsense. Empower ministries.

    Indian State as envisaged by Modi seeks to do everything, which is stupid. India is a nation of a billion and a quarter. State doesn't have the resources to do shyt.

    Kejriwal is a glorified municipality chairman tasked with running a very small very rich city. It is stupid to compare both, even if for the sake of flaming.
     
  20. Nicky G

    Nicky G Senior Member Senior Member

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    Crude is likely to fall again the short run, so prices might go down again. The lower crude prices are helping with the CAD which is near 1.6% and expected to vanish by next year.

    Prices can be lowered again at time of election.
     
  21. ezsasa

    ezsasa Senior Member Senior Member

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    The decline seems to be because of devaluation of rupee wrt $. Rupee has increased by almost 4 ₹ in the last two months. We should be able to confirm this from commerce department website next month since value is mentioned in crores ₹ there.
     

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