Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

[TSIVipul]

Re: Car Owners May Not Get Subsidised Diesel

Guys if I am not wrong then I came across a news something like this:-

Courtesy:ET


Government agrees in-principle to free diesel prices: Finance Ministry

NEW DELHI: The government on Tuesday said it has agreed in-principle to deregulate diesel prices, but is not considering similar proposal for the cooking gas.

"Government has, in principle, agreed to make the prices of diesel market determined," Minister of State for Finance Namo Narain Meena said in a written reply to the Rajya Sabha.

While petrol prices are market-linked, the government fixes the rates of LPG, kerosene and diesel, which results in a large budgetary expenditure on subsidies.

"There is no proposal at present to fully deregulate cooking gas price," Meena said.

He said the government continues to fix the price of diesel in order to shield the common man from the impact of rising crude oil prices and the resultant inflation.

"In order to insulate the common man from the impact of rise in international oil prices and the domestic inflationary conditions, the government continues to modulate the retail selling price of diesel," Meena added.

Global crude oil prices have surged since the beginning of 2012 on account of geo-political concerns in the Middle East and abundant global liquidity. The price of Brent crude rose to $120 a barrel in mid-April from $111 in January.

For the current fiscal, the government has made a provision of Rs 43,580 crore for oil subsidies, of which Rs 40,000 crore has been earmarked as compensation to oil marketing companies (OMCs) for selling petroleum products at lower than market rates.

During the 2011-12 fiscal, the government has paid Rs 65,000 crore to OMCs on account of under-recoveries, of which Rs 20,000 crore alone was for the January-March quarter.

High subsidies are putting pressure on the country's fiscal deficit, which touched 5.9 per cent of GDP last fiscal and is pegged at 5.1 per cent in 2012-13. India imports about 80 per cent of its crude oil requirement.

The government targets to bring down the subsidy bill to below 2 per cent of GDP this fiscal and 1.75 per cent in the subsequent years.

 

[rekharam]

Re: Saga of Ever Rising Fuel Prices in India

Center to free diesel prices.

The price of diesel may go up as the government has agreed to make the prices “market determined.”

Diesel price rise may be imminent

 

[Superbad]

Re: Saga of Ever Rising Fuel Prices in India

The freeingup was for the case of increasing the prices every fortnight as the case goes for the petrol.
SOPS will still continue.

 

[rsrs_in]

Re: Saga of Ever Rising Fuel Prices in India

We would be fooling ourselves if we believe that either petrol or diesel will see a downward revision in prices anytime in future. The alternative for the government is to have a crack team work on the following to ensure that they are able to offer cheaper alternatives to the citizens

- Mass transport with higher frequency, dedicated lanes for avoiding traffic, standard a/c etc. This will take away much of the pain we face day-to-day and the standard price cards which can be used in trains as well as buses will also alleviate the pain around ticketing, conductors, queues etc.
- Provide tax benefits for companies setting up offices/factories in the decongested areas of every city/state
- Invest in future techology & design equipments to harness solar, fuel cells etc.
- Expand the CNG network and offer sops to buyers of vehicles using this medium of fuel

 

[S Class]

Re: Saga of Ever Rising Fuel Prices in India

Center to free diesel prices.

The price of diesel may go up as the government has agreed to make the prices “market determined.”

Diesel price rise may be imminent

Still it will be cheaper than petrol as taxes on diesel are far less than petrol. Even if diesel is de-regulated 100%, still the prices won't increase by over Rs.3-3.2/-. And govt has said that it will be do only partial decontrol !!

 

[mbt_india]

Re: Saga of Ever Rising Fuel Prices in India

Still it will be cheaper than petrol as taxes on diesel are far less than petrol. Even if diesel is de-regulated 100%, still the prices won't increase by over Rs.3-3.2/-. And govt has said that it will be do only partial decontrol !!

You have got your facts wrong, buddy. If diesel is de-regulated 100%, price will increase by Rs. 14.29 per litre.

Diesel deregulation to up price Rs 14.3/ltr - Indian Express

 

[ilango[speed thirst]]

Re: Saga of Ever Rising Fuel Prices in India

You have got your facts wrong, buddy. If diesel is de-regulated 100%, price will increase by Rs. 14.29 per litre.

Diesel deregulation to up price Rs 14.3/ltr - Indian Express

Yeah .

Petrol cars will soon be back in demand?
Almost equivalent to petrol price. , err wait some one said petrol is to be increased by 8/- . is that true?

I hope both will touch 100 soon.

What happens to the prices of other commodities. ??

 

[Prads]

Re: Saga of Ever Rising Fuel Prices in India

Great just when i decided to shell out a decent sum & buy a diesel car,

when i was buying my swift in 2008 i was like prices wont differ much will buy petrol(better handler than the diesel though) then i felt like a fool & being ripped off as the price diff grew

 

[param3023]

Re: Car Owners May Not Get Subsidised Diesel

There is 1 solution to almost every problem of our country and that's population control.My maid has 6 kids, she can't afford 1 kid and is having 6 kids.I think government should focus more on controlling population.If i had the power i'd make this rule:

i would fix income of parents that will determine how many kids a couple can have :

1 - every one is free to have atleast 1 child

2 - Rs 2 lakh per month

3 - Rs 5 lakh per month

4 - Rs 15 lakh per month

and so on......

now think about it more than 90% of people will have 1 or 2 kids , the parents will be able to provide more for their children.Year by year our population will fall and so will our problems.. for eg.

India imports around 75% of crude oil from foreign countries and rest 25% is taken out of India itself and we are around 80% overpopulated, if we had normal population then we would have no need to import crude oil but the country would be exporting the remaining 5% and getting revenue.

Not only fuel prices but other problems like unemployment , high food prices , rich and poor gap etc will also be solved.

 

[vaibhav]

Re: Car Owners May Not Get Subsidised Diesel

Yes we need rule like china to control population fast

 

[jihu123]

Re: Car Owners May Not Get Subsidised Diesel

@ilango - Yep. Petrol is to be increased by around 7 rs & now heard that diesel is also going to increased by 15 rs.
If petrol increases, then it affects only the people.
But if the diesel increases, all the services, commodities, products, everything will be increased. Can't even think about that!

 

[Superbad]

Re: Car Owners May Not Get Subsidised Diesel

There is 1 solution to almost every problem of our country and that's population control.My maid has 6 kids, she can't afford 1 kid and is having 6 kids.I think government should focus more on controlling population.If i had the power i'd make this rule:

i would fix income of parents that will determine how many kids a couple can have :

1 - every one is free to have atleast 1 child

2 - Rs 2 lakh per month

3 - Rs 5 lakh per month

4 - Rs 15 lakh per month

and so on......

now think about it more than 90% of people will have 1 or 2 kids , the parents will be able to provide more for their children.Year by year our population will fall and so will our problems.. for eg.

India imports around 75% of crude oil from foreign countries and rest 25% is taken out of India itself and we are around 80% overpopulated, if we had normal population then we would have no need to import crude oil but the country would be exporting the remaining 5% and getting revenue.

Not only fuel prices but other problems like unemployment , high food prices , rich and poor gap etc will also be solved.

this can be an analysis for the purist point of view if we are to be just dependent on our resources.

a major part of our employment now in the service sector comes from the overseas appointments.

the overseas markets find us vfm because we have a large section of english educated population who will be ready to work for a quarter of costs compared to the west.

think about it the other way if the population dwindles the opportunities and so the overall income will reduce too.

the factors such as inflation in a country like ours is always done in such a way that the factors are tweaked to cut the average population down further.

no matter how much ones income increases the other corresponding factors will weigh you down.

also when one sees the prices of oil in countries like qatar, iran etc one has to question the logic of oil companies going bankrupt etc.

IMHO the losses are only the on-paper losses which they relate to factors such as worldwide market oil prices.

i bet their current input costs are much lower to what is being projected.

 

[ilango[speed thirst]]

Re: Car Owners May Not Get Subsidised Diesel

@ilango - Yep. Petrol is to be increased by around 7 rs & now heard that diesel is also going to increased by 15 rs.
If petrol increases, then it affects only the people.
But if the diesel increases, all the services, commodities, products, everything will be increased. Can't even think about that!

Petrol price too have its effect on people.
May be not so huge as Diesel's price , but it has its effect.

 

[Figoian]

Re: Car Owners May Not Get Subsidised Diesel

& now heard that diesel is also going to increased by 15 rs.
But if the diesel increases, all the services, commodities, products, everything will be increased. Can't even think about that!

Jihu123: Diesel to hike by 15 Rs??? I don't think it's possible anytime. As you mentioned, diesel hike has a direct impact on every other commodity, right from Pin to Plane. IMO, the same goes for deregulation of diesel price.

 

[Prads]

Re: Car Owners May Not Get Subsidised Diesel

Sudden long Q's at petrol pumps today,is the price hike in effect from today midnight???