Diesel vs Petrol Cars in 2013 Scenario!

[krish_go]

@Navnit- Very true, Gov is not doing any favour by showcasing they will reduce the cost. Its all a political game.
However, state gov's can play a major role as they have their own tax slabs and if they standradise them accross the board, it will help country grow.
@right now- Thank you and Great Job on providing these details.

 

[Rightnow]

Good job. That validates my point. We are given the subsidy of 9.16 and 10.19 is collected as tax. Govt is not doing any favor.

The idea behind subsidy is to have a stable fuel price. A fluctuating fuel price can have a -ve effect on a developing economy.

Most of the tax component is collected by state govt. in VAT form, which is a stable and assured source of income for them. How can they let go of it?
Ideally, state govt. is entitled to collect this tax for carrying out development of infrastructure etc.

 

[krish_go]

@rightnow- But tell me how can every state has its own claculations about VAT? I understand the size of state area comes into their argument point but still the bigger the state, the options of income for Infra dev are bigger/different.
Why fall and cry over fule/desiel users.

 

[Rightnow]

@rightnow- But tell me how can every state has its own claculations about VAT?

Every state govt. has full control over the state. Their own calculations and philosophies!!

 

[dharmesh]

@Rightnow : Thanks for the explaination. the excel sheet explains a lot.

And yes state govt have full control over taxes in the state, that's the same reason Goa have petrol prices less thn other states. Because state govt decided not to tax the fuel.

One mroe quesiton I have is, the tax which is collected is collected by State Govt. but subsidy is being paid State Govt. or Central Govt. ?

And rightly said by Navnit if govt can remove the taxes on diesel and maintain the same price then they don't have to pay the subsidy. But as we all know this is not going to happen.

 

[Rightnow]

One mroe quesiton I have is, the tax which is collected is collected by State Govt. but subsidy is being paid State Govt. or Central Govt. ?

Subsidy is paid by Central govt. always not the state govt.

And rightly said by Navnit if govt can remove the taxes on diesel and maintain the same price then they don't have to pay the subsidy. But as we all know this is not going to happen.

@ Navnit and Dharmesh:

The net tax that is levied on fuel by the central govt. is:
customs duty: 1.13 Rs/lt
specific excise duty +edu cess: 3.56 Rs/lt
Trade premium: 2Rs/lt (assuming it goes to govt. not the ports)

Total tax to central govt.: 6.69 Rs/lt, which is less than the subsidy of 9.16 Rs./lt paid to the oil companies.

Let me also mention that the remaining amount of subsidy that is paid by govt. to oil marketing companies come from the profits of exploration companies like ONGC, OIL and GAIL.

so as a summary (on broad terms)-
Total subsidy paid by govt. on fuel = tax recovered from fuel related operation+ money from ONGC, OIL and GAIL

 

[sanke1]

Every year these oil companies cry that they are selling fuel at a loss yet the world's top 10 richest companies are the same ones.

I myself do not believe the bullshit that they are making a loss. I am quite sure they laugh all the way to bank each time prices are increased by few rupees.

 

[navnit013]

Herz my GYAN about VAT. Correct me If I am wrong.

State collects VAT. Keeps its share (based on percentage) and then hands over the rest to the central Govt.


BUT its a joke when govt says its burdened by the amount of money it has to pay. Why not put an end to unwanted spending (read quotas). Why not shed some weight (read spending on its own ministers). Why not be more efficient in what it does. The above three can save a lot of money for the Govt.

 

[krish_go]

Navnit, your spot on. they collect Vat/ IT from the genuine payers like us and then use it on their self as if they deserve it. In Kar, the best part is every minister alters their official residence and office as per their Vasu effects assuming this will give them more time to earn money than altering states future and its growth.

 

[Rightnow]

Every year these oil companies cry that they are selling fuel at a loss yet the world's top 10 richest companies are the same ones.
I myself do not believe the bullshit that they are making a loss. I am quite sure they laugh all the way to bank each time prices are increased by few rupees.

The calculations are in front of you, you can interpret them the way you want. The oil companies get paid for what they lose so at the end of the day they aren't loosing.

Herz my GYAN about VAT. Correct me If I am wrong.
State collects VAT. Keeps its share (based on percentage) and then hands over the rest to the central Govt.

Your VAT info may be true. Even I am not sure how VAT is finally used.

BUT its a joke when govt says its burdened by the amount of money it has to pay. Why not put an end to unwanted spending (read quotas). Why not shed some weight (read spending on its own ministers). Why not be more efficient in what it does. The above three can save a lot of money for the Govt.

Well then wait for the news headline which says 'The govt. is reducing corruption to bring oil prices down' till eternity.

Navnit, your spot on. they collect Vat/ IT from the genuine payers like us and then use it on their self as if they deserve it. In Kar, the best part is every minister alters their official residence and office as per their Vasu effects assuming this will give them more time to earn money than altering states future and its growth.

Well we have more important things to do other than ranting and cribbing at the system we live in. It certainly gives us a sense of satisfaction to blame them, but nothing more practically.

 

[EnfieldRyder]

Suggestions- City buss should be converted to LPG or Petrol. Rail system should be converted to electic.

Guys I am apologizing before hand but I would like to go a bit off topic on this, Krish your suggestion of making the Railways going all electric doesn't hold much water. Reason being our's is a Energy starved nation still & with railways mobility happens everyday irrespective of the day. Even though Electrification of many lines is being carried out all across the country still the need for Diesels is very much required & there are various reasons top most being a lot of lines are still not electrified or are single line sections & there the need for Diesels would be there. Most of all during the time of emergency diesels would be pressed into service compared to the electrics due to various reasons.

Coming to the topic when the prices become at par with petrol, I guess its a person's choice on what kind of technology he/she can use & the amount of ROI one can get for their investment on the car. So hopefully the prices of both petrol & diesel cars too balance out as well & provide best of both worlds to the prospective buyer.

 

[Ankx]

You just cannot compare the "Fun to Drive nature" and refinement of Petrol cars ..

Why is it then in India that people are always thinking about KITNA DETI HAI all the time??

Folks... Relax, Chill, Have Peace of mind and Drive

 

[IndicaDLS2002]

On friday the oil minister announced that the plan to raise diesel prices every month still holds so we should see another price rise around mid Feb. Tank up just before that to save Rs 15

By the way I see lot of votes for NO in the poll above, is that wishful thinking of current diesel car owner & diesel car lovers .. or does it really have any logic?


To me its simple demand/supply equation, for example I had almost made up my mind over the past one year to go for a bigger Diesel vehicle because my diesel Indica has saved me about 2 lakhs in fuel costs over the past 10 years, which has well covered the extra cost that I paid for the diesel engine(Actually there was no petrol Indica in 2002 if I remember correct), but my decision to buy a bigger Diesel vehicle suddenly came to a hold in the last week of december after the Govt announcement. I am sure there might be many others like me who are now in a wait & watch situation due to the recent developments. These customers who were obviously confirmed customers/sales prior to the announcement but now on hold itself might bring down diesel car sales by a good amount in the coming months.

Anyone have car India sales figures for Jan month? should show us some interesting numbers.

 

[Raja]

On friday the oil minister announced that the plan to raise diesel prices every month still holds so we should see another price rise around mid Feb. Tank up just before that to save Rs 15

By the way I see lot of votes for NO in the poll above, is that wishful thinking of current diesel car owner & diesel car lovers .. or does it really have any logic?


To me its simple demand/supply equation, for example I had almost made up my mind over the past one year to go for a bigger Diesel vehicle because my diesel Indica has saved me about 2 lakhs in fuel costs over the past 10 years, which has well covered the extra cost that I paid for the diesel engine(Actually there was no petrol Indica in 2002 if I remember correct), but my decision to buy a bigger Diesel vehicle suddenly came to a hold in the last week of december after the Govt announcement. I am sure there might be many others like me who are now in a wait & watch situation due to the recent developments. These customers who were obviously confirmed customers/sales prior to the announcement but now on hold itself might bring down diesel car sales by a good amount in the coming months.

Anyone have car India sales figures for Jan month? should show us some interesting numbers.

Jan practically all diesels models of every carmaker outsold the petrol models .

@all

Finally what is going to happen will diesel prices will be hiked or not ?

 

[Rightnow]

@all

Finally what is going to happen will diesel prices will be hiked or not ?

Yes, they will be hiked per month from 45 to 50 paisa for at least 10 months ahead.
Already January diesel prices are hiked by 50p, now the dates for February hike are yet to come.