Petrol prices update thread

[Samarth 619]

Is it such a big deal? After filling 16.92 liters today (after queuing up for almost 1/2 an hour) what I saved was just 127 bucks. AND this petrol will last me minimum 600-650 km. Saving of just about 20paise/km?

Anant, you're right. The overall delay in filling petrol will cost you Rs. 100 or so, for 13 litres. But that's not the point.


The real point is cost of living: Your maid will increase her wages, the milkman will expect more money, etc. And if Diesel's price increases, then everything will get costly, including but not limited to bikes, hardware, parts, fruits, vegetables, food, kitchenware, everything!
But will your boss be ready with a shining new offer to compensate for the Fuel prices? Nope.

This is where it actually gets ugly. The aftermath of the price increase. Fuel prices are one of the biggest reasons for inflation. I detest the fuel price increase by the government. State govt. still has control over the fuel price.

[princesirohi]

i fully agree with samarth, and anant, to some extent you are also right, but just because we have bigger issues does not mean we forget smaller issues.

and actually government should do something about this, just look at how all big/pwerfull/developed countries try to defend, own and take control of new oil fields.

india should also do something so that our own requirement is fullfilled without importing fuel.

[antz.bin]

@Samarth, Prince

Have you guys gone vegetable shopping recently? I did, Tomatoes were 20/kg and potatoes costed 18/kg (Khadki Bazaar, Pune). Do you know by what magnitude their prices will rise if Diesel prices are raised from current 42-46 Rs/l to, say, 75 Rs/l (almost 80% increase in price) ?

Adding fuel component of cost of transport and running diesel pumps (for irrigation) to these prices, the revised prices *should* be (PM me if you are intersted in the underlying math):
Tomatoes : Rs. 20.7/kg (i.e. 3.5% increase)
Potatoes : Rs. 18.5/kg (i.e. 2.8% increase) (because same weight of potatoes take up less space than tomatoes)

Even if the entire family of your maid/milkman buys 50kg of vegetables/month (which is a LOT) all of which has to be recovered through you, the additional burden would not be >Rs.50/month.

What will actually happen is the middlemen will see the opportunity to cash in and raise prices 80-100%. The village folks still won't earn any money and the city folks will keep on losing more and more. Middlemen will be the biggest beneficiaries. (So we kinda know where the problem is)

Diesel pricing really doesn't affect us as much as the govt. wants us to believe. But because we are acting like parasites enjoying the subsidy (and the govt. enjoying its vote bank politics), the country has effectively reached exactly where it was back in 1991. The currency is depreciating, the fiscal deficit is rising and the economy is going to the dumps. Instead of taking harsh but correct decisions, they are hiding behind excuses and ruining it even more. Its high time the govt. understood that subsidies are just incentive to wastage. If these are done away with, transporters will abandon those age old fuel guzzling trucks (criminally wasting taxpayer money) to new age fuel efficient ones so that even if the Diesel prices are raised to correct levels (which is usually *higher* than Petrol price in the rest of the world), the transportation costs due to Diesel price increase wouldn't be felt as much.

P.S.: Truck mileage was assumed to be 2.5kmpl even though I have no source to confirm the same. But by comparison, State Transport bus drivers usually target 5.5 /6 kmpl when on the highways, so I guess 2.5 should be a fair enough assumption.

[sarbanoxley]

Thanks to all the people who voted for the CON party.

Michael Jackson - They Don't Care About Us - YouTube

[free2rock_50]

A guy at the petrol Pump asking " STRIKE KABHI HAI " ?

[vrugonnab]

Even if the entire family of your maid/milkman buys 50kg of vegetables/month (which is a LOT) all of which has to be recovered through you, the additional burden would not be >Rs.50/month.

What will actually happen is the middlemen will see the opportunity to cash in and raise prices 80-100%. The village folks still won't earn any money and the city folks will keep on losing more and more. Middlemen will be the biggest beneficiaries. (So we kinda know where the problem is)

Diesel pricing really doesn't affect us as much as the govt. wants us to believe. But because we are acting like parasites enjoying the subsidy (and the govt. enjoying its vote bank politics), the country has effectively reached exactly where it was back in 1991. The currency is depreciating, the fiscal deficit is rising and the economy is going to the dumps. Instead of taking harsh but correct decisions, they are hiding behind excuses and ruining it even more. Its high time the govt. understood that subsidies are just incentive to wastage. If these are done away with, transporters will abandon those age old fuel guzzling trucks (criminally wasting taxpayer money) to new age fuel efficient ones so that even if the Diesel prices are raised to correct levels (which is usually *higher* than Petrol price in the rest of the world), the transportation costs due to Diesel price increase wouldn't be felt as much.

P.S.: Truck mileage was assumed to be 2.5kmpl even though I have no source to confirm the same. But by comparison, State Transport bus drivers usually target 5.5 /6 kmpl when on the highways, so I guess 2.5 should be a fair enough assumption.

Excellent post sir and I couldn't agree more with you on this topic. Actual burden without subsidies is not as much as normal people perceive it to be. Hopefully, FDI in retail will cut middlemen to size and result in productivity gain & pocket gain to farmers & consumers.

[aargee]

antz.bin - The reason for not hiking Diesel price are simple...
1. The lorry owner's association will freeze their movement & there will be added troubled along with the scams, president's house on defense area & what not?
2. If Petrol prices are increased, there's no single association to fight against the Govt; its quite easy

Hiking the Petrol price & after opposition party making loud noise, reducing it by a rupee & adding few paise to Diesel is an ongoing activity for the Crankgress Coverment; we've been seeing this for over 2+ decade now!!!

Last but not the least, they also know that hike in fuel prices are hot only until next issue comes up & BTW, there're no issues to find another hot issue to surface; Lol

[krish2778]

Completely agree with RG.
Its all just a trick to silence the public, they upped it by a preposterous amount of 8rs and they know we will make a chaos, and will reduce by 1or 2(if we are lucky) and that will silence the crowd, but we all know that we are screwed.

And dont worry, in a weeks time , the Diesel price will go by 2-3rs and LPG by nearly 50rs as i have heard, then we can have a lorry and taxi people also getting in to strike.

Its such a shame that these strikes also affect the daily life of we common people only.

Its really a shameful situation in our country.The greed of Indian men(read politicians) knows no limits.

Good luck to congress on getting onto power again, they have seriously drained us out.

Cheers
Ride Safe
Krishna

[somen1984]

How come GOA has so low rate in INDIA ?? Even it is a part of India. Ain't oil companies facing loss from that sector?

Why can't Goa rule be implemented here in Mumbai and other states?

Metro politian cities are developing does this means that they have to keep increasing the petrol prices.

Due to kind of hikes, more than 100 people die every day in India.

Indian common man is very lonely.

How much of us try to understand when they ask for 150cc and parents denied it, later agreed to 100cc bike just becuase of petrol hikes and average.

Our face get down becuase we aimed for R15 and landed up on Spelndour. How parents would be filling when we don't undeerstand thier meaning.

Will college guys would be able to commute on bikes?? only middle-upper classa nd above.

This is the right time for RE/Hero to launch a diesel bikes. earlier there was a RE with deisel but due to few issues it was closed and even that didn't pass euro norms.


I am very Sad wit this petrol hike, now even government should force on CNG stations and more CNG vehicles.

My friend says that his CNG car is much better than his P180.

Lets see when it goes to Rs100/liter??


Recently we will see more household fights for sure!


One Request to My fellow Xbhpians(who don't own a bike):

Please don't purchase a bike on your dad's money, Hold your dream and buy it when you earn. This will help your parents to live more better in this mean World. Government won't think on our family issues. But we have to think, atlast we hurt if our family are hurt!!!!

[TeeJayy]

Can anybody update current petrol price @ Shell, bangalore?

[kantu]

How come GOA has so low rate in INDIA ??

Petrol Price can be split up into 3 main parts
X + Y + Z = Rs 82 pl

X being actual petrol price(last i saw this was around 35~40)
Y being Central govt Tax
Z being State Govt Tax

X & Y remain same throughout India. Z is a variable.
Puting it in simple terms :
Tax imposed by State Govt mainly depends on how far the truck should go to refinery to get the petrol back to their state/city, the longer the refinery more is the tax.

[mayank.travadi]

Petrol prices always increase de to reasons like rupee is falling global prices are increasing...

kabhi aisa din aayega when petrol prices will rise becuase crude oil is getting scarce...

[harsh_66328]

Is it such a big deal? After filling 16.92 liters today (after queuing up for almost 1/2 an hour) what I saved was just 127 bucks. AND this petrol will last me minimum 600-650 km. Saving of just about 20paise/km?

@Samarth, Prince

Have ........ (PM me if you are intersted in the underlying math):
Tomatoes : Rs. 20.7/kg (i.e. 3.5% increase)
Potatoes : Rs. 18.5/kg (i.e. 2.8% increase) (because same weight of potatoes take up less space than tomatoes)

Even if the entire family of your maid/milkman buys 50kg of vegetables/month (which is a LOT) all of which has to be recovered through you, the additional burden would not be >Rs.50/month.

What will actually happen is the middlemen will see the opportunity to cash in and raise prices 80-100%. The village folks still won't earn any money and the city folks will keep on losing more and more. Middlemen will be the biggest beneficiaries. (So we kinda know where the problem is)

Diesel pricing really doesn't affect us as much as the govt. wants us to believe. But because we are acting like parasites enjoying the subsidy (and the govt. enjoying .......... enough assumption.

I really dont understand the lines in red. From the 2 posts You made, are you telling that a 7.5rs hike is not a "big" deal?Reading both the post I cannot understand whether you are fine with the hike or against it.
Even if there is a small hike in the diesel prices or no hike, I dont see how the middleman are the beneficiaries. Even if diesel prices are raised to 50rs/l ( forget 75) I dont see how one can expect the vendors to increase cost of vegetables or other products by just 0.7rs by doing your maths. The prices would be raised directly by 5 to 10rs (if not more)on everything. They only need a reason to hike prices of everything. And even the vendors wont be benefited with it as they themselves would be getting goods with increased rates. The ONLY beneficiaries are the damn Ministers. Rest all will only keep on loosing. Im only angry because the Govt. keeps looting the people more and more, and gives silly reasons for increasing taxes. They are just sitting and feeding on our money

[antz.bin]

Petrol Price can be split up into 3 main parts
X + Y + Z = Rs 82 pl

X being actual petrol price(last i saw this was around 35~40)
Y being Central govt Tax
Z being State Govt Tax

X & Y remain same throughout India. Z is a variable.
Puting it in simple terms :
Tax imposed by State Govt mainly depends on how far the truck should go to refinery to get the petrol back to their state/city, the longer the refinery more is the tax.

The bit in bold is 'W'. It is known as 'Transportation Charges'. Thats the biggest variable of them all and thats the reason for slight difference in prices within a state.

Z remains constant all over the state.

In some states (like MH), there is also a 'V' which is the Octroi.

This should help paint a more accurate picture:

http://ppac.org.in/writereaddata/Price%20Build%20up%20Sensitive%20Products.pdf

Slightly old (New year 2012), but does the job:


Source: My Own thread on TBHP

@harsh_66328 : Final Clarification. I am not against the hike itself. I am against the underlying *avoidable* reason behind the hike.

[kantu]

Even if there is a small hike in the diesel prices or no hike, I dont see how the middleman are the beneficiaries. Even if diesel prices are raised to 50rs/l ( forget 75)

Increasing diesel only pinches suppliers pockets not the farmers, so middleman i.e suppliers can cash in on this moment by justifying with hike.

In some states (like MH), there is also a 'V' which is the Octroi.

Yeah I just gave a simpler picture