Petrol prices update thread

[RAK]

Good news

Petrol Prices Rolled back by Rs. 1.60.

Prices are not rolled back as of yet. Read this.

[Satyamzma]

Prices are not rolled back as of yet. Read this.

You are Absolutely Right..I hope they reduce it fast..

[kantu]

Prices are not rolled back as of yet. Read this.

Its reduced @Shell , now 80.30.
1.20 reduced (dont know about other cities)

[Neel08]

No price reduction at Bharat Petroleum Pump....in kolkata.

[vickks]

No price reduction at Bharat Petroleum Pump....in kolkata.

Neither BP nor IOC reduced rate here in Mysore.

[princesirohi]

what is d use of 1 or 2 rupee reduction in price after a hike of 7-8 rupees

[Satyamzma]

what is d use of 1 or 2 rupee reduction in price after a hike of 7-8 rupees

It is Known as Politics

[saurabh81]

It is related to politics coz the citizens make fuss about it. Just think if no one questions if the price goes up or down as it happens in all developed nations, will politicians will be able to en cash it? No.
Infact there is no need of govt. to control the price of petrol (or any thing for that matter). Dollar price or the crude price goes up or down why govt. should artificially control the price, let the market decide the price.
If the bike price goes up do we protest? No, either we buy it or don't.
Then why so much hue and cry about petrol price. If one thinks its too costly just buy less or buy a high mileage bike. Why crib about it...

[jigar2speed]

It is related to politics coz the citizens make fuss about it. Just think if no one questions if the price goes up or down as it happens in all developed nations, will politicians will be able to en cash it? No.
Infact there is no need of govt. to control the price of petrol (or any thing for that matter). Dollar price or the crude price goes up or down why govt. should artificially control the price, let the market decide the price.
If the bike price goes up do we protest? No, either we buy it or don't.
Then why so much hue and cry about petrol price. If one thinks its too costly just buy less or buy a high mileage bike. Why crib about it...

Looks like you haven't understood the cribbing of common man, the main reason, why we crib and i assure you, we will always crib is because fuel prices have direct effect on other commodities. Any product that we buy its pricing is effected, if the fuel prices are effected. So you see when necessity product pricing goes high, we know it has happened due to fuel pricing which is increasing faster this days.

EDIT: I am pretty sure i don't have to tell you how middle class person handles his monthly salary and budget this days.

[saurabh81]

Looks like you haven't understood the cribbing of common man, the main reason, why we crib and i assure you, we will always crib is because fuel prices have direct effect on other commodities. Any product that we buy its pricing is effected, if the fuel prices are effected. So you see when necessity product pricing goes high, we know it has happened due to fuel pricing which is increasing faster this days.

EDIT: I am pretty sure i don't have to tell you how middle class person handles his monthly salary and budget this days.

You are reiterating the same point as every one know, including me. As I am also from the same middle class.

Aam aadmi,commodities prices, monthly budget etc. are correct. But does it makes sens to crib about it? Can cribbing produce more crude and bring down the price?

Just hink about one simple point:
Does the government produces the petrol or decides the price of crude oil?
NO. Its the international market which controls the price.

And answer one simple question:
If the price of crude and $ is high, how can the govt. reduce the price of fuel?

[Rashid]

And answer one simple question:
If the price of crude and $ is high, how can the govt. reduce the price of fuel?

By reducing Taxes.

[saurabh81]

By reducing Taxes.

I knew this answer will come :-)...

And what to do with the short recoveries of the revenue lost due to reducing the taxes? Any how we need that money of our own development?

Either we have to pass on that tax to something else. In this case price of that thing will go up? And we will crib for that thing.

Or wore, stop development activities because we need cheap petrol???

Ok, for some time lets consider reducing taxes. Then the next que. will be TILL WHEN?

If every time fuel price goes up govt. reduces taxes. A day will come when tax will become 0. After that what to do? Govt. to should start giving money to stop fuel prices from going up?

Do you think any of these options is feasible???

[vickks]

I knew this answer will come :-)...

And what to do with the short recoveries of the revenue lost due to reducing the taxes? Any how we need that money of our own development?

Either we have to pass on that tax to something else. In this case price of that thing will go up? And we will crib for that thing.

Or wore, stop development activities because we need cheap petrol???

Ok, for some time lets consider reducing taxes. Then the next que. will be TILL WHEN?

If every time fuel price goes up govt. reduces taxes. A day will come when tax will become 0. After that what to do? Govt. to should start giving money to stop fuel prices from going up?

Do you think any of these options is feasible???

Where is revenue lost? Just for example, if the tax is 40%, and cost is 100rs, tax would be 40rs, isn't it? Then the price increases to 200rs, tax collected will be 80rs. Now if here the tax is reduced to 20%, govt will still get 40rs as it used to get earlier. Development was still going on that time and will be going this time too! Now do you think govt reduces taxes directly half if the prices increases twice that of old? Even if the basic price increases by little amount, taxes make it big. I guess for people like you Karnataka has the highest price of motor fuels! Where is govt loosing money here? Alcohol is damn costly, you need to think twice about road tax to be paid before buying a vehicle. You sound as if you maintain the govt treasury! It might not affect you to shed some extra bucks but its not same for the common man. Even the xerox shop owner increased xerox rates as it costs him more to go and buy sheets on his motorcycle! If the salary/income increases proportionately to the price rise of every commodity, no one will have any objection. No offense.

[saurabh81]

Where is revenue lost? Just for example, if the tax is 40%, and cost is 100rs, tax would be 40rs, isn't it? Then the price increases to 200rs, tax collected will be 80rs. Now if here the tax is reduced to 20%, govt will still get 40rs as it used to get earlier. Development was still going on that time and will be going this time too! Now do you think govt reduces taxes directly half if the prices increases twice that of old? Even if the basic price increases by little amount, taxes make it big. I guess for people like you Karnataka has the highest price of motor fuels! Where is govt loosing money here? Alcohol is damn costly, you need to think twice about road tax to be paid before buying a vehicle. You sound as if you maintain the govt treasury! It might not affect you to shed some extra bucks but its not same for the common man. Even the xerox shop owner increased xerox rates as it costs him more to go and buy sheets on his motorcycle! If the salary/income increases proportionately to the price rise of every commodity, no one will have any objection. No offense.

Your calculation is correct and the logic makes sens.
But do you think its feasable to change the tax structure every time the fuel price changes? and of every thing else for that matter.

And the increased revenue collection goes towards the development of the nation.

It's better that we work harder towards development rather hamper it by creating fuss about it and calling "Band". In most countries petrol prices are not government and vary on daily basis, but citizens don't make fuss bout it. And why should government do that, don't they have any better thing to do rather than controlling price of every thing.

For reference, below is the price list of petrol in some countries.
You can notice that India is nicely placed towards upper half of the list. I don't think its so bad.
Also see that most of the countries with petrol cheaper than India are either oil producing countries or are less developed than India.

Country Rs/ ltr % Deviation
from India
Kuwait 12.7 -83%
Qatar 14.2 -81%
Bahrain 14.8 -81%
UAE 24.4 -68%
Nigeria 31.3 -59%
Malaysia 33.39 -56%
Mexico 40.8 -47%
Moscow 50.2 -35%
USA 53.7 -30%
Pakistan 57.7 -25%
SriLanka 61.7 -20%
Thailand 71.1 -7%
China 72.1 -6%
South Africa74.6 -3%
Nepal 75.2 -2%
India 76.7
Jordan 78 +2%
Kenya 78.1 +2%
Australia 78.6 +2%
Canada 79.7 +4%
Poland 88.1 +15%
New Zealand 91 +19%
Romania 91.4 +19%
Japan 94.3 +23%
Czech 98 +28%
Ireland 102.8 +34%
Israel 103.9 +35%
Hongkong 108.9 +42%
Hungary 110.3 +44%
Sweden 112.4 +47%
Germany 113.3 +48%
Italy 118.6 +55%
Great Britain118.9 +55%
Finland 119 +55%
UK 119.8 +56%
Netherland 121.3 +58%
Scotland 124.9 +63%
Norway 130.9 +71%

For all your other points all I can say that, I am stating my point of view, if you don't agree better argue rather getting personal.

[julian]

For reference, below is the price list of petrol in some countries.
You can notice that India is nicely placed towards upper half of the list. I don't think its so bad.
Also see that most of the countries with petrol cheaper than India are either oil producing countries or are less developed than India.

Country Rs/ ltr % Deviation
from India
Kuwait 12.7 -83%
Qatar 14.2 -81%
Bahrain 14.8 -81%
UAE 24.4 -68%
Nigeria 31.3 -59%
Malaysia 33.39 -56%
Mexico 40.8 -47%
Moscow 50.2 -35%
USA 53.7 -30%
Pakistan 57.7 -25%
SriLanka 61.7 -20%
Thailand 71.1 -7%
China 72.1 -6%
South Africa74.6 -3%
Nepal 75.2 -2%
India 76.7
Jordan 78 +2%
Kenya 78.1 +2%
Australia 78.6 +2%
Canada 79.7 +4%
Poland 88.1 +15%
New Zealand 91 +19%
Romania 91.4 +19%
Japan 94.3 +23%
Czech 98 +28%
Ireland 102.8 +34%
Israel 103.9 +35%
Hongkong 108.9 +42%
Hungary 110.3 +44%
Sweden 112.4 +47%
Germany 113.3 +48%
Italy 118.6 +55%
Great Britain118.9 +55%
Finland 119 +55%
UK 119.8 +56%
Netherland 121.3 +58%
Scotland 124.9 +63%
Norway 130.9 +71%

Err, if you consider if you consider most of the countries costing more than India, their spending power is much more than ours. Most people there earn enough to pay the seemingly higher fuel bills. This is just one point. There are various other economic factors which would dictate an 'affordable' price of fuel in a particular country/region.

Bottom line is, when we had subsidised fuel, the tax on it was very high. Now that they've decontrolled prices, to match global crude prices, it doesn't take a rocket scientist to understand that this high tax rate should definitely be reduced to make it fair. After all was that the whole point of decontrolling it?

p.s. Norway has one of the highest tax rates in the world. About 40-45% of the GDP. But they provide free public transport, free healthcare and free higher education. Quite a bargain all things considered eh? A friend said a packet of bread cost 150 rupees in Austria if converted to rupees. Such is their spending power. You can't directly compare Indian pricing to foreign.