Petrol price may rise by Rs.5/L, diesel Rs.3/L, LPG Rs.50/cylinder

[dashing.sujay]

^A similar case had happened related to potatoes I IIRC. Farmers were ready to sell them for 50p/kg and no body was ready to buy. And we get them at 10rs/kg. Simply wtf!!

 

[SijuS]

I'm from Goa and we pay like Rs. 55/L for petrol.

Would have been cool if every state had the same price

 

[Sarath]

if they selectively subsidize based on who is using it, you will get a lot of farmers selling diesel on the sly to those malls who want to burn it for power, or maybe truck drivers... or whoever

In Andhra the free electricity for farmers was managed pretty well. Of course people might sell it off, but that is only out of a loop hole. But how much can one farmer claim, even if all the farmers sell it for black the effect wont be the same as every Audi Q7, BMW 5 series, Chev Cruze, Chev Captiva, Innova, Verna, Linea, Beat and the mighty Indica eating into subsidied fuel for private use.

It's like you go to a Mall, stand at the PVR cinemas counter and see on the ticket that your movie ticket has been subsidised by the govt. Wow! Do we need subsidies for the rich?

(Rich here is taken into account as "not poor")

 

[dalbir]

Its Not in India, worldwide Food costs have gone up!

but india is producing excess of food grains and still the rates are getting higher

 

[theserpent]

Hell. Petrol price increased by 7.5 .
How on earth will people live.God its time to protest.

 

[pramudit]

the govt is mad, more than half cost of petrol is tax and even in 5rs hike, 3rs will for tax...

 

[theserpent]

Yeah .How can anyone survive?
Down the line i doubt UPA will die by this year please GOD make this true .
UPA So this your present to the PEOPLE?7.50 increase in petrol.
NO THANKS!

 

[Rockstar11]

petrol price increased by Rs 7.50 a litre

 

[buddyram]

better to catch some tanga(horse ride)

 

[hellknight]

peTROLL.

 

[ajaymailed]

They should just drop the subsidy on petrol and diesel. Instead subsidising diesel just for public transport and the original cause "for farmers etc" should be kept.

subsidy on petrol has been dropped. Its defined by market price and rupee weakness definitely is a reason. AFAIK around 40% of it is still made up by taxes. Its probably a major source of revenue of Govt, force petrol buyers to pay taxes to make up for all those tax evasions and reduce the price of kerosene, LPG, diesel etc.

i am not sure if it can possible to provide subsided diesel only for public transport and farmers. it would be easily diverted and solid for profits. May be they can somehow manage with govt controlled entities but very difficult to do with farmers.

but what if govt removes all the taxes as well as subsidies.

 

[utkarsh73]

After hearing the news I went to get some petrol for my car. Had to wait around 90 min in the queue!!!!!!!!
There were more than 200 two-wheelers and 30 cars when my turn came and the number was increasing exponentially.
This is just hopelessness and chaos. I don't know what to say.

 

[ajaymailed]

here are some interesting stats

Central and state taxes make up nearly half of petrol's pump price. The Centre levies a specific excise duty of Rs 14.35 a litre and 3% education cess to mop up Rs 14.78 out of Rs 65.64 a litre that consumers pay for a litre of petrol in Delhi.

The Delhi government makes Rs 10.94 by charging VAT at 20%. The state's take also includes VAT on dealer margin of Rs 1.49 per litre. The government's earning stood at Rs 7.99 on a litre when petrol cost at Rs 47.93 a litre in June 2010, when the fuel was decontrolled.

The Central and the state governments pocket Rs 25.72 from sale of each litre of petrol in Delhi. State-run fuel retailers actually sell the fuel to dealers at Rs 38.42 a litre. This, one could say, is the price of the product after paying for refining, transporting and other sundry costs as well as giving allowance for loss from evaporation.

State governments levy VAT on petrol ranging from 15% in Puducherry to 33% in Andhra Pradesh, making it a major source of income.

Finance minister Pranab Mukherjee said as much in Parliament on Tuesday. "Price without tax - I am taking Delhi city - per litre of petrol price would be Rs 39, diesel would be Rs 33.51, kerosene would be Rs 14.12. For kerosene, there is hardly any tax. The Central government does not have any tax. Some states have some tax, that is 4.8%; but Centre has no tax. If the excise duty, customs duty and state VAT taken together, it comes to Rs 26.55," he said while replying in the debate on the Finance Bill.

But he was also candid enough to point out that it was not easy for the states to give up a major source of revenue. "I cannot tell the states, that you sacrifice almost half of these because they will say: Where will we get the money?"

MoS for parliamentary affairs Rajiv Shukla told reporters outside Parliament the state government get about Rs 1.6 lakh crore as tax from petroleum products. No wonder, states have not responded much to successive oil ministers asking them to reduce petrol and diesel taxes. Shukla threw a political gauntlet at the BJP-ruled states, saying they should emulate Goa.

Petrol could cost Rs 15 less if Delhi follows Goa's lead - Times Of India



here is the irony.
Oil falls to seven month low near $91 as Iran allows nuclear probe

 

[Ronnie11]

here is the irony.
Oil falls to seven month low near $91 as Iran allows nuclear probe

yeah it may be 91 but the dollar rupee rate is so sky high atm that it was bound to happen...personally i see dollar rupee touching even higher to maybe 57....this really hits the oil bill

 

[funskar]

Days of bail gaadis n tangas coming near

 

[ssdivisiongermany1933]

Well India uses brent crude whose Price comes to be around $106 not $ 90 which is for Nymex Crude but now we are in reverse gear ,in 2007-2008 Brent crude was $ 150 and petrol was costing around Rs 45 ..

The fuel prices is less than 2 Euro in almost every EU member nation countries and to the surprise petrol in USA cost less than India

Goverment is try to stash all money in form of taxes to swiss bank ,before its get thrown away

 

[kapilove77]

UPA Sucks doing nothing and when voting time will come then they try to reduce price just to show that they care about ppl.

 

[ajaymailed]

i am beginning to doubt even this sky rocket price levels of Petrol will desist the consumption. It wud help the rupee if consumption is hurt.

diesel powers commercial vehicles, buses etc, hence part of diesel subsidies is being enjoyed all the society, not just the farmers or diesel cars. There is no diesel subsidy actually but overall they are having lower tax than petrol.

Govt is earning 1.6 Lac crore- 30 billion USD. if they figure out way to sacrifice this 30 billion by cancelling programs like NREGA then taxes can be reduced or waived altogether.

yeah it may be 91 but the dollar rupee rate is so sky high atm that it was bound to happen...personally i see dollar rupee touching even higher to maybe 57....this really hits the oil bill

worse is yet to come. RBI is probably preparing itself for event of greece exit, that is when they might hit the panic button. collapse of greek banking system, risk of massive outflows from capital markets pummeling rupee which is already weak. Unlike Lehman brothers, this time india is a vulnerable position with widening deficits, balance of payments and slow growth.

Could Greece End Up as Europe's Lehman Brothers?

As jitters about Greece leaving the eurozone reach a boiling point, one of the key lessons of the Lehman Brothers collapse should loom large over the heads of policymakers: the interconnectedness of the financial system can create unforeseen consequences that quickly ripple around the world.

The chances of a Greek exit appear to have hit a new high this week as leaders in Europe are reportedly planning contingencies ahead of a key vote in Greece next month and as financial markets set off alarm bells once again
“With Lehman, I don’t think people appreciated the interconnections. I see the same argument with Greece,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

During the Lehman crisis, U.S. policymakers displayed “hubris” about the fallout of a failure, essentially saying, “Sorry, we can’t save Lehman, but we’ll fix the mess. Little did they know how big of a mess it would be,” said Chandler.

Read more: Could Greece End Up as Europe's Lehman Brothers? | Fox Business

 

[theserpent]

Whatever happens ED#TS will still vote For Money-Eaters UPA

 

[Tech_Wiz]

Vouched for not Voting to Congres & its lackeys in any election EVER. Spineless leadership and no vision at all.

Petrol in my area is now Rs.80/Lit. My office is just 3 KM away from Home so won't bother me much but other implications will be causing a lot of trouble as other commodity prices will go up due to higher transport costs.