[ajman28]

Originally Posted by Gansan

^^The voting public must be complete idiots, to be swayed by the artificial lower prices which they know will be increased any way after the polls! After all, people get the rulers they deserve.

The public are not fools! It's just that we have a very short term memory when it comes to cases like this. We scream and create a scene when we feel the government has wronged us but very quickly forget about it and move on to the next subject within a matter of days.

Originally Posted by geeta

I understand that Government is also helpless but they must do something to decrease the load of prices on the common people. If they continuously increase the price then what will we do.

Prices are going up for everything including the wages!! So you earn more, you spend more. A healthy economy is one where there is a positive level of controlled inflation.

[geeta]

Originally Posted by ajman28

Prices are going up for everything including the wages!! So you earn more, you spend more. A healthy economy is one where there is a positive level of controlled inflation.

You are right that the income is also increasing but I think you must those areas also who are not getting that much amount per day which can arrange their food. So if you are talking about the persons who don't have to think about the price then ok but you must visit those areas to get the full information.

[vivek.ks]

The price of crude oil has gone down since May start. Source : Wolfram Aplha.

Government has been talking of raising petrol prices by 5rs/ltr. How is this justified ? Crude is priced at 28.18 rs/ltr at these costs. Around 56 rs/ltr is getting used in refining and delivery and the oil companies still lose a lot of money.

De-regulation was all about adjusting prices locally in sync with Global prices. We have seen price increase happening in recent times. Now the crude is on decline but the decline in local prices is not news anywhere. What's in store for end users ?

[Newpunter]

I think we were better off when the prices were regulated. Now although they say the prices are de-regulated, they are still being controlled by the government. Why do we have this sham de-regulation when the government still fixes when the prices can be hiked and to what extent? We petrol users still keep subsidising the diesel users. I won't be surprised if they hike the petrol price by 8 rs and diesel by only 3 rs when they announce the hike.

[vina]

Originally Posted by Newpunter

I think we were better off when the prices were regulated. Now although they say the prices are de-regulated, they are still being controlled by the government. Why do we have this sham de-regulation when the government still fixes when the prices can be hiked and to what extent? We petrol users still keep subsidising the diesel users. I won't be surprised if they hike the petrol price by 8 rs and diesel by only 3 rs when they announce the hike.

Diesel is not cross subsidised by petrol, LPG and kerosene are cross subsidised by both petrol and diesel.

Also at times even petrol has been kept low (Mukesh Ambani wrote to the govt. to complain about this) by by forcing PSU firms to sell at lower than cost.

[Newpunter]

Originally Posted by vina

Diesel is not cross subsidised by petrol, LPG and kerosene are cross subsidised by both petrol and diesel.

Yeah, I realise that. I guess I am just jealous of the guys who bought diesel cars .
My problem is with this sham de-regulation. Either de-regulate the whole thing or continue to regulate them like before. This is not helping either the common public or the oil companies.

[vina]

Originally Posted by Newpunter

Yeah, I realise that. I guess I am just jealous of the guys who bought diesel cars .
My problem is with this sham de-regulation. Either de-regulate the whole thing or continue to regulate them like before. This is not helping either the common public or the oil companies.

Let me cheer you up - adulteration of petrol is now a relatively small problem - it is easy to detect and the pumps risk losing business so many don't do it.

On the other hand, adulteration of diesel continues whole scale with stolen PDS kerosene - and since the latter isn't very pure to begin with (cooking fuel), has less calories per litre and deadly impurities (e.g. sulphur - to foul up the CatCon) the diesel guys are actually worse off in the long run.

[Bluengel180]

Sporadic price hike in petrol likely tomorrow: Kirit Parekh - CNBC-TV18 -



Kirit Parekh, author of the report on fuel price deregulation, expects to see a fuel price hike coming out of Wednesday's Empowered Group of Ministers (EGoM) meet. "There could be a sporadic price hike in petrol tomorrow," he said adding, "There is also a possibility of some reduction in duties on diesel."

[Saanil]

It seems like petrol prices will be hiked. Read here : Petrol prices may go up this week - 1 - *National News. According to the article: The hike needed to take petrol prices to international parity is about Rs 8.50 per litre, but the entire burden will not be passed on to consumers in one go.

[misquitas]

Originally Posted by Saanil

It seems like petrol prices will be hiked. Read here : Petrol prices may go up this week - 1 - *National News. According to the article: The hike needed to take petrol prices to international parity is about Rs 8.50 per litre, but the entire burden will not be passed on to consumers in one go.

Great. Instead of delivering mild blows every now and then, the government should seriously consider a knock-out punch by the passing the entire burden on to consumers in one go. At least, the death will be swift and relatively less painful.

The government will justify its decision to squeeze petrol consumers by an additional hikes every few months (or weeks). The powers-that-be will work out various arguments to further choke the petrol consumers.

Their logic could be this: Petrol is not a necessity....we need to levy a further taxes on petrol as it is polluting the environment...We need to further hike petrol prices to subsidize diesel, LPG, etc.

At this rate, I'm expecting petrol to reach the three figure mark very soon. As for diesel, I reckon it will remain at Rs 40 (here in Goa) till Maruti 800 celebrates its 50th anniversary!

Suddenly, my beloved Dec 2010 I10 is beginning to hurt me and I'm beginning to wonder if I made the right choice by opting for a petrol car (at a time when petrol was Rs 56 and diesel was Rs 38) as opposed to a diesel car.

Help, I need someone to cheer me up.

Melvyn

[mjothi]

Here it goes. Again, only for the petrol price.

Petrol price hike this week; diesel, cooking gas put off - The Times of India

[libranof1987]

Check this out:

Oil companies plead for Rs 6/litre hike in petrol prices - The Economic Times

"Pleading" for a hike of Rs. 6!!

[ZENnist]

Source: Google.

Indian Oil Corp Q3 net profit up 134.7%

Government releasing 8000Cr as subsidy, and bcos of that companies earn profit in crores! Economics is indeed a difficult subject.

[vina]

Originally Posted by ZENnist

Source: Google.

Indian Oil Corp Q3 net profit up 134.7%

Government releasing 8000Cr as subsidy, and bcos of that companies earn profit in crores! Economics is indeed a difficult subject.

These are profits booked, not cash flows. These include govt. IOUs which are not paid always.

Also if a company made Rs. 10 in profits in 2009 on a sale of, let us say, Rs. 1000Cr. and then made Rs.100 in profits in 2010 on similar sales - the profits would have increased 1000% (or 900% depending on the journalists mood) - but the company was in deep trouble in both 2009 and 2010.

[Gansan]

Originally Posted by libranof1987

Check this out:

Oil companies plead for Rs 6/litre hike in petrol prices - The Economic Times

"Pleading" for a hike of Rs. 6!!

This is all hogwash! Just to make you feel grateful for a Rs 3.00 hike, which will be the intention all along.