[sgiitk]

At the moment with voting imminent in UP (13th) etc the decontrol order will have to wait. Once decontrol (with a cut as expected) is done then the OMC will be free to fix prices. I guess that too may be twice a month as in the case of Petrol. Then hopefully diesel too is off the horizon.

[serious_maniac]

I think time for decontrol is near but at the same time there is a need for tax rationalization. The taxes on fuels is so high that Government crying over subsidy looks foolish.

~M

Originally Posted by gsurya

Last Govt made a brave move of price decontrol on petrol & 50 ps per month price increase on Diesel & also increased LPG prices despite negative public perception.

Good to see that despite calling for Bharat Bandh on these reforms when in opposition, new Govt has followed the policy of last Govt that was for good of the nation.

Hope it now has the guts to complete diesel decontrol now that international fuel prices & Rupee are both in a good range.

After this comes the task of tackling LPG, Kerosene & fertilizer subsidies using Aadhaar/DBT for targeting them instead of making them free for all.

[pgsagar]

Originally Posted by serious_maniac

I think time for decontrol is near but at the same time there is a need for tax rationalization. The taxes on fuels is so high that Government crying over subsidy looks foolish.

~M

Exactly. It's like somone marking up a 100 rupee merchandise to 300. Then selling it at 250 and crying that he is losing 50.

[gsurya]

Originally Posted by serious_maniac

I think time for decontrol is near but at the same time there is a need for tax rationalization. The taxes on fuels is so high that Government crying over subsidy looks foolish.

~M

Fuel should be brought under GST for true rationalization of taxes that benefit the consumer. But this was stalled by these same guys that are in power when they were in opposition. Now politics will ensure it wont happen.

[sgiitk]

@GSURYA; MH and some others are opposing Fuel and Alcohol under GST.

[andydude]

Originally Posted by sgiitk

At the moment with voting imminent in UP (13th) etc the decontrol order will have to wait. Once decontrol (with a cut as expected) is done then the OMC will be free to fix prices. I guess that too may be twice a month as in the case of Petrol. Then hopefully diesel too is off the horizon.

Can diesel ever be completely decontrolled owing to its direct impact on inflation? I doubt if govt will allow oil cos. to sell diesel at Rs.80 or higher if crude goes back to its old levels or higher.

[ravib]

Any idea, how much is the possible cut expected in Diesel prices?

-Ravi

[blacksport]

Originally Posted by andydude

Can diesel ever be completely decontrolled owing to its direct impact on inflation? I doubt if govt will allow oil cos. to sell diesel at Rs.80 or higher if crude goes back to its old levels or higher.

I am hopeful since it is Jaitley up there. He knows pretty well that it is better that the govt get this hot potato out of its hands. It would all depend on whether he would be able to convince the safed daadi.

[nikhil_d1106]

As of 1st September the under-recovery on diesel stood at a 8 paise. Post that there has been a further fall in crude oil prices hence atleast the 50paise hike should not happen. Maybe a 50paise cut should be possible. But the government may wait before taking any call.

[gsurya]

@sgiitk : Yes MH also opposed Fuel under GST because like Gujarat it has huge revenues from royalties & taxes. But they had also said they would agree if it was interests of GST being passed.

Only Gujarat & MP had opposed GST under garb of federalism. Hope better sense prevails now even if its another U-turn

[sgiitk]

With Brnent around $97.50 i think a cut and deregulation are imminent. Now the PSU's are worried about refining margins on Diesel.

Another news (as per the local daily noise) Reliance & co are starting work on de-mothballing their pumps.

[Desi Dybuk]

It's almost 15th September & there's no news of reduction in Petrol prices yet.

Considering as sgiitk sir said, Brent is around 97-98 & cut should be around Rs. 1.5-2 minimum.

[sgiitk]

There is a strong rumour that today's cabinet may have some news for us.

[hyper-VTEC]

Its 15th today and not a single mention on price changes. That's strange!

[Mohan Mathew A]

Brent crude today morning was hovering around the 96.5 mark but rupee has depreciated to 61 levels. there should be atleast Rs 2 cut, i feel