[sgiitk]

Saw on one of the channels, that OilMin is consulting the LawMin whether they can announce a price cut (remember we are on a 50p per month increase regime) and announce the deregulation without attracting the ire of the EC.

[blacksport]

I think they should continue the 50 paise hike per month until diesel price is in par with petrol. Diesel still enjoys "subsidy" via lower taxes, so that discrepancy has to be removed. A free market will function better when there is a level playing field.

[hellmet]

Originally Posted by blacksport

I think they should continue the 50 paise hike per month until diesel price is in par with petrol. Diesel still enjoys "subsidy" via lower taxes, so that discrepancy has to be removed. A free market will function better when there is a level playing field.

I agree.

Plus, man pays too little for the privilege of having so much energy at his disposal. It takes 8.6 years of cycling for a man to generate energy equal to what's in a barrel of oil and we continue to consume it with abandon.

Prices need to be high to pinch, and to lower consumption.

[sgiitk]

Originally Posted by blacksport

I think they should continue the 50 paise hike per month until diesel price is in par with petrol.

Originally Posted by hellmet

I agree.

The differential is now taxation, so needs a different approach.

[napster1311]

Originally Posted by blacksport

I think they should continue the 50 paise hike per month until diesel price is in par with petrol. Diesel still enjoys "subsidy" via lower taxes, so that discrepancy has to be removed. A free market will function better when there is a level playing field.

Originally Posted by sgiitk

The differential is now taxation, so needs a different approach.

Sorry for my ignorance. Is the tax structure identical for CNG and petrol?

[rajshenoy]

Originally Posted by blacksport

I think they should continue the 50 paise hike per month until diesel price is in par with petrol. Diesel still enjoys "subsidy" via lower taxes, so that discrepancy has to be removed. A free market will function better when there is a level playing field.

Its not the subsidy, its the tax structure that needs to be looked at. Unlike petrol, Diesel is going to directly impact the inflation figures.

We have enough arm chair critics who then start endless debates.

One point i have is : Why is our Tax in terms of percentage ? This has been the case when petrol used to sell at 30-40 rs per liter isnt it ? For every rupee increase in petrol or diesel tax in terms of rupee also increases. And then we have the state taxes too(again %)

[dass]

Very surprising to see people who use petrol cars feeling or wanting to feel happy ONLY with an increase in diesel costs. The cost of petrol and Diesel are high, because of the taxes imposed on them at various stages and no politician worth his salt would even touch this (Some exceptions may be) and cut down on their revenues.

Instead of hoping and praying for diesel prices to be increased, why not focus energy on reduction of the over all fuel cost? Both petrol and Diesel. Same thing can be done on reduction of consumption of this fossil fuel, again both petrol and diesel. Why this sadistic approach of, I pay more for petrol and I want the diesel to be costly as well. Same logic, if the prices of petrol cars increases because the shift will happen sooner than later with most people buying a car going for a petrol vehicle now, would the argument still hold good?

I guess This is completely off topic for this forum, but reading the last few pages is kind of getting a little too much. Peace Out.

[sgiitk]

Originally Posted by napster1311

Sorry for my ignorance. Is the tax structure identical for CNG and petrol?

No Diesel, attracts very little central taxation, ans state taxes (except Goa) are also lower.

[rajshenoy]

Originally Posted by dass

Very surprising to see people who use petrol cars feeling or wanting to feel happy ONLY with an increase in diesel costs. The cost of petrol and Diesel are high, because of the taxes imposed on them at various stages and no politician worth his salt would even touch this (Some exceptions may be) and cut down on their revenues.

Instead of hoping and praying for diesel prices to be increased, why not focus energy on reduction of the over all fuel cost? Both petrol and Diesel. Same thing can be done on reduction of consumption of this fossil fuel, again both petrol and diesel. Why this sadistic approach of, I pay more for petrol and I want the diesel to be costly as well. Same logic, if the prices of petrol cars increases because the shift will happen sooner than later with most people buying a car going for a petrol vehicle now, would the argument still hold good?

I guess This is completely off topic for this forum, but reading the last few pages is kind of getting a little too much. Peace Out.

Exactly my point. Some of us do not think about the milk, food grains or even how the online e-commerce order reaches home !!

What we need to seriously consider is re-look at the tax structure !! percentage part.
Diesel and Petrol cost the same for the PSU and its just the tax that is seperating the two.

Going by the theory of few individuals, If diesel touches 75 rs just like petrol. Oil companies would be making a profit of 5-6 rs per liter

[napster1311]

Originally Posted by sgiitk

No Diesel, attracts very little central taxation, ans state taxes (except Goa) are also lower.

I want to know if CNG is taxed at higher rate like petrol o

So Petrol is highest in terms of tax rates then its CNG and then Diesel?

Is that order right?

[sgiitk]

Now they want to hike excise on unbranded diesel (currently 3.46%) and are also looking at the possibility of hiking customs on crude (unlikely).

[blacksport]

Price discrepancies should be corrected, and it is imperative for free markets to function. Since we are moving away from socialist economics, it is improper to hold on to the relics just because it suits a select few. Give it up, the time is over. Either decrease the taxes on petrol or increase taxes on diesel. Reduction in taxes leads to loss of revenue, so no government would take that route. So it is easier to increase diesel taxes. The reasoning is based on economics and politics, not karma.

[gowda79]

Something got from www.rediff.com and looking at this chart it seems like Diesel and Petrol will touch each other by end of this year -

[StarScream]

Originally Posted by dass

Very surprising to see people who use petrol cars feeling or wanting to feel happy ONLY with an increase in diesel costs. The cost of petrol and Diesel are high, because of the taxes imposed on them at various stages and no politician worth his salt would even touch this (Some exceptions may be) and cut down on their revenues.

Instead of hoping and praying for diesel prices to be increased, why not focus energy on reduction of the over all fuel cost? Both petrol and Diesel. Same thing can be done on reduction of consumption of this fossil fuel, again both petrol and diesel. Why this sadistic approach of, I pay more for petrol and I want the diesel to be costly as well.

It has nothing to do with happiness or sadism. The argument is quite simple, they are both fuels used for transport and if diesel forms the backbone of the economy, then petrol is the poor man's fuel -- does the trucker deserve more of a subsidy than the scooter owner? Therefore, they deserve to be treated equally in terms of taxation. True decontrol requires a level-playing field.

Also, the fear that more expensive diesel will lead to spiraling inflation is a fallacy. Example - diesel has increased a total of 11.8 rupees since January last year, and food inflation in the last few months has actually come down. Simple economic theory states that when a commodity becomes more expensive people use other methods or more efficient methods to accomplish a task. So a trucker may implement a long-delayed plan to upgrade his fleet to vehicles that are 20% more efficient. The corollary to this is that people are more profligate when a commodity is cheap. In western markets, with complete fuel deregulation, food inflation is in the low single digits.

I'm not even getting into the argument about diesel being the dirtier fuel and its costs in terms of public health and pollution.

[sgiitk]

Seems that the basket is up about a $.