I pity only the car manufacturer like Honda who after a long time switched to Diesel hoping that the price difference would be maintained. But I welcome the present arrangement to bring parity on price. This would help the nation to spend diesel for not for cars.
Re: Pricing
by Rosy Monty on Oct 15, 2014 02:41 PM
Crdue oil price fell more than 15% let us see how much reduction now we are going to get. Anything less than 10 shows how far the oil companies got a say in pricing.
I live in California and we pay the same price for petrol/gasoline - about $4 per US gallon. Its cheap here because the oil is traded in US dollar and most drilling is owned by US companies. Diesel is a superior and more expensive fuel.
The fact that these fuels are the same or lower price in India is crazy. It means the govt. is heavily subsidizing it. This has a terrible weight on the national budget, and the govt. should look to revoke all fuel subsidies.
(People who are willing to die for their country -- cant bother shelling out a few rupees for your country ?)
Re: Re: Re: Subsidy the prime cause of deficit
by Mohan R on Oct 21, 2014 12:29 PM
Subsidy is the prime cause of deficit....you know that subsidy on rice @Rs 1 per kg,Dhal@Rs 8 per kg sugar @ 8/10 per kg free color Tv's...free fans..etc in many states has made labour force to just sit without any work and kill precious time..this has caused labour inflation...so why not subsidy for fuel..??
Re: Re: Subsidy the prime cause of deficit
by bigben bigben on Oct 21, 2014 01:50 PM
Central govt takes around Rs 10/litre as tax on petrol and Rs 2-3/litre on diesel. State governments take anywhere from 10-30/litre on petrol and 10-20/litre on diesel.
So taxes account for 40% of the cost.
Refiners like Reliance, IOC, BPCL, etc only make 5-8% margin on refining crude oil into petrol/diesel.
So blame taxes for high price.
If we consider taxes, then there is no subsidy. So you are correct we don't get anything subsidized. Only you are blaming ambani needlessly.
This needs to be relooked at by FM. Any change in petrol/diesel have chain reaction on prices of other commodities due to increase in transport cost. Besides excise duty and sales tax burden including local octroi is to the tune of 50%. why this is the only source of revenue for running government? Must take decision which is in general public interest and not Oil companies and tax collection.We have voted Modi for good governace and not helping industrialist and politicians
Re: Pricing of petroleum product
by vijaykumar rikabchand kanunga on Oct 21, 2014 09:11 AM
Your point is valid.The international rates have come down from 142 to 88 dollars but the rates are reduced only by rs 3?
Sir, Thank you for making sure that the decision on reducing price of diesel keep pending by your office for last two months, which ensures Reliance and Essar oil companies are profiting crores of rupees everyday. After all in Swatch Bharat the big private companies should thrive rather than the common man. After all who wants these common men? Now they are matter only in 2019!!!
Re: Congrats to Sri. Modiji
by bigben bigben on Oct 21, 2014 01:55 PM
Illiterate madrassa educated guy committing taqqiyya. Firstly election commission didn't allow due to model code of conduct. Secondly, reliance and essar are not selling diesel because it was still regulated until 2 days ago.
Crude oil is finding new low every day to reach below $85/b from $101/b, but the petrol/diesel prices didn't fall even a rupee. Oil companies are controlling the govt prices and taking huge share on subsidies. If the so called market driven prices why not reduce the prices now. Every year oil companies even after so much salary & perks to their staff they show a rich profit. Why nobody bothers about the common man who suffer due the chain reaction of price raise & inflation?
Re: Crude Oil International Price Falls
by vassudev korgaonkar on Oct 15, 2014 11:35 AM
The gimmic lies in the pricing structure of petrol/diesel. Has anyone got the detailed fuel receipt with VAT,central taxes , cess etc.? The government is looting public by imposing almost 50% taxes on fuel.They take money from the left hand and shows their right hand empty..
Re: Crude Oil International Price Falls
by bigben bigben on Oct 21, 2014 02:05 PM
state and central taxes account for almost 40-50% of the price paid at the pump. So if international crude price falls 10%, the petrol/diesel price can only fall by 5-6%.
Secondly, refining cost accounts for around 20% of total refined fuel cost. So if crude falls by 10%, refined fuel can only fall by around 8%.
Thirdly, cost of transportation of refined fuel to end destinations costs almost 10-15% of total refined fuel cost. For this factor, if crude price falls by 10%, refined fuel can only fall by 8-8.5%.
Fourthly dealer commission, etc accounts for around 1.5-2% of total refined fuel cost. So if crude falls by 10%, refined fuel will only fall by around 9.8%.
If you add all the above, for every 10% fall in crude price, you can get only around 4-5% fall in petrol/diesel price. This is because of all the fixed costs and taxes mentioned above.
If citizens pay their taxes, govt can reduce fuel price. But only 10% of population pays taxes. Rest 90% don't pay a single paisa in income tax and keep complaining. So first thing is pay your taxes honestly, don't give black money payment for buying house, then come and complain.
