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Petrol-Diesel pricing is free from Govt control now

Discussion in 'Hangout' started by Ravi, Jun 25, 2010.

  1. Viny

    Viny Esperto

    Seriously need to get LPG via pipeliens and cut the cost of operations on LPG transportation and reduce the subsidy, costly petrol and diesel directly adds up to high cost of living :(
  2. mescotc

    mescotc Amatore

    Boisar , Tarapur

    Hey guys,

    Don't worry Diesel cant be de-regulated ?

    At the most I would suggest to get ur tank full before ( possible ) price hike & Enjoy ur 1.3

  3. nitinkumardba

    nitinkumardba Superiore

    I don't understand, if these companies are running with such huge losses then why they offer king size offer to their employee. Let them go on family tour on own expenses.
  4. Prices increased by Rs. 2.50 from midnight today :hit :A :hit :A :hit :A :hit :A

    Petrol at Chennai is Rs. 63.50
    Definitely a bad news and we are not too far away from Rs.100
  5. Chennai, Mar 1 (PTI) :
    DMK government in poll-bound Tamil Nadu today announced a three per cent cut in sales tax on petrol that would make it cheaper by Rs 1.38 a litre. Chief Minister M Karunanidhi made the announcement a day after the presentation of the Union budget which skirted the demand for reduction of customs duty and sales tax on fuel prices amidst soaring global crude rates. "The government has decided to levy only 27 per cent as against 30 per cent as sales tax on petrol. This will result in a loss of Rs 210 crore for the exchequer annually but will bring down the price of petrol by Rs 1.38 per litre," he said in a statement here. He said the tax cut would be with immediate effect and the new rate of 27 per cent was the lowest among southern states. Explaining the rationale behind the tax cut, that comes ahead of state Assembly election due in April-May, Karunanidhi said it was done to ensure that two-wheeler users did not feel the pinch of 'frequent' hike of fuel prices by oil companies. "Since global crude rates are on the upswing, oil companies also revise the prices accordingly which affect middle-classes to a large extent," and this was the reason the government slashed sales tax on fuel on different occasions, Karunanidhi said. He recalled that his government had slashed sales tax on diesel and petrol on previous occasions also when fuel prices were hiked.

    Petrol users in Chennai : Are you guys voting for DMK this time ?
  6. Oil cos may raise petrol prices by Rs 3


    NEW DELHI: State-run oil firms are expected to raise prices of petrol shortly, possibly after May 10 when the state polls end.

    An indication of an imminent price revision came on Monday from Ranbir Singh Butola, chairman of Indian Oil Corporation, which controls 55% of the market. "We would do it (increase rate) at the earliest possible," he said.

    Butola neither gave a timeframe for the revision nor quantity the increase. But sources said an increase of up to Rs 3 may be on cards and could be announced on May 15 during the fortnightly review of prices.

    The companies have the freedom to revise petrol price in tandem with international crude. But the government, which holds majority stake in the companies, had informally told them to hold the price line since January in view of the state polls.

    Butola, however, said the state firms had "consciously" decided not to revise petrol price to keep "the environment happy" in view of factors such as inflation. "We live in an environment (people and the government). If we take certain action, the environment is going to turn against us… In our consideration, we decided to take these losses for sometime."

    Butola said IndianOil was losing money on petrol but declined to put a number to it since the fuel was deregulated and the company was not supposed to get compensation from the government for keeping pump prices artificially low.

    Other executives pegged the loss at nearly Rs 7 a litre. While the present pump price corresponds to $98 a barrel of crude, the mix of crude bought by state-run refiners has risen to $120 a barrel since January, when petrol price was last revised.

    On subsidized fuels, Butola said IndianOil was losing Rs 18.11 per litre on diesel, Rs 28.33 a litre on kerosene and Rs 315.86 per cooking gas cylinder.

    He said the company's debt was growing at Rs 5,000-6,000 crore every month and expected the government to compensate it for the losses. IndianOil's debt stood at about Rs 53,000 crore at the end of March.

    IndianOil and its sister oilmarketers had last raised petrol price by some Rs 2.50 a litre in January, the sixth increase affected since the fuel was deregulated in June last year. The oil marketers had been expecting a reduction in duties in the Budget that would have eased some of the pressure on them. But their hopes were belied. The losses are estimated to have reached some Rs 174,00 crore in 2010-11.

    Oil Minister S Jaipal Reddy is expected to approach the ministerial panel on fuels for a direction on raising prices of the subsidized fuels once the state poll results are out. He is likely to take a mix of proposals that would include some increase in prices and reduction in duties.
  7. Tony

    Tony Esperto

    Kalamboli, Navi Mumbai
    Grande Punto 1.2
    make the car Tank full always so the hike in fuel will not be a issue for few days atleast, then it will be a normal routine hahahahah
  8. After the assembly polls. both petrol and diesel prices will be hiked by at least 3 Rupees/Liter!


    An Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee is scheduled to meet on May 11 to mull on a hike in diesel prices. Petroleum Ministry officials yesterday discussed with the Election Commission the issue of raising prices before Assembly election results are announced on May 13. The Election Commission is believed to have cleared the move. Oil companies will be asked to stagger the hike over a couple of months.


    Diesel prices will need to be hiked by over Rs. 18 per litre if retail prices are to be brought at international parity and the June, 2010, decision of freeing its prices from government control is implemented.

    Also, the government has not allowed oil firms to hike the price of petrol, a commodity which was freed from control in June last year. Petrol is currently being undersold by Rs. 8.50 per litre.
  9. thats .............
    no words coming out...
    first they deregularise petrol and now want to hike it even more???
    on top of it taxes more than the vehicle import duties of 105%
    this is ridiculous..

    Jaago Graahak Jaago.
  10. well, not to break more heart here but i have a duty to tell everybody so here it goes.

    diesel will be hiked by 2rs to 2.50 rs and petrol by 3 rs flat. the major worry is that petrol prices will be hiked by 12 rs gradually in steps by step . In govt terms " not to burden ,common man at a go" and this will happen some times in next week . govt has obtained a special permission from election commision for this hike.

    de-regulating diesel will mean loosing out on votes as primary users are agriculture and transport sector . more over this will push the already high inflation to even more higher levels and thus beyond controllable levels . not to mention here that a diesel hike will send the country to stand still as surely transporters will stop all their trucks in middle of highways crippling the normal life ..and going on strike

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