Fuel Price Hike - discussion on de regularising diesel from page 15

Yup, subsidy is so old fashioned and inefficient. And its the prime reason why kerosene gets mixed with petrol. If there was no subsidy on kerosene, then it would be priced at par with petrol and there would be no incentive to mix/adulterate petrol.

Cash coupons / food coupons / kerosene coupons should be the way to go. And all this talk about not having a distribution channel in place is absolutely bovine excreta. When Coke, Pepsi, Thums Up, Britannia, Airtel, Vodafone, Tide, Lifebuoy, Dettol, etc. can build their own independent distribution networks, then so can the govt.

We follow developed country in setting the fuel price free in the market, trying to compare prices of food grains or other services. But, we fail to copy or adopt good policies from developed world. We still live in the olden days law written by British government and won't change it anytime in next 30 years.

I remember seeing some law/punishment for hit and run case which says 5000 rupees fine or 6 months imprisonment. Similarly, our law of subsidy is so very old that we should demise it immdly.

"Sample this. Indian Oil Corporation (IOC), the largest player in oil refining and marketing space, paid excise duties to the extent of Rs 309 bn as compared to total Government grants/subsidies of Rs 243 bn towards fuel subsidies. The net effect of this was Government registering net inflows of Rs 66 bn from IOC. The whole hue and cry about subsidies and under recoveries looks ridiculous since this inflow is over and above the corporate tax rates paid by these Oil Marketing Companies. "

With all the 'losses' and under recoveries, IOC has made a pre tax profit of Rs. 101 billion. BPCL and HPCL, together, have made a pre tax profit of Rs. 54 billion!

The above figures are courtesy, Equity Master.

If the govt. rationalises the taxes and subsidies, chances are these fuels may become affordable, thanks to competition. You only have to look at the telecom sector to understand the benefits of competition.

Petrol prices may hike by 3Rs/ Ltr post elections

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/petrol-prices-may-rise-by-rs-3-soon-after-up-polls/articleshow/11881298.cms

Nothing to comment any more on this....

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/cng-rates-up-5-in-delhi-ioc-bharat-petroleum-and-others-mull-raising-petrol-prices-by-rs-5/lt/articleshow/12155209.cms

can someone guide me on one more aspect, 

i'm living at NCR of Delhi, Ghaziabad.  commutation is inter state Delhi-Ghaziabad around 1800 km per month, presently using Santro CNG and planning to upgrade it soon,

CNG prices was earlier cheapest and most economical here, but now it is almost equivalent to diesel prices. (only 3  rupees less).  if i change my CNG car, should i stick to this fuel or go for diesel --the one and only consideration is cheap running and less expenses in long run. (on account of initial investment, depreciation, maintenance cost on account of fuel etc. etc.)  resale value is not a consideration since i'm planning or dreaming to keep the next car for 10 years!!! (hope it is possible if i keep it well).  

SX4 CNG or Punto diesel are my considerations.  reason.  SX4 being a sedan after CNG kit also there is space in boot and among the company fitted CNG sedans available (Aveo, Accent and SX4)  this seems to the best. 

Punto on the otherhand is pleasure to drive, offers good driving and ride comfort and available in diesel.  plus i'm fond of Fiat (despite bad After Sales Services A.S.S.C.) top version Punto emotion will cost me around 50k less than SX4 CNG.  the difference in monthly fuel cost of CNG and diesel will be offset here. (SX4 running in CNG will cost me around 2.5 rupees per kilo meter (inclusive of daily 5 km in petrol--occasional outstation trips where Petrol only will be available etc) and Punto in diesel if delivers 14 km per litre will cost me 3 rupees per kilo meter).

i'm in little bit of confusion and if possible try to give an advice between the two and don't add to the confusion by suggesting some other good cars.

Thanks

Santhanam  

Petrol may up go by 8 Rs.

http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/state-oil-companies-like-ioc-hpcl-bpcl-may-hike-petrol-prices-by-rs-8-this-month-to-recover-past-losses/articleshow/13128068.cms

ohhh god another big hike on Petrol.. its going to kill us !!!

There are huge queues here in delhi on petrol pumps & i guess its same everywhere as well.