Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

[Tornado]

Rs 53000 cr. are required by govt of indi a to setup Sulfer removing units at oil refinaries so as to make BS4 fuel available all over india.Pollution law of the land says that polluter should pay for the required remedies to counter the pollution.And Govt. Is under tremendous pressure from international authorities and NGO s to go for full fledge BS4 fuel and vehicles .

So, probably they want to arrange the money from diesel car owners.
But Govt can not afford the resultent slowdown in auto industry due to special tax . So govt was delaying the special diesel car tax., Finally NGO s knocked the door of the court.

 

[visran]

Found this interesting article:

Auto industry says ‘Diesel technology to be the future’

India's automobile industry says diesel is clean and efficient fuel for vehicles and perceptions about it being dirty should be removed by users and the government.

"The perception that diesel is dirty is no more valid. This needs to be changed as contemporary diesel vehicles have higher fuel efficiency; it is as clean as any petroleum fuel," Union Minister for Heavy Industries and Public Enterprises Praful Patel told a conference on ‘Diesel for Future: Economy & Environment’ organized by Society of Indian Automobile Manufacturers (SIAM).

Industry representatives asked for better rationale in pricing of fuel products. “Diesel has an important role a fuel of the future for automobile sector. We need to gradually calibrate the prices of petroleum products to a more realistic level,” Vikram S. Kirloskar, Vice President, SIAM & Vice Chairman, Toyota Kirloskar Motor.

Union minister of state for human resource development Jitin Prasada said "Diesel consumption and technologies are here to stay as diesel has emerged as a better fuel, as they are efficient in terms of consumption."

"We firmly believe that diesel is one the best options available in the automotive sector with 25% better fuel efficiency. Today diesel vehicles are quieter, safer and more 'fun' to drive. We feel that every fuel has a role to play and it should not be influenced by policy prescriptions or separate taxation,” Lowell Paddock, Presidenta and manging director for General Motors India said.

The conference discussed the need to recognize diesel as a viable solution for energy security and lower carbon footprints. Strategies were also suggested in pricing and taxation to enable government integrate diesel as an important energy driver for Transportation sector.

Kirit Parikh, Chairman, IRADe highlighted the impact of under-recoveries on the financial stability of the country and suggested liberalizing the price of diesel. Comparing long-term benefits of liberalizing the price of diesel, he stated: “If you free diesel prices fully at one go to market prices, you may find high inflation for the next 3-4 months, but by the 6th month, inflation would get moderated.” Dr Parikh also spelt out several alternative measures for addressing the concerns of high Diesel subsidies.

Auto industry says

 

[jayadev]

I buy diesal not because it is cheaper but I find it more efficient. in future smaller lighter diesal vehicals could deliver very high fuel economy compared to petrol cars.

 

[EnfieldRyder]

Well all Diesel heads brace for a steep hike in Diesel next year i.e, 2013, The Govt. no longer wants to give subsidy on diesel as it feels it can't afford the subsidy anymore. The price will go up by Rs. 10 albeit on a monthly incremental basis and not in one sitting.

This will be a huge setback for companies looking to increase production of diesel based cars and expanding the technology. What the Govt. has failed to realize is these diesel variants are much more fuel efficient than their petrol counterparts and the tech has improved tremendously to reducing pollution levels. Also inflation be it short term rise or long time we will have to suffer the consequence of this.

Couldn't find the price hike thread, but since this thread is related to Diesel posting it here.

Source: NDTV

 

[dharmesh]

Time have come to buy Cycles. and live healthy life cycling daily.

 

[Gurrala74]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

ER

I do not think the government will take such a bad decision in 2013 just before the elections in 2014, if they do so, then it is just suicidal

 

[EnfieldRyder]

@Gurrala the Govt. is already in suicide mode there is no inclination for the Govt. to stay in power in 2014, the Govt. might not withstand the onslaught of the opposition. Fiscal reforms are needed but not at this time when the whole world is on a downward slide & its getting harder to sustain with the resources we have & we are already overburdened with or without the Govt. providing subsidy. This sure will burn lot of pockets and take off more money from the hands of the middle & lower middle classes & so on.

 

[vaibhav]

OMG buying a dezire diesel is turning out to be a disaster

 

[Gurrala74]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

@Gurrala the Govt. is already in suicide mode there is no inclination for the Govt. to stay in power in 2014, the Govt. might not withstand the onslaught of the opposition...........

+100

OMG buying a dezire diesel is turning out to be a disaster

Don't worry buddy, this is India and decisions like this will take their own sweet time till then drive and enjoy

 

[350Z]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

SIAM (Society of Indian Automobile Manufacturers) has welcomed the Diesel price hike move. Read this official statement:

Though the proposed price hike of diesel is quite steep but SIAM would really support the rationalizing of prize hike and also insists that the rationalizing has to be done in a manner which shouldn’t affect the consumers adversely. It may affect the sales of vehicles for a short term but the elimination of prize distortion will help the industry and economy in the long run.

Drive Safe,
350Z

 

[Tornado]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

Oh, no, 350 z, you confirmed it.
Now, how this Tornado would raise without the torque of diesel.

Yes, SIAM has to be happy.
Government require s Rs 53000 cr. to set up the BS4 fuel conversion units so as to provide BS4 diesel all over India , otherwise our policy makers would receive kicks from UNO and world bank for being a major source of global pollution.There were three options left for govt. to go for

1) Make Mr. Gopalkrishnan' s hydrodrivecatalytic converter compulsory and solve the pollution problem of Rs 53 k cr in 6 k cr.

2) Reduce corruption

3) Hike the diesel prices.

Sadly , they opted for third one. And made the SIAM happy .

 

[Indian]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

1) Make Mr. Gopalkrishnan' s hydrodrivecatalytic converter compulsory and solve the pollution problem of Rs 53 k cr in 6 k cr.

2) Reduce corruption

3) Hike the diesel prices.

Sadly , they opted for third one. And made the SIAM happy .

Tornado
Option 1, Would have been the best and if Mr Goplakrishnan gets in patent done on hydrodrive India could have taken better place on the pollution issue. But sadly Indian political system and corruption would not support him.

Option 2, It would solved all kinds of problems but I don't call that a option

Option 3, Hike the diesel prices. Very easy option, we will have one day 'Bharat Bandh' and every thing is back to normal. Generally kickbacks are available whether price goes up or down. Always the 'big guns' make money. Only the middle class suffers.

 

[S Class]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

OMG buying a dezire diesel is turning out to be a disaster

Buddy, why do you get frustrated so much ? Its good you have a girl, else half of your house would have already been burning.
Chill, me also in same boat, infact we have more diesels than petrol but I am least bothered about this rule. There are other advs of diesel too -

1. They are available everywhere. Seen fuel pumps where only diesel is sold, especially on highways,
2. The FE is more by atleast 25-30% than petrol,
3. Chances of adulteration in diesel is quite less compared to petrol.

If diesel goes up by Rs.10/-, I wonder where our inflation will stand at. [thinking]

@ All,

This subsidy is all farce. See this way -

Central Govt - Custom duty, excise;
State Govt - VAT,
Local bodies (in MH)- Octroi.

These taxes are heavy & are charged in % & not fixed amount.
Eg. If say octroi in Pune is 10%.
When petrol is Rs. 50/-, PMC earns Rs.5/L;
When petrol is Rs. 80/-, PMC earns Rs.8/L.

Same is case with state & central Govt. It is like they extract a lot from your pocket & give part of it back to you in form of so called subsidy. The Govt is not paying anything from its pocket.

Best thing is to remove subsidy & cut taxes, it will be the same thing.
Seems Govt thinks all Indians are idiots, forgetting that most who fled mental hospitals, have reached Delhi.

Time have come to buy Cycle and live healthy life cycling daily.

Then we will have one more ministry -

Ministry for Cycles & Skates.

 

[S Class]

Re: Car Owners May Not Get Subsidised Diesel + “Special Tax” on Diesel Cars

One more point -

This news might have been circulated by Govt just to instill fear about diesel price hike in minds of Indians so that we avoid buying diesel cars & UVs.
What say ? [thinking]
Govt is very ' Chaalu ' (cunning) these days.

 

[jayadev]

I dont mind diesal price hike for private cars and Taxis.

But for trucks and public transport will make it all difficult,hope it is not the case.