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

[Surfer]

With passenger cars consuming about 15% of the diesel, the Government today indicated that it might do away with the subsidy enjoyed by such vehicle owners.

http://www.business-standard.com/india/news/car-owners-may-not-
get-subsidised-diesel/143328/on

Source : Business Standard

 

[Thetraveller]

Re: Car owners may not get subsidised diesel

That is one interesting and saddening piece of news for every diesel heart owner or prospective owner. If it happens trend towards diesel cars will reverse.

I am just confused with another piece of news I read somewhere that Govt is even contemplating increasing the excise duty on diesel cars by 20K - 50K. IMO both things can not happen, as it makes no sense. But chances of above situation finalising seem more realistic.

Only one question, will this mean diesel will be sold at different rates? If yes, how would govt make sure that petrol pump owners do not sell diesel at requisite price to respective owners, ie truckers at lower rate and individuals at higher rate?

 

[Marun]

Re: Car owners may not get subsidised diesel

Whatsoever the decision can be, The diesel will still remain cheaper than petrol.

This approach will lead to a oil black market.

 

[cooldhaya]

Re: Car owners may not get subsidised diesel

Oh no this is bad news for us! Any idea how much will the price of unsubsidised fuel be?


Now how are they going to implement it and make sure that all car owners don't get subsidised diesel? I am quite sure people with influence and power will still enjoy the subsidy and i also fear what Marun said might also happen!

And what if people start buying diesel in cans and drums then?

 

[carfreak]

Re: Car owners may not get subsidised diesel

This approach will lead to a oil black market.

Exactly ! God knows what Govt is upto with such weird strategies!

 

[Marun]

Re: Car owners may not get subsidised diesel

Its quiet obvious that a 5 lakh guy will cope with a tractor or lorry owner and pay a bit extra premium along with the subsidised price, whereas 50 lakh guy will go ahead and buy a tractor and a farm for himself and will continue to enjoy the subsidised diesel price.

 

[jalex]

Re: Car owners may not get subsidised diesel

I am just confused with another piece of news I read somewhere that Govt is even contemplating increasing the excise duty on diesel cars by 20K - 50K. IMO both things can not happen, as it makes no sense.

Actually the first piece of news about increasing excise duty does make perfect sense! But the other one about reducing the Subsidy to trucks and buses alone does not. Cause black markets will thrive. I have already said this before as well- Slap an additional tax of 15000X2 payable half yearly for all diesel cars above a 4,00,000 sticker price ex-showroom.

 

[carfreak]

Re: Car owners may not get subsidised diesel

"Despite the recent steep fuel price hike, state-owned oil firms will lose a whooping Rs 122,000 crore on diesel, domestic LPG and kerosene sale this fiscal, Oil Minister S Jaipal Reddy"

Following this trend, there will be no end for price increases ! Ultimately common man has to bare the brunt

 

[Surfer]

Re: Car owners may not get subsidised diesel

Practically selling diesel at different rates to truck and cars is not possible.
Increasing excise duty will be practical.
But the excise duty should be increased for SUV's as they are the most diesel guzzlers.
Or Cars costing above 6 lakh should be considered for high excise duty.
Small Diesel cars like eg: swift, Figo has nice mileage than the petrol version.Hence indeed it saves nations money.

 

[jalex]

Re: Car owners may not get subsidised diesel

Or Cars costing above 6 lakh should be considered for high excise duty.
Small Diesel cars like eg: swift, Figo has nice mileage than the petrol version.Hence indeed it saves nations money.

Its not a matter of fuel efficiency but Constitutional rights- Equality. For instance 'A', an average bloke needs a new car for his family and can only shell out under 2.5 lakhs for it. What are his options Petrol only.

Now 'B' an above average person can buy a new car for upto a 6 lakh sticker price. What are his options? Petrol or Diesel. 90% of the time he will go for option two.

So we see 'A' struggling hard to run his car with an over priced fuel, While 'B' is getting a cake walk of a better deal with subsidised diesel.

So is that fair enough? Hell no it ain't!

About the 4 lakh sticker price, I guess that can be the only exemption bar, the government may allow at all if there are no options at all.

But when Diesel cars are using up 15% of the diesel being sold in the country and making others to pay a premium for the losses incurred, That becomes social injustice and double standards in the most unjust way.

 

[mukeshus]

Re: Car owners may not get subsidised diesel

Whats creating so much fuss, let them rise the price.

We don't care for Govt's mercy on car owners.

All the subsidy are just publicity stunts.
If the oil companies are losing so much before elections, why won't they hike before elections.

Govt involves in lots of scams, dupes crores of public money.
But heck can't control the price rise.
Now its diesel next in the list will be kerosene, meant for poor.

 

[jalex]

Re: Car owners may not get subsidised diesel

Whats creating so much fuss, let them rise the price.

We don't care for Govt's mercy on car owners.

All the subsidy are just publicity stunts.
If the oil companies are losing so much before elections, why won't they hike before elections.

Govt involves in lots of scams, dupes crores of public money.
But heck can't control the price rise.
Now its diesel next in the list will be kerosene, meant for poor.

Scams are not just limited to our country but to the rest of the world as well, Only difference is that they cover up things well, But we here dont, atleast the leave a lot of evidence.

Then coming to Kerosene prices. It already increased, Plus the quota has been cut down to 1.5 litres from 2 litres for A.P.L card owners. I dont need Kerosene much, But I still buy it every month cause I can't stand the Ration dealer selling my quota for 40 rupees to black marketers and use me for his gain.(I get it for a subsidised 15.50 rupees a litre.) I would be happy if the Government withdraws Kerosene permits of all people with a domestic L.P.G connection and are in the A.P.L category.

 

[basis]

Re: Car owners may not get subsidised diesel

Car owners may not get subsidised diesel: Government - The Times of India

My calcullation comes ture. I support this move.

 

[Vivian]

Re: Car owners may not get subsidised diesel

According to me price decontrol of diesel should come as all the people have responsibility to save our nation from debts.

 

[P3T3R]

Re: Car owners may not get subsidised diesel

That is one interesting and saddening piece of news for every diesel heart owner or prospective owner. If

Why? If you can afford to buy a car you must pay the full price of fuel. Tax payers should not pay for your fuel.

Whatsoever the decision can be, The diesel will still remain cheaper than petrol.
This approach will lead to a oil black market.

In the international market, the price is more or less the same.

! Ultimately common man has to bare the brunt

Well the common man also enjoyed cheap fuel for luxury cars for so long