Petrol prices cut by 1 paise!

After completion of polling in Karnataka, Petrol and Diesel prices were increased relentlessly every day during past 30 days. In the last fortnight Petrol price at Hyderabad was hiked from Rs.79.37 to Rs. 83.13 (an  increase of 4.7% in 15 days). Today oil companies have announced reduction of petrol by Rs.0.60 today and quickly corrected it to Rs.0.01 (1 Paise) citing clerical error is a cruel joke on consumers. While reduction was announced by Oil companies routinely, the correction announcement is suspected to be at the behest of government for unknown reasons. With large scale usage computers and other technologies, citing clerical error is unacceptable non sense. If it is true, that clerk and his superior officers should have got suspension orders right away but no such thing has happened. While oil prices fell by 70% between 2014-17, both central and state governments merrily increased excise duty and VAT and ensured that consumer got the benefit of 15% only while 85% of low price benefit was grabbed by them. Now in 2018, while oil prices have gone up from $30 to $84 per barrel, neither centre nor state(s) are prepared to reduce their taxes and provide relief to consumer. They are insensitive to the inflationary effects their action and inaction.  Ironically, leakages suggested that government is mulling excise duty cut on petrol & diesel and wants states also to cut their VAT and consumers were expecting some big relief, for which Modi & Jaitley were never known for. 

Rising fuel prices indicates economy in mess?

• Govt of India is the biggest cheater of nation and Prime Minister and his gang (read Cabinet) are worst cheats. 
• During the past three years, crude oil prices in international markets have fallen to 1/3rd and more than 80% of it was knocked off by GOI in the form of increased excise duty.
• Every fortnight Oil Companies adjust their tariff matching international prices in Shastri Bhavan and North Block announces increased excise duty within an hour.
• Since few months fuel pricing was shifted from fortnightly to daily and consumers were to benefit from falling crude prices without any delay is what Arun Jaitley surreptitiously indicated to people of India. 
• But what happened is opposite and reduction in excise duty was conspicuously never mentioned as if it is irrelevant item. It becomes relevant only to lay hands on people's money and not otherwise. Today fuel prices in India are one of the highest in the world. Worse than Pakistan and Sri Lanka.
• Higher fuel prices resulted in higher commodities prices and cost of living is almost doubled, especially to workers and wage earners, during past three years of Modi regime while it was static throughout the world. Are these 'Achche din'?
• For all these non sense activities of driving economy into mess, Modi & Jaitley neither has people's approval nor sanction of Parliament and this issue was never in the agenda of Lok Sabha or Rajya Sabha. Gross misuse of Executive powers by PM & Ministers. Why can't they stick to sanctioned budget and follow standard expenditure procedures?
• What Modi and Co talk of 'bold fiscal reforms' and raising taxes any time they wish are contradictory to each other and none in world will believe our government. Our credibility is lost and who will come to our country with bags of dollars for investing?
• With these bunch of rogues and cheaters at the helm, there is no way we can progress as a nation.

In a democracy, winning election doesn't confer on winner

autocratic powers to do nonsense things. He must confine to 'rule of law'

Government must confine its expenses with in the legislature approved  budget, in letter and spirit. Only emergency expenses could be met with executive orders. Ditto for modifying tax rates. Today Budget and Parliament are just formalities. Govt does what ever it wants to do, albeit whimsically, without following any procedure or laws and answers none. No rule of law for governments. It is only for the people. Once in a while, courts strikes down some actions of governments giving resemblance of existence of democracy. Our FM Jaitley has announced several times before GST roll out that its revenue model is neutral meaning some prices may go up and most prices will come down and overall government doesn't get more or less. Then why all commodities prices have gone up including food and essential items? Any answer?

Cars - Petrol Vs Diesel

Cost: Diesel cars are expensive between Rs. 1 - 2 lakhs depending upon model in hatch back and entry level sedan models.

Mileage: At current 2016 prices, diesel cars mileage is generally 30-40% higher than petrol model. Petrol cars fuel expenses would be 40% more than diesel cars for city driving and 30% for highway driving.

Fuel Prices: About 20 years ago diesel price used to be half of petrol price. However, ever since the deregularisation of diesel prices, the gap between prices of petrol & diesel has come down from Rs.21/litre in 2013 to around Rs. 11/ litre in 2016, i.e. less than 15%.

Monthly running:  Natural choice is a petrol car. But if your average monthly running is higher than 1,200-1,500 km a month purchasing of a diesel car would be economical.

Other Factors: Servicing costs, costs of spare parts and insurance costs are higher for diesel cars than petrol ones. Right from the cost of oil replacement to the battery and clutch plate, etc. all cost more in case of diesel cars. Also, the noise, vibration and harshness levels of petrol cars are lower than that of diesel cars. While diesel engines save with no spark plugs but they do get turbochargers which will push up maintenance costs.

Holding period: While one can hold the petrol car up to 10 years with reliability of usage, diesel cars can be held for about 7 years at the best.

Resale value: Diesel cars  depreciates much faster than petrol cars. After 3 years, while petrol cars gets you about 60% of purchase value, diesel can get you at best 50% of purchase value, in the secondary market.

Pollution: Petrol driven vehicles are easier on the environment.

Conclusion: If your average usage is less than 1,500 kms per month PETROL CAR with lower capital cost, higher fuel costs and lower servicing, spares & insurance costs is suggested. If your average usage is more than 1,500 kms per month DIESEL CAR with higher capital cost, lower fuel costs and higher servicing, spares & insurance costs would prove beneficial.

My View:
About 20 years ago, Maruti was making only petrol cars and diesel cars were preferred only by taxi operators. The advent of CRDI diesel cars offering  improved pickup, higher power, lower fuel consumption and reduced vibrations as well as lesser maintenance costs consumers preference shifted towards diesel vehicles. Today diesel cars share is as much as 40-50% of market. Maruti's lobbying for price preference for petrol cars and restrictions on diesel cars was not heeded to by central government.

With rapid increase in number of cars, year after year, cities are flooded with diesel cars increasing traffic congestion, non availability of sufficient parking in public places and above all pollution levels have crossed alarmingly to higher levels especially in Delhi. Despite banning 15+ year old cars, promoting CNG and banning SUVs with 2L+ capacities have only controlled the pollution growth rates only but pollution levels remained at higher levels. Reducing diesel & petrol price gap didn't yield much result. Now there is thinking to ban diesel cars & diesel SUVs throughout the country which will definitely happen sooner or later first in cities and rest of the country later.

As a responsible citizen, people should voluntarily opt for lower polluting, smaller or optimal power petrol cars only and contribute minimal pollution and help save environment.