Comments on: Oil Pricing in India http://indianeconomy.org/2008/01/05/oil-pricing-in-india/ Issues & insights Sun, 12 Oct 2008 11:57:06 +0000 http://wordpress.org/?v=2.6.1 By: tanweer http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-268173 tanweer Mon, 28 Jul 2008 13:00:42 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-268173 hi.... it seems intresting discussion is on ... can anyone help me get the figures abt petrol nd diesel like... what is the % of subsidy given by govt. , what is the sales tax collected by govt. (% as well as figures nd also the subsidy nd sales tax collected by other main countries plz atleast provide me some link ... thanks in advance.... .... hi….
it seems intresting discussion is on …

can anyone help me get the figures abt petrol nd diesel like…

what is the % of subsidy given by govt. , what is the sales tax collected by govt. (% as well as figures nd also the subsidy nd sales tax collected by other main countries

plz atleast provide me some link …

thanks in advance….

….

]]> By: krishna redd y http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-267885 krishna redd y Wed, 16 Jul 2008 08:42:49 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-267885 we used to get the fuel 20$ per barrel in 1994, and it reaches now 140$ per barrel.. most of all the governments either Congress or the BJP used to get the income constantly only on fuel products.. like this they add 1.Octroi + 2.excise + 3.addl exsice + 4.sales tax + 5.surcharge + 6.dealer commission this all will raise the price 59% on the real price, say if u r getting petrole at 50Rs. the charges were included 28.50 and the petrole at 21.50 if u calculate in reverse it will show u as 140% of taxes.. so Govt ultimately making huge profits, where the common public suffering from inflation.. hats off to indian govt. policy.... we used to get the fuel 20$ per barrel in 1994, and it reaches now 140$ per barrel.. most of all the governments either Congress or the BJP used to get the income constantly only on fuel products.. like this
they add 1.Octroi +
2.excise +
3.addl exsice +
4.sales tax +
5.surcharge +
6.dealer commission this all will raise the price 59% on the real price,
say if u r getting petrole at 50Rs. the charges were included 28.50 and the petrole at 21.50 if u calculate in reverse it will show u as 140% of taxes.. so Govt ultimately making huge profits, where the common public suffering from inflation..

hats off to indian govt. policy….

]]> By: Arun Shanbhag http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266809 Arun Shanbhag Mon, 09 Jun 2008 15:42:16 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266809 Isn't it ironic that the Communists in West Bengal are protesting this increase in fuel prices; they are also preventing the Govt from signing the nuclear deal with the US. They obviously don't make the connection - nuclear energy is the only way to get long-term reliable energy. If you have issues with the deal as negotiated, negotiate further! And this is not the end of the increase in fuel prices, this is ONLY THE BEGINNING! It is not a matter of "IF" India will sign the nuclear deal, but WHEN. Welcome to Globalization, CPI. Isn’t it ironic that the Communists in West Bengal are protesting this increase in fuel prices;
they are also preventing the Govt from signing the nuclear deal with the US.

They obviously don’t make the connection - nuclear energy is the only way to get long-term reliable energy. If you have issues with the deal as negotiated, negotiate further!

And this is not the end of the increase in fuel prices, this is ONLY THE BEGINNING!

It is not a matter of “IF” India will sign the nuclear deal, but WHEN.

Welcome to Globalization, CPI.

]]> By: Ashok http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266803 Ashok Mon, 09 Jun 2008 02:24:01 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266803 Goldwinner -- I presume you're being sarcastic? Sometimes I tend to be a tad dense about these things Goldwinner — I presume you’re being sarcastic? Sometimes I tend to be a tad dense about these things

]]> By: goldwinner http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266799 goldwinner Sun, 08 Jun 2008 22:12:30 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266799 This is what the Nehruvians had always feared in the disgust towards crass westernization. We did not have a 'liberal' auto policy and had only an ambassador and fiat all till the early 80s. There was a reason that a nation like ours did not have an auto addition policy. Thanks to the world bank probes installed (google for them) in the govt you now have the economy heading towards ruins - just like their western counterparts. Even during the oil crisis there was prudence in our policy when we had reduced consumption. All solutions towards moving the cost from peter to paul will only result in failures. The only solution is to reduce the usage of all automobiles except for public and emergency purposes. Road is a privilege and all mileage on all automobiles should be taxed at the highest. This will result in efficient public transport utilization, reduced unwanted travel and abuse of oil - an essential commodity. Burning oil is a carbon tax on the front and back. It should be tackled in both directions. Govt rationing of oil would be a good start. This will also lead to healthier lifestyles where more people will start using bicycles and walk for shorter distances. this a social and cultural problem and lacks any economic solution This is what the Nehruvians had always feared in the disgust towards crass westernization. We did not have a ‘liberal’ auto policy and had only an ambassador and fiat all till the early 80s. There was a reason that a nation like ours did not have an auto addition policy. Thanks to the world bank probes installed (google for them) in the govt you now have the economy heading towards ruins - just like their western counterparts.

Even during the oil crisis there was prudence in our policy when we had reduced consumption. All solutions towards moving the cost from peter to paul will only result in failures. The only solution is to reduce the usage of all automobiles except for public and emergency purposes.

Road is a privilege and all mileage on all automobiles should be taxed at the highest. This will result in efficient public transport utilization, reduced unwanted travel and abuse of oil - an essential commodity.

Burning oil is a carbon tax on the front and back. It should be tackled in both directions. Govt rationing of oil would be a good start.

This will also lead to healthier lifestyles where more people will start using bicycles and walk for shorter distances.

this a social and cultural problem and lacks any economic solution

]]> By: Arun http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266788 Arun Sun, 08 Jun 2008 12:52:59 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266788 We are losing quite a chunk of our tax money in the form of subsidies which are taken advantage by unscruplous people and the oil companies making heft profits. The price of petrol should be increased and the price of diesel and cooking gas should be cross subsidised. This will help to reduce traffic, food price and better use of the tax money We are losing quite a chunk of our tax money in the form of subsidies which are taken advantage by unscruplous people and the oil companies making heft profits. The price of petrol should be increased and the price of diesel and cooking gas should be cross subsidised. This will help to reduce traffic, food price and better use of the tax money

]]> By: mohit http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266763 mohit Sat, 07 Jun 2008 13:26:05 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266763 its true that oil companies are suffering great amount of losses due to subsidy given by govt. on petrol and related products. if these companies are in loss for previous many years then how r they working? who is funding them? from where the money for research comes they can't just depend upon the bonds they surely might have profitable margin, which is never disclosed. i just wanted to know i m correct or not. its true that oil companies are suffering great amount of losses due to subsidy given by govt. on petrol and related products.
if these companies are in loss for previous many years then how r they working?
who is funding them?
from where the money for research comes
they can’t just depend upon the bonds
they surely might have profitable margin, which is never disclosed.
i just wanted to know i m correct or not.

]]> By: Pragmatic Euphony » Blog Archive » Upsetting oil pricing conundrum http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266623 Pragmatic Euphony » Blog Archive » Upsetting oil pricing conundrum Tue, 03 Jun 2008 18:32:58 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266623 [...] Earlier post on the subject: Oil Pricing in India [...] [...] Earlier post on the subject: Oil Pricing in India [...]

]]> By: The Indian Economy Blog » Upsetting Oil Pricing Conundrum http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266622 The Indian Economy Blog » Upsetting Oil Pricing Conundrum Tue, 03 Jun 2008 18:31:23 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266622 [...] Earlier post on the subject: Oil Pricing in India [...] [...] Earlier post on the subject: Oil Pricing in India [...]

]]> By: WhatsUp http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266169 WhatsUp Wed, 14 May 2008 04:48:17 +0000 http://indianeconomy.org/2008/01/05/oil-pricing-in-india/#comment-266169 Considering the level of taxes on petroleum products the cost of fuel in India is more expensive than the cost of fuel in US. The money collected as taxes is recycled back to the oil companies.. As per the indian govt the oil marketing companies are guaranteed a 16% return on capital (16% is my assumption ) so the losses are but notional losses.. and actually the person on the street is paying more for oil in India.. It is good to keep the price of oil artificially high as making the indian economy addicted to oil would be a disaster.. at the same time giving the individual a sense that the govt is subsidizing the petrol & diesel price helps maintain the stability.. OIL companies are great investments just look at HPCL Sales=89,725Cr (March 2007) Current Market Cap=7,957Cr CMP=234 Average divident for last 5 years 150% = 15/= Divident is 6.6% for CMP. In addition you get 7909 retail outlets 42 LPG Bottling plants 13 Aviation service utilities Refining capacity of 16.6MT No wonder 13% of share holding by FII ONLY 6.88% by individuals 5.6% by mutual funds.. I think the indian Oil marketing companies are very cheap and are guaranteed by the Govt.. you will also get chance every year or so to sell out at good valuations.. HPCL 52 Week High/low numbers are 405/208 =Happy Investing Considering the level of taxes on petroleum products the cost of fuel in India is more expensive than the cost of fuel in US. The money collected as taxes is recycled back to the oil companies..

As per the indian govt the oil marketing companies are guaranteed a 16% return on capital (16% is my assumption ) so the losses are but notional losses.. and actually the person on the street is paying more for oil in India..

It is good to keep the price of oil artificially high as making the indian economy addicted to oil would be a disaster.. at the same time giving the individual a sense that the govt is subsidizing the petrol & diesel price helps maintain the stability..

OIL companies are great investments just look at HPCL
Sales=89,725Cr (March 2007)
Current Market Cap=7,957Cr
CMP=234
Average divident for last 5 years 150% = 15/=
Divident is 6.6% for CMP.

In addition you get
7909 retail outlets
42 LPG Bottling plants
13 Aviation service utilities
Refining capacity of 16.6MT

No wonder 13% of share holding by FII
ONLY 6.88% by individuals
5.6% by mutual funds..

I think the indian Oil marketing companies are very cheap and are guaranteed by the Govt.. you will also get chance every year or so to sell out at good valuations..
HPCL 52 Week High/low numbers are 405/208

=Happy Investing

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