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Petrol Up By Rs. 5

Prices of petrol are up by at least Rs. 5 over the country from midnight today.

I went to a petrol bunk to check out the madness, and it took me exactly 30 minutes to stand in a line of 20 cars or so, filling up their tanks. Some of them filled just 10 liters. To save Rs. 50, they idled for around 20 minutes, which should take out a substantial part of the saving in the first place. Plus there were fights, people trying to butt in, etc.

I was part of it all, though at least I was aware the maximum I would save was Rs. 125 (25 liters). The wait probably took more than Rs. 25 off anyhow, and I lost at least Rs. 50,000 worth of time in terms of playing with my son in the park. Net net, it was a horrible deal. Never doing it again.

The revised price list is such:

Delhi – Rs.63.37

Kolkata – Rs.67.71

Mumbai – Rs.68.33

Chennai – Rs.67.22

Gurgaon – 1 real estate “investment” property + 1 cow + Rs. 66. (just kidding. The cow is optional)

We need a diesel price hike too, immediately. Let’s hike all the prices. Eventually if the government want to reduce prices, it can reduce taxes on these fuels (more than half of the petrol price is tax). But it won’t do that, so we all have to use lesser petrol. I’m darn lucky that I work mostly out of home.

Raising prices will show up in higher inflation in the near term. But is this enough to slow usage? I don’t know – it will take a diesel, kerosene and LPG price hike to cut things down. For me, a single cylinder of LPG lasts about 6 weeks, so I pay about Rs. 250 per month; I would gladly pay 30-50% higher because in the end the subsidy is also going out of my pocket some other way.

  • Neha says:

    >This 9th time fuel price hiked in 9 months.

    A special gift for WB, Kerala and Assam peoples…….

    Congress completely fooled those states…

  • Statspotting says:

    >Interesting to compare our governments actions with whats happening in China. There is a serious effort there to cool down the economy. Here we have the RBI rising interest rates on one end and the govt hiking fuel prices on the other end. Its a functioning anarchy.

  • Raja says:

    >Let's add the prices of Bangalore to the list. Nahin to unke saath bahut na insaafi hogi thakur!!

    It's going to be 70/- now 🙂

  • Brijesh says:

    >Increasing the petrol price was the easiest option. Need to increase the prices of other fuels and the Government shoud be encouraged to cut down the taxes inbuilt in the fuel price. You're absolutely right when you say that taxes add up to more than 50% of the cost. If the idea was to reduce the losses of oil' cos, the Govt could have raised the price and cut down the taxes inbuilt in the price. Well , the Government wants the cake and eat it too .

  • Anonymous says:

    >What about the exchange rates?

    Also can you please provide an analysis on the money supply if you can get the data?

  • rakesh says:

    >Rs. 250 for an LPG Cylinder? that's strange
    Which city do you live in?
    In metros namely Bangalore, Mumbai as far as i know its over Rs. 350 per cylinder.

  • Deepak Shenoy says:

    >250 per month Rakesh- since a cylinder lasts 45 days…