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Rise in Price of Train
Fare, Diesel and LPG
'Rail fare hike to hit the
          common man'
• The price of train tickets had not been
  increased for a decade said Railways
  minister Pawan Kumar Bansal. He further
  said that there will be no increase in the
  Railways Budget this year.
• Railway had incurred a loss of Rs 22,000
  crore in the passenger segment in 2012, an
  increase of deficit of Rs 4000 crore from the
  last year.
• The shortage of funds has forced railways to
  curtail allocations for majority of projects.
• The minister said that the hike was
  "imperative" to maintain and improve the
  safety measures and cleanliness of the trains
  as well as upgrade railway stations.
Rise in Price of Train Fare, Diesel and LPG
‘Train fare hike a stab in
         the back’
• A few months ago, the railways started
  levying service tax on tickets of AC
  class.
• The increase ranges from 2 paise per
  km for Second Class Ordinary
  (suburban) to 10 paise per km for AC
  First Class.
• The hike in Sleeper Class: 6 paise while
  in AC Chair Car: 10 paise. AC 3-Tier
  hike is 10 paise. First Class increase is
  03 paise. AC 2-Tier has gone up 06
  paise and AC First Class by 10 paise.
• Passenger fares hiked across the board
  for the first time in 10 years with effect
  from midnight of 21 Jan 2012.
Rise in Price of Train Fare, Diesel and LPG
Rise in Price of Train Fare, Diesel and LPG
Brace for higher fuel bills

• Diesel is the main fuel for transportation
  and farming sectors
• Any increase in the fuel's price has a
  cascading effect on the cost of daily living.
• For diesel, the options are to raise the price
  by Rs 1.50 per litre plus taxes every month
  between January and March. Thereafter, it
  could be raised by Re 1 plus taxes every
  month till its pump price equals market rate.
  The alternative, or a politically more
  workable proposal, suggests raising the
  price by 60 paise per litre every month till
  the gap between subsidized and market
  prices are wiped out.
DIESEL PRICE HIKE
              Old          New
States       Price         Price
 New
 Delhi        41.32        47.15

Mumbai        46.25        53.14

Kolkata       44.76        50.98

Chennai       43.91        50.13
         From http://www.mypetrolprice.com
Diesel price on the rise
• A sharp rise in its price can shock the
  economy and stoke public anger.
• That's why the government may opt for the
  soft option of a partial float by setting a
  fixed subsidy say Rs 5 a litre. Under this
  system, the fuel's pump price would be
  raised if the market rate rises beyond the
  fixed subsidy.
Hike in price of non-
 subsidised cooking gas
• Cooking Gas have direct relation to the last
  household of the country. Thus any increase
  in the price of this commodities directly
  affects the life of ordinary people.
• Cooking gas directly raise the price of meal
  resulting in more problems for the society
  already grappling with price rise and poverty.
• Cooking gas price rise also hamper
  Government’s plan to promote the use of
  clean fuels for cooking in rural areas since
  people would not prefer costly cooking gas to
  other cheaper domestic alternatives (i.e.
  woods and uplas).
Subsidised Prices in   Non - Subsidised Prices in
        States   Metros (Rs./14.2 kg      Metros (Rs./14.2 kg
                      cylinder)                 cylinder)

Delhi                 410.50                    895.50
Kolkata               412.50                    925.00
Mumbai                435.00                    906.50
Chennai               398.00                    890.00
You continue performing the
rituals while I cook food for   Saving gas
one time….
Some Relief to the
          people
•   The government is likely to raise the cap on
    subsidised cooking gas for households to nine
    from six cylinders per year, Petroleum Minister
    M. Veerappa Moily.
•   Government has introduced LPG portability for
    cooking gas. With this customers will be able
    to change cooking gas sellers and dealers
    online and switch from one distributor or
    company from a click of a button.
•   This has been done to provide
    customers, greater choice to select their
    distributor and also bring competition
    amongst the distributors. LPG portability is
    being launched as a pilot in Chandigarh from
    today.
•   It will be expanded to 25 more districts in
    2013-1.
How it is affecting the business ?




For every Business to function/operate, there are certain inputs
(workers, staff, material, etc) which a business needs to bear.
• With increase in the prices of basic goods (transportation, gas, oil, etc) the business has
  to incur huge expenses as the employees will demand more money and they also have
  to spend more to get there inputs (raw-material, machine, etc).
• With the increase in salaries and inputs the business will get an output. Since the cost
 price is more the business will want to increase there price as they would want to keep
 the current profit rate.
 Thus there is a problem….
Solutions                    Effect                         Results
Have a mass job cut   It will reduce the cost price • Dissatisfaction among workers
                      to some extent.               • May result in decrease in
                                                    output


Reduce the profit %   It would make the            • Dissatisfaction among
                      employees happy               investor/shareholder
                                                   • May stop investing in the
                                                    company


Increase the price    It would make the            • Consumer might not want to
                      employees and                 spend more as there expenses
                      shareholders happy            have also increased
                                                   • Consumer might find it very
                                                    expensive. Thus, Sales might
                                                    fall, resulting in lesser profit
Recommendations
• As per the survey conducted most people suggested
  that a huge amount should be spend on improving
  the infrastructure, better utilization of resources
  which might help in bringing down the price of
  producing that product or providing that services.
  But there are limitations also…
 Does the company have sufficient fund to make
  that change.
 Will all the members agree to that proposal.
 Even after spending, will it bring in desired profit.
THANK   YOU

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Rise in Price of Train Fare, Diesel and LPG

  • 1. Rise in Price of Train Fare, Diesel and LPG
  • 2. 'Rail fare hike to hit the common man' • The price of train tickets had not been increased for a decade said Railways minister Pawan Kumar Bansal. He further said that there will be no increase in the Railways Budget this year. • Railway had incurred a loss of Rs 22,000 crore in the passenger segment in 2012, an increase of deficit of Rs 4000 crore from the last year. • The shortage of funds has forced railways to curtail allocations for majority of projects. • The minister said that the hike was "imperative" to maintain and improve the safety measures and cleanliness of the trains as well as upgrade railway stations.
  • 4. ‘Train fare hike a stab in the back’ • A few months ago, the railways started levying service tax on tickets of AC class. • The increase ranges from 2 paise per km for Second Class Ordinary (suburban) to 10 paise per km for AC First Class. • The hike in Sleeper Class: 6 paise while in AC Chair Car: 10 paise. AC 3-Tier hike is 10 paise. First Class increase is 03 paise. AC 2-Tier has gone up 06 paise and AC First Class by 10 paise. • Passenger fares hiked across the board for the first time in 10 years with effect from midnight of 21 Jan 2012.
  • 7. Brace for higher fuel bills • Diesel is the main fuel for transportation and farming sectors • Any increase in the fuel's price has a cascading effect on the cost of daily living. • For diesel, the options are to raise the price by Rs 1.50 per litre plus taxes every month between January and March. Thereafter, it could be raised by Re 1 plus taxes every month till its pump price equals market rate. The alternative, or a politically more workable proposal, suggests raising the price by 60 paise per litre every month till the gap between subsidized and market prices are wiped out.
  • 8. DIESEL PRICE HIKE Old New States Price Price New Delhi 41.32 47.15 Mumbai 46.25 53.14 Kolkata 44.76 50.98 Chennai 43.91 50.13 From http://www.mypetrolprice.com
  • 9. Diesel price on the rise • A sharp rise in its price can shock the economy and stoke public anger. • That's why the government may opt for the soft option of a partial float by setting a fixed subsidy say Rs 5 a litre. Under this system, the fuel's pump price would be raised if the market rate rises beyond the fixed subsidy.
  • 10. Hike in price of non- subsidised cooking gas • Cooking Gas have direct relation to the last household of the country. Thus any increase in the price of this commodities directly affects the life of ordinary people. • Cooking gas directly raise the price of meal resulting in more problems for the society already grappling with price rise and poverty. • Cooking gas price rise also hamper Government’s plan to promote the use of clean fuels for cooking in rural areas since people would not prefer costly cooking gas to other cheaper domestic alternatives (i.e. woods and uplas).
  • 11. Subsidised Prices in Non - Subsidised Prices in States Metros (Rs./14.2 kg Metros (Rs./14.2 kg cylinder) cylinder) Delhi 410.50 895.50 Kolkata 412.50 925.00 Mumbai 435.00 906.50 Chennai 398.00 890.00
  • 12. You continue performing the rituals while I cook food for Saving gas one time….
  • 13. Some Relief to the people • The government is likely to raise the cap on subsidised cooking gas for households to nine from six cylinders per year, Petroleum Minister M. Veerappa Moily. • Government has introduced LPG portability for cooking gas. With this customers will be able to change cooking gas sellers and dealers online and switch from one distributor or company from a click of a button. • This has been done to provide customers, greater choice to select their distributor and also bring competition amongst the distributors. LPG portability is being launched as a pilot in Chandigarh from today. • It will be expanded to 25 more districts in 2013-1.
  • 14. How it is affecting the business ? For every Business to function/operate, there are certain inputs (workers, staff, material, etc) which a business needs to bear. • With increase in the prices of basic goods (transportation, gas, oil, etc) the business has to incur huge expenses as the employees will demand more money and they also have to spend more to get there inputs (raw-material, machine, etc). • With the increase in salaries and inputs the business will get an output. Since the cost price is more the business will want to increase there price as they would want to keep the current profit rate. Thus there is a problem….
  • 15. Solutions Effect Results Have a mass job cut It will reduce the cost price • Dissatisfaction among workers to some extent. • May result in decrease in output Reduce the profit % It would make the • Dissatisfaction among employees happy investor/shareholder • May stop investing in the company Increase the price It would make the • Consumer might not want to employees and spend more as there expenses shareholders happy have also increased • Consumer might find it very expensive. Thus, Sales might fall, resulting in lesser profit
  • 16. Recommendations • As per the survey conducted most people suggested that a huge amount should be spend on improving the infrastructure, better utilization of resources which might help in bringing down the price of producing that product or providing that services. But there are limitations also…  Does the company have sufficient fund to make that change.  Will all the members agree to that proposal.  Even after spending, will it bring in desired profit.
  • 17. THANK YOU