[drmohitg]

I read in today's paper that they are discussing allowing daily adjustments in petrol prices keeping in consideration the volatile and ever changing global fuel prices and $ vs Rupee exchange rates. This would be in accordance with the model that most countries in the west including USA follow. If its brought in and the govt ensures that its transparent, I think its a great idea. Ofcourse the govt should make sure that they would stop meddling with the model and events like elections should not have any effect on it.

[Jignesh]

Originally Posted by drmohitg

Ofcourse the govt should make sure that they would stop meddling with the model and events like elections should not have any effect on it.

Hello Dr. Mohit,

That is not possible.

We all know that it is a open secret that the Oil Marketing Companies are free to decide the retail Petrol Prices. In reality before every hike, these Companies consult Goverment officials (Political heads) & only after their approval the Prices are raised.

You have also made a good point of Elections - everytime Elections are approaching in a important State, Petrol Prices will not be hiked, no matter how much the Oil Marketing Companies or Governments loses. Thus I feel the completely free Oil Prices are not possible in India before 2014 General Elections.

Thanks,

[drmohitg]

Originally Posted by Jignesh

You have also made a good point of Elections - everytime Elections are approaching in a important State, Petrol Prices will not be hiked, no matter how much the Oil Marketing Companies or Governments loses. Thus I feel the completely free Oil Prices are not possible in India before 2014 General Elections.

Thanks,

Totally agree with you and thats why I mentioned that without this being ensured there is no point in announcing all these deregulation policies. BTW things would stay the same even after 2014. Elections would always be around the corner in one or the other state and our power hungry politicians, cutting across party lines, would always lack courage to take a tough stand.

[mukeshgoel]

Petrol price to be cut by Rs 2.46 from midnight.

Revised petrol prices:

Delhi: Rs 67.78 (from Rs 70.24)
Mumbai: Rs 73.99 (from Rs 76.45)
Kolkata: Rs 73.35 (from Rs 75.81)
Lucknow: Rs 73.22 (from Rs 75.68)
Patna: Rs 71.36 (from Rs 73.82)
Bhopal: Rs 73.50 (from Rs 75.96)

[infotech58]

petrol price reduced by rupee 2.46 per litre. news link:
Oil companies cut petrol prices by Rs 2.46 per litre from midnight - The Times of India

[girishglg]

Source: NDTV - Petrol prices to be reduced by Rs. 2.46 per litre from midnight | NDTV.com

Oil companies are cutting petrol prices by Rs. 2.46 per litre, starting midnight. The cut is based on global crude prices and the exchange rate of the rupee vs the dollar.

The revised prices will vary from Rs. 2.46 per litre to Rs. 3.22 per litre, depending upon local taxes in different states.

See below for major cities-

[volkman10]

In Bangalore Shell prices are 77.70/ l while the PSU rates would be 76.39/l.

Cheers!

[drmohitg]

This has left me very surprised. First you increase the prices by a massive Rs. 7. then you go ahead and cut the prices by Rs 2 and Rs 3 respectively in a matter of a month. Is the oil pricing so volatile to warrant such big price adjustments in such a short span of time?

[nkrishnap]

Originally Posted by drmohitg

This has left me very surprised. First you increase the prices by a massive Rs. 7. then you go ahead and cut the prices by Rs 2 and Rs 3 respectively in a matter of a month. Is the oil pricing so volatile to warrant such big price adjustments in such a short span of time?

For the whole of June they were sitting on the currency fluctuation and have over recovered in a month to take care of any losses during the presidential election phase. Simply attrocious.

This UPA-2 should go if the country needs to see some light at the end of the tunnel.

[man_and_machine]

What ever be the movement in prices, I am happy about one thing, if the fuel prices are market controlled, then so be it. If they were justified with a 7 rs raise, they have also been prompt to reduce it in such short intervals following the fluctuations. I hope they keep it up this way, you know move as the prices moves. What would have been sutipd would be that you raise sharply (since you accumulate by not raising when the cost moves up) due to cabinet approvals, and then do not drop since nobody (read common man) does not do a check on international oil prices.
This tandem movement should be set free and out of political control. There is no way petrol will be ever subsidized again, but then let it at least be decontrolled commodity allowed free market movement. There is still a lag, shell was selling 2 Rs less for more than a fortnight, if they are able to move with shell, that is a major improvement for the PSU oil companies. The lesser talked about D prices the better.

[Jignesh]

Originally Posted by drmohitg

Is the oil ricing so volatile to warrant such big price adjustments in such a short span of time?

Hello Dr Mohit,

Yes. Global crude prices are at four years low. That is why Petrol Prices are reduced twice in last one month.

Had the USD / Rupee exchange rate remained stable at Rs. 50 / 51 then we would have seen further reduction in Petrol Prices. But as USD is hovering around Rs. 57, Oil Marketing Companies cannot reduce the Prices further.

Thanks,

[thalavoy]

And I chose yesterday to fill up my tank, after doing Rs 1000 or Rs 1500 each fill :(

[hellmet]

Was initially supposed to be a Rs.4 cut in price which would have provided huge relief
Oil cos may cut petrol rates by Rs 4 a litre next month - Economic Times

I was waiting for the end of month to fill up my car.

This Rs.3/- cut still provides some relief to petrol car owners such as myself.

[fiat_tarun]

The proposal to fix prices everyday is a very very good idea. The daily increase / decrease will not be more than 50p and the oil companies will be able to adjust prices without fearing public outcry, elections or not.

As much as we hate it, market controlled prices are very important for the economy in the long term. A diesel policy is also being worked out by the PM's finance team and we should see something come up in the months to come.

[mayankjha1806]

Timely reduction considering i am planning my return 1400 Kms drive tomorrow. Hopefully this price will stay at this level for sometime considering crude prices are falling, and our new Finance Minister is making right aggressive noises which if done right may stem Rupee fall.