Reliance’s reduced petrol and diesel price!! Nice lesson learned from experience..

[kph]

An ad in today’s daily ‘Malayala Manorama’:
"Reliance has reduced the petrol and diesel price to match that of the other petroleum companies".
I remember, Relience stations used to be house full before their price hike.. They expected the same crowd with more profit and increased price. I was one of the happiest to see the result… Empty stations.. employees praying for customers to get rid of their boredom.
And I don’t believe their reasoning "We have cut petrol and diesel prices due to softening international (oil) prices,"
The real reason lies beneath.
And I believe, they have learnt a lesson.

[Steeroid]

Originally Posted by kph

And I don’t believe their reasoning "We have cut petrol and diesel prices due to softening international (oil) prices,"

You better believe their reason - prices have come down throughout the world recently. Even in this part of the world, where retail prices are largely insulated from international oil prices.

This basically means that the state Oil Cos continue to take you for a ride despite the fall in prices outside.

[maxbhp]

I gotta say one thing , they are providing very convenient facilities for Highway travellers, especially those A1 outlets...great place to have a quick relaible munch...Donnow about their fuel, but food is indeed good...

[typeOnegative]

Originally Posted by Steeroid

You better believe their reason - prices have come down throughout the world recently. Even in this part of the world, where retail prices are largely insulated from international oil prices.

This basically means that the state Oil Cos continue to take you for a ride despite the fall in prices outside.

Very true. I wonder why nothing is done when the oil prices go down in the international market. Prices for fuel here seem to be regulated like a one way valve.

[esteem_lover]

never heard of oil prices coming down in india. maybe reliance is setting a new trend. a very welcome trend. just like they did in the cell phone sector.

[kph]

Originally Posted by typeOnegative

Very true. I wonder why nothing is done when the oil prices go down in the international market. Prices for fuel here seem to be regulated like a one way valve.

Two points come to my mind...
It's difficult to think that the reliance petroleum price is directly linked with the international oil price and should go above the prices of other oil companies in India.
1) Reliance has got its own wells and oil refineries, considered as a self sufficient. (I don’t want to mention if all the reliance stations are filled by their own tankers or those from Indianoil. That’s business anyway).
2) The oil price went up to $78 barrel and now has come down to $59.33 per barrel.
Its almost 20% drop. Did reliance price come down by 20%?
Also there wasn’t a reason for the price to go up (remember reliance unanimously hiked the price when others didn't)

[condor]

Originally Posted by kph

Its almost 20% drop. Did reliance price come down by 20%?

But has anyone dropped prices at all? They wont - the prices are still controlled by the govt. The only direction the prices take is upwards.

[Bullfrog]

Finally there is a price match between Shell and Reliance. It was a pleasent surprise while I filled in at one Reliance pump on NH4 last friday.

Yesterday on my way back saw petrol pump attendants carrying lollypops (F1 ishtyle) with prices written on it and waving at vehicles. Whatever Reliance may think, finally the market rules with lot of competitiors in business...Unlike the polyester days of papa Ambani

cheers
Bullfrog

[lsjey]

I agree with maxbhp. Their A1 outlets are really good. I usually stop at towns for finding a good hotel and restrooms. A1 fits the bill. their restrooms are well maintained, and what more not crowded (may be because of higher prices of petrol and diesal).

I think that the A1 concept shows that there is a lot of opportunity still untapped on the highways, and reliance is too good at identifying such opportunities.

lsjey

[Steeroid]

Originally Posted by kph

Reliance has got its own wells and oil refineries, considered as a self sufficient.

????? Refinery (not 'ies'), yes. Oil Wells? Since when? They've had a couple of large LNG finds, but no known OIL finds as yet.

Can someone educate us with the facts?

[kph]

Originally Posted by condor

But has anyone dropped prices at all? They wont - the prices are still controlled by the govt. The only direction the prices take is upwards.

1) There is a fact that others didnt increase where reliance did..
2) Now the drop made by reliance doesnt match the drop in international market, but just make them competant with the public sector companies.

Originally Posted by Steeroid

????? Refinery (not 'ies'), yes. Oil Wells? Since when? They've had a couple of large LNG finds, but no known OIL finds as yet.

Can someone educate us with the facts?

Can anyone tell us (1) if the crude oil finding in Krishna-Godavari basin (14 trillion cubic feet) by reliance (the largest oil find in the world over in 2002) has been commissioned or not..(2) Has reliance got any contribution to approximately 7% oil production by private sector in India?

[ram_hyundai]

yes they are gaining much sales now due to the price slash.and the facilities provided at the pumps are unmatched.especially the a1 category.
i had enjoyd this on a trip from trivandrum to vellore.good food and nice ambience.
ram

[bigman]

This will be a godsend for the local Reliance pump. When it opened and prices were competitive the two local India Oil Pumps were soon reduced to only a trickle of customers each day (I guess the fact that one was known to sell diluted diesel helped with this). When prices went up at Reliance the opposite happened and everyone was back to the India Oil pumps. I still carried on using the reliance pump as I found the fuel was better and the higher cost was offset by the slightly better average.

[coolkid]

it will soon go high.... now that their refinery caught fire. there is going to be a fifty percent shortage in production and the unit is going to be shut down for two weeks. It may extend upto two months also.

[sreenivass]

The only petrol pump where the attendant says "Air and water are free sir" you dont need to pay whenoffered some money.

I like that trend too.