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Old 8th June 2017, 19:19   #16
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Default Re: Fuel prices to be revised daily from June 16, 2017

Question that comes to my mind after this latest news.

Will the private parties like Shell and Reliance too resort to the same practice as they did when the fortnightly revision started? At least Shell followed suit.

Wow! This thread will pick up steam from day 1 as the automobile enthusiasts monitor prices day after day.

Last edited by Gannu_1 : 8th June 2017 at 19:40. Reason: Please avoid typing... like... this... Thank you.
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Old 8th June 2017, 20:07   #17
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Default Re: Fuel prices to be revised daily from June 16, 2017

India is one of the world’s largest crude importers, buying more than two crore tonnes of crude in March alone, according to the data released by the commerce ministry. Fuel prices are based on what is known as the price of the Indian crude basket, which is a combination of Brent and Nymex Crude Indices.
Daily fuel price revisions would be helpful in the long run both for retailers and consumers. Consumers can now get direct relief of lower international crude prices almost instantly, mind you GST is upcoming so even more benefits. Fuel retailers would get benefits and would be able to align their business with International standards. Fuel price volatility is always a concern and now the impact on both retail and consumers would be more damped, as this move would eliminate irregularities due to inventory management by dealers on expectations of upward/ downward revision in fuel price. However, fuel retailers would be impacting their profit margins as I pick up from financial gurus and market watchers, may be so but lets see how the move impacts us all.

P.S.: I am filling up my tank on 15th night as I would be travelling inter-city (PUNE_MUMBAI) on the return journey I would be very keen to see the impact on my wallet.
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Old 8th June 2017, 20:39   #18
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Default Re: Fuel prices to be revised daily from June 16, 2017

As long as it is transparent and the formulae behind the price calculations is clear, I am all for daily/hourly revision of prices.

However, till that happens, I find it difficult to trust PSUs and private oil Cos' in their daily equations and calculations behind fuel prices. Even a 50np variation per litre will mean crores of extra income every day.
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Old 8th June 2017, 21:04   #19
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Default Re: Fuel prices to be revised daily from June 16, 2017

the Oil PSU's are doing this to make an extra buck on the sly, they have the mentality to roadside 2 anna wheeler dealers and bazaar hustlers. Obviously there will be no gain to the consumer from this, as this is another way for the oil PSU cartel to make merry before their ultimate decline in 2030.

Mark my words, prices will fluctuate always on higher side with atleast 50p margins than they have now.
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Old 8th June 2017, 21:18   #20
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Default Re: Fuel prices to be revised daily from June 16, 2017

I feel daily revision of prices of fuel is taking things too far. In any case, the prices of fuels should be ideally linked to the Crude oil price, Exchange Rate, Interest rate and Wage index using a comprehensive and transparent formulae. In the absence of the same, the oil firms can always play in this pricing game to improve upon their margins.

Last edited by DImPo : 8th June 2017 at 21:20.
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Old 8th June 2017, 22:57   #21
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Default Re: Fuel prices to be revised daily from June 16, 2017

Is the infrastructure in place to centrally calibrate every petrol bunk from a central location. Prices of petrol and diesel vary every few km. 2 BP bunks near my house, <1 km apart have a price difference of 12 ps. How are the PSUs going to program every bunk in the country. If they are going to just send a communication via email or SMS, what's to prevent the dealer from adding his cut?
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Old 9th June 2017, 00:46   #22
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Default Re: Fuel prices to be revised daily from June 16, 2017

Quote:
Originally Posted by DImPo View Post
I feel daily revision of prices of fuel is taking things too far. In any case, the prices of fuels should be ideally linked to the Crude oil price, Exchange Rate, Interest rate and Wage index using a comprehensive and transparent formulae. In the absence of the same, the oil firms can always play in this pricing game to improve upon their margins.
Very well said.

In the absence of a transparent formula linking price of crude to retail price of petrol/diesel, there is plenty of scope for manipulation and profiteering. And it suits vested interests to keep it this way. Not just OMCs, the government is also minting a hell of a lot of money. It will be naive to expect daily revisions to provide any relief from already inflated fuel prices. On the contrary, I will expect them to further increase by Rs 1 to 3 quietly, little by little.

OT: Modi is an exceptionally lucky guy. His time in power has coincided with an extended period of low crude prices and very high petrol/diesel prices. Every other PM before him had to burn money by the way of fuel subsidies. For the first time, sale of petrol and diesel is bringing in perhaps lakhs of crores very year. No wonder public spending is at a high and fiscal deficit is at record lows.

Last edited by Shreyans_Jain : 9th June 2017 at 00:52.
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Old 9th June 2017, 07:43   #23
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Default Re: Fuel prices to be revised daily from June 16, 2017

For Info: The moving average of product price for the last 15 days with a lag of two days is taken into consideration for deciding the price.
Prices have to be changed manually even in automated outlets
Quote:
Ajay Bansal, President of the All India Petrol Dealers Association, said: “This is not a good thing for retailers. The pilot project had faced numerous problems that were raised by the dealers to the oil marketing companies. The prices had to be changed manually in 95 per cent of the retail outlets — both automated and non-automated — every night.”
Source: http://www.thehindubusinessline.com/...cle9722827.ece
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Old 9th June 2017, 08:01   #24
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Default Re: Fuel prices to be revised daily from June 16, 2017

What happens if some pumps don't reduce the price on a particular day when the price has been reduced ? Who is going to check whether the price charged is right? Are the oil companies going to do this?

This is going to be the next big rip off. No one would know whether the price being charged is correct - the oil companies may check some major fuel pumps. It would be an opportunity for pumps in small towns and villages to LOOT the common man. Someone in the petroleum ministry has made a lot of money.
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Old 9th June 2017, 09:22   #25
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Default Re: Fuel prices to be revised daily from June 16, 2017

I feel this is a good move. Neither the consumer nor the Oil companies need to wait for 15 days before getting the benefits of decreased or increased Crude prices respectively.
In the US, the prices are updated daily and they vary from pump to pump. A Chevron station at Block 10 may be selling at 2.99 USD per gallon and the Chevron station at Block 11 may be selling at 3.09 USD per gallon.

In fact, if you google - fuel station near me in US, google maps brings out results showing not only the location of the pumps, but also the current selling price at each of those. Fantastic information to the consumer to make an informed decision.
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Old 9th June 2017, 10:15   #26
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Default Re: Fuel prices to be revised daily from June 16, 2017

Will this not result in fleecing customers as how can one keep a track of daily price changes, and it is quite obvious that the dealers will continue to use the old price if there is a reduction for couple of hours to make additional margins.

This needs infrastructure investment and robust vigilance by oil companies. I have seen apps in Europe, which are linked to GPS and show you the cheapest fuel bunk available near you. It may not be required in India as the three oil companies sell at nearly same price (few paisa here or there), yet a good app can provide fuel price update in real time.

Lets see how the implementation works on pan India basis?
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Old 9th June 2017, 12:02   #27
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Default Re: Fuel prices to be revised daily from June 16, 2017

Would be good to have a Gasbuddy site for India now. (www.gasbuddy.com)

Have used this site extensively when I used to live in the US and it gave price updates for gas stations in your area. They relied on their users submitting the gas prices they observed at the gas stations, and get rewarded by points. The more you contribute, the more points you get and then these points give you membership tiers / bragging rights.

It may actually be a good idea to have a sister portal from T-BHP itself. Food for thought ?
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Old 9th June 2017, 14:17   #28
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Default Re: Fuel prices to be revised daily from June 16, 2017

How will the common man learn about the prices that are in effect? Currently, since the change is every fortnight, the newspapers or tv channels report on it. However, I do not think that will continue if it is changing daily. Only the newspapers might have a small box hidden away some place.

Will the oil companies publish a list or something on their website?
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Old 9th June 2017, 20:04   #29
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Default Re: Fuel prices to be revised daily from June 16, 2017

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Originally Posted by NiXTriX2004 View Post
How will the common man learn about the prices that are in effect?
They will pretty much look at the prices at the Petrol bunks itself

Thats the way it is in other countries. Also, like I mentioned in my earlier post - there are websites that list fuel prices and that gives them a view of prices across the various fuel stations in the city / region.
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Old 9th June 2017, 21:27   #30
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Default Re: Fuel prices to be revised daily from June 16, 2017

But why should the retail price change every day? Don't the oil marketing companies have long term agreements for crude and refining? Price doesn't change for them every day, then why should it change for customers? This adds so much unpredictability for businesses where fuel is a major component of their costs - like transport and travels operators. If the oil marketing companies readily agreed to it means they see good profits in it (and loss for customers). Otherwise there would have been resistance from them.

Last edited by jetti : 9th June 2017 at 21:29.
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