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Old 28th July 2004, 14:36   #1
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PETROL,DIESEL PRICES TO GO UP AGAIN!!

New Delhi: Within days of government giving limited freedom to state-run oil companies to fix auto fuel prices within a narrow price band, petrol prices are set to go up by Rs 0.57 per litre and diesel by Rs 0.92 per litre from August 1.
The price hike in New Delhi would be sharper due to the increase in sales tax. Diesel price in Delhi will go up by Rs 2.40 per litre, after factoring in sales tax of Rs 1.60 per litre.

While state-run Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd want to raise petrol and diesel prices by Rs 1.50-2 per litre each, the narrow price band, within which the oil firms can revise prices, will see only a marginal increase in prices, industry sources said.

The government had on Monday allowed oil marketing companies to raise or lower petrol and diesel prices by up to 10 per cent every fortnight in step with the cost.

As per the new mechanism, every fortnight, the mean of three months' average landed price of petrol and diesel and last one year's rolling average price would be calculated. Ten per cent of this mean price would be the ceiling and floor within which the oil firms can revise rates.

As per the formula, the landed price of petrol will be Rs 12.88 per litre and diesel Rs 13.2 per litre.

"Diesel prices are already on the top end of the band while there is some leverage in petrol," the sources said while pointing that the oil firms were yet to receive any official notification, in absence of which they will not have any freedom to revise prices and would be solely dependent on government nod even for a marginal hike in prices.

Petrol price was raised by Rs 2 per litre and diesel by Re one per litre on June 16.

On subsequent revisions, which were due on July 1 and July 15, the oil firms were, however, disallowed to revise the prices despite rise in cost of raw material (crude oil) pending formulation of a pricing policy.

Government had on Monday announced the new pricing policy giving limited freedom to state-run oil companies to fix petrol and diesel prices within a narrow price band to insulate domestic consumers from global price volatility.

"The price rise required to match the spurt in cost of raw material (crude oil) is more than the band and so if we want Rs 1.50-2 per litre increase in both petrol and diesel, we will have to seek the approval of Ministry of Petroleum and Natural Gas.

"This may take a fortnight, by which time the next revision would be due and the whole exercise of calculating the averages and the band would begin afresh," sources said.

Petroleum Minister Mani Shankar Aiyar said if the required increase or decrease in petrol and diesel prices in a particular fortnight is more or less than the 10 per cent price band, the oil companies will be "obliged to inform the Petroleum Ministry."

"Under the new dispensation, when international crude prices surge, domestic fuel prices will be caliberated due to the conditions of taking the mean of average landed price of last three months (which would reflect the current trend) and the landed price in last one year (which will moderate the hike)," sources said.

In effect, in times of hike in global prices, the oil companies will not be able to match domestic prices with import parity and will have to sell petrol and diesel below the import parity price.

However, when international prices fall, the oil companies can recover some losses as the entire drop in prices will not be passed on the consumers.

Source : Mid-day.com



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Old 28th July 2004, 19:32   #2
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damnnnnnnnnn
not at all fair ........
in dubai a litre of petrol costs 13 bucksss
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Old 28th July 2004, 21:55   #3
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It may sound unfair....but, hey! its government controlled and nobody would stand against them.
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Old 5th August 2004, 00:42   #4
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damn
i wish somebody could.......
our govt is consisting of money hogging arses ........
no other wordsd......
its because of them that we dont have proper facilities
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Old 5th August 2004, 01:06   #5
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BTW any clue wen Reliance Gas stations are cumin up???
Heard they`ve started with a couple in Pune who the Petrol pricing at 36-37 odd.....

Any help wit this 1 guys???

Keep Rockin!
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Old 5th August 2004, 01:40   #6
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Hey X-machine

Reliance has already started operations within Maharashtra at the Mumbai-Pune highway and on the outskirts of pune as ur mentioned. The closest one to Mumbai, if i am correct, is at koparkhairane, close to vashi.

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Old 5th August 2004, 02:33   #7
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is the petrol at reliance pumps cheaper than others by any chance???
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Old 5th August 2004, 11:00   #8
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I think so.Atleast that is what they said a couple of months back.Lets wait and watch.
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Old 6th August 2004, 01:23   #9
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no no its not at all cheaper.
the normal reliance 87 octane petrol was costing about 10-15 paise more than HP or BP petrol about 2 months back.but the petrol pumps are very well maintained and u can easily wheel spin on the smooth floors

around mumbai its just near the kopar khairane reliance building



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