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Old 17th May 2008, 20:42   #1
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Default Only branded, costlier fuel in metros

I was a little shocked at reading this in economic times. The article mentions that the all the state owned corporations are going to implement an "industry decision" on selling only the more costlier branded fuels in the metros and stop selling normal fuel.

This reeks of monopolistic trade practice (implemented by all three major state owned companies though). With Reliance and Shell almost out of the market it looks like people are at the mercy of these companies. It is hard to blame them completely though since the article also mentions that these oil companies lose more than 500 crore everyday because of keeping the prices at the artifically low level compared to the global prices. It is high time the government re-visited the tax levied on petroleum products.

Almost all manufacturers have recommended the use of normal petrol/diesel and advice users not to use the branded fuels. I wonder what happens to the vehicles if we are forced to use the high priced fuels regularly...


Source: Economic Times

Last edited by thangu : 17th May 2008 at 20:44.
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Old 17th May 2008, 20:47   #2
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As I saw on TV and read, IMO they will promote more branded fuel to recover their losses Vs normal fuel. They will not stop it completely.

Quote:
IndianOil Corporation implementing an industry decision to push superior branded motor fuels and clip supplies of cheaper unbranded, or normal, fuels.
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Old 17th May 2008, 20:51   #3
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Default Only branded, costlier fuel in metros

IOC is moving towards supplying only "premium" fuel in metros...!!!
It is expected that the others PSUs will follow soon.
This a sad move and they are trying to force customer's to pay a premium.

Source: Economic Times (Only branded, costlier fuel in metros- Oil & Gas-Energy-News By Industry-News-The Economic Times)
Quote:
Life in the four metros is going to get costlier. You may have to pay more for your motoring if you live in any one of them, particularly Delhi, with market leader IndianOil Corporation implementing an industry decision to push superior branded motor fuels and clip supplies of cheaper unbranded, or normal, fuels.

The other two state-run oilmarketers, Bharat Petroleum and Hindustan Petroleum, are expected to follow suit soon. Branded fuels are costlier and have premixed additives, which the companies claim yield higher mileage as they help perform better and lower emissions. In Delhi, normal diesel costs Rs 31.76 a litre while branded ones cost Rs 33.01. Similarly, branded petrol costs Rs 48.52 a litre against Rs 45.52 a litre of the non-branded fuel.
At present, roughly every 25 out of 100 litres of motor fuels sold in the metros are branded. While prices of unbranded motor fuels are decided by the government, the companies are free to decide pump prices of branded fuels.
Since the actual economic benefit of raising prices of branded fuel is limited, many see the move as a desperate bid to goad the government into action. "We are in such a situation that every penny we can squeeze will count. The squeeze will further tighten if the rupee starts appreciating against the dollar," a top oil company executive said.

The three oilmarketing companies had decided on the move while considering raising prices of branded fuels, first reported by TOI last Novemeber. The move was seen to reduce losses from fuel sales as recent marketing drive had increased sale of branded products.

Since the government does not allow periodic revision of pump prices of unbranded fuels in tune with international crude, the companies end up losing roughly over Rs 11 on each litre of petrol and Rs 13 on diesel. The present, pump prices correspond to about $70-75 a barrel of crude, which is ruling at $120 a barrel and looks headed for $150. Combined with losses on cooking gas and kerosene, the three companies are running up losses of Rs 550 crore daily.
EDIT: Oops I was not aware about the other thread.
@Mods: Please do the needful.

Last edited by revved_up : 17th May 2008 at 20:56.
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Old 17th May 2008, 20:53   #4
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http://www.team-bhp.com/forum/indian...el-metros.html (Only branded, costlier fuel in metros)

Similar Thread.
Mods, please merge.
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Old 17th May 2008, 21:15   #5
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Look at the positive side of it, Reliance and Shell might reopen their pumps in these metros. Atleast you would be assured of right quantity and quality of fuel there.

If they want to increase prices, let them do it in the metros for normal fuel itself. My vehicle does not like the branded fuels and runs pretty well on normal fuel. I for one do not want supply of only branded fuels in my city.
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Old 17th May 2008, 21:17   #6
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I remember reading some people having issues with premium fuels. Wont this move had an adverse effect for them?
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Old 17th May 2008, 21:17   #7
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P.I.L. required!
How DARE they?

Where does 'freedom' to choose figure in all of this?

Last edited by anupmathur : 17th May 2008 at 21:19.
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Old 17th May 2008, 21:55   #8
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Reduce the taxes on petrol. See how the losses dwindle on their own. They cant force ppl to buy premium fuel.. Not done
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Old 17th May 2008, 21:57   #9
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Quote:
Originally Posted by hrman View Post
They cant force ppl to buy premium fuel.. Not done
Do we have any choice???
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Old 17th May 2008, 22:05   #10
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As much as we do not like it, i think this is the reality and we are going to have to accept it. remember how Shell stopped dispensing non-premium fuel in its bunks and is vending only premium fuel.
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Old 17th May 2008, 22:09   #11
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Offering only premium is shere daylight robbery and govt should do something to stop it. I Hope they do
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Old 18th May 2008, 01:02   #12
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Indian Rules Who The Hell Makes Them.
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Old 18th May 2008, 07:56   #13
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Shame on this government. They neither have the 'thing' to do a price increase, nor can they hold the subsidy. These yellow maniacs are hiding under oil company skirts, and letting them take the blame.

Last edited by F50 : 18th May 2008 at 09:46.
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Old 18th May 2008, 08:02   #14
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I guess it means both fuel right? Petrol & Diesel? Then certianly is highly impossible to sell ONLY premium brands. There are so many public sector that depends on the diesel and i dont think they will let them do this move.
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Old 18th May 2008, 09:39   #15
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This decision will need the government's backing. With the elections less than a year away it is unlikely that the government will back this decision openly. What we might see, is shortages of unbranded fuel at the bunks with the consumers having to fork out more for the premium fuels which will be more readily available.
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