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Old 5th July 2011, 11:25   #1291
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

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Originally Posted by neoonwheels View Post
So its still costly as compared to the PSU bunks. I wonder how come Petrol is 67/- (close to the PSU bunk pricing). Is this gap of 8-10/- in case of diesel is what we call subsidy by the Govt for Diesel ?
Yes, that's exactly what it is.
BTW, petrol in Hyderabad costs more than 70 bucks. Is it the costliest in the country? I don't understand why the South states have higher taxes on everything - road tax, petrol etc etc. Are they providing us better infrastructure? No way!
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Old 5th July 2011, 11:25   #1292
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Shell normal petrol is 67.85 and HP nornal petrol is 67.86, today morning I filled it in my scooter(from Shell) and yesterday in my car from HP.
Prices are in Ahmedabad
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Old 5th July 2011, 12:18   #1293
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

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Originally Posted by adimicra View Post
Yes, that's exactly what it is.
BTW, petrol in Hyderabad costs more than 70 bucks. Is it the costliest in the country? I don't understand why the South states have higher taxes on everything - road tax, petrol etc etc. Are they providing us better infrastructure? No way!
Nope. Bangalore is the costliest in the country at 71.37 for PSU petrol and 71.35 for Shell.
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Old 5th July 2011, 13:55   #1294
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Funny enough shell is still costlier in TN.
Shell is INR 71 whereas others are INR 68.
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Old 5th July 2011, 14:24   #1295
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Govt is actually making up money (lost in Diesel, Kerosene & LPG) by selling Petrol at inflated prices... no wonder Shell diesel retails for Rs. 55+/ltr

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Shell Unleaded petrol in Bangalore is 71.35. I think its at par with government pumps. Can see big lines at Shell now, which will increase in the coming days..
Assuming that Shell is selling at actual market price, this also goes to prove that the hogwash of Govt. Oil companies losing thousands of crores everyday due to underpricing petrol, is also a big bluff. BTW, the Karnataka government has not yet lowered the excise on petrol/ Diesel. It should go down further by a few paise.
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Old 5th July 2011, 15:05   #1296
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

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Govt is actually making up money (lost in Diesel, Kerosene & LPG) by selling Petrol at inflated prices... no wonder Shell diesel retails for Rs. 55+/ltr
AirWind and HRMAN,
Request you to hold on to your horses. Dont pounce on govt just because Shell is cheaper for a week.
I mean for years no govt has been providing fuel for upto 15-20 INR less than Shell (which is based on global demand prices), where were you comments. Then, anyone who thinks govt is not doing anything should take a lesson on Macroeconomics and read few global Business magazine to understand what the situation actually is. Just dont blindly go by news in Times Now or such channels and say Govt is not doing anything.

Respond to this, So are you telling that when Shell increases its price Govt can go ahead and increase its price? Will you pay the price of fuel quietly then?
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Old 5th July 2011, 17:07   #1297
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Govt does not make money from today's situation.
Its the Oil companies that are making some money that they lost badly all these days.

Shell revises its prices more often than the PSUs.
Today's crude price is 111 per barrel which was 3$ per barrel lesser than what oil was trading for last few months.
Shell has reduced it with immediate effect, but the others can only do it every fortnight.
So until then yes, you may call it that way 'oil companies are making money'

So in 15 days, (or whenever the price revision happens), if the oil companies see a drastic change in crude price (Say 108$ per barrel), they will have to reduce the prices.
Not just to keep up with the Shell prices, but to give the benefits to the people.

Diesel will remain the same as per my guess even if the crude prices go down. That will only reduce the subsidies the govt gives towards diesel. [Difficut to keep the diesel prices fluctuating and yet keep the nation happy]

Should the crude prices rise again, the subsidies towards diesel will rise but Petrol prices will rise again.
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Old 5th July 2011, 18:09   #1298
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

I dont want to be saying this again.. since the thread is just Shell price discussion thread.

@Vinya Do you realize 3$ less / barell means just INR 0.75 per liter less. This is just for the raw material, and you are complaining about companies not reducing price for this

Again let me ask the same questions, if Shell increase the price and our companies increase it will you be OK for it.

Secondly, one issue our govt companies have is, the diesel price have to be sold at subsidized price, (which govt will pay back, but only after 4-5 months) who will pay interest on this amount.

Thirdly, the shell price reduction is just one of its marketing stunts. INR 3 reduction is not effect of reduced raw material price. So dont think any point debating why govt companies are not reducing price here.
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Old 7th July 2011, 12:54   #1299
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Shell Chennai prices as below :

Petrol :
Unleaded: 68.95
Super Unleaded : 71.55

Diesel : 54.95
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Old 7th July 2011, 14:42   #1300
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

I filled it from Bommanahalli station @ 71.35 (shell normal) yesterday
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Old 7th July 2011, 16:06   #1301
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

Those saying that govt is not making money, do not know much about fuel taxes and subsidy equation in India. The amount of subsidy on diesel+LPG+kerosene that the centre doles out is given to PSUs in govt bonds which mature in 7 years. However tax of 110% on petrol and over 70% on diesel is collected in same year. So govt needs to finance the subsidy of 2004 with 2011 taxes.

Given that the consumption of fuel would have gone up by 60-80% in 7 years given the growing salaries/vehicles, the taxes today would outstrip the subsidies to be paid for.

The so called 'tel pool ghata' is a notional number (budgeted deficit) and not a real one.

So with petrol prices now freed, the govt earns more tax each time crude basket goes up and prices are revised. For those saying the PSUs will revise price downwards as soon as crude comes down, you are deluding yourselves, as you may remember the pre recession $37/bl prices did not bring the petrol price down to Rs 23 (proportionate to todays Rs 70 at $110).

The government will not allow PSU to lower price of petrol (below Rs 60 say), because their tax mop-up is reduced. So the oil business always remains positive for the govt, only sufferers are the PSUs and petrol vehicle owners.
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Old 7th July 2011, 16:30   #1302
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

To add to nipunkul's point : consider gasoline prices in US. they might avg. around $3.5 / gallon which works out to 41 Rs/litre
The transportation cost of crude and refining cost shouldnt vary greatly between us n US.
As already pointed by nipunkul over 100% taxation in various forms is what we see and end up paying for. Govt. is simply crying crocodile tears by making up the subsidy story.
While i am not comparing with other high taxed countries like Britain, my case is that there tax that accounts for the steep petrol price. I am not an expert and cant say how and why the taxes should be high or low. but then i dont like the govt crying over subsidy give the high taxation.
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Old 7th July 2011, 16:58   #1303
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

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Originally Posted by vigneshA View Post
To add to nipunkul's point : consider gasoline prices in US. they might avg. around $3.5 / gallon which works out to 41 Rs/litre
OK, but on PPP basis, the value of that Rs 41.00 in USA and India is not the same. List out what all you can buy for the price of a litre of Petrol in India and also in the USA, and you will see what I mean.

INR 69.00 should be about USD 1.50. I think this would be more or less the equivalent of a rupee and a half for an American, may be slightly more? So the Govt comparing prices of fuel on Dollar terms is meaningless.
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Old 11th July 2011, 00:07   #1304
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Default Re: Shell fuel price discussion thread. Update: Going down cheaper than PSU's.

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Originally Posted by Latheesh View Post
I filled it from Bommanahalli station @ 71.35 (shell normal) yesterday
I did a tank full for my K10 today at Shell Rajkumar Road. Price remains at 71.35, but the crowd has increased. Still managed to get petrol fast enough, but took forever to get air filled into the tyres. But good to see more people going back to Shell. I have a feeling that Shell could have maintained the price at 70.60 - it seems a bit shady that they decided to increase the price within a couple of days.

Last edited by CBlazer : 11th July 2011 at 00:09.
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Old 11th July 2011, 00:20   #1305
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Quote:
Originally Posted by vigneshA View Post
To add to nipunkul's point : consider gasoline prices in US. they might avg. around $3.5 / gallon which works out to 41 Rs/litre
The transportation cost of crude and refining cost shouldnt vary greatly between us n US.
As already pointed by nipunkul over 100% taxation in various forms is what we see and end up paying for. Govt. is simply crying crocodile tears by making up the subsidy story.
While i am not comparing with other high taxed countries like Britain, my case is that there tax that accounts for the steep petrol price. I am not an expert and cant say how and why the taxes should be high or low. but then i dont like the govt crying over subsidy give the high taxation.
OT: Guys,I was in Saudi last week. Diesel and Petrol prices made me go crazy.
Diesel = 0.29 Riyals x Rs. 12 = Rs. 3.48 per LITRE
Petrol = 0.69 Riyals x Rs. 12 = Rs. 8.28 per LITRE

In India, we are at the end of the food chain. Everybody in the middle are milking us, "the cash cows".
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