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Old 2nd May 2013, 10:33   #3016
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The gap between petrol and diesel prices is bound to reduce due to government policy.
Wonder how car manufacturers will respond to it.
They might reduce the prices marginally as diesel is more efficient in terms of mileage.
But the fact remains -"higher running costs" be diesel or petrol.
Spend more or fall in line of the long que for public transport systems.
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Old 2nd May 2013, 10:43   #3017
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Default Re: The Official Fuel Prices Thread

Shell Petrol prices react more quickly to the international crude prices.
I will not be surprised if they reduce it by another 3-5 rupees if the crude stays at 100$ mark.

Diesel car sales are definitely going to be hurt if the price difference is only 15 rupees and thereabouts.
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Old 2nd May 2013, 11:34   #3018
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Default Re: The Official Fuel Prices Thread

Fuel prices at Ranchi, Jharkhand:


Unleaded Petrol: Rs. 62.49
Diesel: Rs. 50.80

The difference between the two is now Rs. 11.69 and with Diesel prices catching up every month as per the current policy, I see the sales of diesel cars taking a hit.

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Saket
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Old 2nd May 2013, 11:56   #3019
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Default Re: The Official Fuel Prices Thread

Now this is a serious concern for Diesel car buyers. There is so much uncertainty on Diesel fuel prices. Can anybody throw some light if the price difference for both will come down significantly or will they hold it till the polls.

What would be the position say in the month of November or December 2013.

Some information will surely help people who are planning for a diesel car.

Last edited by Abhi_abarth : 2nd May 2013 at 11:57. Reason: corrected typo
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Old 2nd May 2013, 12:09   #3020
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by gomzi View Post
A friend mentioned to me today that the US would be self sufficient on oil in the next few years. I haven't verified this, but if it's true wouldn't global oil prices go down? In which case we might be able to see lesser gap in petrol and diesel rates. Any thoughts?
This bit of information is true. US companies have discovered something called SHALE OIL (do a Google search) because of which US will be self-sufficient in oil in another few years. They already have surplus natural gas because of SHALE GAS discoveries. And that's why US stock market is zooming.

Expect crude oil prices to slowly fall over the next few years. The Saudis & other middle eastern countries realize this and are diversifying their economies. The replacement of expatriate labour with local employment in these countries (called SAUDIZATION, OMANIZATION etc) is because of this development.
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Old 2nd May 2013, 12:15   #3021
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Abhi_abarth View Post
Now this is a serious concern for Diesel car buyers. There is so much uncertainty on Diesel fuel prices. Can anybody throw some light if the price difference for both will come down significantly or will they hold it till the polls.

What would be the position say in the month of November or December 2013.

One of my friend was saying that this whole drama of Diesel pricing going up and Petrol prices coming down is a play and ploy by India government with car manufacturers, to clear up the Petrol car inventory. But I think it is not.

Petrol prices are coming down because global crude oil prices are coming down to $100 levels which is not under India government's control. Also, the Diesel prices deregulation was a desperate move by the govt to show that they are not far away from economical reforms to satisfy the corporate world, and wanted to reduce the fiscal deficit.

This will continue until the next general election for sure, and only a new party govt at the center who is acting as per their current dialogues can do something different, IMO.

Last edited by romeomidhun : 2nd May 2013 at 12:19.
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Old 2nd May 2013, 13:12   #3022
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by romeomidhun View Post
One of my friend was saying that this whole drama of Diesel pricing going up and Petrol prices coming down is a play and ploy by India government with car manufacturers, to clear up the Petrol car inventory. But I think it is not.
I really don't think the Govt. will be bothered by automobile manufacturer inventories of petrol cars.

Quote:
Originally Posted by smartcat View Post
This bit of information is true. US companies have discovered something called SHALE OIL (do a Google search) because of which US will be self-sufficient in oil in another few years. They already have surplus natural gas because of SHALE GAS discoveries. And that's why US stock market is zooming.

Expect crude oil prices to slowly fall over the next few years. The Saudis & other middle eastern countries realize this and are diversifying their economies. The replacement of expatriate labour with local employment in these countries (called SAUDIZATION, OMANIZATION etc) is because of this development.
Yup, I came home and confirmed this via guru google.

So, the trend I see is falling petrol/diesel prices over the next few years and probably beyond barring short-term fluctuations. This sounds good for petrol-heads

However, I do think CNG/Electric Hybrid vehicles are the way to go for now (until a completely different sustainable technology comes up) and I do hope Indian Oil Co's take steps forward in putting up infrastructure in this direction. Once the infrastructure is there e.g. CNG availability, demand will gravitate towards it.
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Old 2nd May 2013, 13:20   #3023
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by Abhi_abarth View Post
Now this is a serious concern for Diesel car buyers. There is so much uncertainty on Diesel fuel prices. Can anybody throw some light if the price difference for both will come down significantly or will they hold it till the polls.

What would be the position say in the month of November or December 2013
Actually now there is more or less NO uncertainty on Diesel fuel prices. Diesel Prices will continue to increase by about Rs. 1 every 1.5 months or so and so you are looking at a Rs. 6-12 rise over the next 12 months. The Govt has already declared this earlier. Diesel prices will rise till than match the international prices of diesel and then stabilize at that level. At that point it will be quite close to Petrol Prices.

One should now not buy a diesel vehicle only for the savings on fuel prices as the differentials can be assumed to vanish within two years at the most.

One should buy diesel vehicles for the higher fuel efficiency and higher torque which makes for easier city drives. In some case they even provide for higher overall power.

Diesel Car price differential over petrol cars too can be expected to gradually decrease.
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Old 2nd May 2013, 13:23   #3024
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by smartcat View Post
Expect crude oil prices to slowly fall over the next few years. The Saudis & other middle eastern countries realize this and are diversifying their economies. The replacement of expatriate labour with local employment in these countries (called SAUDIZATION, OMANIZATION etc) is because of this development.
Mate, apparently the Shale Oil is nothing something of a new discovery. It has been in usage as early as the 17th century. But the only glitch to this would be the commercial extraction which will shoot up the prices of such extracts.

Further reading can be obtained on this link

http://en.wikipedia.org/wiki/Shale_oil
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Old 2nd May 2013, 14:11   #3025
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by ACM View Post
Actually now there is more or less NO uncertainty on Diesel fuel prices. Diesel Prices will continue to increase by about Rs. 1 every 1.5 months or so and so you are looking at a Rs. 6-12 rise over the next 12 months. The Govt has already declared this earlier. Diesel prices will rise till than match the international prices of diesel and then stabilize at that level. At that point it will be quite close to Petrol Prices.
This is likely to happen quite soon too due to falling global prices, the diesel subsidy has less of a catch-up to do to get on par as per this articlein todays HT.

http://www.hindustantimes.com/busine...1-1053399.aspx

Quote:
Diesel Car price differential over petrol cars too can be expected to gradually decrease.
Currently I think car makers were charging what the market could bear in terms of premium pricing of diesel cars vs petrol engined ones.
The difference will drop as diesel prices rise, but by how much and in what manner is debatable - I think manufacturers will first start offering diesel models at discounts before making the discounted price as the regular price.
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Old 2nd May 2013, 14:36   #3026
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by smartcat View Post
This bit of information is true. US companies have discovered something called SHALE OIL (do a Google search) because of which US will be self-sufficient in oil in another few years. They already have surplus natural gas because of SHALE GAS discoveries.
Found this article regarding Shale Oil extraction in the U.S.

http://dailyreckoning.com/oil-shale-reserves/

The author states there are 2 important processes in extracting Shale Oil from the ground and if companies like Shell/Exxon/Chevron crack these processes in an economic and efficient way, then per barrel could be priced as low as $40 in a few years!!
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Old 2nd May 2013, 15:25   #3027
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Default Re: The Official Fuel Prices Thread

However, Fracking may have serious environmental considerations against it. I am sure this will be fixed in due course.
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Old 2nd May 2013, 15:45   #3028
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Default Re: The Official Fuel Prices Thread

This trend of falling petrol prices and rising diesel prices is going to put the Auto Industry in a big fix.

Over the last few years the shift of preference to diesel cars was so drastic and quick that it caught the manufacturers on the wrong foot. There was a huge queue for diesel variants with no takers for the petrol cars. This led to imbalance in production and demand. It took car makers a while to adjust to this skewed demand for diesel cars , with some companies setting up huge facilities for manufacture of diesel engines to meet this demand. Just when you think that the shift to diesel powered cars is going to be complete, there is another twist in the tale.

Two things will give the Auto industry sleepless nights
1) Falling petrol prices and rising diesel prices.
2) New technologies in petrol engines like TSI and Ecoboost, where small capacity gasoline engines, with the help of turbo charging and other tech produce as much power as bigger engines, delivering terrific fuel efficiency at the same time. Remember what CRDI tech did to diesel engines?
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Old 2nd May 2013, 16:42   #3029
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Default Re: The Official Fuel Prices Thread

OEM's have actually foreseen this trend when deciding investments. Most OEM's are now investing in flexible manufacturing lines, wherein Petrol & Diesel engines can be manufactured on the same line as per demand.

GM started this when they launched the Beat and recently Hyundai has also done the same.
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Old 3rd May 2013, 00:37   #3030
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Quote:
Originally Posted by Soumyajit9 View Post
Hey Sujith,
Hell No !!! Which pump did you fill petrol at ?? If HP/BP/IO, then I am shocked !! Shell prices lower that HP/BP/IO ??
I've been filling up my jazz from past 1 year only at shell outlets and this is not a surprise to me. I've always noticed that petrol price at shell is hovering around the same price that you get at other bunks and sometimes lesser too!
PS: I fill my honda dio most of the times at normal petrol bunks, so i know the price of petrol from shell as well as these other bunks. Sorry DIO!!

Quote:
Originally Posted by Abhi_abarth View Post
Some information will surely help people who are planning for a diesel car.
Just my thought - I would not decide upon buying a diesel car only based upon diesel price, because those who love diesel cars love them because of their sheer torque and at the same time higher mileage. I agree the diesel price does make some difference but not always the first factor to be considered.
PS: I've had the privilege of driving the all powerful Verna CRDI for more than one year and still miss the way it used to pull and accelerate and still end up giving awesome mileage!

Regards
Ekz
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