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Old 1st August 2014, 20:48   #3691
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Default Re: The Official Fuel Prices Thread

The fuel increase in not real time like in other countries with deregulated fuel prices. In US, Canada etc, prices change daily, and since all fuel is sold by private players, there are different prices at each each fuel pumps even on same street.

In India, it is once every 15 days and they have to take the average into account, and also keep some cushion for the next 15 days in case prices fluctuate too widely, like either rupee depreciating too much or fuel prices shooting up due to international politics etc. Also, one other fact is that almost 50% of the price of petrol that we pay is in taxes. So if you remove that, the increase/decrease will be more as a percentage on the base prices which is directly affected by international oil prices/exchange rate etc. Just today, rupee depreciated by around 50 paise.

Oil prices have actually remained stable inspite of Iraq/Israel/Syria/Ukraine conflicts because of lesser dependence of US on imported oil. it is simply bringing personal likes/dislikes by targeting one country like Russia etc. OPEC is mainly controlled by Saudi Arabia, and they can control prices by bumping up production as required, like they did during the Iran crisis last year. If one followed international policies, they would remember in the past when US would pressurize Saudi to increase production when prices were high. And cost of production has gone up too. In many places in US/Canada where fracking is used or extracted from tar sands etc and also in Middle-east, production will be unprofitable if prices fall below $75-80 per barrel. So chances of oil prices coming below that is very doubtful.

For diesel, it would have been good if India had made it mandatory for all new cars/SUVs/Buses produced say from 2014/15 to use only ultra-low sulphur diesel, and also had refineries produce the same. Would result in less pollution and no subsidies for the general use segment.
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Old 12th August 2014, 07:36   #3692
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Default Re: The Official Fuel Prices Thread

Seems finally good news for petrolheads - petrol price may fall by Rs 2.50 by Independence Day


http://economictimes.indiatimes.com/...w/40073554.cms
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Old 12th August 2014, 09:34   #3693
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Default Re: The Official Fuel Prices Thread

As for fuel prices, remember Brent has been flirting with $104-105 for quite some time, and the rupee is also stable give or take 25p from 61. So let us hope petrol is cut. As for diesel the next 50p increase is scheduled for the end of the month. Maybe they deregulate at that point.
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Old 12th August 2014, 15:14   #3694
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Default Re: The Official Fuel Prices Thread

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Originally Posted by RSR View Post
This is shameful and disgusting! Petrol users still don't get the benefit of the supposed "de-regulation".



I agree that governments in India are (and always have been) controlled by vested interests of various kinds.

The international oil mafia is indeed a vile, greedy bunch of profiteers. In addition to the ones you mentioned, there are other equally notorious ones - like the mediæval Middle Eastern oil sheikdoms and others, such as the bloodthirsty diabolical mafiosi who run the rogue Russkie empire.
An excerpt from a book review in The Hindu :
“Oil, gas and other hydrocarbons are the most politicised commodities on the planet we live in, whether these be situated in the U.S., in Uganda or in India. Like the governments of many other countries, that the government of India should prefer to place corporate interests before consumer interests should not surprise, for, that is the way the world’s largest democracy has been functioning for quite some time now … what has been truly amazing about the controversies relating to extraction of natural gas from Krishna-Godavari basin was the brazen manner in which the interests of the largest privately-owned company in India were sought to be equated with ‘’national interests’ by the government “.

http://www.thehindu.com/books/books-...cle6305165.ece
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Old 12th August 2014, 15:44   #3695
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Default Re: The Official Fuel Prices Thread

With the Petrol cut of Rs.2.50 or so imminent, Diesel deregulation is also a done deal. How about announcing it from the ramparts of the Red Fort.
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Old 12th August 2014, 15:58   #3696
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sgiitk View Post
With the Petrol cut of Rs.2.50 or so imminent, Diesel deregulation is also a done deal. How about announcing it from the ramparts of the Red Fort.
LOL will be quite appropriate how this guy is just doing what the previous Govt did. Promises of reducing central taxes on fuel etc conveniently forgotten now
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Old 12th August 2014, 16:08   #3697
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sgiitk View Post
With the Petrol cut of Rs.2.50 or so imminent, Diesel deregulation is also a done deal. How about announcing it from the ramparts of the Red Fort.
I have a question and pardon my ignorance if this is obvious, even after deregulation of diesel, if it happens this year, prices of diesel, in Bangalore for e.g. may not exceed 66-67 (going by the current under recovery which is around inr 2.50), so there will always be a price gulf of >10. Is this because of the high tax component in petrol prices whereas taxes on diesel are more modest AFAIK. Is this set to change in the future? i.e. rationalised taxes on petrol. Now that would be a huge game changer in the auto industry
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Old 12th August 2014, 16:31   #3698
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Default Re: The Official Fuel Prices Thread

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Originally Posted by hothatchaway View Post
I have a question and pardon my ignorance if this is obvious, even after deregulation of diesel, if it happens this year, prices of diesel, in Bangalore for e.g. may not exceed 66-67 (going by the current under recovery which is around inr 2.50), so there will always be a price gulf of >10. Is this because of the high tax component in petrol prices whereas taxes on diesel are more modest AFAIK. Is this set to change in the future? i.e. rationalised taxes on petrol. Now that would be a huge game changer in the auto industry
The answer is YES - its due to more tax on petrol.
And my belief is that the taxes on petrol is not going to be reduced anytime soon. So, yes, the price difference of 10 or so is going to be there in the foreseeable future.
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Old 13th August 2014, 17:29   #3699
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Default Re: The Official Fuel Prices Thread

Its confirmed. ToI reports that petrol prices to be cut by Rs. 1.89-2.38 as per Oil Minister.

EDIT:
Diesel price raised by Rs. 0.50 as usual.

News : http://www.firstpost.com/india/petro...t-1662997.html

Last edited by vivekz : 13th August 2014 at 17:49. Reason: Diesel Update
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Old 13th August 2014, 18:42   #3700
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Default Re: The Official Fuel Prices Thread

Independence day offer, petrol to be cheaper. More details in the link below.

http://profit.ndtv.com/news/economy/...gust-15-638458
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Old 13th August 2014, 18:50   #3701
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Default Re: The Official Fuel Prices Thread

Good news. What has perplexed me for sometime is the pricing of the higher grade petrol. Power (and its equivalents) was being sold at close to 80 in Delhi sometime back, and one day it just dropped price to 76.xx. Mind you, the regular petrol continued to cost 72.xx, just the premium one dropped. Still can't get my head around it. Any thoughts ?
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Old 13th August 2014, 19:11   #3702
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Default Re: The Official Fuel Prices Thread

The Rs5 approx cut that you are seeing is due to the budget, where the taxes on the branded fuel were reduced.
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Old 14th August 2014, 10:54   #3703
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Default Re: The Official Fuel Prices Thread

Price Update

Petrol prices are set to reduce between 1.5 to 2.8 rupees from midnight of 15th Aug
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Old 14th August 2014, 15:50   #3704
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by vivekz View Post
DieseIl price raised by Rs. 0.50 as usual.
Not too sure on that. Diesel is raised once a month at the end. Now we may not need it! Price parity is here or almost here.
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Old 14th August 2014, 15:56   #3705
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Quote:
Originally Posted by sgiitk View Post
Not too sure on that. Diesel is raised once a month at the end. Now we may not need it! Price parity is here or almost here.
Yes you are right. I had seen this on some other news page, but seems the reporting was not accurate. Took me by surprise as well.

But no change in diesel price as of now. Diesel is due to revision only on September 1st now.

With three more increases, they would be able to bridge the under-recovery (Rs. 1.33 as of now) assuming crude prices and Rupee remain stable. But the question is will they deregulate it after that or just hold it till the time prices don't escalate again.
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