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Old 15th December 2014, 19:52   #4381
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Default Re: The Official Fuel Prices Thread

As per reports both petrol and diesel prices have been cut by 2 Rs. I'm unable to understand their calculation of the pricing of fuel. Can someone throw some light. As per the recent reports RBI Governor had asked Oil Marketing to hedge this low cost of crude for future supplies which OMC had declined which means they don't have any hedged Oil then why isn't the prices coming down real time?
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Old 15th December 2014, 20:56   #4382
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Yes, the massive Rs. 1 cut is eagerly awaited.
We have been given a double bonus with a 2 Rs cut in petrol/diesel prices. Far far far greater than general what was expected.
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Old 15th December 2014, 20:58   #4383
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& I was thinking some oil company joker was reading this forum.
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Old 15th December 2014, 20:59   #4384
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Originally Posted by sachinayak View Post
We have been given a double bonus with a 2 Rs cut in petrol/diesel prices. Far far far greater than general what was expected.

Finally, some benefit being passed on rather than pocketed.

http://profit.ndtv.com/news/economy/...re-each-713367
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Old 15th December 2014, 22:21   #4385
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Default Re: The Official Fuel Prices Thread

Petrol, diesel rates cut by Rs. 2/litre

Source link: http://timesofindia.indiatimes.com/b...w/45525208.cms

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NEW DELHI: Petrol and diesel prices were today cut by Rs 2 per litre each as international oil prices slumped to five-year low.

This is the eighth straight reduction in petrol prices since August, and fourth in diesel since October. New rates will be effective midnight tonight, Indian Oil Corp, the nation's largest fuel retailer, announced here.

In Delhi, petrol will cost Rs 61.33 a litre, the lowest in 44 months, as compared to current price of Rs 63.33. The price has been cut by Rs 2.09 a litre in Mumbai to Rs 68.86.

Rates differ from state to state because of varied rates of local sales tax or VAT.

Diesel will cost Rs 50.51 a litre in Delhi, the lowest since July 2013, as against Rs 52.51 currently. In Mumbai, it will cost Rs 57.91 per litre as compared to Rs 60.11.

The rate cut would have been steeper but for the government deciding to make hay out of the crude oil rate slump to $62.37 per barrel by raising excise duty on petrol by Rs 2.25 and by Re 1 a litre on diesel.

Crude oil price in June was $115 per barrel. The prices of petrol and diesel were last revised downwards on December 1 by 91 paisa a litre and 84 paisa per litre respectively (including state levies at Delhi) on the back of declining international oil prices.

After today's reduction, petrol price has been cut by Rs 12.27 per litre cumulatively since August.

Diesel price was cut for the first time in more than five years on October 19 by Rs 3.37 a litre when the government decided to deregulate the fuel. This was followed by a Rs 2.25 a litre reduction on November 1 and 84 paisa per litre on December 1. Cumulatively, diesel prices have been cut by Rs 8.46 a litre in four reductions.

There would have been another reduction on November 15 but the government mopped up, raising excise duty on petrol and diesel by Rs 1.50 a litre each.

In the two excise duty hikes, the government has raised its revenue by Rs 10,600 crore this fiscal.

IOC said in a statement: "The prices of petrol and diesel were last revised downwards with effect from December 1 by Rs 0.91 per litre and Rs 0.84 a litre respectively (including state levies at Delhi) on the back of declining international oil prices.

"Since the above price changes, the international prices of both petrol and diesel have continued to be on a downtrend. The Rupee-US dollar exchange rate has however appreciated since the last price change. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel."

The movement of prices in international oil market and Rupee-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, it added.
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Old 16th December 2014, 13:50   #4386
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I was going through some historic data. In the middle of 2005 Crude was $60 per barrel. Petrol was sold at Rs. 43 and Diesel was Rs. 30 per liter.
Even after adjusting cost of Refining and Distribution to current inflation rates, I am not able to understand how these numbers are calculated to give a price cut.
Not a single media house is raising the basic questions. Please correct me if I am thinking wrong here.
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Old 16th December 2014, 14:49   #4387
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Default Re: The Official Fuel Prices Thread

Tanked up my Punto 1.3 today morning in Panvel @ 56.28 per liter

Quote:
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I was going through some historic data. In the middle of 2005 Crude was $60 per barrel.
Average Crude rate in 2005 was $50, in 2006 it was $58 per barrel. Only in 2007 average rate breached $60.

Source:http://www.ioga.com/Special/crudeoil_Hist.htm
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Old 16th December 2014, 15:11   #4388
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Tanked up my Punto 1.3 today morning in Panvel @ 56.28 per liter



Average Crude rate in 2005 was $50, in 2006 it was $58 per barrel. Only in 2007 average rate breached $60.

Source:http://www.ioga.com/Special/crudeoil_Hist.htm
May be the site I referred did not have correct info. Thanks for correcting.
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Old 16th December 2014, 15:52   #4389
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Default Re: The Official Fuel Prices Thread

let's take this issue step-by-step

Why have oil prices slumped ? And that too in winter when oil price peaks ?

the oil prices have slumped because the west is waging economic warfare on Russia and to an extent on Iran. While west has a clear motive to wage a war against Russia, for it's policies in Syria and Ukraine. Saudi Arabia has personal vendetta against Iran. This is the main reason for oil price slump.

The slump in China didn't happen overnight, it was ongoing for 2 or more years during which period consumption by China decreased rapidly but oil prices didn't fall in same proportion.

Oil is another 'market-determined commodity'. And whenver one hears the word 'market-determined' it should be understood that it is being controlled by a cartel. It is kind of like similar to how oil price is determined in 'deregulated oil market' of India. Common feature in both is that both are scams.
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Old 16th December 2014, 16:46   #4390
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by napster1311 View Post
I was going through some historic data. In the middle of 2005 Crude was $60 per barrel. Petrol was sold at Rs. 43 and Diesel was Rs. 30 per liter.
Even after adjusting cost of Refining and Distribution to current inflation rates, I am not able to understand how these numbers are calculated to give a price cut.
Not a single media house is raising the basic questions. Please correct me if I am thinking wrong here.
Agree with the view. Just need to adjust calculations a bit with USD (in which we pay for crude) being 43 Rs in 2005 vs 60+ now.
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Old 16th December 2014, 17:12   #4391
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Oil prices drop further.

Source link: http://timesofindia.indiatimes.com/b...w/45535409.cms
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Old 16th December 2014, 17:32   #4392
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by napster1311 View Post
I was going through some historic data. In the middle of 2005 Crude was $60 per barrel. Petrol was sold at Rs. 43 and Diesel was Rs. 30 per liter.
Even after adjusting cost of Refining and Distribution to current inflation rates, I am not able to understand how these numbers are calculated to give a price cut.
Not a single media house is raising the basic questions. Please correct me if I am thinking wrong here.
I think you cannot compare the two scenarios. Earlier the government was giving subsidy for automotive fuel and the calculations were known only to them.
Now both the fuels are de-controlled and thus i think a comparison will be erroneous.
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Old 16th December 2014, 17:33   #4393
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Originally Posted by JoseVijay View Post
Oil prices drop further.

Source link: http://timesofindia.indiatimes.com/b...w/45535409.cms
Boy 'o boy! Am I dreaming? Come on, come on, I'm wasting time. Now where can I get a good pre-owned Accord V6? Got to enjoy this party. Why did my town have so few to start with?
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Old 16th December 2014, 18:04   #4394
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Default Re: The Official Fuel Prices Thread

I'm loving it But is there anything that we should be worried of in the broader sense? Is everything all right with the economy?
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Old 16th December 2014, 18:27   #4395
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by lurker
the oil prices have slumped because the west is waging economic warfare on Russia and to an extent on Iran. While west has a clear motive to wage a war against Russia, for it's policies in Syria and Ukraine. Saudi Arabia has personal vendetta against Iran. This is the main reason for oil price slump.
Or is this slump due to the US betting heavily on shale-gas exploration to offset the dependence on the Arabs for oil ? Normally OPEC would reduce production when prices slump, so that demand will then bring up the prices. But apparently they are not doing that this time around, since they want to make oil look a more viable option than the costlier-to-extract shale gas (50-60$ per barrel). Which also in a way lines up with your economic-war theory because Saudis still will make profit since their extraction costs are low, while Russia will suffer due to this low price.

Last edited by supremeBaleno : 16th December 2014 at 18:28.
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