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Old 16th December 2014, 18:30   #4396
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Default Re: The Official Fuel Prices Thread

Brent is under $60 but the ₹ seems to be in a quasi free fall. Let us see what transpires on the 31st!
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Old 16th December 2014, 18:43   #4397
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Brent is under $60 but the ₹ seems to be in a quasi free fall. Let us see what transpires on the 31st!
Guess further drop in brent crude will be compensated with the fall in rupee and hence, I hope the current prices stay, if not increase. Just filled a tankfull
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Old 16th December 2014, 19:10   #4398
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Default Re: The Official Fuel Prices Thread

Filled the M800 today (Bangalore), petrol was Rs.69.40 a litre .
Not complaining, when is the bubble gonna burst ?
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Old 16th December 2014, 19:42   #4399
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Filled the M800 today (Bangalore), petrol was Rs.69.40 a litre .
Not complaining, when is the bubble gonna burst ?
Where? I paid 67.21 today in a rather new BP bunk near my house.
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Old 16th December 2014, 21:07   #4400
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It seems there something fishy here. The petrol prices in the US are at 2.46 $ a gallon (3.5 liters)
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Old 16th December 2014, 21:40   #4401
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Default Re: The Official Fuel Prices Thread

Since oil business is no charity, even at $60 a barrel they must be making money. So imgaine how much they were making when crude traded for $120. That explains for tax-free middle east regimes and their opulence and their turning desert stretches into lush green meadows and artificial ski slopes etc. etc. But now it looks like OPEC's party through 70s, 80s, 90s ad untl 2013 is coming to an end. And, I for one, have no sympathy for them.
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Old 16th December 2014, 22:22   #4402
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Or is this slump due to the US betting heavily on shale-gas exploration to offset the dependence on the Arabs for oil ? Normally OPEC would reduce production when prices slump, so that demand will then bring up the prices. But apparently they are not doing that this time around, since they want to make oil look a more viable option than the costlier-to-extract shale gas (50-60$ 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.

Bang on. I believe the intent is for the Russian economy to crumble - I think their budgets were planned at oil in the range of $95-$100. The Saudis (supposed leader of OPEC) are comfortable with $60 - attempting to make shale more expensive. Just hope things don't go haywire.
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Old 16th December 2014, 22:31   #4403
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Default Re: The Official Fuel Prices Thread

The whole drama about dropping prices is because US has stopped importing oil and started production in its own oil units. The Saudi's are now trying to compete.
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Old 16th December 2014, 22:57   #4404
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Default Re: The Official Fuel Prices Thread

The Saudis can't go on like this forever. It has to stop somewhere. Right now its looking like a free fall with no end in sight. The middle eastern economies are heavily dependent on oil except maybe the UAE. The more I look at it, the more it seems like some under the table deal between the Americans and the Saudis.
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Old 16th December 2014, 23:07   #4405
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Default Re: The Official Fuel Prices Thread

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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.
Actually, I think it's not the west but Kuwait and Saudi, two of the OPEC countries which are waging this economic warfare through oil on Iran and Russia. US is also suffering from the oil price slump as shale oil needs a considerable higher oil price for it to suffice in its production. Saudi's want the shale oil out too so that there is no competition for them.

Saudi wants President Bashar Al Assad OUT at all costs and if Russia and Iran stop supporting him, he will only be left with his people's support, his army's support and Hezbollah's support. Russia and Iran with their crumbling economy might give in to supporting him (Maybe) although I wish they don't. He is the only hope for Syria right now.

US is waging a war against Russia and Iran in their own way through sanctions. This twin combo is crippling Russia like no one's business. It raised its interest rate from 10.5 % to 17% in just one day. IMAGINE a 6.5% interest rate hike.

Here we are dreaming Rajan decreasing the interest rate by 0.25 to 0.50% and these guys have increased it by 6.5%. Rubble has collapsed to unparallel figures against the dollar. Russia will collapse at this rate.

Plunging oil prices are good for certain economies, but for these countries, its a disaster for world economies and this will effect us a lot in the coming months.

Last edited by humyum : 16th December 2014 at 23:08.
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Old 16th December 2014, 23:54   #4406
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Default Re: The Official Fuel Prices Thread

Yes - As other bhpians have mentioned, this is an Economic War against Russia. It's layman's judgement, as Saudi has increased the Production rather than decreasing the same when the supply is more than demand. It's quite obvious under whose, pressure Saudi has done this.

Otherwise, the Crude prices generally go up during Winter. Entire Europe & North America need excess energy during Winter. Whatever happens, it's a good news for Oil importing India.

But, still it's not complete good news for us - Consumers. While the Crude Price has dropped by 50%, the Petrol price has been reduced only by about 15%. Since, Petrol was de-controlled about 2-3 years back, the price should have been around Rs. 40/- per Litre, including Taxes. But unfortunately our govt. has been increasing the Excise duty as and when the Crude price is reduced. So, more than the Consumers the Govt. is happy because they are getting more revenue in the form of more Excise Duty.

Last edited by jaaz : 16th December 2014 at 23:56.
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Old 17th December 2014, 15:57   #4407
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But unfortunately our govt. has been increasing the Excise duty as and when the Crude price is reduced. So, more than the Consumers the Govt. is happy because they are getting more revenue in the form of more Excise Duty.
Not so simple to make blanket assumptions my friend.

If price goes down by 40%, revenues also fall correspondingly (assuming, lets just first consider this case, correspondingly not much increase in demand). This mean less (revenue) income for the govt as well (from sales, dividend etc). Oil income is a big income for govt that is used to support so many of social programs (of the order of 3L crores).

If, on the other hand, lets say govt allows prices to go down and now correspondingly demand also increases (by 40% so that no loss of revenues) this would mean 40% more imports! That will further distort the Account Deficit, budget, rupee value and everything! Increased pollution in our cities would just be a bonus.

It is not a very straight-forward govt doing things only to fill their coffers. Oil pricing is definitely much much more complicated matter.
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Old 17th December 2014, 16:30   #4408
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Default Re: The Official Fuel Prices Thread

Well folks, all those rejoicing. How many ₹ did you save in a tankful!! Let us see how things progress.
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Old 17th December 2014, 18:38   #4409
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Well folks, all those rejoicing. How many ₹ did you save in a tankful!! Let us see how things progress.

Ever since the reduction has started; i am now saving about 750 bucks on a tankful; it can give me a stomach full of food at a decent restaurant
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Old 17th December 2014, 18:51   #4410
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Default Re: The Official Fuel Prices Thread

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Brent is under $60 but the ₹ seems to be in a quasi free fall. Let us see what transpires on the 31st!
The Rupee seems to be following the Brent in falling. It recorded it's lowest in 13 month period today. Unless Rupee stabilizes, we cannot expect much in terms of cost reduction of fuel.
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