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Old 25th December 2015, 11:28   #5131
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Default Re: The Official Fuel Prices Thread

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Originally Posted by johannskaria View Post
Is $20 even a viable cost of production for OPEC countries?
I heard that for Saudi and co it is more like $8 per bbl. For Russia it may even be closer to $40! Shale oil is almost certainly unviable below $40.

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Price change will be irrelevant till the barrel prices hits 70-80$. Till the price is decreasing, the government will just keep increasing tax to compensate for the decrease in price. Even if oil comes to 5$ per barrel, we will be paying Rs. 70 at the pump.
Why not! It is the state govts who started the game by stopping cuts in VAT by defining a floor VAT. Both sides of the spectrum did that!.
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Old 25th December 2015, 11:46   #5132
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Default Re: The Official Fuel Prices Thread

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Both sides of the spectrum did that!.

Excise duty on petrol has more than doubled in the last year and a half. This is plain profiteering by the government. Middle class has been the one who has suffered most because of this government.
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Old 25th December 2015, 11:52   #5133
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Default Re: The Official Fuel Prices Thread

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Originally Posted by romeomidhun View Post
When the crude oil prices were around $120, the Petrol were priced at Rs 75/- in Chennai. Now, when the crude is priced at 1/3rd of that at around $40, Petrol is priced around Rs 60/-! And nobody even from the opposition is there to react against it. This is absolute daylight robbery. And people who blindly say "kee jai" for these kind of rulers, will once realise what a "change" they have brought.
So true, what is the point of deregulation if the prices are going to not go down even when crude goes down. Pathetic.

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Excise duty on petrol has more than doubled in the last year and a half. This is plain profiteering by the government. Middle class has been the one who has suffered most because of this government.
Aye, you should be sent to Pakistan, asked to join ISIS or you are anti national/against development if you criticize this government

Last edited by humyum : 25th December 2015 at 11:53.
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Old 25th December 2015, 12:02   #5134
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Default Re: The Official Fuel Prices Thread

as per recent speech by our FM, numerous times state governments have raised excise duties whenever there is fall in prices.
and two time central govt raised excise duties.
Which results in marginal price drop in the end.
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Old 25th December 2015, 12:11   #5135
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Default Re: The Official Fuel Prices Thread

Two times? :-)

http://articles.economictimes.indiat...l-and-rs-litre
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Old 25th December 2015, 15:23   #5136
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Default Re: The Official Fuel Prices Thread

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Originally Posted by carboy View Post
Excise duty on petrol has more than doubled in the last year and a half. This is plain profiteering by the government. Middle class has been the one who has suffered most because of this government.
If we want low inflation, then the deficit cannot be allowed to go haywire. So in case Excise does not go up, then we will have to cough up in higher taxation, or higher inflation. Hobson's choice.

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So true, what is the point of deregulation if the prices are going to not go down even when crude goes down. Pathetic.
Ask the state govts, why they went for a floor rate of VAT!

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Originally Posted by DriveOnceMore View Post
as per recent speech by our FM, numerous times state governments have raised excise duties whenever there is fall in prices.
and two time central govt raised excise duties.
Which results in marginal price drop in the end.
State Govts increase VAT which Centre increases Excise. These are their respective jurisdictions. See how states opposed Petroleum and C2H5OH in the main GST setup.
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Old 25th December 2015, 15:59   #5137
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sgiitk View Post
If we want low inflation, then the deficit cannot be allowed to go haywire. So in case Excise does not go up, then we will have to cough up in higher taxation, or higher inflation. Hobson's choice.
That fallacy is called false dichotomy, not Hobson's choice.
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Old 26th December 2015, 01:24   #5138
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Default Re: The Official Fuel Prices Thread

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Originally Posted by carboy View Post
Carboy.
Hi
I read this in the Economic Times and posted the same on FB.
I also posted the May 2014 price of crude/exchange rate . $ 104 per barrel and exchange rate $ = rs 60.39.Particular day in Dec 2015 $ 40.27(Brent and our basket is lower ) and $ = 67.15(It was less than this)
Regards
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Old 26th December 2015, 21:24   #5139
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Default Re: The Official Fuel Prices Thread

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Originally Posted by Lalvaz View Post
If the Volvo is costlier than your car for one person, then it would obviously be costlier for a full car load. What point are you trying to make?

The fact is that the government and OMC's kept issuing statements earlier pressing for deregulation of fuel in order to move to a free and fair market economy. Yet, when global crude prices are dropping, we do not see the benefits. This is unfair at the least.

Also, the public transport in India needs to be dramatically more comfortable, reliable and cost effective if the government wants to wean people away from private cars and suv's. Currently, that's far from reality. Until and unless that happens, it's not feasible to expect people to stop using their private cars.
The point is, the fuel price should be such that the public transport should be cheaper than private transport. If petrol is let to fall as freely as we think of, public transport would be costlier than private transport. Then everyone who can, would take it.

Again, we should not be see things only from oil viewpoint. Letting fuel price fall as it is, would let import go up. The way oil is, the demand wouldnt go down (once bought a vehicle wont go out of service just because of oil price for a long time). So, the best way is not to let consumption not go up.

If public transport availability is not the only factor for giving up private transport. If availability of good transport is the only factor, the companies that have extensive transport systems should see no cars at all (Electronics city companies for e.g.). As much as there would be a pull from availability of public transport, there must be a push away from private transport.

I am not saying whatever situation we are in is good, but this (fuel price policy) is not as bad as we think, at least as of today.

PS: Delhi Govt policy is still missing this. If vehicular pollution is interpreted as the most significant factor, they should have played with fuel price first.
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Old 27th December 2015, 13:13   #5140
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Default Re: The Official Fuel Prices Thread

@babu.sundaram; One major issue you left out is adulteration. You can myriad threads about the best/most reliable fuel bunk in XYZ. Adulteration with Kerosene and Naptha is endemic. When Nepal did away with all fuel subsidies the same of Kerosene dipped by 60% and Diesel went up by 30%. Feel free to draw your own conclusions.

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Old 28th December 2015, 15:55   #5141
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sgiitk View Post
@babu.sundaram; One major issue you left out is adulteration. You can myriad threads about the best/most reliable fuel bunk in XYZ. Adulteration with Kerosene and Naptha is endemic. When Nepal did away with all fuel subsidies the same of Kerosene dipped by 60% and Diesel went up by 30%. Feel free to draw your own conclusions.
Agreed sir. With unadulterated fuel the pollution would be lesser.

But still, even with clean engines, private transport is not a viable option for India. The only way is to embrace public / shared transport. I see higher fuel price as one driver towards it. And yes, there are several other significant factors that need to be in place as well..
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Old 29th December 2015, 20:25   #5142
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Default Re: The Official Fuel Prices Thread

Has anyone noticed that now Brent is somewhat lower than NYMEX/WTI. This has happened after a long time. I had posted the following in July 2011, and it had been pointed out by @dreamcatcher; that brent used to be lower than NYMEX once upon a time. So now we are back!

http://www.team-bhp.com/forum/shifti...de-prices.html (NYMEX & Brent Crude prices)
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Old 30th December 2015, 06:37   #5143
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Default Re: The Official Fuel Prices Thread

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Originally Posted by sgiitk View Post
Has anyone noticed that now Brent is somewhat lower than NYMEX/WTI. This has happened after a long time.
Yes.This is a significant development. This has happened since US has allowed oil exports - right? This will have huge positive impact on fiscal position since I don't think retail price will go down much from where they are.Do you think the forthcoming Iran supplies is priced in fully?
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Old 30th December 2015, 09:39   #5144
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Default Re: The Official Fuel Prices Thread

@ramanak; afaik the US has broached the idea, but not yet opened up exports. Even then I can see two points - can the refineries digest US crude (our Reliance is an exception, which can take anything), and what will be the impact of transport costs.
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Old 31st December 2015, 03:00   #5145
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Default Re: The Official Fuel Prices Thread

@sgiitk; IIRC the US opened up exports to NAFTA two years ago and earlier this year opened it to the entire World, also US spews out some of the sweetest crude, not just sweet it is also 'light' making life easy for the refiners

Last edited by khoj : 31st December 2015 at 03:03.
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