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Old 2nd January 2009, 15:36   #1051
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Yesterday I saw a News item on NDTV about airlines dropping fares big time. A comparison said ATF costs around Rs30 in Delhi while Petrol costs around 45.
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Old 2nd January 2009, 15:42   #1052
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i think this trend is going on for a long time...i rem my cousin who used to travel often by road from Hyd to Bangalore telling that the moment bus enters karnataka border he gets to know



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Originally Posted by kreddy View Post
I think it's our indifference and tolerance levels which is responsible for this state of affairs in Karnataka.

I have travelled extensively in border districts of Anantapur & Chittoor of AP, believe me roads are really good. These places are around 500km from Hyderabad. Can the same be said about places 50 km from Bangalore. There is a road from Hindupur to Madhugiri which I had to travel by car recently, once you enter Karnataka, road is in such pathetic condition all vehicles including trucks travel on fields next to road.

Karnataka is up there with UP & Bihar now. Remember Karnataka is one of most corrupt states in India today.
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Old 2nd January 2009, 15:53   #1053
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1 barrel = 42 US gallons = 158.76 litres of crude.

A barrel will yield about 19 Litres of Petrol and the remainder in kerosene, diesel, tar etc.

cost of 1 barrel is about Rs 2000.
Cost of petrol 19 L is Rs 969.

Not able to find how many litres of other fuels. any pointers?

plus the barrel from different regions has different yields.

The oil from Arabia for instance is not very good for recovering Petrol.
Texas and North Sea provide this sweet oil.

Last edited by bblost : 2nd January 2009 at 15:57.
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Old 2nd January 2009, 16:43   #1054
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Quote:
Originally Posted by bblost View Post
1 barrel = 42 US gallons = 158.76 litres of crude.

A barrel will yield about 19 Litres of Petrol and the remainder in kerosene, diesel, tar etc.

cost of 1 barrel is about Rs 2000.
Cost of petrol 19 L is Rs 969.

Not able to find how many litres of other fuels. any pointers?

plus the barrel from different regions has different yields.

The oil from Arabia for instance is not very good for recovering Petrol.
Texas and North Sea provide this sweet oil.

The above information is wrong. the yield of 1 barrel of US crude oil is -

Finished Motor Gasoline 19.5 gallons
Distillate Fuel Oil 8.61 gallons
Jet Fuel 4.20 gallons
Residual Fuel Oil 2.77 gallons
Petroleum Coke 1.60 gallons
Ashphalt and road oils 1.39 gallons
Liquified Gases 1.43 gallons
Petrochemical feedstocks 1.22 gallons
Miscellaneous 2.98 gallons
Finished Aviation Gasoline 0.08 gallons
Kerosene 0.25 gallons

19.5 Gallons of petrol = 19.5*3.84 or 75L (Approx) of Petrol which in todays price in india is 75*50 = 3750 Rs. just by petrol. diesel accounts for 8.61 Gallons which is 33L or Rs - 1150. So adding up all the bi-products we get over 5000Rs. valued By products from 1 Barrel of crude oil.
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Old 2nd January 2009, 17:17   #1055
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This is the daylight robbery by govt. For a crude barrel costing Rs.2000 they are getting in excess of Rs.5000 per barrel. Astounding facts. But what is our Govt doing? Busy in the internal politics and making statements against terrorists residing in Pakistan, begging UK & US for taking actions against these people.
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Old 2nd January 2009, 17:47   #1056
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http://www.api.org/aboutoilgas/upload/truth_primer.pdf

The above link provides a lot of details on crude oil, pricing, forecasts etc. Its pretty up-to-date as on Dec 08. Its more US related though.

Last edited by appuchan : 2nd January 2009 at 17:50.
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Old 2nd January 2009, 17:47   #1057
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Im veryyy upset at this analysis. Now Im wondering why should I end up paying 3 times the cost of petrol for this quality of pathetic roads? And Bangalore has one of the worst quality of roads and the highest lifetime tax and highest petrol cost? Why?
I remember when i got transfered to bangalore in july this year, I had to pay LTT of 88000/- on my NHC which was 2005 registered in Mumbai. Thats equal to what I paid when getting it registered at the time of purchase. And what do I get in return as an honest tax payer? These abhorrent and hateworthy roads? And would politicians have even paid one rupee to purchase petrol all their lives? They are eating the tax you and I pay. I hate this system!!!
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Old 2nd January 2009, 17:56   #1058
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One needs to also account for the petroleum plant to make petrol diesel and kerosene etc from crude. There is a lot of cost involved.

That said, the petrol price is too high. Partly because of the subsidy for diesel, kerosene and LPG. Petrol is seen as a rich man's fuel and diesel a truck's and bus's fuel, which is partly wrong, atleast nowadays. Internationally, diesel is much more expensive that petrol. 2$ per gallon for pertol vs almost 3$ per gallon for diesel.
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Old 2nd January 2009, 18:01   #1059
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I heard on the radio the other day that they plan to cut petrol prices by Rs.11 & Diesel by Rs.3 only!
If injustice like this keeps going on it will kill the diesel car market.
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Old 2nd January 2009, 18:15   #1060
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Quote:
Originally Posted by Sahil View Post
I heard on the radio the other day that they plan to cut petrol prices by Rs.11 & Diesel by Rs.3 only!
If injustice like this keeps going on it will kill the diesel car market.
Blame the government for taxing the luxury fuel(Petrol) and offsetting this against the commercially used fuel(Diesel).
If petrol was reduced as much as diesel, we would be most happy. On the other hand, if diesel is increased to the same level as petrol, it would lead to a rise in cost of commodities and goods, there by pushing inflation up.
Even hypothetically, if petrol was reduced by Rs.11, the cost would be Rs.40/- in Bangalore and cost of diesel would be Rs.32/- which is still Rs.8 or 20% lesser than petrol. So diesel heads are anyway getting an advantage over petrol.
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Old 2nd January 2009, 18:23   #1061
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Quote:
Originally Posted by hrman View Post
Im veryyy upset at this analysis. Now Im wondering why should I end up paying 3 times the cost of petrol for this quality of pathetic roads?
what about the cost of production and the cost of excavation? Each off-shore rig costs almost $100K a DAY to rent! and what about places where they dont find oil?

the 3 times funda is pulling a parallel between a kg of raw vegetables at the village market (approx 1Re/kilo) and the finished product at a 5star - where a salad (with about 200gms of veges) costs about INR300 (Atleast)
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Old 2nd January 2009, 18:42   #1062
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Quote:
Originally Posted by Sahil View Post
I heard on the radio the other day that they plan to cut petrol prices by Rs.11 & Diesel by Rs.3 only!
If injustice like this keeps going on it will kill the diesel car market.
Sahil I hope you are aware that Diesel is the fuel which is more heavily subsidized than Petrol any further reduction will be totally unfair for the guys using petrol as fuel.
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Old 2nd January 2009, 18:51   #1063
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Diesel is heavily subsidized Sahil. The Government pays a lot of money per liter that you don't. This is the same for LPG. This is done because both these fuels are required for public transport/daily use and whatnot.

The real injustice is against petrol users who have to pay for their fuel, the diesel that you use and the LPG we use at home. If the Government one day decides to drop all fuel subsidies (as it is being pressured to do by International bodies), suddenly your Beemer will become more expensive to run than the equivalent petrol (mileage difference notwithstanding).

@madan - All that cost comes included in the per barrel cost. We are talking about the cost incurred by the oil companies AFTER they buy the crude.

Last edited by ImmortalZ : 2nd January 2009 at 18:53.
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Old 2nd January 2009, 19:00   #1064
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Quote:
Originally Posted by madan80 View Post
what about the cost of production and the cost of excavation? Each off-shore rig costs almost $100K a DAY to rent! and what about places where they dont find oil?
This is already accounted for in crude oil price.

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Originally Posted by madan80 View Post
the 3 times funda is pulling a parallel between a kg of raw vegetables at the village market (approx 1Re/kilo) and the finished product at a 5star - where a salad (with about 200gms of veges) costs about INR300 (Atleast)
Not a equivalent comparison. A mass conversion of crude oil to petrol /Diesel is far less expensive per kg. Even as per US costs our fuel prices are way expensive. As Labor is cheap in India (To run the refinery) we should have had cheaper fuel price (Assuming both crude oil prices in US/India are same).
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Old 2nd January 2009, 19:40   #1065
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The worst would be when the global markets recover. With OPEC and other producers cutting production, we would see a supply crunch. It takes time to get a field back to normal production(up to couple of years even). Since such a situation is only likely after elections, our government will not think twice before increasing the price of petrol by 5-10 bucks every month.
@madan: Once a field begins to produce at full capacity, you do not need to drill and thus you do not need rigs either. As DieselFan pointed out, "those things are taken care of"
@DieselFan: Refining costs are very low, globally. It is so low that cheap labour would probably make a difference of 25p per litre.

If only we stop controlling oil prices...
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