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Old 24th October 2008, 17:54   #31
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I don't think Shell has cut down the pricing yet.
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Old 24th October 2008, 19:02   #32
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Shell Premium Petrol is 62.45/Litre in Bangalore now. Dunno about the PSU pricing.
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Old 24th October 2008, 19:32   #33
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Shell has not cut prices yet. I would go back to shell the moment they cut prices to PSU levels...1 or 2 rs. more than PSU level is fine. The petrol is so good. My 'Bluebird' (recently bought Santro) would love that.
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Old 24th October 2008, 19:58   #34
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Originally Posted by m8002? View Post
hi, any updates on the prices of shell fuel? Has it come down to the PSU levels now?
Nope. They have reduced again and it now stands at Rs.62.43/ltr. Still way ahead of PSUs. And if PSUs still reduce further, then either they have to reduce costs forcefully or they have to close down.
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Old 24th October 2008, 20:09   #35
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the price cutting will also depend on the decision of OPEC members meeting being held in vienna. they control close to 40 % of the entire oil out put in the world
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Old 25th October 2008, 10:28   #36
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Originally Posted by magesh_kumar View Post
the price cutting will also depend on the decision of OPEC members meeting being held in vienna. they control close to 40 % of the entire oil out put in the world
Well they planning on cutting production, so dont think that there is any price cut in sight.
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Old 25th October 2008, 11:01   #37
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today in paper petroleum minister has told that nobody has told that next week prices will be cut. :P
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Old 25th October 2008, 17:35   #38
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Originally Posted by anantnehru View Post
Well they planning on cutting production, so dont think that there is any price cut in sight.
@ anantnehru,

OPEC has lost its control over the oil prices. Now they are more dependent on other external factors and the speculators. Further the current slowdown will decide how low the prices can go. Too high prices cannot be sustained in the current market, so we can expect low prices is the coming days.
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Old 25th October 2008, 18:02   #39
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@ anantnehru,

OPEC has lost its control over the oil prices. Now they are more dependent on other external factors and the speculators. Further the current slowdown will decide how low the prices can go. Too high prices cannot be sustained in the current market, so we can expect low prices is the coming days.
As in currency and other free markets, no single entity can really control the price, as OPEC has found out repeatedly. When prices have to go up, no matter how much OPEC increases output, it goes up; and conversely. OPEC only controls around 30% of world supply, and it is not known for cartel discipline.
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Old 25th October 2008, 18:15   #40
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Currently the prices are coming down and unfortunately OPEC is not able to do anything. They already have tried cutting down the output, but the oil prices are still falling. Hope this will help India in a big way. Atleast our PSUs will make some money. But govt has to reduce the price. With the opposition mounting pressure and common man (aam aadmi) watching the price situation, they cannot hold on to the current price for long. They have to do something and if they do not then it will be ome an election issue and the govt also knows about this.

The sooner they take the decision the better it will be for them.
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Old 25th October 2008, 18:41   #41
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Today's crude price is $64 a barrel.
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Old 25th October 2008, 18:53   #42
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At $64/bbl, and 1 barrel=159 litres (approx), and exchange rate of 50, 1 litre of crude= Rs. 20/litre. Add refining margins (vary based on demand-supply) but $5-10/bbl, and you get approx Rs. 23 per litre of refined oil. Refining costs vary based on type of crude and what product it is refined into. But this should give a rough estimate of costs of crude+refining. Add overheads, commissions, transportation, and the biggest component (taxes). Hope this basic calculation is correct.

At 140/bbl and $ at 43 (in say July), the cost of crude was Rs. 44/litre without refining. That was being sold at a huge loss in India. Sep 2008 average was around $92/bbl.

However, now there should be a profit on a going forward basis, but perhaps `price stabilisation' means we get protected on the upside but do not get the full and immediate benefits of the downside.
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Old 25th October 2008, 19:07   #43
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However, now there should be a profit on a going forward basis, but perhaps `price stabilisation' means we get protected on the upside but do not get the full and immediate benefits of the downside.
A common man doesn't understand this calculations. What they see is the crude price coming down and they want the price of petrol/diesel to come down.

Also govt is facing elections this year & next year. They have to take a political decision.
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Old 25th October 2008, 21:43   #44
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The governments past and present have resorted to political decisions even when the best qualified people have held important positions in the cabinet. No one has the guts to take a hard decision for the long term good of the country.

Probably the govt. may end up implementing the dual pricing of diesel. No one will be interested in opposing this anyway.
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Old 25th October 2008, 21:53   #45
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Quote:
Originally Posted by Cblazer
the govt. may end up implementing the dual pricing of diesel. No one will be interested in opposing this anyway.
That govt. will never ever gain power after that.
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