Fuel prices may drop soon

[NetfreakBombay]

As per new reports. Oil ministry is looking at reducing oil prices in next 1 week.

Fuel price reduction within a week: Government-India Business-Business-The Times of India

BJD member Braj Kishore Tripathy asked "what is the policy of the government when global crude prices have declined."

"The matter is being examined and an announcement would be made within a week," Deora said during Question Hour in reply to a spate of supplementaries on the issue as Opposition members insisted that the fuel prices be brought down forthwith.

[PAVAN KADAM]

Some Govt., this.

I pay triple tax on a rupee earned, still they are not citizen friendly.

If Fuel prices go down, it'll be a great relief.

[vasudeva]

Crude oil prices have declined=no response from the Govt.
Elections are near=price cut imminent (before Diwali?).

[abhinav.gupta88]

With Crude at an all time low , i wish some relief is given to the consumers.

[vasudeva]

Originally Posted by abhinav.gupta88

With Crude at an all time low , i wish some relief is given to the consumers.

All time low?????. If the statement is correct, then `crude' does not mean `crude oil' as refined for automotives.

[Truth is God]

how much will be the reduction,if at all they are reducing !!

[MadhuG]

Its high time the prices are lowered. Also I dont understand the logic of increasing the prices everytime the International Crude price goes up. Companies like IOCL, BP and HP are spending crores of rupees on advertisements and competing with each other, i dont know for what. They have hired people like Dhoni for their ADs. Merging these companies into one will save all these costs since they dont need to compete with each other then. Another opint worth mentioning here is the perks that the employees in these companies enjoy. Govt, is increasing the fuel charges and at the same time employees in these companies also get a decent hike in ther Sal. If the Govt sticks to a stand against these companies resorting to the above, we consumers stand a lot to gain.
Any comments?
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Be the change in the world that you want to see - Mahatma Gandhi

[deky]

It will be great if it happens, atleast some relief will be there.
But what i remeber Mr Murli deora saying in an interview on the tele that with the USD at such a high against the Rs price revision can only be considered if the crude reaches 61 USD.
But with the state elections round the corner our politicians are capable of doing anything.

[nemo]

Originally Posted by MadhuG

Merging these companies into one will save all these costs since they dont need to compete with each other then.

that's a good point i don't think i have heard anyone talked about such an option even when the crude hit the all time high.

[snaronikar]

If they are thinking of rolling back it is certainly a good thing. I feel they should at last reduce min of Rs.5 they have increased the last time. It will be a big relief to consumers.

[theMAG]

I remember reading somewhere that even if the government wants to reduce fuel prices, they cant do it now since an Election Commission rule has come into effect that "prohibits a current government from making changes at this stage that might wrongly influence the voter populace."

[Mpower]

Originally Posted by abhinav.gupta88

With Crude at an all time low , i wish some relief is given to the consumers.

Originally Posted by MadhuG

Its high time the prices are lowered. Also I dont understand the logic of increasing the prices everytime the International Crude price goes up.

Law of Economics->prices are always elastic upwards but inelastic when they have to come downwards.

Crude is dropped to half its peak of 140 per barrel. Pump price in US has also been steadily declining.

So, if the price of crude goes down, the who pockets the money in India. Govt or the Oil companies??

[NetfreakBombay]

I think this restriction will apply only after elections have been declared.

[vnabhi]

Originally Posted by theMAG

I remember reading somewhere that even if the government wants to reduce fuel prices, they cant do it now since an Election Commission rule has come into effect that "prohibits a current government from making changes at this stage that might wrongly influence the voter populace."

Partly correct. But this rule applies only when elections have been notified. Hence we are safe.

[harry10]

Originally Posted by deky

It will be great if it happens, atleast some relief will be there.
But what i remeber Mr Murli deora saying in an interview on the tele that with the USD at such a high against the Rs price revision can only be considered if the crude reaches 61 USD.
But with the state elections round the corner our politicians are capable of doing anything.

He is not a man of his words. When Crude was $143 he said we will reduce if it comes below 90. When it was $120 he said we will reduce when it comes below 75. Few days back he said we will reduce when it will be at $67 and now $61.
Govt is ready to increase if it increases a bit but not ready to reduce when it has decreased so much. Some govt this!