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Old 16th September 2010, 15:00   #31
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Breaking news on T-BHP! The internet is wonderful; T-BHP is wonderful.

In principle, I don't see why they should not get a percentage either. Surely most retail businesses work like that?
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Old 16th September 2010, 15:43   #32
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Quote:
Originally Posted by issigonis View Post
>>>

I had read (can't confirm) that Aramco spends $2 per barrel to extract Saudi light crude, especially from its supergiant Dhahran oil field.
What is the price of a barrel of oil nowadays- $ 75? $ 78?

Subtract costs for transporting crude to the refineries, refining, marketing, transportation and retail supply costs.

Profits? You do the math - as Clooney said in Ocean's Eleven.

By the way, is the strike on, or is it off?

Team bhp has a Kaas drive planned for the 25th
.

Regards
From the looks of it, the strike is on but looks like Maharashtra and some other states have pulled out of the strike. Hence for the time being, the Kaas drive looks safe
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Old 16th September 2010, 15:56   #33
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Cover fuel into ESMA. The entire system cant take the common man to ransom. Talking about petrol pump owners, in Mumbai city alone with a not so heavy traffic pump also make decent money. The space is let out for lot of other activities too. Consider pumps on the highway which have much more business not to mention rigged pumps too.
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Old 16th September 2010, 16:15   #34
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Quote:
Originally Posted by Thad E Ginathom View Post
In principle, I don't see why they should not get a percentage either. Surely most retail businesses work like that?
Thad, not that anyone else has a problem, so long as the increased percentage is met with the existing price. However, this never happens, and so the burden is pased on to the hapless common man. Thats where it hurts.
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Old 16th September 2010, 16:38   #35
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Quite true that it will always be the customer that suffers.
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Old 16th September 2010, 16:46   #36
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Already Shell normal petrol is cheaper by 8 paisain Bangalore @ Rs. 58.10 & BP costing Rs 58.18
Petrol dealers claim that they are getting a hit because of mushrooming number of new dealerships and private players like Shell , Essar etc. I wonder if these dealers are not making profits then why cant they sell off there dealership and move on to some other business. Oil companies should be take stern action against such malpractices.
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Old 16th September 2010, 18:46   #37
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Default How are pumps expected to make money

In my opinion, a sales margin of 1-2% is ok for a product like petrol/diesel. The lower sales margin is compensated by the high asset turnover

Return on Assets = Profit/ Assets= Profit/ Sales x Sales/ Assets

In this case, Profit/ Sales is low (1-2%), but Sales/ Assets is significantly hight to result in a good Return on Assets
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Old 16th September 2010, 19:27   #38
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Quote:
Originally Posted by srh View Post
In my opinion, a sales margin of 1-2% is ok for a product like petrol/diesel. The lower sales margin is compensated by the high asset turnover

Return on Assets = Profit/ Assets= Profit/ Sales x Sales/ Assets

In this case, Profit/ Sales is low (1-2%), but Sales/ Assets is significantly hight to result in a good Return on Assets
Looks Lovely on paper , If only wishes were horses and horses could fly
On a serious Note The Oil co. with there MBA's arent able to extract Profits out of Their Own COCO Pumps, hence to make a statement without knowing the ins and out of the business is Pretty Easy!!

Ps: No OFFENCE meant to MBA grads just my observation and view.

Last edited by Born 2 Be Wild : 16th September 2010 at 19:35. Reason: missing text
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Old 16th September 2010, 23:46   #39
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Owning a petrol pump is a big business in india. The commision they earn is not a big part of their overall revenue. All petrol pumps sell the petrol with 10-15% kerosene. That's where the major profit comes from. Almost all petrol pumps are owned by friends of our politicos.
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Old 17th September 2010, 00:04   #40
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So is the strike confirmed? I am out of town driving, and have to plan to fill up & stock accordingly.
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Old 17th September 2010, 01:02   #41
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Originally Posted by A.R View Post
So is the strike confirmed? I am out of town driving, and have to plan to fill up & stock accordingly.
It May not happen (most probably wont) concrete Info will only be available on the 19th.
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Old 17th September 2010, 01:31   #42
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Even the company operated outlets will be closed due to the possible resistance from private pump owners. A clear view would be only available on 19th.
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Old 17th September 2010, 02:20   #43
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I will be driving from Dilli for the Kaas meet so I need to know the following for sure

1. Whether Maharashtra association has definitely pulled out of the strike
2. What about the petrol dealer's associations in Gujarat and Rajasthan. Are they in the strike or out of it.
3. Will the pumps operated by Reliance, Essar be open or closed during this strike.

I intend to start on the 20th (at least that is the plan) so really need to know ASAP. Of course would also keep eyes peeled for BTBWs inputs.

Quote:
Originally Posted by f1fan View Post
From the looks of it, the strike is on but looks like Maharashtra and some other states have pulled out of the strike. Hence for the time being, the Kaas drive looks safe
EDIT Can someone tell me where can I buy a couple of 50 ltr jerrycans in Delhi NCR OR can someone lend me theirs I will be back in Delhi by end October and would return these at that time.

Last edited by khoj : 17th September 2010 at 02:38.
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Old 17th September 2010, 10:48   #44
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Looks like the talks have failed. Source - Oil ministry rejects pump owners' demands, Sept 20 strike looms - The Times of India

Quote:
Presently, the dealers get Rs 1.18 paise on each litre of petrol and 75 paise on diesel as commission. This, they claim, is not enough because they lose 1% in evaporation of fuel and their operational costs have gone up due to a 42% increase in minimum wage and rise in other employee benefits.
What's interesting to me is the 42% increase in minimum wage & rise in other employee benefits. May be its time for automation or lesser man power at fuel station.

Regarding the present commission rates...
Quote:
Last week, the ministry had raised dealer commission on petrol from Rs 1,125 per kilolitre to Rs 1,218. Similarly, dealer commission on diesel was raised from Rs 673 a kilolitre to Rs 757. In June, the government had raised petrol prices by Rs 3.50 a litre, diesel by Rs 2, kerosene by Rs 3 and cooking gas by Rs 35 a cylinder.

Last edited by aargee : 17th September 2010 at 10:51.
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Old 17th September 2010, 10:55   #45
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Quote:
Originally Posted by khoj View Post
EDIT Can someone tell me where can I buy a couple of 50 ltr jerrycans in Delhi NCR OR can someone lend me theirs I will be back in Delhi by end October and would return these at that time.
Look no further sir
I have 2 for filling up the genset at home - I can lend you one for sure.
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