[kph]

They don’t have the liability of giving LPG/ kero at subsidized price too. So comparison with the public Sector companies is not needed. So low price not gonna kill them by any chance..





A bannar I saw in on of the reliance stations in kerala says....
Reliance Petrol Diesel price reduced
(Same price as other pumps)

[Jay]

Originally Posted by sreenivass

The only petrol pump where the attendant says "Air and water are free sir" you dont need to pay whenoffered some money.

I like that trend too.

Air is free in Shell too...

[typeOnegative]

Originally Posted by kph

Two points come to my mind...
It's difficult to think that the reliance petroleum price is directly linked with the international oil price and should go above the prices of other oil companies in India........Did reliance price come down by 20%?
Also there wasn’t a reason for the price to go up (remember reliance unanimously hiked the price when others didn't)

I am not backing Reliance here - the tone of your post seems to suggest that I do. What I was alluding to was the fact that in India, prices always seem to go up - no matter what the price of crude is in the world market. Reliance will reduce prices as long as it is good for business. If the State owned / supported corporations reduce their prices then Reliance will too. And they should too, keeping in mind the way they crib about higher oil prices.

And what about the past when there was no Reliance? Over here it seems that all the government is out to do is to fleece honest people like you and me to feed those who cannot earn enough to feed themselves (sarcasm).

[kph]

True and very true TypeO. My post wasn’t an opposition to what you'd said.

Originally Posted by sreenivass

The only petrol pump where the attendant says "Air and water are free sir" you dont need to pay whenoffered some money.

I like that trend too.

Originally Posted by Jay

Air is free in Shell too...

I haven't seen any petrol station charging for air. In many statins it's written "Free Air" too. And giving tip to the guy who fills the air is up to you.

[finneyp]

Originally Posted by typeOnegative

What I was alluding to was the fact that in India, prices always seem to go up - no matter what the price of crude is in the world market. Reliance will reduce prices as long as it is good for business. If the State owned / supported corporations reduce their prices then Reliance will too. And they should too, keeping in mind the way they crib about higher oil prices.

And what about the past when there was no Reliance? Over here it seems that all the government is out to do is to fleece honest people like you and me to feed those who cannot earn enough to feed themselves (sarcasm).

Good point there TypeO, very strange that when Oil prices in World market goes up, state owned Oil cos. very prompty increase the price, but when the Intl Oil prices come down, State oil cos. remain silent & charge the same hiked price & fleece the public.
But if Reliance / Shell start this trend of reducing the price in accordance to the Intl Oil prices, the state owned Oil cos. too will be forced to reduce.

[jango]

KPH seems like u did a big research on crude oil , anyways nice topic.

[sreenivass]

I am referring to many pumps where one is expected to pay. I have not seen many shell pumps in Hyderabad, but am glad to know there are many more stations where the attendants face does not say "tips are expected".

[Insane Devil]

Well, reasons are to coverup the real facts! Petrol and Diesel prices were dropped globaly, so reliance says it has dropped theirs. Now if the petrol/diesel prices goes down further in international markets, will they again drop their prices! no way!

Good that they have learnt their much needed lesson! the losses were piling up in big numbers to the Reliance pump owners!

[VWBugy781]

When it costs them $75 to buy and $50 selling price due to government manadated prices, why would they want to sell anything at all? That is just basic busines sense. For every liter of petrol they don't sell, they would have saved a bundle where as the state owned corporations were piling up losses. Reliance could do nothing about fixed costs but they raised their prices to cover variables.

[bigman]

Originally Posted by Insane Devil

Well, reasons are to coverup the real facts! Petrol and Diesel prices were dropped globaly, so reliance says it has dropped theirs. Now if the petrol/diesel prices goes down further in international markets, will they again drop their prices! no way!

Good that they have learnt their much needed lesson! the losses were piling up in big numbers to the Reliance pump owners!

Prices have dropped globaly but many companies use the futures market when buying crude. This means the impact of falls etc is not immediate. Reliance know that fuel is a virtual necessity so I also doubt they will drop prices too much (even if crude prices fall).

[kph]

Have you noticed that there are no Reliance outlets inside Bangalore city!!! What about other cities? Or they just concetrate Highways?

[supremeBaleno]

I think its only on highways. Don't remember seeing one in Chennai either.

[Raajiv]

Hey SupremeBaleno,

Recently they have launched one near MaraiMalai Nagar (i stay at MM nagar) on the NH-45 highway to Tiuchi.Prices are the same as other IOC,HP,BP outlets.

[supremeBaleno]

@Raajiv, I think I have seen that one.
But then again, I don't think it would qualify as being in Chennai city limits, right ? I think their strategy is more highway-oriented (due to cheaper real estate ?).

[rahul_intlad]

Reliance Industries, one of the first companies to obtain the retailing licence after the deregulation of the oil-marketing sector two years ago, is planning to roll out 200 petrol pumps this year[year is 2004]. "Most of the retail outlets will come up on the highways," according to V.V. Bhat, group president (management services) of the company.
Making national highways the natural choice for new entrants such as Reliance are the constraints with regard to the availability and the relatively high cost of land within the city and the fact that petrol pumps on highways transact more business, especially in diesel.




Soure: The hindu,2004