[Durango Dude]

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[hrman]

Shell in Bangalore is 74.40 for the unleaded variety. Super is some 76.XX today. I think shell is some 40p cheaper than government today!

[geeash]

Govt says bpcl, hpcl etc lose 50 crore a day on subsidy. Then how come their stock price is rising 30% yoy? If public subsidy is issue can they cut salaries of minister citing budget reason?

..lets see who hits 100 first. Sachin or petrol price...

[pypkmsrikanth]

Let me check Shell's price tomorrow morning. The price has not increased from Rs.68.40 for over the last month or so. Considering how Shell did not mind taking its price well in excess of Rs.75 earlier when crude oil prices rocketed, I find it surprising that the PSU's opted to take the retail price of Petrol above Rs.70.

[scopriobharath]

The Govt knows that people will shout initially and meekingly take up the hike. I am sure by the increase in petrol prices, the demand is not going to come down. People will still use cars. Nothings gonna change.

Govt goes by the principle - If Dog barks at the sun for the heat in summer, what is sun's loss in that. sun continues to generate heat.

Believe me Guys - Even if petrol is priced at 200/- per litre, there will still be demand and there will be no reduction in sales / traffic.

[karty_83]

I want the petrol prices to get back to what it was like a year and a half back. If not the govt. should deregulate diesel prices as well.
I mean why should only the petrol vehicle owners suffer .

I know its illogical and will never turn out that way. But what's happening is so unfair.

[tj123]

Touching diesel price is politically sensitive and has a cascading impact on the whole economy, hence no political party will dare to touch diesel prices.
Petrol consumers are generally 2 wheelers and private cars owned generally by middle class people hence government is least bothered about this sections as they seldom vote. Moreover petrol prices are not included in the computation of inflation figures hence no impact on inflation numbers.

Today in Bangalore Shell displayed Rs. 74.40 probably the highest in the country.

[tosathyas]

Mods, can we have a tracker for fuel prices in each city, each major bunks, along with quality indication? If it could be a reference point to check the cheaper bunk, this could be a tbhp exclusive as well. Inputs could be from bhpians.

[rajeev k]

One's loss is another's gain.The price hike has brought activity back to Reliance outlets. Saw this crowd at the wee hours today. This one was deserted for quite long and till yesterday.

[murillo]

If public oil marketing companies price their petrol higher than private companies, won't that be suicidal? Companies like Reliance, Shell, and Essar will move aggressively via lower prices than public sector, higher quality, better service, better ambiance, bigger network, etc., so that people don't go to HP, BPCL, IOC cartel. This had happened before in other industries, like in electronics, e.g., the MNCs came from Korea, Japan, etc., with better products, technology, and customer service, and that is RIP for the domestic public and private sector electronics companies.

[lurker]

Originally Posted by murillo

If public oil marketing companies price their petrol higher than private companies, won't that be suicidal? Companies like Reliance, Shell, and Essar will move aggressively via lower prices than public sector, higher quality, better service, better ambiance, bigger network, etc., so that people don't go to HP, BPCL, IOC cartel. This had happened before in other industries, like in electronics, e.g., the MNCs came from Korea, Japan, etc., with better products, technology, and customer service, and that is RIP for the domestic public and private sector electronics companies.

Probably that's exactly the idea behind this. To make business profitable for Reliance.

[simplyself]

Some of the readers' comments on fuel price hike on 16.09.2011 :-

"Since the last hike, according to the data available on the internet, the price of the Brent Crude has been decreased from $ 125 to $ 109., a 14 % decrease.. The rupee, on the other hand, has gone from Rs.45 to Rs.48. An oil company official mentioned on TV that the price of the oil has gone upto $ 125 from % 119, which is incorrect as per the data on the net. It was also interesting that he did not use the Brent crude price to state these facts, but used the motor spirit prices, which are now based on Singapore's price of petrol. We have used Brent crude price and have now shifted to Singapore prices. Perhaps more light needs to be shed on this."

This, as the reader points out, needs to be probed more so as to understand the pricing mechanism of oil by the govt and the OMCs.

Another reader opines, " Why should petrol users subsidize diesel users? Why cant there be dual pricing for diesel users? Many large vehicles use diesel and their owners need to pay more taxes. And is someone monitoring the inefficiencies of the oil PSUs?"

Well, it is once again the dual pricing to the fore. Idea is good but implementation is more of a challenge. Inefficiencies are there but we do not know much about the monitoring.

Another reader suggests that " the government should publish, like the US Energey Information Administration, a monthly What We Pay For In A Gallon of Regulat Gasoline, giving the breakup of cost under four different headings - crude oil, refining, distribution, and marketing and taxes. A typical costing of petrol in the US., including profit margins, looks like this : Crude - 68 %, refining - 15%, distribution and marketing - 6%, taxes-11%.".

This idea is good. At least we would know what we are apying for. Note that the taxes are only 11 % whereas our govt collects much more. The report also mentions that petrol is Rs.46/litre and diesel Rs.49/litre when converted to rupee @ Rs.48/$, week ending 12.09.2011.

[pypkmsrikanth]

Shell is retailing at Rs.72 a litre since yesterday night. That is roughly Re.1/- more than PSU bunks. Shell were able to sell at Rs.3/- less till the PSU hike. Looks like Shell is also taking their pound of flesh along with the Government.

[sdp1975]

Petrol prices are high in India due to high taxes :

Half of what you pay for petrol is taxes

[lurker]

Originally Posted by tosathyas

I was just trying to understand the maths behind Petrol Prices.
I have heard many saying that it is the tax that central and state govt applies is the core reason for high cost of petrol.

As per my understanding:

1 Barrel of Crude Oil would result in 78 Litres of Petrol.
1 Barrel of Brent Crude is around $100,
So 78 Ltrs costs $100 or ₹4500 (@ $1 = ₹ 45)
This translates into ₹ 58/ per litre.

Sorry. that's incorrect !

petrol is only one component of the refined output.

1 barrel of crude is (159 litres)
:& translates roughly into

78 litres of Petrol
37 litres of ATF
34 litres of diesel
15 litres of Naphta
15 litres of tar/bitumen