[fullspeedahead]

Originally Posted by Captain Slow

Just tanked up at shell, the manager at the outlet said shell prices will not be increased and they would try and maintain the current prices.

No, Shell have also had to follow suit. I filled up at their Hinjewadi Station in Pune which had the normal unleaded for Rs71.69 per litre and the Super unleaded for Rs73.41 per litre.

I really miss the times when petrol was affordable. At this rate, how am i goning to drive my Figo around town?

[CBlazer]

Originally Posted by pypkmsrikanth

Looks like Shell is also taking their pound of flesh along with the Government.

Exactly. Shell has also increased prices along with other PSU oil companies. PSUs seem to be hiking petrol prices to minimize their losses incurred on diesel. (The government seems to be taking the easy way out and punishing petrol vehicle owners.)

Shell has no such problems, but it seems like they've decided that they won't go lower than PSU prices even if they can afford to.

[Hayek]

Some data here.

NYMEX gasoline futures closed at USD 2.78 per gallon yesterday. (viz. Rs. 35 per litre). But the average pump price of gasoline in New Jersey (which has the lowest gas taxes in the US at 32 cents a gallon) was USD 3.46 per gallon or Rs. 43.7 per litre. In short, even in the low tax US, at least Rs. 4 per litre is the tax on petrol, and Rs. 4.75 per litre is the net of tax difference between wholesale and retail prices. And that is when the US benefits (at least partly) from low cost WTI crude (USD 89 per bbl vs USD 112 per bbl for Brent). As I have mentioned on another thread, in India, most tax revenue is indirect taxes - typically, 5% customs, 12.5% CENVAT, 12.5% state VAT. So if we started with Rs. 35 per litre for wholesale petrol (may not be possible as Asian petrol prices may be higher), we would get to Rs. 53 per litre if petrol were taxed "normally". but petrol is not taxed normally by states. Maharashtra for example levies 26% State VAT + Rs 1 cess on petrol in Bombay, Thane and Poona. BMC levies 4% Octroi. So adjusting for that, we get to a price of Rs. 62.56 per litre. There still is an unexplained delta to the Bombay pump price of Rs. 71.5, but most of it is MH state taxes.

Clearly state governments are making a lot of money on petrol taxes. And there is a Rs. 8 delta somewhere else (through a combination of the difference between Asian and NYMEX wholesale prices, oil co margins and central taxes on petrol). But let's recognise that the oil PSUs (which are listed companies with minority shareholders), the central government and the state government are different entities. And if our state governments are greedily gouging petrol users, it's not fair to expect listed PSU oil marketing companies to take the hit.

[lurker]

Pvt oil marketing companies can't dare take on the govt. If so, they will be punished most viciously. Since pricing their product lesser than public sector oil marketing companies will be considered a slight and won't go unanswered.

Secondly, if we take current prevailing prices of petro products (entire basket), the profit margin seems to be 100%. Not less. So speaking of losses is a lot of bull.

Retail prices of

Petrol: Rs. 71/litre
Diesel: Rs 44/litre
ATF: Rs 58/litre
Naptha: Rs 8/litre
bitumen: Rs 37/litre

So per barrel of crude is giving govt (appx) a profit of Rs. 4500.

[ethanhunt123]

Asking Oil companies to run as a Not-For-Profit concern is not fair to all the public who have bought shares in them. These companies should be run just like the normal Shell's/Reliance's of the world with generating value for their shareholders in mind. What kills us is the heavy taxation on fuels in India. Probably a better way of taxing is flat tax of say 10/- central VAT and 10/- state tax but looking at the amount of money these taxes bring to government coffers, its hard to imagine. So is imagining a situation where Diesel prices are brought up (truckers will go up in arms or raise prices leading to heavy inflation). So we have no option but to bear the brunt of these price rises and evaluate diesel vs petrol when the time of next purchase comes :(

[Vtecguy7166]

X-tra Premium Petrol in Kharghar, Navi Mumbai is costing 73.2 rs.
If prices are going to shoot up like this, I am seriously planning for a small diesel hatch soon.

[ramzsys]

This is a unintended incentive from the government to Diesel car makers.

PS: Chevy beat D is going to be my next car, i hope there are no waiting periods

[rajeev k]

Originally Posted by rajeev k

Saw this crowd at the wee hours today.

See the same reliance pump today. No crowd. Because state bovernment waived the sales tax on the price increase part ie., a reduction of 70p.

[D'Artagnan]

Hello Team-BHPians. The situation, we all know: coughing up a huge amount of money to get from point A to point B. 15 Sept 2011 won't be forgotten in every family across India, wherein the government just proved themselves once again that they're not here to listen to the "aam admi"

My question is simple & straight forward
why aren't protests against fuel prices successful.
Why can't we rally up people and take to the streets to force the government listen to our pleas ?
Why is is that every time there is a price hike, the media displays it in a lambasted method and two days later the news is no more ?
Even when people have taken to the streets why can't our voices be heard ?
What do you think is the situation for the middle class layman, who earns a monthly salary ?
What power do we hold as citizens, are we just handcuffed into dictator rule or is democracy just an illusion for ulterior motives for money making, power hungry mongrels ?
These questions may come off as simple but there is something that needs to be dealt with here. Its not just the corrupt that's running India its we who are allowing them to.

[pypkmsrikanth]

Oil Prices have had a free fall over the last few days. As compared to the first week of September, Brent Crude is now trading at almost $10 lesser per barrel. But there is no talk of Government looking at reducing. The entire thing now is a sham.



Source: Oil Price Chart - Brent and Light

[ghodlur]

Just did a tankful of Petrol for my Fiesta in Mumbai(Powai), costed me 71.92/- per litre. I prefer not to look at the cost counter for the fear of BP risisng as fast as the counter. Every tankfull is now going to cost 500/- more than what used to be a few months back. This is going to hit my travel expenses like anything. Have to start looking now for the private buses from Thane.

[lohithrao]

there was he and cry from all political sectors, which lasted couple of days now all gone back to sleep.

[Newpunter]

Found this on Facebook. How funny is it today?

"Vote for Congress" Ad in 2009, Looks Funny in 2011! - YouTube

[Max]

Originally Posted by pypkmsrikanth

Oil Prices have had a free fall over the last few days. As compared to the first week of September, Brent Crude is now trading at almost $10 lesser per barrel. But there is no talk of Government looking at reducing. The entire thing now is a sham.

Attachment 615202

Source: Oil Price Chart - Brent and Light

its may be because Indian rupees has fallen from Rs.45 to Rs.50 in last 15 days which is again making crude oil expensive to buy.

[pypkmsrikanth]

Originally Posted by Max

its may be because Indian rupees has fallen from Rs.45 to Rs.50 in last 15 days which is again making crude oil expensive to buy.

After petrol price rise HPCL, BPCL & IOC pare early gains - Economic Times

Quoted in the article "Petrol price of Rs 63.70 per litre corresponds to crude oil price of about $103 per barrel. The Brent crude, which is trading around $113 while the US crude is hovering around $90 mark along with depreciation of rupee to 48 rupees per dollar, prompted OMCs to increase prices."


Today the Dollar Rate is Rs.49.55 while the Crude Oil rates have gone down to $103. The cost per barrel in rupee terms is lower than what was being paid a fortnight ago.

May be most of us have forgotten the hike already.