[sgiitk]

Originally Posted by ganeshsp

The price variation between CNG and petrol has virtually been knocked off. What remains is just the perception! Which I feel will also evaporate soon!

Taking into account the lower calorific value of CNG the gap is even lower.

LPG subsidy is leading to another distortion. People find it much cheaper to stick on to the LPG connection (hassles notwithstanding) than convert to PNG.

[ganeshsp]

Originally Posted by sgiitk

Taking into account the lower calorific value of CNG the gap is even lower.

LPG subsidy is leading to another distortion. People find it much cheaper to stick on to the LPG connection (hassles notwithstanding) than convert to PNG.

I agree with you sir.

Although we saw it coming when the Oil Ministry announced its decision last year to double the output price for CNG by 2014, the government could have opted for a diesel-like price hike strategy with the CNG also, rather than a steep hike. That would have helped us at least to digest, as we have learned to manage(!). 16rs hike within the span of 3 months is totally outrageous.

[volkman10]

Petrol prices may come down by Rs 2 a litre this week

On account of the softening international crude oil prices and the appreciation of the Indian rupee against the US dollar the prices could be dropped.

http://timesofindia.indiatimes.com/b...w/28815376.cms

[sgiitk]

Originally Posted by ganeshsp

Although we saw it coming when the Oil Ministry announced its decision last year to double the output price for CNG by 2014, the government could have opted for a diesel-like price hike strategy with the CNG also, rather than a steep hike. That would have helped us at least to digest, as we have learned to manage(!). 16rs hike within the span of 3 months is totally outrageous.

There are two factors to this.

Firstly, they were denying any CNG to Gujarat, which the supreme court ruled must be done. So the price of the gas went up, due to a higher costly gas content.

Secondly, buying CNG as $4.2 per mmbtu against a global price of about $8 is again ridiculous. Now they are trying to increase the procurement price.

Reliance are no saints but then if you do not allow a remunerative price you are just cutting your own nose. One must accept that producing NG turned out to be far more tricky than first thought, and this is why they had to bring in BP! There is no free lunch.

[ganeshsp]

Originally Posted by sgiitk

There are two factors to this.
Secondly, buying CNG as $4.2 per mmbtu against a global price of about $8 is again ridiculous. Now they are trying to increase the procurement price.
.

Is $8 per mmbtu a fixed price? Since India has enough NG reserves to meet the domestic demand, what is the possibility of the prices changing based on the international fluctuations? like demand/supply, rupee depreciation (but we are not importing like in the case of crude oil!) etc?

If the price is going to remain static irrespective to the international scene, why should the output price alone be benchmarked with global price?

[adimicra]

Despite drop in Brent crude prices and strengthening of the rupee, the fuel prices have not been reduced. This is unacceptable.. Unfortunately, it seems that there is nobody to question. It also does not help that petrol at private operators like Shell are still priced higher than PSUs.

[sgiitk]

Originally Posted by ganeshsp

Is $8 per mmbtu a fixed price? Since India has enough NG reserves to meet the domestic demand, what is the possibility of the prices changing based on the international fluctuations? like demand/supply, rupee depreciation (but we are not importing like in the case of crude oil!) etc?

It is the current price, not a fixed price. We may have reserves, but if a remunerative price is not allowed, then nobody will dig for it, and extract it.

I say, the best way is to have a linkage (discounted) with global prices (none of this priority sector, cheap fertiliser /power stuff) only then will you get efficient production. Incidentally, as prices go up Bharat Sarkar also earns more!

See what happens, Urea is directly or indirectly subsidised and we get massive over use in place of other nutrients. To the farmer a fertiliser may be just that with no differentiation between types.

[hellmet]

Vote bank politics in play. LPG cylinder cap to be raised to 12 per year per connection. This is as good as full-subsidy. Who's to pay for the additional tax burden?

[lurker]

Why was petrol price not reduced this Friday in the decontrolled wonderland of India ? Why is it always the the reduction in prices is not given least importance than populist schemes announced by political whippersnappers. In all humility the govt should roll back petrol prices decontrol fraud and introduced controlled prices for petroleum products which is the reality as is happening now.

The statement that 'Petrol prices are decontrolled', is a fraud perpetrated on Indian public.

[sgiitk]

Originally Posted by hellmet

Vote bank politics in play. LPG cylinder cap to be raised to 12 per year per connection. This is as good as full-subsidy. Who's to pay for the additional tax burden?

Originally Posted by lurker

The statement that 'Petrol prices are decontrolled', is a fraud perpetrated on Indian public.

@hellmet; We pay through higher inflation, taxes, and a faster depreciating rupee.

@lurker; It is and has always been a myth - maybe partial now!

[AbhishekB86]

Isn't it funny how many times in the past few months despite all conditions favorable for a reduction, fuel prices have not been reduced?

However even a slight rise in crude prices or weakening rupee immediately brings about a rise in prices. De-regulation is only for increases I think. Now that nothing is being done when conditions are favorable no benefit is being passed to us. However when things aren't working out the actual burden will again be on us. Very disappointing was expecting a 2 rupee decrease.

[wilful]

A report in TOI states that private cars use 13% of the diesel consumed in the country. A total of 70% is used by the transport sector.

http://timesofindia.indiatimes.com/b...w/29510365.cms

[ramzsys]

http://profit.ndtv.com/news/industri...changed-379224

Diesel up by 50 paise.

Petrol no change!

[Aditya]

According to a survey conducted for the Government of India by M/s. Nielsen (India) Pvt. Ltd., 99.6 % of the total petrol consumed in India is used by the transport sector. Out of this, wwo-wheelers account for 61.42 %, while cars and three-wheelers account for 34.33 % and 2.34 %of the country’s total petrol consumption respectively.

Link to Team-BHP News Article

[CARDEEP]

CNG prices in Delhi reduced by Rs.15:

http://www.hindustantimes.com/india-...1-1179701.aspx

The price of piped natural gas (PNG) also cut by Rs.5 .