[dass]

Originally Posted by supremeBaleno

Now, with the latest hike, the delta has increased to Rs.15.23. I just hope we don't go back to the old situation.

I for one feel this difference will always be there, albeit a little less than Rs.15. I was of the opinion that there would be a difference of around Rs8-10 between the two fuels, but from the looks of it, it may always be in double digits.

Even at Shell, the difference between the two are around 13.xx, and shell diesel is market priced.

[sgiitk]

Today Brent dropped below $112 and rupee below 60. Some hope. I expect the diesel petrol mismatch to be about Rs.10 when subsidies are done.

[sgiitk]

Originally Posted by sgiitk

Today Brent dropped below $112 and rupee below 60. Some hope. I expect the diesel petrol mismatch to be about Rs.10 when subsidies are done.

Now Brent is under $111, so some real hope. I hear ISIS has allowed two Iraq ports to resume. By the looks of it (Gold dropping, US Bond yields improving) Iraq is being increasingly discounted.

[gsurya]

Originally Posted by Desi Dybuk

Every time I visit Goa, I'm dumbstruck as to how forward thinking the government there is! It's a full Rs 20 lower than neighboring Karnataka & on par with Diesel.

But then again, Goa has IITian Parrikar while we have Siddu.

Hmm.. Every time I visit Gujarat I wonder why Modi could never do in Gujarat what Goa BJP Govt did with petrol price.. was because of his education!

[romeomidhun]

Originally Posted by gsurya

Hmm.. Every time I visit Gujarat I wonder why Modi could never do in Gujarat what Goa BJP Govt did with petrol price.. was because of his education!

I have not stopped laughing even after 5 minutes.

On a serious note, government has to fix the tax per litre as a fixed amount and not as a percentage.

[gsurya]

Originally Posted by romeomidhun

I have not stopped laughing even after 5 minutes.

On a serious note, government has to fix the tax per litre as a fixed amount and not as a percentage.

We have only 3% of our population paying income taxes. GST & DTC that can bring tax efficiency are seriously delayed.

Revenue from Fuel taxes & royalties are a very big part of our Central & State income budget, its unlikely any Govt will let them go no matter what they say in opposition.

Goa should not have forgone petrol tax just for a gimmick, its this kind of behavior that makes it harder to bring Fuel under GST.

[sgiitk]

Originally Posted by Desi Dybuk

1.Heck, even Aircraft Turbine Fuel is cheaper than Petrol! (Petrol is 80.40 per liter vs Rs 70 per liter for ATF)
2.But then again, Goa has IITian Parrikar while we have Siddu.

1. ATF is a high sounding name for Kerosene. In fact I consider as the bellwether for petroleum pricing (no politics here).

2. I am myself one (+37 years service in one) but am not too sure, Ajit Singh, Kejriwal, Bharti, Jairam Ramesh also happen to be ex-IITians. In fact the last is ex-IITB as is Parrikar!

[MaxTorque]

The branded/premium petrol has become cheaper.

NEW DELHI: Price of branded or premium petrol was on Thursday cut by over Rs 5 per litre after finance minister Arun Jaitley slashed excise duty on the fuel.

Central excise duty on Branded Petrol was cut from Rs 7.50 per litre to Rs 2.35 per litre.

Branded petrol, which contains special performance enhancing additives, attracted higher duties than normal petrol.

The differential excise duty led to huge difference in price of normal and branded fuel, resulting in sales of the premium version dropping to almost nil.

The removal of excise duty would bring the two fuel at par.

BPCL's premium branded petrol - Speed - costs Rs 83.03 in Delhi while normal petrol is priced at Rs 73.55 a litre.

Source - TOI

[sgiitk]

As per Arving Mayaram the Laxman Rekha for Diesel deregulation is $110 (Brent) and Rs.60 per dollar. In fact $108-112 was acceptable. So when???

[sgiitk]

Price of bulk Diesel has been cut at midnight by Rs.1.09. Now the of bulk Diesel in Delhi is 59.32 while subsidized Diesel is 57.84 a difference of under Rs.1.50. One more 0.50 increase and we are under the rupee differential mark, where deregulation is surely on the cards.

[adimicra]

Originally Posted by sgiitk

Price of bulk Diesel has been cut at midnight by Rs.1.09. Now the of bulk Diesel in Delhi is 59.32 while subsidized Diesel is 57.84 a difference of under Rs.1.50. One more 0.50 increase and we are under the rupee differential mark, where deregulation is surely on the cards.

Sir, any idea on why the petrol prices were not reduced.

[RSR]

Originally Posted by sgiitk

Now the of bulk Diesel in Delhi is 59.32 while subsidized Diesel is 57.84 a difference of under Rs.1.50. One more 0.50 increase and we are under the rupee differential mark, where deregulation is surely on the cards.

That's certainly good news!

The question remains, still. Will the government have the political will to implement full deregulation once and for all? Or will petrol users still have to silently bear an unjust extra burden (in order to compensate for the vocal lobbies who don't want to pay market price for their fuel), whenever the price of crude shoots up (or rupee goes down) uncomfortably and/or in times of an international oil crisis?

The politics of appeasement is a big issue when it comes to the economy, but no one talks about it. Vocal lobbies threatening to cause disruption (if their demands are not met) are always appeased, in order to keep them quiet. This results in an unfair and unjust burden being thrust on everyone else.

With a drought like situation in many parts, the vocal lobbies have got the reason they were looking for. If there is a case for diesel subsidy to farmers (as there surely is in times of distress), then it should be given to them by other means. The same is applicable for cooking fuels, for those who need it.

[sgiitk]

Originally Posted by adimicra

Sir, any idea on why the petrol prices were not reduced.

Read the post again, it is Bulk and not Retail. Wait Petrol should be round the corner.

Originally Posted by RSR

The question remains, still. Will the government have the political will to implement full deregulation once and for all?

They will have to. This is low hanging fruit, what happens in Kerosene and LPG only time will tell. I expect action once MH elections are out of the way.

Remember bank interests have started showing a softening trend. Good for investment and industry. But as the RBI cuts rates the rupee will weaken, I hope by not a lot.

[MaxTorque]

Crude price have been gone below $100 mark. So it's time to expect some good news.

Source:- Economic Times

[Mohan Mathew A]

Originally Posted by sgiitk

Petrol should be round the corner.

Shouldn't the OMCs have reduced the price of petrol by yesterday (15th) since the crude price has significantly dropped after the last increase 15 days back. They are so fast to increase it but i see a reluctance to decrease it. Hope they do it today. I expect atleast a 2 Rs reduction before taxes