[lurker]

>> It was the BP Statistical Review, only the most credible source of oil data in the world and with numbers to back it up!

And that makes it sacrosanct I suppose. Weren't BP the same guys responsible for the Gulf oil spill and aren't these the same guys in partnership with Reliance doing some scam or the other in KG basin. But anywys, me is just an unwashed commoner.

[sgiitk]

OMCs claim losses on the comparison with international prices. This is calculated, I think, as the basket of supposed Import (80%) and Export (20%) pricing. I do not think their own production costs are in this equation.

[Hayek]

Originally Posted by sgiitk

OMCs claim losses on the comparison with international prices. This is calculated, I think, as the basket of supposed Import (80%) and Export (20%) pricing. I do not think their own production costs are in this equation.

Actually, the so called OMCs have 3 different businesses - refining, for which they have the right to get market prices of products (or export it if they prefer), marketing deregulated products (such as naphtha, aviation turbine fuel etc.) and marketing of regulated fuels (petrol, diesel, LPG and kerosene). The losses are incurred in marketing of regulated fuels - where they buy product from refiners at global prices (on a trade parity basis) and sell at regulated prices. Looking at consolidated results of these companies does not give any colour on the losses in the regulated marketing business. Also please note that the OMCs don't necessarily sell product they produce, they also buy from pure refiners like MRPL, CPCL and Essar and sell. So refining costs have nothing to do with the losses in the regulated marketing businesses.

[sgiitk]

I agree with you, but Petrol is not longer regulated.

[Desi Dybuk]

Let's get back to the subject, shall we? I think the fuel prices should be lowered by this month end. It should be substantial too, since the Petrol prices were left unchanged on 15th Sept.

[sgiitk]

Originally Posted by Desi Dybuk

Let's get back to the subject, shall we? I think the fuel prices should be lowered by this month end. It should be substantial too, since the Petrol prices were left unchanged on 15th Sept.

If it is the code of conduct then October 15 evening is the earliest.

[Desi Dybuk]

Code of conduct should be for specific states, IMHO. Ideally, it shouldn't affect since Petrol is supposed to be 'Decontrolled', isn't it?

Oh, who am I kidding. This is India after all...

[narchennai]

Expect a rupee drop in Petrol by Oct1st or so, since Commercial LPG is expected to come down by Rs.2/kg

[sgiitk]

Originally Posted by Desi Dybuk

Code of conduct should be for specific states, IMHO. Ideally, it shouldn't affect since Petrol is supposed to be 'Decontrolled', isn't it?

What you are saying may be correct, but the logic will be that one state drop will affect others. Also, Petrol at least the 50p increase proposed is gone. But then we cannot be too sure where will the Coalgate push things, esp Rupee rates.

[saket77]

Expect a Rs. 2/- cut off in diesel prices. The first drop in diesel prices since Jan 2009. Petrol prices may come down by a meagre 50p. per liter.

Link to news article: http://aajtak.intoday.in/story/diese...-1-781494.html

[sgiitk]

With the Dollar starting to rise, has the govt missed the bus in deregulation. This totally expected since the Dollar Index is rising. Also, considering our inflation at 6.5% and the US at 2.5% others things being equal a 4% pa drop in the rupee is only to be expected.

[Desi Dybuk]

Originally Posted by sgiitk

With the Dollar starting to rise, has the govt missed the bus in deregulation. This totally expected since the Dollar Index is rising. Also, considering our inflation at 6.5% and the US at 2.5% others things being equal a 4% pa drop in the rupee is only to be expected.

For all the bluster of the new administration, it's still the old lethargic government machinery, unable to think on it's feet & take timely decisions. The finance minister being sick is also not helping matters, I think.

Diesel deregulation is an absolute must to fix country's finances.

[gsurya]

Originally Posted by sgiitk

With the Dollar starting to rise, has the govt missed the bus in deregulation. This totally expected since the Dollar Index is rising. Also, considering our inflation at 6.5% and the US at 2.5% others things being equal a 4% pa drop in the rupee is only to be expected.

Agree, though the party in power claimed it will bring INR-USD to 40 levels, I think it will drop to 65 by next year. We need it even lower, say 70, for 'Make in India' to really take off.

[sgiitk]

Originally Posted by Desi Dybuk

.... it's still the old lethargic government machinery, unable to think on it's feet & take timely decisions. The finance minister being sick is also not helping matters, I ...

I have a feeling that the Model Code of Conduct may be the real culprit. So wait till the 15th evening to see!

[napster1311]

Originally Posted by sgiitk

I have a feeling that the Model Code of Conduct may be the real culprit. So wait till the 15th evening to see!

Multiple News channels showed reports this morning that a 50 ps to 1 rs price cut for both Petrol and Diesel may be announced by today evening.