[lancer_rit]

Good job by govt to deregulate diesel prices. Hope they also look at tax rationalization on petrol vis-a-vis diesel going ahead.

[RSR]

The price of diesel has gone down to ~ Rs. 59.27 in Chennai (petrol is 69.59) at the PSU pumps. Shell diesel is now more expensive by 2.23 rupees (petrol by 2.41) a litre in Chennai.

It looks like Shell has decided to price their fuels at a 2 rupee premium (in Chennai) over those of the PSU cartel, with taxes making up for the rest of the difference.

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@ mods:



I guess I couldn't restrain myself from taking a dig at 'em. I promise henceforth to behave myself and to abide by all the forum rules in both letter and spirit!

[sgiitk]

Originally Posted by StarScream

Now for some investment in refining capability so that we get cleaner technologies with ultra-low sulfur diesel and finally progress from Euro-4 standards.

Yes, true Euro IV Diesel and nationwide BS-IV to be followed by nationwide BS-V. Right now BS-IV allows more sulphur than Euro-IV in Diesel, so that must be scaled back.

[sgiitk]

I think in all this brouhaha we should also commend the UPA idea of a 50p per month price hike.

[drmohitg]

Originally Posted by sgiitk

I think in all this brouhaha we should also commend the UPA idea of a 50p per month price hike.

+1. More so since everyone was forecasting a disaster for them already and raising fuel prices was only going to compound there problem further.

[aaggoswami]

This is a nice move. I had purchased Grand i10 diesel in Feb'14! Appreciate this and I hope the cost of day-to-day commodities and consumables also come down.
Yes, the decisions are coming out very, very fast. My story here is a bit odd : Did not sell off Wagon R after my sister left for Canada considering rising diesel cost and reducing petrol cost, plus the Wagon R is CNG. Now, the diesel prices are coming down and CNG prices are likely to increase. Its a weird or rather fluctuating trend out of which taking a decision might not be possible. I think it will take sometime before things get settled down.
How frequently and effectively the prices get adjusted as per international crude price remains to be seen, specially in the long term.

Nice move at the end of the day. I dont understand macro economics, but I believe that inflation might come down a bit ( from what have discussed/read ).

[VSRK]

Originally Posted by aaggoswami

How frequently and effectively the prices get adjusted as per international crude price remains to be seen, specially in the long term.

Nice move at the end of the day. I dont understand macro economics, but I believe that inflation might come down a bit ( from what have discussed/read ).

If I'm right, In India, petrol prices are adjusted with international market once in every fortnight, approximately 1st and 15th of every month). Deregulation is double edged sword. It will backfire the consumers when international crude price starts rising. I don't think Govt will be silent spectator when diesel will increase like petrol every fortnight, as inflation is tightly tangled with diesel price.

[atnyia]

Be prepared for crude prices just about 80-ish $ for some time. So that's good news in general. We are so used to crude around 110 $ for sometime.
Not sure why but official stand is that the Saudi Arabia and likes have decided to keep it this way to keep investments down in shale gas field! Think I need some Hajmola.
Also CNG pricing formula revision is approved & prices will be reviewed/revised every six months. It is set to go up by 4-5 rupees by November. So CNG can loose it charm for private vehicles in coming months.

[deetjohn]

Oil companies couldn't have been happier. Watch the Diesel prices dance once OPEC cuts production. But it was long due.

[Tanmoy]

Originally Posted by sgiitk

They buy from IOC in bulk. Imagine where can Reliance take it!! However, there is a spike in Bent today.

How do you know Shell buys from IOC ?

[sgiitk]

Originally Posted by Tanmoy

How do you know Shell buys from IOC ?

I read somewhere that they get it from IOC. See Shell have no refining in India so have to source their fuels from somewhere!

[StarScream]

Originally Posted by atnyia

Not sure why but official stand is that the Saudi Arabia and likes have decided to keep it this way to keep investments down in shale gas field! Think I need some Hajmola.

OPEC controls about 40% of the world's crude supply. The reason the Saudis haven't cut output to try and boost prices is to maintain their market share. There is so much infighting in the oil business that the minute Saudi Arabia cuts output, others inside and outside OPEC (chiefly Russia) will step in to to fill the gap. Once share is lost, it's hard to win it back, as has happened before with the Saudis. Once bitten, twice shy.

[ssateesh]

Can anyone answer why fuel prices in US is lower than India ?

In India one liter = ~ 75

In US 1 gallon = ~3.75$

1 gallon = 3.785 liter

Comes to ~1$ per liter = 62Rs

Is it the high taxation in India that is responsible ?

[narayans80]

Originally Posted by ssateesh

Is it the high taxation in India that is responsible ?

Possibly yes, and each country rates are different. Just to make you happy, a liter of petrol (benzina) is 1.62 EUR and diesel is 1.7x EUR (don't remember exactly) in a nearby gas station in Italy. EUR to INR is about 78-80 INR ballpark.

Now India's gasoline prices don't look as bad do they

[jagzrk]

I hope its OK discussing CNG pricing on this thread, since it is also a well utilized fuel. I don't know the factors involved in CNG pricing but there was an effort going on to get CNG pricing on similar levels all across the country.

When the CNG price in Pune was Rs.52.50, it was around Rs.38 in Mumbai. Lesser in Delhi I think. With all the hype of CNG price increase going round and round, recently, the CNG price in Pune has dropped to Rs.47.50 (that's a good 10% decrease!)

I wonder if its the calm before the storm? Also, why should less-polluting, locally available and environment friendly fuels like CNG be taxed and made costlier?