The Official Fuel Prices Thread

ritz3645 · 14th February 2015, 17:15

An incidence which I will like to highlight.
2010 when gas prices were all over the place, a Toronto transit bus tanks up at a gas station.
The desk clerk had a chat with the driver about gas prices. The driver simply informed that change in prices does not affect TTC the transit authority, as they have long duration fixed price contracts.

I understand upstream companies dig oil and downstream bring it to market.

But there still should be some long term price agreement between the two, and Brent/ International Petroleum Exchange price as a reference.

Indian companies buy from multiple sources, and then cry hoarse showing us the Brent price of the day. It seems a gimmick. Yes a seller wants best price of its product, but may be in a competitive market. Not in a monopoly market where they are also given Navratna status to serve the people.

saket77 · 15th February 2015, 18:40

News is just in. Petrol is up by 82p and diesel by 61p. Looks like party is over :(

ritz3645 · 15th February 2015, 18:48

I am getting a banner at Economic Times mobile site of a hike in fuel.

Will like to mention that PTI site does not have any info.

screen shot attached.

GOI site information of Indian crude basket.
http://pib.nic.in/newsite/pmreleases.aspx?mincode=20

gomzi · 15th February 2015, 18:53

Quote:

Originally Posted by saket77

News is just in. Petrol is up by 82p and diesel by 61p. Looks like party is over :(

Yeah, amid the euphoric cricket headlines, I saw this headline also sneak in on NDTV.

My question is, why raise retail prices and not absorb it by cutting excise duty?

So was the excuse of adjusting excise rates to cushion common man against price falls & hikes a big sham as we were all predicting but still hoping that it wont happen?

drmohitg · 15th February 2015, 19:57

Wow so the first instance of a slight price rise in global crude and they raise the prices. All the excuses given before at the time of reductions are flushed down the toilet now like:

1. Retail price is affected by the average price that the company bought the crude at months before. This was one of the reasons given when global prices were having a free fall for not reducing the prices.

2. The Govt kept increasing taxes and so did some of the states. The reason was the buffer or cushion being provided. And now those taxes will stay forever or only a small percentage of them will be rolled back.

Bottom line is that oil is a cash cow for every one and all these excuses are just a Sham.

sgiitk · 15th February 2015, 21:01

Quote:

Originally Posted by saket77

News is just in. Petrol is up by 82p and diesel by 61p. Looks like party is over :(

With a 20% plus increase in Brent this is possibly only a sampler.

nitinralli · 16th February 2015, 00:15

Is this increase across India or particular states? Please let us know.

NetfreakBombay · 16th February 2015, 08:05

Quote:

Originally Posted by drmohitg

Wow so the first instance of a slight price rise in global crude and they raise the prices.

This seems to be the buffer doing it job.

Crude Oil price increased by 39%, however increase in petrol/diesel price is notional.

Cost on

Jan 29th : $44
Feb 13th : $61

This is for a contract purchased for delivery in April and May (Symbol : LCOJ5). Prices started increasing from Jan 29th.

drmohitg · 16th February 2015, 08:26

Quote:

Originally Posted by NetfreakBombay

This seems to be the buffer doing it job.

Crude Oil price increased by 39%, however increase in petrol/diesel price is notional.

Cost on

Jan 29th : $44
Feb 13th : $61

This is for a contract purchased for delivery in April and May (Symbol : LCOJ5). Prices started increasing from Jan 29th.

Buddy I would trust the government to go crazy advertising there generosity in cutting the excise duty back and letting us the enjoy the buffer provided by it. No word from them means that it is hard to believe what you say.

carboy · 16th February 2015, 08:37

Quote:

Originally Posted by NetfreakBombay

This seems to be the buffer doing it job.

No, it's not. The 'supposed' buffer was collected by Govt not by Oil Companies. So why would Oil Companies provide a buffer. If and when a buffer happens, it would have to happen via reduction of excise duty. And no excise duty has been reduced yet.

NetfreakBombay · 16th February 2015, 08:52

Quote:

Originally Posted by drmohitg

it is hard to believe what you say.

Look at actual data:

http://www.marketwatch.com/investing...CountryCode=uk

Oil prices go up by 39% and petrol, diesel by less than 1%.

civic-sense · 16th February 2015, 10:37

So all the talk about the govt buffering for us has been proved wrong. As usual, the "believers" are out with their rationalizations, but even they should know by now that the govt has pulled a fast one on us.

All we can do is crib, suck it up and go back to our work.

1lokesh · 16th February 2015, 11:02

Quote:

Originally Posted by NetfreakBombay

Look at actual data:

http://www.marketwatch.com/investing...CountryCode=uk

Oil prices go up by 39% and petrol, diesel by less than 1%.

Well, I was too a fan of this govt., especially its leader. With every passing day, I'm losing confidence and forced to believe that nothing will ever change or improve. I strongly feel that in the names of 'reforms' this govt. is going absolutely against the promises it made to the people of this country.

And high time now that rationalists (may be like me) stop defending them for every step that they take, which are mostly in wrong direction.

Apparently, excise duty was hiked to provide a buffer against future price hikes. And If I'm not wrong it was about Rs 8-10/Ltr. So whether 1% or 10% hike, there shouldn't have been any at the first place. This 1% hike should have been covered from that buffer itself, till it is utilized FULLY

Carpainter · 16th February 2015, 11:16

I, personally, believe that the additional excise duty implemented recently by the Govt. will stay, atleast till the budget. Even if anymore price correction happens in between. They might roll back a part of that excise duty if and only if the market inflation go up again. Although whether they will rollback this entire additional excise duty or not is a million dollar (eh. million rupee) question. This is absolutely my personal opinion.

Chetan_Rao · 16th February 2015, 13:13

As someone else quoted on this thread (I believe Tanveer) a few pages back, it doesn't matter which way the economy and percentages move, the common man is always at the screwed end of the stick, one way or another.

I have no choice in paying higher prices, but I'm sick of all these 'market experts' telling us how it's for our own benefit and we're just too dumb to see it. Same set of idiots who apparently fail to see or even orchestrate some of the biggest financial disasters with their 'expert' actions.

14th February 2015, 17:15	#4666
ritz3645 BHPian Join Date: Jun 2012 Location: Traveller Posts: 149 Thanked: 285 Times	Re: The Official Fuel Prices Thread An incidence which I will like to highlight. 2010 when gas prices were all over the place, a Toronto transit bus tanks up at a gas station. The desk clerk had a chat with the driver about gas prices. The driver simply informed that change in prices does not affect TTC the transit authority, as they have long duration fixed price contracts. I understand upstream companies dig oil and downstream bring it to market. But there still should be some long term price agreement between the two, and Brent/ International Petroleum Exchange price as a reference. Indian companies buy from multiple sources, and then cry hoarse showing us the Brent price of the day. It seems a gimmick. Yes a seller wants best price of its product, but may be in a competitive market. Not in a monopoly market where they are also given Navratna status to serve the people.
	() Thanks

15th February 2015, 18:40	#4667
saket77 Distinguished - BHPian Join Date: Dec 2012 Location: Ranchi Posts: 4,375 Thanked: 11,831 Times	Re: The Official Fuel Prices Thread News is just in. Petrol is up by 82p and diesel by 61p. Looks like party is over :(
	() Thanks

15th February 2015, 18:48	#4668
ritz3645 BHPian Join Date: Jun 2012 Location: Traveller Posts: 149 Thanked: 285 Times	Re: The Official Fuel Prices Thread I am getting a banner at Economic Times mobile site of a hike in fuel. Will like to mention that PTI site does not have any info. screen shot attached. GOI site information of Indian crude basket. http://pib.nic.in/newsite/pmreleases.aspx?mincode=20 Attached Images
	() Thanks

15th February 2015, 19:57	#4670
drmohitg Distinguished - BHPian Join Date: Sep 2010 Location: Liverpool/Delhi Posts: 5,439 Thanked: 7,539 Times	Re: The Official Fuel Prices Thread Wow so the first instance of a slight price rise in global crude and they raise the prices. All the excuses given before at the time of reductions are flushed down the toilet now like: 1. Retail price is affected by the average price that the company bought the crude at months before. This was one of the reasons given when global prices were having a free fall for not reducing the prices. 2. The Govt kept increasing taxes and so did some of the states. The reason was the buffer or cushion being provided. And now those taxes will stay forever or only a small percentage of them will be rolled back. Bottom line is that oil is a cash cow for every one and all these excuses are just a Sham.
	(4) Thanks

16th February 2015, 00:15	#4672
nitinralli Senior - BHPian Join Date: Jun 2005 Location: Delhi Posts: 1,520 Thanked: 1,098 Times View My Garage	Re: The Official Fuel Prices Thread Is this increase across India or particular states? Please let us know.
	() Thanks

16th February 2015, 10:37	#4677
civic-sense BHPian Join Date: Dec 2009 Location: Bangalore Posts: 895 Thanked: 1,658 Times	Re: The Official Fuel Prices Thread So all the talk about the govt buffering for us has been proved wrong. As usual, the "believers" are out with their rationalizations, but even they should know by now that the govt has pulled a fast one on us. All we can do is crib, suck it up and go back to our work.
	(2) Thanks

16th February 2015, 11:16	#4679
Carpainter BHPian Join Date: Aug 2014 Location: Kolkata Posts: 688 Thanked: 1,151 Times	Re: The Official Fuel Prices Thread I, personally, believe that the additional excise duty implemented recently by the Govt. will stay, atleast till the budget. Even if anymore price correction happens in between. They might roll back a part of that excise duty if and only if the market inflation go up again. Although whether they will rollback this entire additional excise duty or not is a million dollar (eh. million rupee) question. This is absolutely my personal opinion.
	() Thanks

16th February 2015, 13:13	#4680
Chetan_Rao Team-BHP Support Join Date: Jul 2010 Location: Bangalore Posts: 5,877 Thanked: 24,039 Times	Re: The Official Fuel Prices Thread As someone else quoted on this thread (I believe Tanveer) a few pages back, it doesn't matter which way the economy and percentages move, the common man is always at the screwed end of the stick, one way or another. I have no choice in paying higher prices, but I'm sick of all these 'market experts' telling us how it's for our own benefit and we're just too dumb to see it. Same set of idiots who apparently fail to see or even orchestrate some of the biggest financial disasters with their 'expert' actions.
	(1) Thanks