[ukamath]

Originally Posted by khoj

Petrol up yet again by Rs 3.13/Ltr

Diesel up yet again by 2.71/Ltr

New prices effective from midnight tonight.


EDIT : Between my logging in and reaching this thread, two posts already up on the price rise. Bad news surely travels fast

This is the second steep hike announced within fifteen days. On May 1, oil companies have increased petrol price by Rs 3.96 a litre and diesel price by Rs 2.37. Including the earlier hike, within a fortnight, petrol prices have now gone up Rs 7.09 while diesel price shot up by Rs 4.54 per litre. The two consecutive hikes have now wiped away more than one-third of the gains that had accrued to consumers.

A spiral effect is bound to open up soon, with price of almost every commodity going up. A tough pinch for the middle class already burdened with a hundred other expenses. Seriously, the government needs to look at reducing duties and taxes - this in retrospect can be a catalyst for conservative spending and operational cost reduction of the government machinery - Possible? It happens in our houses and offices - why should the government ecosystem not adopt prudent spending? Guess that is a tall order and won't happen anytime soon.

[sgiitk]

Originally Posted by ukamath

A spiral effect is bound to open up soon, with price of almost every commodity going up.

I did not see any downward spiral when the prices came down, maybe you did. Even today with all the excise and VAT hikes petrol is about ₹7-8 lower than at the peak.

Also, inflation seems to be under control.

[ramzsys]

Originally Posted by sgiitk

Also, inflation seems to be under control.

I guess govt must be annoyed with all the gold imports wiping out the benefits accrued to CAD from the reduced crude import bill.

the prudential government is capitalizing on the low inflation to fill it's coffers.
All i want now is that these funds being put to good use.

[romeomidhun]

Imo, the authorities think that they have the right to do everything without proper resistance. This kind of manipulation by people will result in their own downfall.

[sumzup]

New Rate Euro 4 and Euro 3 for both petrol and diesel

72.94 57.23 72.38 57.18 IOCL


NOT AVAILABLE 72.48 57.24 HPCL


73.15 57.31 72.60 57.26 BPCL

Hope it helps. Cheers

[prakhar1998]

I clearly remember the government raising taxes to absorb some of the fall in oil prices. What I believed was that these taxes will act as cushions when prices rise. However, I don't see them acting that way. In fact, if it continues this way, petrol will touch ~Rs. 80 in Delhi if and when crude oil prices reach where they were.

I don't blame the government for increasing taxes when the price of petrol fell too much, but when there are such fluctuations, the taxes should be adjusted in order to absorb any fluctuations and not make the fluctuations even more abrupt and impactful.

Poor policies.

[nik hill]

Are the Reliance fuel stations selling fuel at the same rate as PSU bunks?

[sgiitk]

After all the hullabaloo

Petrol Price in KANPUR :-
16th May 2014 :- ₹74.90/- Per Litre
16th May 2015 :- ₹72.14/- Per Litre

[drmohitg]

What I don't understand is that the opposition made so much noise when the last govt was in office over the price rise issue. And that too when the crude prices were sky high and had breached the 100$ mark. Then why is the current opposition not making any noise over these steep hikes which have no logic behind them and are certainly not free market driven.

[khoj]

IIRC, one could buy 1US$ for roughly ₹57.71 in May2014, today the same 1US$ costs ₹63.55.

With $ being the base currency for oil pricing and purchase, its escalation was bound to show its effects.

[sgiitk]

Originally Posted by khoj

IIRC, one could buy 1US$ for roughly ₹57.71 in May2014, today the same 1US$ costs ₹63.55.

What you are inferring is that in $ erms we are over 10% cheaper now! Unfortunately, we get paid in and shell out in ₹s. I am expecting about a 3% drop in the ₹ soon.

[Asifgrkhan]

Originally Posted by sgiitk

After all the hullabaloo

Petrol Price in KANPUR :-
16th May 2014 :- ₹74.90/- Per Litre
16th May 2015 :- ₹72.14/- Per Litre

This is really infuriating. Brent crude prices in the past year have almost halved and even the $/Re rate has been fairly consistent but we are being asked to fork out the same price for he finished product.

See attached for crude prices.
16-May-2014: $110.90/bbl
11-May-2015: $ 62.82/bbl

Even discounting for a 10% depreciated rupee as mentioned by @khoj above, there is no reason for the 90% difference. Know that it is not entirely linear but lets take off our rose tinted shades and call a spade a spade for gods sake. If this sort of a thing had happened in any other civilized democratic society, there would be hell to pay for the political leadership. But here, there is nothing but apathy.

Why do we argue against our own financial interests is something that I will never understand.

[sgiitk]

Originally Posted by Asifgrkhan

This is really infuriating. Brent crude prices in the past year have almost halved and even the $/Re rate has been fairly consistent but we are being asked to fork out the same price for he finished product.

See attached for crude prices.
16-May-2014: $110.90/bbl
11-May-2015: $ 62.82/bbl

Even discounting for a 10% depreciated rupee as mentioned

I agree with you, but when I was raising a similar issue with a friend who should know he told me some unsavoury facts.

PC left one or two instalments of IMF loans in arrears, and this govt has repaid these as well as a third, somewhat in advance. So the scope for excise cuts is not really there. As for VAT we all know how greedy our states are. I will not be surprised if the OMCs are busy recouping some of the losses. afaik to achieve BS-IV in Diesel (diluted Euro-IV) the OMCs buy from RIL and the cut with their stuff. It is the total lack of investment which has led to BS-V being postponed by at least five years. I will like them to use the gap and enforce BS-IV across the country immediately.

[reverse_gear]

Originally Posted by sgiitk

PC left one or two instalments of IMF loans in arrears, and this govt has repaid these as well as a third, somewhat in advance. So the scope for excise cuts is not really there. As for VAT we all know how greedy our states are. I will not be surprised if the OMCs are busy recouping some of the losses. afaik to achieve BS-IV in Diesel (diluted Euro-IV) the OMCs buy from RIL and the cut with their stuff. It is the total lack of investment which has led to BS-V being postponed by at least five years. I will like them to use the gap and enforce BS-IV across the country immediately.

India does not have any IMF loans outstanding. Last time we borrowed from IMF was 1991 and it was repaid within a couple of years after that. And we have not delayed or defaulted on any payments to any international agencies, so this statement about payment arrears is not accurate. Absolutely no reason to default when our forex reserves are at historically high levels.

Personally I do not believe that excise duty should be played around with too much. Decide on a percentage and stick to it. Otherwise transparency and consistency in pricing is lost. This cannot be adjusted every few months based on the state of government finances.

[NPV]

Originally Posted by drmohitg

Then why is the current opposition not making any noise over these steep hikes which have no logic behind them and are certainly not free market driven.

The numbers of such "opposition" is simply negligible and hence they can't make much noise

In Bangalore we're heading back to the high prices seen more than a year ago!
Haven't filled up after the latest revision but I guess, Petrol is now ~Rs.74/litre now