[sgiitk]

Originally Posted by sdp1975

Markets have tumbled and the rupee breached 64 today. Get prepared for another hike.

There are two parameters of Interest - Brent and Exchange Rate. So I propose a new figure taking both into account which I call ₹brent, ie Brent (in $) x Exchange Rate, which today is 63.90 x 64.00 = 4093 ₹/bbl. It is easy for us to compute and track. Duties etc re on top of this. This will prevent either parameter from overtly colouring our judgement.

[ashua]

Originally Posted by sgiitk

There are two parameters of Interest - Brent and Exchange Rate. So I propose a new figure taking both into account which I call ₹brent, ie Brent (in $) x Exchange Rate, which today is 63.90 x 64.00 = 4093 ₹/bbl. It is easy for us to compute and track. Duties etc re on top of this. This will prevent either parameter from overtly colouring our judgement.

So you are saying it will not see a hike? Sorry, I am not so well versed with what the Rupee Brent levels should be before we can call it time for a Hike.

[saket77]

Originally Posted by sgiitk

There are two parameters of Interest ----

Originally Posted by ashua

So you are saying it will not see a hike? Sorry, I am not so well versed with what the Rupee Brent levels should be before we can call it time for a Hike.

I tried to crack the code many times on logic of crude/ Re. vs. USD/ economy of OPECs and all...but ridiculous excuses by the party in rule (& the oil companies) overrule all those global financial logic.

There was a time when crude prices went down to the 30s and neither the rupee depreciated as much; but then Oil companies made the excuse that the crude was bought earlier at a higher price and what not. They never 'bought' crude at a lower price whenever the price rises.

Hence, I have stopped thinking about it. The pricing is simply illogical and trying to decode the logic feels nothing more than a bet that on which side the camel will sit!

Thanks!

[sgiitk]

Originally Posted by ashua

So you are saying it will not see a hike? Sorry, I am not so well versed with what the Rupee Brent levels should be before we can call it time for a Hike.

All that I said was quite often we see the exchange rate and ignore the Brent price or vice versa. So this formula incorporates both.

[sandeepmohan]

Gas prices up again. Rs. 74.90 in my city.

[saket77]

Originally Posted by sandeepmohan

Gas prices up again. Rs. 74.90 in my city.

Though the news is not surprising at all, but could not find that in news anywhere. Could you share by how much the prices have gone up? Or still better if you could share a link.

Thanks.

[sandeepmohan]

Originally Posted by saket77

Could you share by how much the prices have gone up?

I don't have a link. This was observed when I went to fill gas this week. I went twice, one was Shell and the other HP. Shell was selling BSIII at Rs. 72.60 on 6/2. When I popped in at HP on 6/3, the dispenser showed 74.90. My guess is it is BS4. Still; does not line up to what their website says.

[ottocycle]

Hyderabad the price is 74.90 per liter for petrol. Suddenly it's threatening to touch level of 80s.

[blue_pulsar]

Originally Posted by sandeepmohan

Gas prices up again. Rs. 74.90 in my city.

I just filled up. Price is still the same. Rs.72.65/Litre.

Was that Shell? Or may be you were sold Extra Premium or something?

[sandeepmohan]

Originally Posted by blue_pulsar

Was that Shell?

No.

Shell BSIII was Rs. 72.60
HP Regular Gas was Rs. 74.90

[sgiitk]

₹brent right now is 61.76 (Brent in $) * 63.885 ($ is ₹), ie 3946! So this unit does seem to make sense. Remember the OMC average over a fortnight and taking into account many parameters their average price of procurement is somewhat lower.

[shashanka]

Originally Posted by saket77

I tried to crack the code many times.............about it. The pricing is simply illogical and trying to decode the logic feels nothing more than a bet that on which side the camel will sit!

Thanks!

Yes, Saket, there's nothing logical about over-riding greed! All the hocus that the vested interests - well-head operators, importers, distributors, retailers - give to us consumers, the last link in the chain, is just that - so much gobble-de-gook. The details of oil pricing and profit sharing remains as obfuscated as any of the NSA's smoke-screens.

[civic-sense]

Today is 15th and time for the next price revision. Any predictions on whether it would go up or down? I resisted the temptation to tank up in the morning hoping it would come down this time.

I wonder whether the media would hush up the hike like last time.

[Mohan Mathew A]

Originally Posted by civic-sense

Today is 15th and time for the next price revision. Any predictions on whether it would go up or down? I resisted the temptation to tank up in the morning hoping it would come down this time.

I wonder whether the media would hush up the hike like last time.

Ideally it should come down as the Brent prices has come down from around 67-68 to 64 USD/barrel and rupee has more or less remained around the same; at least i see no reason for it being increased. But with these PSU oil companies there is no guarantee, for all you know they could increase it.

[khoj]

What about the US$ that has firmed up against the Rupee ?

Originally Posted by Mohan Mathew A

at least i see no reason for it being increased.