[lurker]

Originally Posted by sgiitk

Before jumping the gun let us look at another possibility. With sanctions in place there was no legitimate way to pay them. So maybe now! Hopefully the money was in an escrow account.

ha ha this is the excuse they had. But they could have always considered some form of barter payment, like pay them in rolled steel, aluminum etc. But no sir, they were content like a bunch of smart alec operators to buy Iranian oil and not pay them for 2 years. Supposedly they were waiting for sanctions to end, but didn't stop buying Iranian oil, the pious souls that they are.

After Turkish route of payment was stopped, IOC/HP/Reliance and other geniuses stopped payment, and Iranians due to their compulsions could not stop selling their oil to the Indian companies because no one else even bought Iranian oil. If anyone else did, they were stopped on high seas by the US Navy.

Now if Iranians, kick these Indian oil marketing and producing companies in the balls after sanctions have been lifted, do not be too surprised or be alarmed. They will first seek $6.5 billions from these scamsters which obviously will cause lot of sweating and rupee devaluation and screaming and screaching now.

[itwasntme]

Originally Posted by lurker

ha ha this is the excuse they had. But they could have always considered some form of barter payment, like pay them in rolled steel, aluminum etc. But no sir, they were content like a bunch of smart alec operators to buy Iranian oil and not pay them for 2 years. Supposedly they were waiting for sanctions to end, but didn't stop buying Iranian oil, the pious souls that they are.

After Turkish route of payment was stopped, IOC/HP/Reliance and other geniuses stopped payment, and Iranians due to their compulsions could not stop selling their oil to the Indian companies because no one else even bought Iranian oil. If anyone else did, they were stopped on high seas by the US Navy.

Now if Iranians, kick these Indian oil marketing and producing companies in the balls after sanctions have been lifted, do not be too surprised or be alarmed. They will first seek $6.5 billions from these scamsters which obviously will cause lot of sweating and rupee devaluation and screaming and screaching now.

You have captured international diplomacy succinctly in your summery

[NetfreakBombay]

Originally Posted by lurker

Now if Iranians, kick these Indian oil marketing and producing companies in the balls after sanctions have been lifted, do not be too surprised or be alarmed.

Crude is very liquid as a commodity (in-fact, most traded amongst all commodities worldwide).

Iran needs buyers as much as buyers need Crude. If Iran is not willing to supply, Russia/OPEC etc are.

Originally Posted by lurker

They will first seek $6.5 billions from these scamsters which obviously will cause lot of sweating and rupee devaluation and screaming and screaching now.

With 350+ billion as forex reserve, 6.5 billion of "known" outflow would not be a cause of worry at all.

[khoj]

Is that not what has been happening ? Iran agreed to supply crude against payment in INR rather than the $ and a whole lot of goods are being exported from the subcontinent to Iran with the bills being settled through the escrow accounts.

Now if the sanctions are indeed completely lifted even then at most Iran will ask for payments in $ and that too will be limited the extent of the prevailing international price of crude, which in fact will head south as Iran's stockpile becomes available to the buyers at large.

Originally Posted by lurker

But they could have always considered some form of barter payment, like pay them in rolled steel, aluminum etc.

[sgiitk]

C@lurker, Maybe part payment was made through barter. One never knows.

[lurker]

Originally Posted by NetfreakBombay

With 350+ billion as forex reserve, 6.5 billion of "known" outflow would not be a cause of worry at all.

Oh really ?

http://profit.ndtv.com/news/industri...il-dues-776727

New Delhi: The government has asked refiners that owe billions of dollars to Iran for oil imports to build up dollar and euro balances to avoid downward pressure on the rupee if western powers and Tehran reach a final nuclear deal.

Local refiners owe about $6.5 billion to Iran, equivalent to 55 per cent of their oil bill, after a route to pay for Iranian oil through Turkey's Halkbank was stopped in February 2013 by western sanctions.

"The refineries may buy forex in the spot/forward market in an incremental manner so as to build up the required dollar/euro balance," according to an Oil Ministry letter dated June 11 that was seen by Reuters.
© Thomson Reuters 2015

doesn't look all that smooth to me. Buying $6.5 billion from spot currency market would drag down rupee for sure. But who cares, our oil companies like Reliance, IOC and ONGC made a quick buck by not paying $6.5 billion for 2 years.

Now they can play havoc on stock market and currency market in guise of repaying $6.5 billion so the dear Govt of India will intervene to 'help them out'. Life is smooth if lubricated with Indian Oil, and Reliance Oil.

[lurker]

Originally Posted by NetfreakBombay

Iran needs buyers as much as buyers need Crude. If Iran is not willing to supply, Russia/OPEC etc are.

Uptil now US Navy blocked all Iranian oil tankers that were carrying oil towards any other destination apart from China and India. I have it on record that some US Navy fleet themselves refueled with Iran oil because it was so damn cheap compared to Saudi or Qatari oil which was linked to global prices. Pakistan attempted to buy Iranian crude but these shipments were stopped by US Navy. So Iran had no options but to continue supplying these delinquent companies who were clearly violating terms of sale and making a windfall.

After sanctions are lifted Iran will sell oil like everyone else, at global prices.

Meanwhile I still think these cretins will not pay up, instead will foist the burden on Govt of India to shore them up again. the below article may leave a few clues on how they plan to do this.

This diplomacy, along with the fact that India signed a memorandum of understanding with Iran for the development of the Chabahar port at the height of sanctions, despite warnings from Washington, and the fact that Indian refineries would have to settle $6.5-billion of pending dues to Iran, would be the nuances of renewed diplomatic engagements to back Indian oil companies, the officials added.

Post imposition of sanctions on Iran, Indian refineries had made part payment for purchases of crude in Indian rupees while the balance had accumulated as outstanding in the face of restrictions on hard currency payment channels.

Soon after the Iranian nuclear deal, the Indian External Affairs Ministry had started examining the possibility of re-establishing the rights to develop the Farzad-B oil and gas reserves, committing an investment of about $7-billion.

http://m.miningweekly.com/article/in...tor-2015-07-16

So Indian govt gives guarantees to foot the entire Farzad-B development costs and these oil jokers do not have to pay a dime. These scamsters will always find a way to con the economy. They will always find a way to land on their feet whichever way you throw them.

[libranof1987]

Any idea why a bunch of petrol pumps in Gurgaon are shut today? I'm in sector 80 near Manesar and the pumps here have boards saying there's a bandh.

[DetonatoR]

Originally Posted by libranof1987

Any idea why a bunch of petrol pumps in Gurgaon are shut today? I'm in sector 80 near Manesar and the pumps here have boards saying there's a bandh.

Heard on the radio that they were protesting against the recent fuel hike in Haryana. They say that the truck drivers now fill their fuel from states bordering Haryana thus leading to a loss in revenue for them.

[mpksuhas]

Originally Posted by libranof1987

Any idea why a bunch of petrol pumps in Gurgaon are shut today?

They are protesting against VAT increase.

Link

[sudev]

It's funny...earlier all truckers would fuel up in haryana as prices in rajasthan were high. Now with all states moving towards uniform taxes there are bound to be loss of business to some while others who were losing sales will gain.

[NetfreakBombay]

Originally Posted by lurker

Now they can play havoc on stock market and currency market in guise of repaying $6.5 billion so the dear Govt of India will intervene to 'help them out'. Life is smooth if lubricated with Indian Oil, and Reliance Oil.

News article you quoted just has operational matters I.e. OMC to "start" building up their own reserves for a known payment. This was on June 30th. No major movement seen in USD/INR since then in terms of price or volume.

This is as expected since this amount is minor as compared to largest ever Forex reserve India has at the moment.

Larger coverage of the same letter by Reuters:

http://www.reuters.com/article/2015/...0ZG2MM20150630

The rupee dipped briefly on the news but currency dealers said the refiners had likely built up their hard currency positions since the letter was sent to them. "It may have been covered or hedged in forwards," said Ashtosh Raina, head of foreign exchange trading, HDFC Bank in Mumbai

[sgiitk]

Now UP has defined a floor VAT rate of ₹16.74 per litre for Petrol and ₹9.41 for Diesel. The prescribed rates are 26.8% and 17.48%.

So VAT will be the higher of the two.

It is further claimed that WB has a similar policy.

[longhorn]

Brent is currently trading at six month lows. The rupee has depreciated ~5 paise during this period. All eyes on what bullcrap the OMC's are going to shove down our throat this time around. The fact that Bihar elections are around the corner gives us a ray of hope, or am I asking for too much?

[Mohan Mathew A]

It should be a significant drop today, a minimum of INR 5 as Brent crude has dropped by another 10% since last revision and rupee has more or less remained steady but knowing these companies consider yourself lucky if they reduce it by another INR 2