[sgiitk]

Brent is under $50 and projections are even talking of $45. Let us hope it goes down further and stays there!

[pgsagar]

Originally Posted by sgiitk

Brent is under $50 and projections are even talking of $45. Let us hope it goes down further and stays there!

What is the point? Heard of party poopers aka State Govts.? They will move in and jack up VAT before we get "spoiled" by the low prices. World's biggest oil mafia is right here.

[sgiitk]

With a floor VAT is many states you do not get benefits arising from VAT but still get the cuts. The only positive, hopefully we are insulated against VAT increase in a few price hikes, when they come.

[n_naik]

Originally Posted by civic-sense

Among all the hullabaloo people are forgetting that what the old Sardarji painstakingly did to reduce the artificial price barrier between petrol and diesel has been in effect negated. And all the flak he received for making bold decisions, didn't amount to anything at the end. Hence proved that people fall for pennies thrown on the ground, no matter whether they stand for right, left or centrist governments.

Originally Posted by supremeBaleno

Indeed sad that all the effort taken by Dr.Singh to reduce the irrational price differential between petrol and diesel (using the innovative Rs.0.50 hike in diesel price every month) has been laid waste. So much for all the deregulation crap.

well, well. Let me clear the confusion here. Our former PM's Rs 0.50 hike every month in diesel was not to reduce the price gap between petrol and diesel !!! It was to prepare it for the imminent diesel deregulation.
It happened like this:
1) He deregulated petrol prices and in a place like Bangalore, it almost reached Rs80 per liter.
2) His next goal was to similarly deregulate the diesel prices. If deregulated, it would have touched Rs65 per liter mark in a city like bangalore. And to prepare for that, he started increasing the diesel prices every month by Rs0.50 for the next 13 months or so.

So the ultimate goal was to deregulate both. When Modi came to power, the fuel prices fell to such a low level that he right away deregulated diesel. And hence, we see petrol and diesel prices being revised every fortnight now.

[saurabhkum]

Originally Posted by n_naik

well, well. Let me clear the confusion here. Our former PM's Rs 0.50 hike every month in diesel was not to reduce the price gap between petrol and diesel !!! It was to prepare it for the imminent diesel deregulation.
It happened like this:
1) He deregulated petrol prices and in a place like Bangalore, it almost reached Rs80 per liter.
2) His next goal was to similarly deregulate the diesel prices. If deregulated, it would have touched Rs65 per liter mark in a city like bangalore. And to prepare for that, he started increasing the diesel prices every month by Rs0.50 for the next 13 months or so.

So the ultimate goal was to deregulate both. When Modi came to power, the fuel prices fell to such a low level that he right away deregulated diesel. And hence, we see petrol and diesel prices being revised every fortnight now.

Mostly correct but the point of deregulation and prices being revised every 15 days after Diesel deregulation is not correct. The 50p hike was to ensure that subsidy model comes to an end as one moment will come when the increase will touch the deregulated price of diesel. The deregulation of Petrol also ensured that OMC checks their selling price every 15 days and correct them according to cost price. Everything was going fine till the time Crude prices crashed. Once the prices crashed the taxes were increased so that entire benefit is not passed to the customers.
Just imagine our faces is we would have been getting Petrol at 40 Rs in Mumbai and Diesel at 35.

[poloman]

Originally Posted by saurabhkum

Just imagine our faces is we would have been getting Petrol at 40 Rs in Mumbai and Diesel at 35.

Public transport charges won't come down as usual.Thousands of people will switch to personal cars for transport clogging the roads even further. Travel time will increase, you will burn more fuel and essentially end up paying and polluting more. Back to square one.

[JD1]

Interesting news item on the oversupply of diesel/jet fuel due to Saudi Arabia's new refineries. Don't know if this impacts India diesel prices (seen to fall more compared to petrol at retail outlets) or it's just an old recirculated article.
http://economictimes.indiatimes.com/...w/48348767.cms

[sgiitk]

With the $ hitting ₹65 and also Brent having crossed $50 momentarily be prepared for a hike if not on Monday then next fortnight.

[Mohan Mathew A]

Originally Posted by sgiitk

With the $ hitting ₹65 and also Brent having crossed $50 momentarily be prepared for a hike if not on Monday then next fortnight.

I don't agree. On July 31 brent was around 53 USD/barrel. Today it is around 48.xx. i.e a drop of around 7%. Even-if you factor in the 2 % drop in INR vis-a-vis the USD, it should still be reduced. So let me repeat, there is just no basis for increasing prices, on the contrary it should be reduced.

The above are the facts, now since what the OMCs do has got no basis on facts, they could very well increase it, but it sure will not be justified.

[vinitbhavi]

Just a little bit of trivia / information OT. In Venezuela which has huge oil reserves and some of the best quality crude most vehicles are SUV and the price per litre of fuel till a year back at least was less than equivalent of 10 Indian rs.

[sumzup]

The omc will decrease albeit in small amount.

[commonman]

I am no oil expert nor a finance expert. If you watch the fuel prices,we can see that diesel is priced way below the international prices,when compared to petrol prices.In India we have a difference of almost 20 Rs. between these two fuels. Government is keeping the prices of diesel low to tackle inflation. Please check here.http://www.globalpetrolprices.com/widget/.So tell me where is the de regulation happened. I feel,in India petrol vehicle owners are paying for the subsidy of the diesel vehicle owners.

[sumeethaldankar]

Prices cut for Petrol by 1.27 Rs & 1.17 Rs for diesel.

[khoj]

So after a longish time Petrol trumps diesel, well at least in the rate cut

[harry10]

Originally Posted by khoj

So after a longish time Petrol trumps diesel, well at least in the rate cut

True. But as a diesel cars owner I am still quite happy as the current price is the lowest I can remember