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Old 16th October 2018, 10:23   #6556
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Default Re: The Official Fuel Prices Thread

Ever since the price cut, diesel prices have gone up by almost Rs 2.8 (In Kochi, Kerala) but petrol price is only up by about Rs 1.7. So the increase in diesel price is significantly more than that of petrol. Does anyone know what is the reason for this huge disparity?

Last edited by Mohan Mathew A : 16th October 2018 at 10:32.
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Old 16th October 2018, 12:13   #6557
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Default Re: The Official Fuel Prices Thread

Filled a full tank before the price cut - 3150 rupees

Filled 12 days after the price cut - 3144 rupees

The price of diesel is back to where it was, 4 rupees around increase in 12 days, what before used to not happen in a year now is less than a 15 day story.

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Old 16th October 2018, 12:36   #6558
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Default Re: The Official Fuel Prices Thread

In my hometown, Anand( Gujarat) Petrol price(today 16/10/2018) is 79.61/- and Diesel price is 78.80/-. The difference between petrol and diesel is just 0.81 ( bellow 1/-). Out of curiosity, I was studying the fuel rates in other states. The average difference between Petrol and diesel price is more than 7/-.

I am not able to understand, whats special/different in Gujarat? Or is it just because Gujarat is home to two major Refineries (IOCL and Reliance)?

Last edited by SJM1214 : 16th October 2018 at 12:37. Reason: Minor Change.
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Old 16th October 2018, 16:37   #6559
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Default Re: The Official Fuel Prices Thread

Somehow I feel that we are being fooled by the price cut game. The prices were reduced on 5th Oct, and thereafter global crude prices have seen about 7-8% fall. Yet the prices in India have been increased to/ beyond the pre-cut levels.

Just for example, I took the following graphs from NDTV and took retail fuel price data from IOCL.

Name:  Crude Prices.png
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PS: The crude prices are in INR, so it takes care of INR-USD fluctuation.

Name:  Retail Fuel Price.png
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Size:  14.7 KB Name:  Retail Fuel Price Mumbai.png
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Size:  14.1 KB

Last edited by AutoNoob : 16th October 2018 at 16:50. Reason: Added data for Mumbai as well
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Old 16th October 2018, 19:10   #6560
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Default Re: The Official Fuel Prices Thread

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Originally Posted by AutoNoob View Post
Somehow I feel that we are being fooled by the price cut game. The prices were reduced on 5th Oct, and thereafter global crude prices have seen about 7-8% fall. Yet the prices in India have been increased to/ beyond the pre-cut levels.
I believe the daily prices are calculated based on a moving average of prices in the last 15 days. So the effect of falling crude prices might take a few more days to show.
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Old 16th October 2018, 19:28   #6561
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Default Re: The Official Fuel Prices Thread

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Originally Posted by AutoNoob View Post
Somehow I feel that we are being fooled by the price cut game. The prices were reduced on 5th Oct, and thereafter global crude prices have seen about 7-8% fall. Yet the prices in India have been increased to/ beyond the pre-cut levels.
Fair observation. What has happened can partially be explained as follows (purely my theory):

Central government cut excise by 1.50, and asked the OICs to take a hit of one rupee. Thereby giving the illusion of 2.50 Rs. cut to the public. However, tacitly, OICs must have been given the green signal to recover this one rupee in the next few days (given free market pricing, blah blah). And this is what the OICs have been doing since then. So the price we see today, would have been lesser by at least a rupee, if the government had given an excise cut of 2.50 Rs., rather than doing this drama.

Last edited by Vitalstatistiks : 16th October 2018 at 19:31.
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Old 16th October 2018, 21:01   #6562
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Default Re: The Official Fuel Prices Thread

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Originally Posted by SJM1214 View Post
In my hometown, Anand( Gujarat) Petrol price(today 16/10/2018) is 79.61/- and Diesel price is 78.80/-. The difference between petrol and diesel is just 0.81 ( bellow 1/-). Out of curiosity, I was studying the fuel rates in other states. The average difference between Petrol and diesel price is more than 7/-.

I am not able to understand, whats special/different in Gujarat? Or is it just because Gujarat is home to two major Refineries (IOCL and Reliance)?
Govt of Gujarat charges 20% VAT (earlier 24%) on both petrol & diesel however most of the states charge higher VAT on petrol compared to diesel.
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Old 17th October 2018, 12:21   #6563
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Govt of Gujarat charges 20% VAT (earlier 24%) on both petrol & diesel however most of the states charge higher VAT on petrol compared to diesel.
Yes! That's right. I got a detailed answer from one of our D.BHPian (hemanth.anand), which explains the lower gap between petrol and diesel rates.

Quote:
In his words:
State-wise VAT varies for petrol and diesel. In Gujarat, Goa and Odisha, the VAT on petrol is lower than VAT on diesel. So the difference is less. In fact in Goa, diesel costs more than Petrol (the only state) because VAT on petrol is 16+% while VAT on diesel is 18+%. Andaman and Nicobar have the same VAT on diesel and petrol (6%). In all other states, VAT on petrol is higher than VAT on diesel.
The Official Fuel Prices Thread-44096797_2397538090264084_5240868537966264320_n-1.jpg

Thanks, hemanth.anand Sir!
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Old 17th October 2018, 12:45   #6564
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Default Re: The Official Fuel Prices Thread

gentle forumers,

i have a take on why price has increased nay skyrocketed in past few months and the hypocrisy behind it.

It is clear since last 2 months Iranian oil imports have gone down but it is expected to take off again since november when Iranians will restart oil sales to India in rupees, in Iranian tankers, with Iranian inaurance and free shipping.

So interim period, oil was purchased from Saudi and brent crude at internationally prevailing spot prices. Prices we were thus charged reflected true nature of govt taxation on fuel which is far far above the claimed 100% tax.

Now Iranian oil was hitherto purchased by Indian importers at long term futures rates which are way lower than international spot rates but also have added discounts due to heavy sour nature of Iranian crude. This Iranian oil formed almost 25% of our crude basket. Another 25% oil comes from within India itself which are drilled from digboi, bombay high & krishna basin. Remaining oil is imported at long term contracts which are way lower than international spot prices but higher than Iranian crude prices because these are light, sweet crude which need minimal refining.

At the same time Indian consumers were made to believe that 100% of oil is imported and they are paying for spot prices on imported oil plus 100% taxes because our states and center were 'ohh so poor'.

So imagine the amount of profits the govt is taking in on oil, it is way more than even 100%. I would wager more than 120%.
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Old 17th October 2018, 15:00   #6565
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Default Re: The Official Fuel Prices Thread

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....
i have a take on why price has increased nay skyrocketed in past few months ....
I have a much simpler take on the whole thing.

There are a bunch of reasons for oil price fluctuations, and the powers-that-be just choose whichever one justifies increasing or holding prices on the day they're asked to explain themselves. That their stated reasons often conflict with and sometimes openly contradict a reason given merely days ago is chalked up to our, the junta's, infinite capacity to process and digest BS and our eventual short memories.

Sometimes, all the razors in the world (the philosophical type, not literal ones) are useless and the most obvious answer is the right one too!
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Old 17th October 2018, 15:28   #6566
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Default Re: The Official Fuel Prices Thread

I see even in US, the prices have gone up a lot and are remaining there mostly. I paid close to a dollar (yes less than dollar) in Indiana living in Chicago. The prices in India were around 30 rupees then. It was long time ago but remember it since it was a dollar to gallon.

Now this month in california the price was close to 4 dollars (maybe it will be little less in other states). So we are seeing more than 2 times the price increase in India but even more in US.

Is something being done for this to happen ?
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Old 17th October 2018, 16:13   #6567
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I see even in US, the prices have gone up a lot and are remaining there mostly. I paid close to a dollar (yes less than dollar) in Indiana living in Chicago. The prices in India were around 30 rupees then. It was long time ago but remember it since it was a dollar to gallon.

Now this month in california the price was close to 4 dollars (maybe it will be little less in other states). So we are seeing more than 2 times the price increase in India but even more in US.

Is something being done for this to happen ?
Gas prices fluctuate widely across continental US. CA is at the higher end of the price spectrum, but the nationwide average is ~2.8 USD/gallon today. Benchmarked to per capita incomes, it's far cheaper than India.
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Old 17th October 2018, 16:55   #6568
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Originally Posted by srishiva View Post
I see even in US, the prices have gone up a lot and are remaining there mostly. I paid close to a dollar (yes less than dollar) in Indiana living in Chicago. The prices in India were around 30 rupees then. It was long time ago but remember it since it was a dollar to gallon.

Now this month in california the price was close to 4 dollars (maybe it will be little less in other states). So we are seeing more than 2 times the price increase in India but even more in US.

Do not compare California prices with Indiana prices. California has the highest gas prices in the USA. Indiana gas prices even today would be around 2.50-2.60$ per gallon - that works out to Rs. 50 per litre.

Last edited by carboy : 17th October 2018 at 16:57.
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Old 17th October 2018, 19:09   #6569
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Default Re: The Official Fuel Prices Thread

Quote:
Originally Posted by srishiva View Post
I see even in US, the prices have gone up a lot and are remaining there mostly. I paid close to a dollar (yes less than dollar) in Indiana living in Chicago. The prices in India were around 30 rupees then. It was long time ago but remember it since it was a dollar to gallon.

Now this month in california the price was close to 4 dollars (maybe it will be little less in other states). So we are seeing more than 2 times the price increase in India but even more in US.

Is something being done for this to happen ?
CA has the highest gas prices. For a reason. I don't think you can compare it to prices in the rest of the US.

As I keep saying, wait for the elections, prices will hit rock bottom.
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Old 17th October 2018, 19:38   #6570
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As I keep saying, wait for the elections, prices will hit rock bottom.
Only problem is that it will be a limited period bonanza la big billion sale, great Indian sale etc. Unfortunately, govt. isn't proposing(or even trying to propose) long term solutions for the same, which is why many are frustrated. Silence may be the best answer, but not in all scenarios.
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