The Official Fuel Prices Thread

Rtech · 21st June 2005, 15:15

Yes, the prices are kept low(er), however the Oil companies largly bear the loss. I believe the Govt. makes Rs.13 or more in taxes per litre of petrol. I think that is really excessive.

RX135 · 21st June 2005, 15:32

All Oil companies are making huge money, so it doesn't matter if they lose some of the pie. Govt. has not raised prices of Kerosene and LPG, which are absolute must for common man. People, who afford (luxury) cars, can shell out more money. Common man using 2 wheelers is going to be affected, but that can not be avoided. If Govt. loses money, it has to recover it from other ways, which means adding taxes elsewhere, or jeopardizing budgeted projects.

I am not saying that restructuring of duties can not be done, but it may not be as simple as it sounds and some knowledgeable folks (including FM/PM, who are reputed economists) must have already put lot of thought into it. If it is possible, why would politicians hike the prices and invite wrath of their all important vote-bank?

turbo_lover · 21st June 2005, 16:11

THISSSS SUCKSSSS !!

i am here for a vacation and i blow my savings on gas than beer ....40 bucks for a litre is insane ...

adya33 · 21st June 2005, 23:00

yes RX135 the prices have gone sharply up in international market
& in india they were not changed for a while & suddenly raised so it might give an impression about goverment is out to s***w you

also I have heard a little time ago that Reliance had found out large source of oil which would meet 60% requirment of this country. any more information about it?

RX135 · 22nd June 2005, 12:40

I read somewhere y'day that, at previous price levels, Oil companies made profits if the barrel price was lower than $44. Right now, they are $56.

There are sources identified in Orissa and North East. But haven't read how long it would take to start extracting oil from them.

v1p3r · 22nd June 2005, 14:13

Do you know that Indian oil companies have the largest profit percentages in the world? They make close to 40%, while Exxon etc are happy to get 8-10%. (from an Anitha Prathap article)

Indian oil prices are among the highest on earth. And wrt to per capita income, they most certainly are among the top 3, if not the very worst.

The government just wants to make money. All this talk of the PSUs making losses are absolute bullsh*t.

Just to point out how they lie...they always sold Speed 91/Xtra premium etc at Rs 1-2 above the market rate for RON 87. When BSIII came in, they needed to sell RON 91 as standard. For this they wanted a Rs 5 price hike. Earlier they were ok with Rs 2, but now they want to increase that by 150%.

Petrol cost at source: 19.46
Excise and edu. cess: 14.86
Kar State sales tax: 11.91
dealer charges: 00.77
others (??!!): 00.14
(source TOI)

@non-bangaloreans...you think you guys have it tough? we pay 47.32 for regular and i think 50+ for 93. time to call the reva dealership!!

typeOnegative · 22nd June 2005, 14:33

Quote:

Originally Posted by v1p3r

Do you know that Indian oil companies have the largest profit percentages in the world? They make close to 40%, while Exxon etc are happy to get 8-10%. (from an Anitha Prathap article)....
@non-bangaloreans...you think you guys have it tough? we pay 47.32 for regular and i think 50+ for 93. time to call the reva dealership!!

Now that, my friend, is an absolute shocker. Shameful too you know. I am a bit middle of the path guy, but things like these (if it is indeed the case) make me mad. This makes me think that India is a case of pseudo-socialism gone(going?) wrong.

RX135 · 22nd June 2005, 14:36

Very true about Oil companies minting money. Don't think govt. ever claimed that they are loss making. In fact, they are among the only profit making PSUs.
Petrol prices are rising all over world. In entire Europe, they are much higher than India (approx. 55). They are high in Japan (approx. 42). They are low in US due to tight oil price control by US.

tsk1979 · 22nd June 2005, 14:49

Umm little wrong here. The refineries like reliance make money, not the oil importers. So if you just have a refinery you will make lots of money but if your ONGC you will lose a lot

ported_head · 22nd June 2005, 14:52

Exactly what I wondered! Oil companies couldn't be making the sort of losses that they claim, otherwise where does the money for the huge investments they plan to make in other companies come from?

The government is never going to backtrack on the fuel prices. If anything, I think the companies would eventually get their Rs. 5 hike in the months to come.

Crude oil prices recently soared to $ 60 a barrell because of rumoured violence in Nigeria. Why is OPEC always a little reluctant to increase production? We still have some time to go before we run out of oil resources.

Rtech · 22nd June 2005, 15:29

Quote:

Petrol prices are rising all over world. In entire Europe, they are much higher than India (approx. 55). They are high in Japan (approx. 42). They are low in US due to tight oil price control by US.

Yes, if you convert it, it may appear that way, but then you are not taking the per capita income of the average person into account. That's waaaaay more than we make over here.

RX135 · 22nd June 2005, 15:36

Quote:

Originally Posted by Rtech

Yes, if you convert it, it may appear that way, but then you are not taking the per capita income of the average person into account. That's waaaaay more than we make over here.

Yeap, I agree. I figured that while I was posting, but then OPEC won't give different rates for 3rd world countries than for G8 nations. In fact, it would hit poor countries much harder than India. There has been a talk of long term fixed price contracts with Oil producers, which would shield us from market fluctuations. (Korea already has such contract?)

shuvc · 22nd June 2005, 16:56

and then again there's the fact that they need to extract as much as possible from petrol prices, since diesel is subsidised ..
I mean diesel is generally sold at marginally higher prices compared to petrol in most developed countries ..

johnjacob · 22nd June 2005, 17:51

Quote:

Originally Posted by RX135

Petrol prices are rising all over world. In entire Europe, they are much higher than India (approx. 55). They are high in Japan (approx. 42). They are low in US due to tight oil price control by US.

The reason petrol prices are so high in those locations (EU, JP) are because of taxes. Atleast the taxes there are going into developing a world-class road network, unlike here.

Also you must remember the prices you are talking about (Rs. 55 equivalent in Europe) are for atleast 91 octane, not the 87 octane we get here.

Prices are lower than India in places like the US and Canada. In Canada, gas prices are around 90 cents per litre (1 Canadian dollar = Rs 35 approx). The US is even cheaper.

I suggest the govt. should have a price system where the price of gas is tightly linked to the price of crude (like in the rest of the world) with a flat tax rate, not a percentage (ie the govt shouldn't start milking more tax from us whenever the price of crude goes up). And the taxes should be made proportional to the actual investment made in the road network.

Insane Devil · 25th June 2005, 11:45

The price hikes are jus too much. In Hyderabad the current prices are
Petrol: Rs.45.86
Diesel: Around Rs.33

and my Scorpio is a diesel guzzler, its max mileage ever is 7.5kmpl in city driving with 100% AC on.

I was in Australia before, and there i noticed that the Diesle is more costly than Petrol.

21st June 2005, 15:15	#106
Rtech Team-BHP Support Join Date: Apr 2004 Location: Bombay Posts: 5,770 Thanked: 363 Times View My Garage	Yes, the prices are kept low(er), however the Oil companies largly bear the loss. I believe the Govt. makes Rs.13 or more in taxes per litre of petrol. I think that is really excessive.
	() Thanks

21st June 2005, 15:32	#107
RX135 Senior - BHPian Join Date: Dec 2004 Location: pune Posts: 2,106 Thanked: 75 Times	All Oil companies are making huge money, so it doesn't matter if they lose some of the pie. Govt. has not raised prices of Kerosene and LPG, which are absolute must for common man. People, who afford (luxury) cars, can shell out more money. Common man using 2 wheelers is going to be affected, but that can not be avoided. If Govt. loses money, it has to recover it from other ways, which means adding taxes elsewhere, or jeopardizing budgeted projects. I am not saying that restructuring of duties can not be done, but it may not be as simple as it sounds and some knowledgeable folks (including FM/PM, who are reputed economists) must have already put lot of thought into it. If it is possible, why would politicians hike the prices and invite wrath of their all important vote-bank?
	() Thanks

21st June 2005, 16:11	#108
turbo_lover Senior - BHPian Join Date: Dec 2004 Location: Toronto Posts: 1,377 Thanked: 9 Times	THISSSS SUCKSSSS !! i am here for a vacation and i blow my savings on gas than beer ....40 bucks for a litre is insane ...
	() Thanks

21st June 2005, 23:00	#109
adya33 Senior - BHPian Join Date: Apr 2005 Location: Pune Posts: 1,839 Thanked: 183 Times	yes RX135 the prices have gone sharply up in international market & in india they were not changed for a while & suddenly raised so it might give an impression about goverment is out to s***w you also I have heard a little time ago that Reliance had found out large source of oil which would meet 60% requirment of this country. any more information about it?
	() Thanks

22nd June 2005, 12:40	#110
RX135 Senior - BHPian Join Date: Dec 2004 Location: pune Posts: 2,106 Thanked: 75 Times	I read somewhere y'day that, at previous price levels, Oil companies made profits if the barrel price was lower than $44. Right now, they are $56. There are sources identified in Orissa and North East. But haven't read how long it would take to start extracting oil from them.
	() Thanks

22nd June 2005, 14:13	#111
v1p3r Senior - BHPian Join Date: Feb 2005 Location: BLR / DXB / LON Posts: 5,344 Thanked: 6,947 Times View My Garage	Do you know that Indian oil companies have the largest profit percentages in the world? They make close to 40%, while Exxon etc are happy to get 8-10%. (from an Anitha Prathap article) Indian oil prices are among the highest on earth. And wrt to per capita income, they most certainly are among the top 3, if not the very worst. The government just wants to make money. All this talk of the PSUs making losses are absolute bullsh*t. Just to point out how they lie...they always sold Speed 91/Xtra premium etc at Rs 1-2 above the market rate for RON 87. When BSIII came in, they needed to sell RON 91 as standard. For this they wanted a Rs 5 price hike. Earlier they were ok with Rs 2, but now they want to increase that by 150%. Petrol cost at source: 19.46 Excise and edu. cess: 14.86 Kar State sales tax: 11.91 dealer charges: 00.77 others (??!!): 00.14 (source TOI) @non-bangaloreans...you think you guys have it tough? we pay 47.32 for regular and i think 50+ for 93. time to call the reva dealership!!
	() Thanks

22nd June 2005, 14:36	#113
RX135 Senior - BHPian Join Date: Dec 2004 Location: pune Posts: 2,106 Thanked: 75 Times	Very true about Oil companies minting money. Don't think govt. ever claimed that they are loss making. In fact, they are among the only profit making PSUs. Petrol prices are rising all over world. In entire Europe, they are much higher than India (approx. 55). They are high in Japan (approx. 42). They are low in US due to tight oil price control by US.
	() Thanks

22nd June 2005, 14:49	#114
tsk1979 Team-BHP Support Join Date: Feb 2005 Location: San Jose, CA Posts: 23,724 Thanked: 22,939 Times View My Garage	Umm little wrong here. The refineries like reliance make money, not the oil importers. So if you just have a refinery you will make lots of money but if your ONGC you will lose a lot
	() Thanks

22nd June 2005, 14:52	#115
ported_head Senior - BHPian Join Date: Mar 2004 Location: Mumbai, India Posts: 2,387 Thanked: 20 Times	Exactly what I wondered! Oil companies couldn't be making the sort of losses that they claim, otherwise where does the money for the huge investments they plan to make in other companies come from? The government is never going to backtrack on the fuel prices. If anything, I think the companies would eventually get their Rs. 5 hike in the months to come. Crude oil prices recently soared to $ 60 a barrell because of rumoured violence in Nigeria. Why is OPEC always a little reluctant to increase production? We still have some time to go before we run out of oil resources.
	() Thanks

22nd June 2005, 16:56	#118
shuvc Senior - BHPian Join Date: May 2005 Location: Kolkata Posts: 2,913 Thanked: 353 Times View My Garage	and then again there's the fact that they need to extract as much as possible from petrol prices, since diesel is subsidised .. I mean diesel is generally sold at marginally higher prices compared to petrol in most developed countries ..
	() Thanks

25th June 2005, 11:45	#120
Insane Devil BHPian Join Date: Mar 2005 Location: Hyderabad Posts: 987 Thanked: 173 Times View My Garage	The price hikes are jus too much. In Hyderabad the current prices are Petrol: Rs.45.86 Diesel: Around Rs.33 and my Scorpio is a diesel guzzler, its max mileage ever is 7.5kmpl in city driving with 100% AC on. I was in Australia before, and there i noticed that the Diesle is more costly than Petrol.
	() Thanks