[pypkmsrikanth]

It has reached a ridiculous stage now in terms of petrol prices. I was just checking the prices, the differences in retail prices between Delhi and Chennai has increased from 2.12 to 3.98 over the last 10 years with the peak being 4.49 during July '10. Guess who takes their pound of flesh with each rise.

Incidentally Shell prices have gone up to 74.20 in Chennai since yesterday.

[one-77]

One of the reasons (as stated by a news channel) for the new hike was that airline companies, particularly Kingfisher and Air India, owe PSUs hundreds of crores for aviation fuel. What sort of logic is recovering that from the public?

[ottocycle]

The sideeffect of rising fuel + interest rate is showing..


from economictimes

[rajchetan]

Originally Posted by ottocycle

The sideeffect of rising fuel + interest rate is showing..

Attachment 835761
from economictimes

Your inference on the data might be wrong.

1) As Maruti sales have dropped due to Labour Unrest.
2) And all Petrol Company, Honda has increased sales by 5%.
3) And a company strongly known for its diesel cars (FIAT) has reduced share by 69%.
4) But the fact is even though Maruti is having stock shortage, non of the Competition have improved sales drasticly.
5) Surprise to See drop in Hyundai sales with Eon just launched and stocks readily available in showroom.

Sorry for the above out of topic post.

[msdivy]

Petrol prices likely to go up again ! No mention of hike in diesel...

Get ready to pay Rs 1.82 more for petrol - Hindustan Times

[Irish]

Oil cos seek 2/litre hike in petrol price

Govt Unlikely To Back Demand Due To Inflation

TIMES NEWS NETWORK

New Delhi/Mumbai: Hindustan Petroleum on Tuesday gave vent to the demand of state-run oil marketing firms for a Rs 2 per litre increase in petrol price, a move unlikely to find immediate favour with the government in view of approaching Parliament session and high inflation rate.

“There are some losses on petrol. To cover them, we may have to increase prices… Let’s say, we are toying with the idea. It may happen. We will see,” company’s director (finance) B Mukherjee told reporters in Delhi, while announcing a Rs 3,364.48 crore loss in the quarter ended September against a profit of Rs 2,089 crore in the previous corresponding period.

The statement may be nothing more than posturing to keep the pot boiling after the oil companies failed to bring the government on the same page. But it drew sharp comments from BJP, which accused the government of mismanaging the economy. “Today again the same mismanagement is being seen even though the government is headed by an economist,” party spokesperson Nirmala Sitaraman said in Delhi. Already, BJP leader L K Advani is citing inflation managements as a big failure of UPA II.

Though technically petrol is deregulated, the companies do not decide on pricing without an informal nod from the government since it is the majority owner. The companies have been pushing for higher petrol price as loss on the fuel has risen to Rs 1.50 a litre, excluding taxes, due to a combination of high crude price and the rupee’s fall against the greenback.

The mix of crude they buy is hovering around $108/ barrel, while the present pump price corresponds to about $102/barrel of oil. Simultaneously, currency exchange rate too has risen to Rs 49 to a dollar from Rs 48 a fortnight back. Overall, the rupee has depreciated 11% since its peak in July. As a result, the companies paid Rs 670 crore more per day to buy crude in the September quarter compared to the preceding quarter.

“There is a case for revision of petrol prices. It has become a double whammy-situation for us,” a BPCL executive said in Mumbai. BPCL too last month reported a loss of Rs 3,229 crore in the September quarter against profits in the yearago period. But the government would like the companies to wait and watch the patterns emerging from Eurozone economy and oil demand, both of which influence exchange and crude prices. The government’s sole concern at this point is to avoid stoking the simmering public anger against the runaway cost of daily living and hand over a stick to the Opposition ahead of Parliament’s winter session beginning from November 22. But for the companies, it is a catch-22 situation. “If we do not hike the price and book losses on petrol sale, which is a de-regulated product, we will be questioned by the government auditor. The price hike should happen soon as there is no free lunch,” an oil company executive said.

Source: Article Window


Cheers!
Irish

[download2live]

At this rate soon the Petrol car driver will be a prime candidate for Kidnapping.
After all if he can afford Petrol at Indian rates then he must be stinking rich.

[Cheiron]

Originally Posted by Irish

Source:

Oil cos seek 2/litre hike in petrol price

Govt Unlikely To Back Demand Due To Inflation

TIMES NEWS NETWORK

New Delhi/Mumbai: Hindustan Petroleum on Tuesday gave vent to the demand of state-run oil marketing firms for a Rs 2 per litre increase in petrol price, a move unlikely to find immediate favour with the government in view of approaching Parliament session and high inflation rate.

“There are some losses on petrol. To cover them, we may have to increase prices… Let’s say, we are toying with the idea. It may happen. We will see,” company’s director (finance) B Mukherjee told reporters in Delhi, while announcing a Rs 3,364.48 crore loss in the quarter ended September against a profit of Rs 2,089 crore in the previous corresponding period.

... “There is a case for revision of petrol prices. It has become a double whammy-situation for us,” a BPCL executive said in Mumbai. ... “If we do not hike the price and book losses on petrol sale, which is a de-regulated product, we will be questioned by the government auditor. The price hike should happen soon as there is no free lunch,” an oil company executive said.

Well, there may be a free lunch. Refining a barrel of crude (42 US gallons) yields 74 liters of petrol in addition to a whole bunch of other salable petroleum products for a petrol price of Rs 42 per liter (assuming $108 per gallon crude oil price) before taxes and levies. Do we pay Rs 30 in taxes per liter of petrol? Does anyone in T-BHP know? If not, the losses booked by OMCs may have more to do with subsidy for diesel, LPG, kerosene etc. than the cost of crude oil and refining it to petrol.


Note: A barrel of crude results in a bit more than a barrel of finished product (also known as "refinery gain").

[aniketi]

Originally Posted by Cheiron

Well, there may be a free lunch. Refining a barrel of crude (42 US gallons) yields 74 liters of petrol in addition to a whole bunch of other salable petroleum products for a petrol price of Rs 42 per liter (assuming $108 per gallon crude oil price) before taxes and levies. Do we pay Rs 30 in taxes per liter of petrol? Does anyone in T-BHP know? If not, the losses booked by OMCs may have more to do with subsidy for diesel, LPG, kerosene etc. than the cost of crude oil and refining it to petrol.


Note: A barrel of crude results in a bit more than a barrel of finished product (also known as "refinery gain").

As far as i know its lesser than you are saying. Petrol prices are around 35 rs per liter. All other is taxes, at least in Maharashtra. We have such huge tax burden on petrol that it is killing us now. Problem is when Petrol goes up inflation goes up as well. All things become costly.

[sagarpadaki]

Originally Posted by Cheiron

Note: A barrel of crude results in a bit more than a barrel of finished product (also known as "refinery gain").

Can you elaborate on this line?

[Trident]

Originally Posted by Cheiron

the losses booked by OMCs may have more to do with subsidy for diesel, LPG, kerosene etc. than the cost of crude oil and refining it to petrol.

How many of you honestly believe that OMCs are actually making losses?

I extracted the Net profits reported by IOC, HPCL and BPCL for the last 5 years. Here is the truth.

Source: moneycontrol.com

[needforspeed88]

You know currently running a petrol car delivering 15km/l is twice as expensive as it is to run a diesel car delivering 18km/l .I have done the maths according to current fuel prices . Now if petrol prices are hiked by another 2rs/l i am afraid it is going to hit the already slowing down sales of petrol variants really hard . The funny part now is you can break even with a diesel car priced 80k higher in three years by running just 1000 km/l . Now if u add the significantly higher resale a diesel would fetch it makes no brainer to go for a petrol car if your running is anywhere near 1000 km/month .

Tata Nano can get a new lease of life with a diesel engine . Apart from this If any company comes up with a small car with a diesel engine priced around 4 lakh ex showroom
[with at-least AC,PS as the starting variant ] it is going to be lapped up like hot cakes .

[ajay_satpute]

With my kind of running, I will still be unaffected with the impending price hike of petrol. But, if the petrol reaches the 80 Rs/liter mark, then even I am screwed. Here's my calculations considering the price of petrol as 74.

[funkyp]

The government has cleared the price hike demanded by the oil companies. Can expect the price to go up by Rs. 2 anytime now

Looks like my dream of owning a Jazz will remain just that. The difference (rather the rate at which the difference is growing) is alarming. Even my meager usage of 1000 kms is tugging me towards a diesel.

source: rediff.com

[lohithrao]

Pathetic! Scary!! Alarming!!!! price rise has become common offlat... and i guess we will need to wait for next election for the prices to be reduced.

people with petrol cars will be badly hit, and me being one i know we neither can sell or live with it!!! am happy i have a cycle in my garage!