[sgiitk]

Now there is talk of hikes in LPG and Kerosene. Poor Lalu and his 'Mati ka tel'.

[sgiitk]

@MaxTorque; Pray tell me what were the thoughts of Chair(wo)man Sonia and MMS on Kerosene and LPG!!

[volkman10]

Diesel deregularization could come soon.

The oil ministry is preparing a fresh proposal for the Cabinet to deregulate diesel, as a projected drop in revenue losses on the fuel to a record low of 1.65 per litre by June 15 provides an opportunity to the new regime to reduce the annual 140,000-crore fuel subsidy burden.

If the Cabinet gives its go-ahead, diesel deregulation could be an announced in next month's budget

[VSRK]

Originally Posted by volkman10

Diesel deregularization could come soon.

The oil ministry is preparing a fresh proposal for the Cabinet to deregulate diesel, as a projected drop in revenue losses on the fuel to a record low of 1.65 per litre by June 15 provides an opportunity to the new regime to reduce the annual 140,000-crore fuel subsidy burden.

I think Government will not be dare enough to do anything which will cause spike in diesel price, as it will affect people from grass root level onwards. At the same, there is no point in giving diesel at subsidized price for SUVs and sedans who actually can absorb at market rate. Some scientific way has to be devised to sell the diesel at fair price for all consumers.

[sdp1975]

Diesel would have been effectively deregulated at current prices (or even lower ) , had it not been for the disastrous fall of the rupee in the last year, as low as 66.

And the rupee has always been falling if one sees the dollar-rupee graph for the last decade - apart from brief periods where it rose against the dollar. So even if diesel is deregulated, it's price rise will continue with the ever falling rupee.

And the ridiculous taxes on petrol will never go away. One would have expected the reduced prices in Goa by the BJP govt to've been replicated at a national level by the new government at the centre - but I don't think that will happen.

Subsidy on kerosene and LPG will remain for the BPL families.

[sgiitk]

Agree @sdp1975; Now I have a gut feeling that Crude may be headed north. Reason the impact (real and perceived) of ISIS who are trying to take over Iraq. Now Uncle Sam will realise his folly of getting rid of Saddam for WMDs (never found). He provided some stability.

[MaxTorque]

Economic Times reports that OMCs may reduce petrol price by Rs.0.60 on Sunday.

Government officials and industry executives said there is a possibility of petrol becoming cheaper by 45-60 paise per litre by Sunday as the average international gasoline rate has dropped by about $1.68 a barrel. They, however, added that a final call will be taken by state refiners.

Read more at:
http://economictimes.indiatimes.com/...campaign=cppst

[VSRK]

Originally Posted by MaxTorque

Economic Times reports that OMCs may reduce petrol price by Rs.0.60 on Sunday.

Government officials and industry executives said there is a possibility of petrol becoming cheaper by 45-60 paise per litre by Sunday as the average international gasoline rate has dropped by about $1.68 a barrel. They, however, added that a final call will be taken by state refiners.

Read more at:
http://economictimes.indiatimes.com/...campaign=cppst

Thanks @MaxTorque for good news in the morning . Those who fill full tank on saturday can wait till Sunday morning to save few bucks. Does Shell also reciprocate to the every price revision, any idea?

[RSR]

Originally Posted by VSRK

Does Shell also reciprocate to every price revision, any idea?

Yes, they do!

Shell (for now, at least) are only a marketing company in India. They source fuel refined to their specifications from other refineries (mostly PSU ones). So any change (fall or rise) in petrol prices is passed on to the customers. Sometimes, there maybe a slight delay (of about a day or so) and sometimes Shell are the first to reduce/increase prices with the PSU companies following suit.

Shell Unleaded is generally costlier than petrol sold at other pumps by anywhere between ₹ 1.75 and ₹ 2.50 (depending on the location) and this difference is a constant almost all the time. Completely worth it, IMHO.

[nkrishnap]

Originally Posted by RSR

Shell Unleaded is generally costlier than petrol sold at other pumps by anywhere between ₹ 1.75 and ₹ 2.50 (depending on the location) and this difference is a constant almost all the time. Completely worth it, IMHO.

I believe this is not the case at least in Bangalore. The shell prices are on par with PSUs or even a few paise lesser than the PSUs. The last time I refueled at Shell bunk for my bike was about 3 months back.

[romeomidhun]

Aaah! Was expecting a Goa-like price, and now the news about deregulating Diesel, and a mere 60 paise reduction in Petrol price...

Power corrupts; Absolute power corrupts absolutely.

[VSRK]

Originally Posted by RSR

Yes, they do!

Shell Unleaded is generally costlier than petrol sold at other pumps by anywhere between ₹ 1.75 and ₹ 2.50 (depending on the location) and this difference is a constant almost all the time. Completely worth it, IMHO.

I remember when filling in Shell outlet at Chennai, its price is same as that of Bangalore Shell. Usually chennai price is less by 3-4 Rs in PSUs. But in Bangalore, shell price is same as that of PSU.

[gsurya]

Originally Posted by romeomidhun

Aaah! Was expecting a Goa-like price, and now the news about deregulating Diesel, and a mere 60 paise reduction in Petrol price...

Power corrupts; Absolute power corrupts absolutely.

Why would anyone expect a Goa-like pricing of fuel across India when it was never done in Gujarat?

[finneyp]

If the diesel price is deregulated, any idea what would be the market price?

[supremeBaleno]

Originally Posted by sgiitk

@MaxTorque; Pray tell me what were the thoughts of Chair(wo)man Sonia and MMS on Kerosene and LPG!!

Sonia OK, but I respect Mr.Singh. There is obviously a lot he did to open up India and lead it to a path of prosperity, I doubt anyone denies that. What he lacked was public mandate and what he had in abundance was being surrounded by crooks whose agenda was filling their own coffers.

And if someone thinks there is a magic wand with which the new Govt will make all our problems disappear, then nothing could be further from the truth. Their continuing the diesel hike policy of UPA is itself an indication of endorsing what Mr.Singh and team brought in, which IMO was a master-stroke. Raise prices by 2-3Rs and you had all parties on the street disrupting life. Raise it monthly by 50paise and no one bothers.

While Congress has been routed due to this policy, someone had to bite the bullet in the interest of the country and I am glad they did it. I see no reason to pay more for my petrol so that heavy inefficient SUVs and luxury cars costing in lakhs/crores could ferry the folks who can afford the actual price of the fuel.

LPG again is something we need to sell at actual price. Kerosene is supposedly used by the poor who given their poverty should be provided subsidy. But the challenge would be to avoid the pilferage by folks not deserving it.

@finney, that would be a tough one to predict since it will be a moving figure - dependent on crude prices and rupee-dollar exchange rates.