The Official Fuel Prices Thread

adimicra · 30th September 2014, 14:04

http://ibnlive.in.com/news/diesel-ra.../502965-7.html

Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75
Press Trust of India
Sep 30, 2014 at 01:50pm IST

New Delhi: Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75.
State-owned oil firms are likely to announce reduction in rates, made possible because of softening in international oil rates, this evening, government and industry sources said.
Under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery is now about Re 1 a litre.
Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75
Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75.

While the government had resisted the temptation to cut rates then, prices are likely to be reduced at the fortnightly review due on Tuesday.
Sources said oil ministry is of the view that while the Cabinet Committee on Political Affairs (CCPA) had on January 17, 2013 allowed a monthly increase in diesel price of 40-50 paise per month to wipe out the under-recovery, it wasn't envisaged that there would be over-recovery.
It wants to reduce diesel price to protect state-owned oil companies' market share, which may be lost to private retailers who would be selling diesel in tandem with international prices.
Oil Minister Dharmendra Pradhan is believed to have already written to Prime Minister Narendra Modi on the emerging scenario. Also, it has written to the Election Commission seeking their concurrence for the price decrease in view of state assembly elections in Maharashtra and Haryana.
This would be the first reduction in diesel rates in over five years. Diesel rates were last cut on January 29, 2009 when they were reduced by Rs 2 a litre to Rs 30.86.
Since then rates have only increased as international oil prices climbed. Since January 2013, diesel prices have been raised by up to 50 paise a litre every month to eliminate under-recoveries.
Like diesel, state-owned oil companies had also not changed petrol rates on September 16 though it warranted a 54 paise increase as its benchmark gasoline rates had firmed up in international market.
This is perhaps the first time that retail prices in India are higher than global rates.
Oil companies calculate the desired retail selling price of petrol and diesel on 1st and 16th of every month based on average international benchmark price and rupee-dollar exchange rate.
The next revision in diesel and petrol prices is due today.
Originally, petrol and diesel prices were deregulated in April 2002 when NDA government was in power. Administered pricing regime, however, made a back-door entry towards the end of NDA regime in the first quarter of 2004 when crude prices started inching up.
Congress-led UPA controlled rates as international oil prices went through the roof. In June 2010, however, it freed petrol price from its control and rates have since them moved more or less in tandem with cost.
In January 2013, the UPA decided to deregulate diesel prices in stages through monthly 50 paise a litre increases. Rates were last raised on August 31 after which losses have been wiped out.
Rates have cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013.

rajshenoy · 30th September 2014, 17:23

Quote:

Originally Posted by adimicra

http://ibnlive.in.com/news/diesel-ra.../502965-7.html

Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75
Press Trust of India
Sep 30, 2014 at 01:50pm IST

Not sure if this is happening now or after Elections !! I was thinking the code of conduct is in place. Petrol on the other hand can be reduced. I dont think diesel price will drop

sgiitk · 30th September 2014, 17:50

Folks, what we have is a bit of news in the ToI group (both ET and TOI). Hold your horses, all should be revealed within the next 24 hours.

khoj · 30th September 2014, 20:06

I too was thinking there's something odd, you've caught it. Though one would not mind history repeating itself in this instance.

Quote:

Originally Posted by napster1311

Isn't it a old news? Dated 30-Sep-2013

Petrol cut by Rs. 3.05 & diesel prices increased by Rs. 0.50, per Zee news

http://zeenews.india.com/videos/petr...ise_23521.html

napster1311 · 30th September 2014, 20:08

Quote:

Originally Posted by khoj

Petrol cut by Rs. 3.05 & diesel prices increased by Rs. 0.50, per Zee news

http://zeenews.india.com/videos/petr...ise_23521.html

Isn't it a old news? Dated 30-Sep-2013

gsurya · 30th September 2014, 20:37

Just announced, 0.65 INR cut in petrol prices... HUGE

Can now truly say Acche Din are here!

srikanthns · 30th September 2014, 21:52

Quote:

Originally Posted by gsurya

Just announced, 0.65 INR cut in petrol prices... HUGE

Can now truly say Acche Din are here!

What a pittance! These OMC's are like Autowallahs in Trivandrum. If petrol rises by 2 rs, these autowallahs will increase Rs5 even for short distance. Likewise, when crude has fallen more than 3 dollars per barrel from Sep 15 level, these people cut 65 paise! Conversely, if the rise is there the same OMC's will try to more than compensate the rise

Autodoc · 30th September 2014, 22:04

Quote:

Originally Posted by srikanthns

What a pittance! These OMC's are like Autowallahs in Trivandrum. If petrol rises by 2 rs, these autowallahs will increase Rs5 even for short distance. Likewise, when crude has fallen more than 3 dollars per barrel from Sep 15 level, these people cut 65 paise! Conversely, if the rise is there the same OMC's will try to more than compensate the rise

True that. In fact petrol prices have been as low as it was 2 years back and actually if the oil companies wanted, we'd have gone to little over 60 per litre. Well, some reduction is better than no reduction after all. With elections coming probably diesel prices will be cut once Modi is back from US and maybe de-regularization too.
On a slightly different note, auto wallahs in TVM only increase rates no matter the international crude oil rates. Wish they had also de-regularized

Sunny

adimicra · 30th September 2014, 22:46

^^

Okay while everyone is bashing the OMC's and also the Govt, can someone tell me why the private players like Essar and Shell are not reducing the prices? If what we all think is true, then shouldn't the private players be offering petrol at a much cheaper rate?

May be we need to be a bit more factual and logical before doing the bashing... that's always the easy thing to do!

PS - I am not arguing for the OMC's or the Govt. All I want is someone to provide more concrete data to prove what they are saying.

Autodoc · 30th September 2014, 22:54

Well, why should they? They're not obligated to sell at the same rate as OMCs or below. They're in this for the profit as much as everyone else. And volume wise their business is way too low compared to BP, HP, IOC etc. They've got make whatever profit they make from that limited volume. All this is my understanding; please correct me if I'm wrong.

Sunny

audioholic · 30th September 2014, 23:35

Quote:

Originally Posted by adimicra

^^

Okay while everyone is bashing the OMC's and also the Govt, can someone tell me why the private players like Essar and Shell are not reducing the prices? If what we all think is true, then shouldn't the private players be offering petrol at a much cheaper rate?

Once upon a time, when shell petrol was priced a little higher, there were very few takers for it. They later realised that by pricing it a notch below the OMC rates, they could rope in customers. Hence they follow the same strategy. Majority of the people throng into shell seeing the lesser rate. For the enthusiasts like us here, we can differentiate the quality and I will even pay extra for the quality. But for others out there, a 15 paisa lesser rate will be the reason. As long as people throng into private bunks, why will they remotely think of selling it at a cheaper rate?

hrman · 1st October 2014, 03:49

Petrol prices cut by 65p per litre.

Diesel untouched. Why??

There were hopes being built up that diesel will be cut upto Rs.1 per litre. Looks like that will not happen anytime soon.

JoseVijay · 1st October 2014, 03:56

Quote:

Originally Posted by hrman

Petrol prices cut by 65p per litre.

Diesel untouched. Why??

There were hopes being built up that diesel will be cut upto Rs.1 per litre. Looks like that will not happen anytime soon.

Government agencies and Oil Corporations are awaiting the arrival of the Prime Minister from the U.S tour to take a decision on the reduction of diesel price. Let's just wait and see

.

Source link:http://timesofindia.indiatimes.com/i...w/43915207.cms

adimicra · 1st October 2014, 09:20

As per yesterday's rate, both Shell and Essar is priced higher than Govt OMCs.
Sorry to say but that's inexplicable.

I think we have a habit of bashing anything related to the Indian govt. while defending private players like Shell. Unfortunate!

sgiitk · 1st October 2014, 10:02

Quote:

Originally Posted by JoseVijay

Government agencies and Oil Corporations are awaiting the arrival of the Prime Minister from the U.S tour to take a decision on the reduction of diesel price. Let's just wait and see.

There may be more to that. Either code of conduct (which means nothing till the evening of 15 October) or timing it for best election impact.

30th September 2014, 14:04	#3946
adimicra Senior - BHPian Join Date: Jul 2010 Location: Hyderabad Posts: 2,007 Thanked: 2,443 Times	Re: The Official Fuel Prices Thread http://ibnlive.in.com/news/diesel-ra.../502965-7.html Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75 Press Trust of India Sep 30, 2014 at 01:50pm IST New Delhi: Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75. State-owned oil firms are likely to announce reduction in rates, made possible because of softening in international oil rates, this evening, government and industry sources said. Under-recovery or the difference between retail price and its imported cost was wiped out and there was an over-recovery of 35 paise a litre from September 16. This over-recovery is now about Re 1 a litre. Diesel rate likely to be cut by Re 1/litre, petrol by Rs 1.75 Diesel price is likely to be cut by about Re 1 per litre, the first reduction in rates in over five years, while petrol price may be slashed by Rs 1.75. While the government had resisted the temptation to cut rates then, prices are likely to be reduced at the fortnightly review due on Tuesday. Sources said oil ministry is of the view that while the Cabinet Committee on Political Affairs (CCPA) had on January 17, 2013 allowed a monthly increase in diesel price of 40-50 paise per month to wipe out the under-recovery, it wasn't envisaged that there would be over-recovery. It wants to reduce diesel price to protect state-owned oil companies' market share, which may be lost to private retailers who would be selling diesel in tandem with international prices. Oil Minister Dharmendra Pradhan is believed to have already written to Prime Minister Narendra Modi on the emerging scenario. Also, it has written to the Election Commission seeking their concurrence for the price decrease in view of state assembly elections in Maharashtra and Haryana. This would be the first reduction in diesel rates in over five years. Diesel rates were last cut on January 29, 2009 when they were reduced by Rs 2 a litre to Rs 30.86. Since then rates have only increased as international oil prices climbed. Since January 2013, diesel prices have been raised by up to 50 paise a litre every month to eliminate under-recoveries. Like diesel, state-owned oil companies had also not changed petrol rates on September 16 though it warranted a 54 paise increase as its benchmark gasoline rates had firmed up in international market. This is perhaps the first time that retail prices in India are higher than global rates. Oil companies calculate the desired retail selling price of petrol and diesel on 1st and 16th of every month based on average international benchmark price and rupee-dollar exchange rate. The next revision in diesel and petrol prices is due today. Originally, petrol and diesel prices were deregulated in April 2002 when NDA government was in power. Administered pricing regime, however, made a back-door entry towards the end of NDA regime in the first quarter of 2004 when crude prices started inching up. Congress-led UPA controlled rates as international oil prices went through the roof. In June 2010, however, it freed petrol price from its control and rates have since them moved more or less in tandem with cost. In January 2013, the UPA decided to deregulate diesel prices in stages through monthly 50 paise a litre increases. Rates were last raised on August 31 after which losses have been wiped out. Rates have cumulatively risen by Rs 11.81 per litre in 19 instalments since January 2013.
	(1) Thanks

30th September 2014, 17:50	#3948
sgiitk BANNED Join Date: Dec 2007 Location: Gurugram Posts: 7,969 Thanked: 4,788 Times	Re: The Official Fuel Prices Thread Folks, what we have is a bit of news in the ToI group (both ET and TOI). Hold your horses, all should be revealed within the next 24 hours.
	() Thanks

30th September 2014, 20:37	#3951
gsurya BHPian Join Date: Feb 2008 Location: Mumbai Posts: 776 Thanked: 694 Times	Re: The Official Fuel Prices Thread Just announced, 0.65 INR cut in petrol prices... HUGE Can now truly say Acche Din are here! Last edited by gsurya : 30th September 2014 at 20:40.
	() Thanks

30th September 2014, 22:46	#3954
adimicra Senior - BHPian Join Date: Jul 2010 Location: Hyderabad Posts: 2,007 Thanked: 2,443 Times	Re: The Official Fuel Prices Thread ^^ Okay while everyone is bashing the OMC's and also the Govt, can someone tell me why the private players like Essar and Shell are not reducing the prices? If what we all think is true, then shouldn't the private players be offering petrol at a much cheaper rate? May be we need to be a bit more factual and logical before doing the bashing... that's always the easy thing to do! PS - I am not arguing for the OMC's or the Govt. All I want is someone to provide more concrete data to prove what they are saying.
	() Thanks

30th September 2014, 22:54	#3955
Autodoc BHPian Join Date: Sep 2014 Location: KL-07, TN-23, K Posts: 56 Thanked: 262 Times View My Garage	Well, why should they? They're not obligated to sell at the same rate as OMCs or below. They're in this for the profit as much as everyone else. And volume wise their business is way too low compared to BP, HP, IOC etc. They've got make whatever profit they make from that limited volume. All this is my understanding; please correct me if I'm wrong. Sunny
	(1) Thanks

1st October 2014, 03:49	#3957
hrman Senior - BHPian Join Date: Jun 2006 Location: Bangalore Posts: 1,128 Thanked: 1,015 Times	Re: The Official Fuel Prices Thread Petrol prices cut by 65p per litre. Diesel untouched. Why?? There were hopes being built up that diesel will be cut upto Rs.1 per litre. Looks like that will not happen anytime soon.
	() Thanks

1st October 2014, 09:20	#3959
adimicra Senior - BHPian Join Date: Jul 2010 Location: Hyderabad Posts: 2,007 Thanked: 2,443 Times	Re: The Official Fuel Prices Thread As per yesterday's rate, both Shell and Essar is priced higher than Govt OMCs. Sorry to say but that's inexplicable. I think we have a habit of bashing anything related to the Indian govt. while defending private players like Shell. Unfortunate!
	() Thanks