[andydude]

Diesel & petrol prices likely to be cut by Rs 2.50/litre ahead of assembly elections

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

[saurabhkum]

Originally Posted by jagzrk

I hope its OK discussing CNG pricing on this thread, since it is also a well utilized fuel. I don't know the factors involved in CNG pricing but there was an effort going on to get CNG pricing on similar levels all across the country.

When the CNG price in Pune was Rs.52.50, it was around Rs.38 in Mumbai. Lesser in Delhi I think. With all the hype of CNG price increase going round and round, recently, the CNG price in Pune has dropped to Rs.47.50 (that's a good 10% decrease!)

I wonder if its the calm before the storm? Also, why should less-polluting, locally available and environment friendly fuels like CNG be taxed and made costlier?

CNG prices might go up by 4.5 Rs from 1st Nov. This I was reading in one of the newspapers in the morning.Though it will be tough to take a call of 4.5 Rs as it will translate to more that 10% increase in the price in Mumbai. Considering the fact that all the Auto, Taxi's and Buses ply on CNG 10% increase will result in increase in fares of public transport which might be biggest hurdle.

[sgiitk]

Originally Posted by andydude

Diesel & petrol prices likely to be cut by Rs 2.50/litre ahead of assembly elections

I am confused, with the $ at 61.50 or so, and Brent inching up to $87 levels?

[rajshenoy]

Originally Posted by sgiitk

I am confused, with the $ at 61.50 or so, and Brent inching up to $87 levels?

Indeed. Rupee is at its weakest and showing no signs of improving !!
If diesel prices are coming down by 5-6 rupee in matter of 15 days, it will only mean day light robbery

[RiGOD]

Not so good news for Keralites, marginal price hike in fuel prices owing to an increase in sales tax. Diesel prices hiked by 60 paise and petrol by 27 paise w.e.f 29/10/14 12 P.M.

[sgiitk]

Looks like the OMCs have been conning the consumer. Current profit on Diesel is about Rs.3.50 per litre.

[drmohitg]

Originally Posted by sgiitk

Looks like the OMCs have been conning the consumer. Current profit on Diesel is about Rs.3.50 per litre.

What is the source of this info sir? Its really appalling if true. Deregulation was supposed to address all such issues. Can we expect another price cut in a day?

[saurabhkum]

Well the petrol price cut is supposed to happen in Pakistan also and there it's expected to go down by almost 9.8 Rs and that of Diesel by 7 Rs. It seems there prices are changed once a month and last month it was cut by almost 3% and this month it's being cut by almost 10%.

[blue_pulsar]

Originally Posted by drmohitg

Its really appalling if true. Deregulation was supposed to address all such issues.

The Govt. has played it very smart with diesel deregularization. If you see how petrol was deregularized, we saw an immediate hike of Rs.3 per litre (if I remember correctly). Subsequently, every forthnight saw rise in petrol prices. This obviuosly didn't go down well with the public, who were used to subsidized fuel till now.

Now diesel - here is what the current Govt. did.
1. Controlled inflation while increasing diesel prices by 50p.
2. Brought the diesel into profits.
3. Crude oil prices falling helped their cause.
4. At deregulatization point, they gave the public a rate cut of 3.xx per litre.
5. The cut came just before Diwali long weekend.
6. They are mostly giving one more price cut.
7. The price cuts might continue since there is prediction of steady fall in Brent rices.

So, overall, Govt has played it very smart by equating diesel deregularization with price cuts in the eyes of public.

[drmohitg]

Originally Posted by blue_pulsar

The Govt. has played it very smart with diesel deregularization.
Now diesel - here is what the current Govt. did.
1. Controlled inflation while increasing diesel prices by 50p.
2. Brought the diesel into profits.

So, overall, Govt has played it very smart by equating diesel deregularization with price cuts in the eyes of public.

Come on. This is at best a conspiracy theory. No one could have predicted how the international Oil market will be a year and a half later ( the time when they started increasing diesel prices). More importantly there were 2 different governments at play here and each one will not really do something that will help the other. I think the current government just got lucky with international crude falling which enabled them two things:
1. Reach the "at par" level in diesel price sooner than expected.

2. Draw some brownie points since the reduction in diesel prices by big margins ( to the tune of 3 Rs) is going to please the mango man a lot.

[sgiitk]

Originally Posted by drmohitg

What is the source of this info sir? Its really appalling if true. Deregulation was supposed to address all such issues. Can we expect another price cut in a day?

The TV today. Appears that there is a margin of Rs.3.50 on Diesel and they will try and keep 50-100 p in reserve. Thus is with Brent around $86 from 84 levels and rupee also dropping.

Now TV is again talking of Rs.3 on Petrol and 2 on Diesel.

[sgiitk]

Just saw on the box - Petrol cut by Rs.2.41 and Diesel by 2.25 per litre effective midnight. These are Delhi prices.

[Desi Dybuk]

Time has come for state governments to rationalize taxes on Petrol & Diesel.

[saurabhkum]

Cut of 2.4 Rs in petrol in delhi and 2.25 Rs in Diesel in Delhi... Finally some relief

[nerd1200]

Last filled at Shell (Bangalore) a week ago at 73 Rs, looks like its gonna hit 65 soon..