[ghodlur]

Brent crude drops to a shocking $72 as OPEC decides not to cut production. It was Saudi who blocked the idea of cut in production. So crude at $60 is a reality I guess going forward.

http://www.bbc.com/news/business-30223721

http://www.reuters.com/article/2014/...0JA0O320141127

[andydude]

Originally Posted by ghodlur

Brent crude drops to a shocking $72 as OPEC decides not to cut production. It was Saudi who blocked the idea of cut in production. So crude at $60 is a reality I guess going forward.



http://www.bbc.com/news/business-30223721



http://www.reuters.com/article/2014/...0JA0O320141127

why correction in local price not happening regularly. I think last correction was about 3 weeks ago. crude has come down from about 83 to 72 since then, is this deregulation business a hogwash?

[sgiitk]

Originally Posted by andydude

why correction in local price not happening regularly. I think last correction was about 3 weeks ago. crude has come down from about 83 to 72 since then, is this deregulation business a hogwash?

Price is calculated on the basket for two weeks. Now the next adjustment is due only from the 1st December. Normally the OMC keep a bit in reserve so yes Rs.2-3 should be on the cards.

[amtak]

This time the reduction should be atleast by 5 rupees if not more; if the crude price has fallen by USD 10 for a barrel, we should be getting the benefit soon.

[pgsagar]

Can someone please enlighten how much petrol price should fall by, for per dollar fall in crude price? That is if, the benefit is passed on honestly to consumers. But I'm sure we are being taken for a ride by GOI-oil companies nexus. I don't trust their arithmetic.

[andydude]

Originally Posted by pgsagar

Can someone please enlighten how much petrol price should fall by, for per dollar fall in crude price? That is if, the benefit is passed on honestly to consumers. But I'm sure we are being taken for a ride by GOI-oil companies nexus. I don't trust their arithmetic.

Here is what HT article today says about the drop :

“If the slide in oil prices continues, we can expect petrol prices to drop below Rs. 60 a litre from around Rs. 65 presently (in Delhi),” said the chairman of a leading oil company seeking anonymity.

http://www.hindustantimes.com/busine...1-1290912.aspx

[pgsagar]

Originally Posted by andydude

Here is what HT article today says about the drop :

“If the slide in oil prices continues, we can expect petrol prices to drop below Rs. 60 a litre from around Rs. 65 presently (in Delhi),” said the chairman of a leading oil company seeking anonymity.

http://www.hindustantimes.com/busine...1-1290912.aspx

Below 60? The way the crude prices have been falling, petrol should touch 50, IF the benefit is passed on to consumers.

[saurabhkum]

If at 114$ of crude rate the petrol price was around 81, then at around 75$ the petrol should have dropped by 30% ( keeping currency fluctuation in mind). While petrol has been down by approx 15% there is a good scope to have a good cut in the rate in the coming revision of price.

[pgsagar]

Crude prices fell by 30% since June but petrol price at retail only fell by roughly 15%. So either GOI or Oil companies are pocketing the difference. In other words, the loot continues. The whole world may be enjoying cheaper oil, but not us.

[poloman]

Originally Posted by pgsagar

Crude prices fell by 30% since June but petrol price at retail only fell by roughly 15%. So either GOI or Oil companies are pocketing the difference. In other words, the loot continues. The whole world may be enjoying cheaper oil, but not us.

Buddy, you can rant but please base that on facts. You should specify which country has cut petrol prices by 30%.
Here is the historical US gas price average which has come down by 23% last 6 months.
Please understand India gets its crude at much higher rates and dollar has strengthened in last 6 months. But with more cuts planned in petrol prices the % decrease in India will go even higher.
So please come out of this "always some one is looting me" mentality.
This is a phenomenon happening all over the world
http://www.theage.com.au/business/th...28-11vdcg.html

[joslicx]

Originally Posted by pgsagar

Crude prices fell by 30% since June but petrol price at retail only fell by roughly 15%. So either GOI or Oil companies are pocketing the difference. In other words, the loot continues. The whole world may be enjoying cheaper oil, but not us.

It does not work like that. While there is some spot buying, mostly the purchases follow a system of futures trading. The price oil companies paid for the oil that we buy today (and today means this day) might not be the price that the Brent (which is only one of the basket amongst many) has today.

Its a complicated system You might wanna read more about it.

Heres a good start with lots of interspersed references:
http://www.investopedia.com/articles...gas-prices.asp

[ILTDrive]

The 'shale' phenomenon got me looking for answers on what it exactly means. Pardon my ignorance, but thought this may be useful for others too. Here is the link.
http://en.wikipedia.org/wiki/Oil_shale

Mods - Please delete if this is not suitable for this thread. Thanks!

[sandeep108]

The GOI also increased the taxes on both petrol and diesel and therefore there was no price cut on 15th November. Actually because of the cascading effect of taxes - absurd system we have in India - the drop should be proportionately MORE as the increase is always proportionately more, but then this is India folks where up is down, more is less and driving on the wrong side of the road, breaking signals and all sorts of queues/rules is the norm.

Why do we expect our government to be different from us?

[saurabhkum]

Originally Posted by poloman

Buddy, you can rant but please base that on facts. You should specify which country has cut petrol prices by 30%.
Here is the historical US gas price average which has come down by 23% last 6 months.
Please understand India gets its crude at much higher rates and dollar has strengthened in last 6 months. But with more cuts planned in petrol prices the % decrease in India will go even higher.
So please come out of this "always some one is looting me" mentality.
This is a phenomenon happening all over the world
http://www.theage.com.au/business/th...28-11vdcg.html

I'm not comparing what other countries are doing, my logic is that is fuel prices are totally de-regulated then why it's taking so much time to get the price corrected. When crude goes higher the impact is felt by all of us in the next revision which happens every 15 days. Also as far as currency goes I've already discounted the dollar which has gone up by 4% in the same period. And there is no such thing as " always some one is looting me" . We all are well informed individual and if something is said that the prices are related to open market then the same logic should hold true when crude goes down.

[poloman]

Originally Posted by saurabhkum

I'm not comparing what other countries are doing, my logic is that is fuel prices are totally de-regulated then why it's taking so much time to get the price corrected. When crude goes higher the impact is felt by all of us in the next revision which happens every 15 days. Also as far as currency goes I've already discounted the dollar which has gone up by 4% in the same period. And there is no such thing as " always some one is looting me" . We all are well informed individual and if something is said that the prices are related to open market then the same logic should hold true when crude goes down.

As an informed individual you should have known when ever crude price cut happens or is reported in media it is not immediately passed on to countries like India.Some one has explained the logic above. So wait till 30th and if there is no cut still, you can complain. And do you really think a cut of 15% is not good enough in a country which is importing 80% of crude requirements with an import bill of over $140B? That is why i have given example of USA and Australia.