[yogie]

Originally Posted by nettooran

My friend owns a petrol pump. He took stock today evening. A straight loss of 2.5 lakhs in a day. He was having a happy time for a few months. All those bonus in price savings lost in a day .

I didnt understand how is it a loss for petrol pump owner. I thought that the margin for pump owners is fixed irrespective of the price. Please correct me if i am wrong.

[GTO]

Mod Note: Thread is being closed due to political discussions. We will revisit this later and see if the topic deserves to be opened up.

[GTO]

Thread re-opened, based on a request from a BHPian. Please note that any member making political posts will be instantly barred from posting on this thread.

Thanks for the support & understanding

[firstguri]

Originally Posted by GTO

Thread re-opened, based on a request from a BHPian. Please note that any member making political posts will be instantly barred from posting on this thread.

Thanks for the support & understanding

Agree on the part to not make the thread political. But when prices are dependent on the government, hard to imagine that some potshots wouldn't be taken at the government!

[ottocycle]

Now that price increase has resumed, I believe it will continue the incremental increase on daily basis for next next months easily. Let's see where it gets stabilized and what would be the new normal.

[karan0009]

International crude oil has soared around 40% in last few months. In order to cover back log losses, oil companies will continue to raise prices on a daily basis by 50-80 paisa a liter. I believe petrol will sell at the highest level mark in another 30-40 days if International oil prices do not stabilize.

[romeomidhun]

Originally Posted by karan0009

International crude oil has soared around 40% in last few months. In order to cover back log losses, oil companies will continue to raise prices on a daily basis by 50-80 paisa a liter. I believe petrol will sell at the highest level mark in another 30-40 days if International oil prices do not stabilize.

There was a news that India will be buying crude oil from Russia at a discounted rate. If so, why the prices have to go up? Or, is it another opportunity for oil companies and govt by fooling people saying that crude prices are up and so the Petrol / Diesel prices should be increased here, even while enjoying the discounted price from Russia?

Many opportunities, many techniques and many blind consumers around.

[PreludeSH]

Originally Posted by romeomidhun

There was a news that India will be buying crude oil from Russia at a discounted rate. If so, why the prices have to go up? Or, is it another opportunity for oil companies and govt by fooling people saying that crude prices are up and so the Petrol / Diesel prices should be increased here, even while enjoying the discounted price from Russia?

It will take days (or weeks) for that oil to reach us. Also, its not going to be a huge amount of oil that we will be buying. Only 3% of our imports was coming from Russia. Dont see a huge jump over that.

Also, it was known that price hike was on hold !

[arpanjha]

Originally Posted by romeomidhun

There was a news that India will be buying crude oil from Russia at a discounted rate. If so, why the prices have to go up? Or, is it another opportunity for oil companies and govt by fooling people saying that crude prices are up and so the Petrol / Diesel prices should be increased here, even while enjoying the discounted price from Russia?

Many opportunities, many techniques and many blind consumers around.

From my understanding, any of such activities take months to impact at the tail end. These things start from purchase execution, logistics, refining, then reaches the end users. Hence any relaxing effect towards consumers (if any passed on) will take months, and by that time I do not know where crude will be.

[shortbread]

Originally Posted by romeomidhun

There was a news that India will be buying crude oil from Russia at a discounted rate. If so, why the prices have to go up? Or, is it another opportunity for oil companies and govt by fooling people saying that crude prices are up and so the Petrol / Diesel prices should be increased here, even while enjoying the discounted price from Russia?

I heard a similar rant from my Dad yesterday, as to why he isn't getting his share of the Russian discount!

Russian crude makes a very small portion of India's total crude imports mix currently. India buying discounted Russian crude is a news headline that far outweighs it's real impact on our total crude imports of $100 billion+ this year.

Unless Iran & Venezuela sanctions are removed and their supplies coming online in 2-3 months time, our wallets will keep getting lighter and lighter at petrol pumps.

[.sushilkumar]

Not sure how this escaped from thread but inflammatory pressure will continue for near future. Apparently, govt have increased diesel prices by whopping 25 re for bulk consumers like SRTC,s, big transporters & railways.

https://www.moneycontrol.com/news/bu...l-8256871.html

Now they are buying fuel from normal pumps instead of sourcing the same from OMC's directly.

“There is a massive surge of demand at fuel stations (retail outlets) due to increased delta of around Rs 25/litre between retail and industrial price of diesel, leading to heavy diversion of bulk HSD (direct customers) to retail outlets. There is also a very heavy lifting of fuel by dealers and both B2B & B2C customers, who have advanced their purchases, to top up their tanks and capacities in anticipation of price increase which is overdue,” RIL said.

This has burdened the retail outlet infrastructure.

[romeomidhun]

Originally Posted by PreludeSH

It will take days (or weeks) for that oil to reach us.

Originally Posted by arpanjha

From my understanding, any of such activities take months to impact at the tail end.

I agree that the price hike was on hold because of the state elections. But, there was a "buffer" amount collected earlier to cushion-out the international hikes.

Also, earlier there were numerous times when the local prices were increased immediately after the international prices were increased. The reverse also should be possible then instead of bringing the consumers and auto manufacturers at the receiving end of these fluctuations.

Once the Russia-Ukraine crisis is over, the crude prices will start falling. I hope we get the relief at that time, atleast.

[JithinR]

Originally Posted by romeomidhun

Once the Russia-Ukraine crisis is over, the crude prices will start falling. I hope we get the relief at that time, atleast.

Sorry, don't see that happening at all (this is not conjecture, we already have a precedent for this).

Once the global crude prices fall, I expect our government to increase taxes commensurately to hold the price at the new normal.

[StarrySky]

Originally Posted by romeomidhun

There was a news that India will be buying crude oil from Russia at a discounted rate. If so, why the prices have to go up?

The news was that India will import 3 million barrels of crude from Russia. However, based on other sources like this one, India imports an average of 4.5 million barrels of oil per day. I don't think Russian oil import will bring any relief.

[wildsdi5530]

Originally Posted by arpanjha

From my understanding, any of such activities take months to impact at the tail end. These things start from purchase execution, logistics, refining, then reaches the end users. Hence any relaxing effect towards consumers (if any passed on) will take months, and by that time I do not know where crude will be.

Isn't the current prices a reflection of prices 15 days back. It's not months of TAT for a fast moving product like fuel where storage costs are astronomical. Also after the relative stability of the past few months due to the elections in various states in India, We can expect price hikes till the next election.

Nice to see how global crude prices are so dependent on Indian elections.

Originally Posted by .sushilkumar

Not sure how this escaped from thread but inflammatory pressure will continue for near future. Apparently, govt have increased diesel prices by whopping 25 re for bulk consumers like SRTC,s, big transporters & railways.

Isn't that just shifting money from one pocket to another? I know that public services are now being run as corporates with a profit motive, but any profit or loss goes back to the govt only and not to any stake holders (Tax payers).