The Official Fuel Prices Thread

vinit.merchant · 28th July 2008, 18:56

Quote:

Originally Posted by prashanthyr

Crude price is down in the $120s and falling. Hope this translates to lower prices! Here, in the UK, petrol was £1.19 and Diesel £1.38 last weekend. Thankfully, most retailers like Tesco are offering 5 P off from the day crude prices started dropping.

is it Pound 1.19 for a gallon or a Litre?

ravibhat · 28th July 2008, 19:26

Well in India we cant see any decrease or discount in price because they say increase done is very less compared to high cruide prices.

Soon cruide price might start jumping again and this time if it starts climbing it would be very worse than before similar to how shares will crash very soon If bad news starts again globally.

I realized now a days sentiment plays more role than technical evaluation.

Ravi.

diabloo · 30th July 2008, 17:28

Crude Oil @ $121

Indian Govt had fixed fuel price for crude oil @ $145. And has freezed price till Oct 2008.

Till then Oil companies can rake in the moolah, announce bonus/dividends, spend on expensive ads and make merry (as if ads will make a customer to shift from IOC to BP

)

ravibhat · 31st July 2008, 20:13

What I heard from latest report is Oil price globally might go as below as 100$ very soon :( so I feel this price reduction benefit won't be passed to consumers in India.

On the other hand If price starts jumping with some bad global news it can easily touch 200$ which is very bad for consumers.

At this stage its difficult to analyze! becasue of lot of volatality.

Ravi.

prashanthyr · 1st August 2008, 14:01

Quote:

Originally Posted by vinit.merchant

is it Pound 1.19 for a gallon or a Litre?

Pounds per litre - yes over Rs 100/litre!!

diabloo · 5th August 2008, 21:20

Oil prices hit a three-month low of $118 a barrel on today.

musicmanaman · 6th August 2008, 15:03

The government should roll back fuel prices, now that Crude has come down quite a bit from it's high point, but my best guess is they woun't.

simplyself · 6th August 2008, 17:51

One quarter of India's crude oil requirement is met by domestic production. ONGC supplies crude to oil PSUs at $55 per barrel. Even if the barrel price is $130 in international market, it costs India just $112.

A barrel of crude is equivalent to 159 litres. It costs Rs.29.39 a litre. Refining costs add up to 0.20 paise to Re.1. In fact, Tapan Sen, RS MP and a member of Standing Committe of Parliament on Petroleum and Natural gas says it is 93-94 % of crude and the remaining is the refining cost.

Even if the petroleum products are not imported, the cost of it is calculated by taking an average of fortnight of international prices, add to it the freight charges, customes, taxes and the refinery charges etc. Though these products are not actually imported, the import-parity mechanism simply assumes they are imported. So, the under-recoveries due to raisng global prices of crude arguement is fictious.

Between April - Dec 2007, the IOC revenues increased by 52 % and the Oct-Dec 2007 quarter reported a 17 % increase in profits over corresponding period the previous year. Figures for HPCL and BPCL are similar. This, I believe is not the industry which is crying itself hoarse that it is suffering from losses.

normally_crazy · 11th August 2008, 20:41

Panel moots petrol hike by Rs 2.50 per month

A proposal to raise petrol prices by 2.50 rs every month till march 2009 and diesel prices by 0.75 rs every month till 2010 has been mooted.

jagan0677 · 11th August 2008, 21:29

Quote:

Originally Posted by normally_crazy

Panel moots petrol hike by Rs 2.50 per month

A proposal to raise petrol prices by 2.50 rs every month till march 2009 and diesel prices by 0.75 rs every month till 2010 has been mooted.

The ET article i read this morning mentioned something on below lines for the differential pricing mechanism.
> 50p or Re.1 extra in metro's,and
> another Re.1 or Re.2 for low-mileage(guzzlers) cars
But i am unable find the article now...

supremeBaleno · 12th August 2008, 21:17

While I saw a thread on SUV owners and slum dwellers

needing to pay Rs.2 more per litre of diesel, I think the following news item escaped the attention of tbhp-ians.
__________________________________________________ _________
If the recommendations of a committee set up by Prime Minister Manmohan Singh to study the financial health of the state-owned oil companies are accepted, then petrol prices may increase every month by Rs 2.50 so that market rates are reached by March 2009.

Courtesy : The Deccan Chronicle, Chennai edition dtd 11-Aug-2008
__________________________________________________ _________

While I have been one of those that shout against every petrol price hike, I think this is not without its merits, reasons being :

1. If the procurement price of a product increases, naturally those that consume it should pay accordingly. Not a good move to sell below cost price. See Note-1.

2. A hefty hike of Rs.5 per litre of petrol has seen quite some Indians start to respect the fuel and avoid unnecessary car/bike usage. And even start patronising public transportation, where available. And this has been seen even in the US of A, where public transportation usage has increased and we are seeing a shift from fuel-guzzling SUVs to FE small cars.

3. It has been proven that hiking prices of fossil fuels leads to rational usage of the same among the public. See Note-2.

Note-1 : I know that the actual cost per litre is only 25bucks or so, with the rest being all sorts of taxes and duties. But those taxes are used for development of the country and if removed, could put a spanner in the wheel for many development activities planned by the Govt.

Note-2 : This has been proven in Denmark (as per an article in the same paper yesterday) where after the oil shock of the 70s, they decided to move away from being dependent on MiddleEast oil and from a 90% dependence, they are now at 0% dependence on oil import. Part of the strategy was imposing huge taxes on oil products, encouraging alternative sources of energy like wind, promoting cycling etc.

So, if the Govt's plan goes through, and they start the hikes in Sep'08, in March '09, petrol would be priced at Rs.72.5 ex-Chennai. Not bad I guess, if it makes us use the resource rationally.

And while they are at it, maybe they should also hike diesel prices monthly so that by Mar09, it becomes on par with petrol, like it is in most parts of the world.

rranjith_kum · 12th August 2008, 21:23

Just one doubt isn't the Nymex crude sliding to prices below 118 $ so it will be a profit for these state owned companies right ?

And heard that in some countries like in south africa diesel is costlier than petrol

amohit · 12th August 2008, 21:24

2009 being the election yr..i doubt anything will happen.

snaronikar · 12th August 2008, 21:28

The crude is trading at $ 113.70/bbl as of now.

As for the hike in monthly petrol prices, TOI y'day reported this and in today's edition, the paper informed it has avery few takers. Good for us.

Fountainheader · 12th August 2008, 21:42

Quote:

Originally Posted by amohit

2009 being the election yr..i doubt anything will happen.

I second this.. no matter the invasion of the R8, M-Class and the LPs in India, it is still an aam-aadmi market. And I doubt the Congress would like such moves so close to the elections.

28th July 2008, 19:26	#812
ravibhat Senior - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 2,256 Thanked: 37 Times View My Garage	Well in India we cant see any decrease or discount in price because they say increase done is very less compared to high cruide prices. Soon cruide price might start jumping again and this time if it starts climbing it would be very worse than before similar to how shares will crash very soon If bad news starts again globally. I realized now a days sentiment plays more role than technical evaluation. Ravi.
	() Thanks

30th July 2008, 17:28	#813
diabloo BANNED Join Date: Jun 2007 Location: Bengalooru Posts: 1,480 Thanked: 17 Times	Crude Oil @ $121 Indian Govt had fixed fuel price for crude oil @ $145. And has freezed price till Oct 2008. Till then Oil companies can rake in the moolah, announce bonus/dividends, spend on expensive ads and make merry (as if ads will make a customer to shift from IOC to BP )
	() Thanks

31st July 2008, 20:13	#814
ravibhat Senior - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 2,256 Thanked: 37 Times View My Garage	What I heard from latest report is Oil price globally might go as below as 100$ very soon :( so I feel this price reduction benefit won't be passed to consumers in India. On the other hand If price starts jumping with some bad global news it can easily touch 200$ which is very bad for consumers. At this stage its difficult to analyze! becasue of lot of volatality. Ravi. Last edited by ravibhat : 31st July 2008 at 20:16.
	() Thanks

5th August 2008, 21:20	#816
diabloo BANNED Join Date: Jun 2007 Location: Bengalooru Posts: 1,480 Thanked: 17 Times	Oil prices hit a three-month low of $118 a barrel on today.
	() Thanks

6th August 2008, 15:03	#817
musicmanaman BHPian Join Date: Nov 2006 Location: kolkata Posts: 927 Thanked: 25 Times	The government should roll back fuel prices, now that Crude has come down quite a bit from it's high point, but my best guess is they woun't.
	() Thanks

6th August 2008, 17:51	#818
simplyself Senior - BHPian Join Date: Mar 2008 Location: Hyderabad Posts: 1,051 Thanked: 621 Times	One quarter of India's crude oil requirement is met by domestic production. ONGC supplies crude to oil PSUs at $55 per barrel. Even if the barrel price is $130 in international market, it costs India just $112. A barrel of crude is equivalent to 159 litres. It costs Rs.29.39 a litre. Refining costs add up to 0.20 paise to Re.1. In fact, Tapan Sen, RS MP and a member of Standing Committe of Parliament on Petroleum and Natural gas says it is 93-94 % of crude and the remaining is the refining cost. Even if the petroleum products are not imported, the cost of it is calculated by taking an average of fortnight of international prices, add to it the freight charges, customes, taxes and the refinery charges etc. Though these products are not actually imported, the import-parity mechanism simply assumes they are imported. So, the under-recoveries due to raisng global prices of crude arguement is fictious. Between April - Dec 2007, the IOC revenues increased by 52 % and the Oct-Dec 2007 quarter reported a 17 % increase in profits over corresponding period the previous year. Figures for HPCL and BPCL are similar. This, I believe is not the industry which is crying itself hoarse that it is suffering from losses.
	() Thanks

11th August 2008, 20:41	#819
normally_crazy Senior - BHPian Join Date: Feb 2004 Location: Mumbai Posts: 4,369 Thanked: 528 Times View My Garage	Panel moots petrol hike by Rs 2.50 per month A proposal to raise petrol prices by 2.50 rs every month till march 2009 and diesel prices by 0.75 rs every month till 2010 has been mooted.
	() Thanks

12th August 2008, 21:17	#821
supremeBaleno Senior - BHPian Join Date: Dec 2005 Location: Chennai / Kochi Posts: 5,546 Thanked: 2,698 Times View My Garage	Petrol prices to be hiked by Rs2.50 monthly till March 2009. While I saw a thread on SUV owners and slum dwellers needing to pay Rs.2 more per litre of diesel, I think the following news item escaped the attention of tbhp-ians. __________________________________________________ _________ If the recommendations of a committee set up by Prime Minister Manmohan Singh to study the financial health of the state-owned oil companies are accepted, then petrol prices may increase every month by Rs 2.50 so that market rates are reached by March 2009. Courtesy : The Deccan Chronicle, Chennai edition dtd 11-Aug-2008 __________________________________________________ _________ While I have been one of those that shout against every petrol price hike, I think this is not without its merits, reasons being : 1. If the procurement price of a product increases, naturally those that consume it should pay accordingly. Not a good move to sell below cost price. See Note-1. 2. A hefty hike of Rs.5 per litre of petrol has seen quite some Indians start to respect the fuel and avoid unnecessary car/bike usage. And even start patronising public transportation, where available. And this has been seen even in the US of A, where public transportation usage has increased and we are seeing a shift from fuel-guzzling SUVs to FE small cars. 3. It has been proven that hiking prices of fossil fuels leads to rational usage of the same among the public. See Note-2. Note-1 : I know that the actual cost per litre is only 25bucks or so, with the rest being all sorts of taxes and duties. But those taxes are used for development of the country and if removed, could put a spanner in the wheel for many development activities planned by the Govt. Note-2 : This has been proven in Denmark (as per an article in the same paper yesterday) where after the oil shock of the 70s, they decided to move away from being dependent on MiddleEast oil and from a 90% dependence, they are now at 0% dependence on oil import. Part of the strategy was imposing huge taxes on oil products, encouraging alternative sources of energy like wind, promoting cycling etc. So, if the Govt's plan goes through, and they start the hikes in Sep'08, in March '09, petrol would be priced at Rs.72.5 ex-Chennai. Not bad I guess, if it makes us use the resource rationally. And while they are at it, maybe they should also hike diesel prices monthly so that by Mar09, it becomes on par with petrol, like it is in most parts of the world. Last edited by aah78 : 13th August 2008 at 20:01. Reason: Thread merged with existing.
	() Thanks

12th August 2008, 21:23	#822
rranjith_kum BHPian Join Date: Aug 2006 Location: Coimbatore/ Aachen Posts: 693 Thanked: 20 Times View My Garage	Just one doubt isn't the Nymex crude sliding to prices below 118 $ so it will be a profit for these state owned companies right ? And heard that in some countries like in south africa diesel is costlier than petrol
	() Thanks

12th August 2008, 21:24	#823
amohit BHPian Join Date: Jul 2007 Location: Bangalore Posts: 451 Thanked: 52 Times	2009 being the election yr..i doubt anything will happen.
	() Thanks

12th August 2008, 21:28	#824
snaronikar Senior - BHPian Join Date: Jun 2007 Location: Bengaluru Posts: 2,845 Thanked: 29 Times View My Garage	The crude is trading at $ 113.70/bbl as of now. As for the hike in monthly petrol prices, TOI y'day reported this and in today's edition, the paper informed it has avery few takers. Good for us.
	() Thanks