The Official Fuel Prices Thread

Steeroid · 18th March 2005, 16:49

http://newindpress.com/NewsItems.asp...E+W+S&Topic=0&

Friday March 18 2005 14:04 IST

PTI

NEW DELHI: Public sector oil firms want a massive Rs 5 per litre increase in petrol and Rs 4.30 a litre hike in diesel prices from April 1 in step with the steep rise in cost of raw material (crude oil) and new investments made in producing cleaner fuel.

With the basket of crude oil that Indian refiners import, touching an all time high of 51.64 dollars a barrel, Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have sought a Rs 3.50 per litre increase in petrol and Rs 2.80 a litre hike in diesel prices, a government official said.

Besides, the oil firms also want a Rs 1.50 per litre increase in the two fuel prices commensurate with the investments they had made for producing ultra low sulphur Euro III grade petrol and diesel for 11 major cities and Euro II auto fuel for the rest of the country from April 1.

The oil companies are investing over Rs 40,000 crore in upgrading fuel quality.

IOC, which controls half of the oil market, will loose Rs 250 crore on selling petrol and diesel below the cost in the second fortnight of March.

For the full month, the loss is pegged at Rs 400 crore, the official said. The official said the raise sought by the oil companies was besides the Rs 2.85 a litre increase in petrol and Re 1 per litre hike in diesel prices necessitated by the budget 2005-06 proposal to raise excise duty on the two fuel.

Not passing on the increased incidence of excise duty would result in around Rs 264 crore (about Rs 106 crore on petrol and Rs 158 crore on diesel) loss to them every fortnight.

The budget 2005-06 cut customs duty on petrol and diesel to 10 per cent from 15 per cent but rejigged the excise duty on both products to a mix of ad valorem and specific rates.

Additionally, the cess for road development has been increased by Rs 0.50 per litre to Rs 2.00.

Officials says that the duty changes has left the oil firms poorer with the public sector refineries losing Rs 1,200 crore a year as their duty protection rate got reduced by one per cent with cuts in customs duty on products.

For producing cleaner fuel, IOC is investing over Rs 20,000 crore and its associate refineries another Rs 3600 crore. BPCL and its associate refineries are investing Rs 5,000 crore and HPCL Rs 3,248 crore. Major private player in the field, Reliance Industries is making an investment of Rs 2,160 crore.

Rtech · 18th March 2005, 17:26

This is absurd! As it is, we have some of the highest fuel prices in the world (considering percentage of income). Now they want to raise it by Rs.5! We are already paying more than 1$ a litre for petrol.

How come we don't get the benefit when crude prices drop? The oil companies go silent at that time. The last price drop we got was last year, when the price was lowerd by Rs.0.40!!! That was a week after the price was increased by Rs.1.60.

vinsanity · 18th March 2005, 17:27

Faint!!
2 mins later..
Rs 5, oh my god.... Wonder if it continues at this rate, we'l have a lot of lpg kitted rides by the middle class fellas.. Sad that these prices keep rising all the time.. Wish we had oil like the gulf nations....

vinsanity · 18th March 2005, 17:30

Quote:

The last price drop we got was last year, when the price was lowerd by Rs.0.40!!! That was a week after the price was increased by Rs.1.60.

Guees after people complains, they'l reduce from 5 to 2.50, just to make people happy that the govt has heard the aam janata and reduced the price.. crazy man..

iceman91 · 18th March 2005, 17:32

"a fully modded baleno up for sale"
this is what i will have to put up in the papers vey soon and get myself one of those 65kmpl bikes.

pingme · 18th March 2005, 17:33

Quote:

Originally Posted by Rtech

This is absurd! As it is, we have some of the highest fuel prices in the world (considering percentage of income). Now they want to raise it by Rs.5! We are already paying more than 1$ a litre for petrol.

How come we don't get the benefit when crude prices drop? The oil companies go silent at that time. The last price drop we got was last year, when the price was lowerd by Rs.0.40!!! That was a week after the price was increased by Rs.1.60.

Highest prices are not because of Oil companies...but because of heavy taxes and levis Govt put on it...Oil is only cash cow Indian Govt has...

PS: price in europe are around 1.2 euros/lit for petrol that comes out to be around 60 rupees a lit so we are still cheaper I think

typeOnegative · 18th March 2005, 17:36

Quote:

Originally Posted by pingme

Oil is only cash cow Indian Govt has...

You have forgotten cigarettes and booze. *sigh*

Rtech · 18th March 2005, 17:40

Quote:

PS: price in europe are around 1.2 euros/lit for petrol that comes out to be around 60 rupees a lit so we are still cheaper I think

I meant:

Quote:

(considering percentage of income)

Rs.45/litre is a larger chunk of your monthly income as compared to 1.2Euro's of the average income of countries in the EU.

amitoj · 18th March 2005, 17:41

Quote:

Originally Posted by typeOnegative

You have forgotten cigarettes and booze. *sigh*

and state run lotteries.

big time sigh!
Wots the scene of hybrid cars in india like??

typeOnegative · 18th March 2005, 17:42

Quote:

Originally Posted by amitoj

and state run lotteries.

big time sigh!
Wots the scene of hybrid cars in india like??

LOL.

I think they should be launched, but the people who really require them amy not be able to afford them in the first place. :(

pingme · 18th March 2005, 17:46

Quote:

Originally Posted by typeOnegative

LOL.

I think they should be launched, but the people who really require them amy not be able to afford them in the first place. :(

Thats even in true in Western Countries....I think TATA will have better days ahead

Gordon · 18th March 2005, 17:48

Quote:

Wots the scene of hybrid cars in india like??

For all you know once they're launched, they'll increase ELECTRICITY prices tooo.

Rock 'n' rollz · 18th March 2005, 17:49

Quote:

Originally Posted by Rtech

I meant:
Rs.45/litre is a larger chunk of your monthly income as compared to 1.2Euro's of the average income of countries in the EU.

Agree whole heartedly!!! I think the price/income ratio is India 4-5 times higher than that of EU countries.

vance0712 · 18th March 2005, 17:55

I see 3 options ahead of me

a] Reva - electric car .
b] Kawasaki Bajaj Boxer .
c] Take a lift from others .

pingme · 18th March 2005, 17:57

Quote:

Originally Posted by Rock 'n' rollz

Agree whole heartedly!!! I think the price/income ratio is India 4-5 times higher than that of EU countries.

but market forces driving prices does not consider our incomes... Europian country also needs to buy a barell for $57 as India...just remember our current prices are still subsidized...imagine when all subsidy will vanish

18th March 2005, 16:49	#1
Steeroid Senior - BHPian Join Date: Mar 2005 Location: N.A Posts: 7,033 Thanked: 2,668 Times	The Official Fuel Prices Thread http://newindpress.com/NewsItems.asp...E+W+S&Topic=0& Friday March 18 2005 14:04 IST PTI NEW DELHI: Public sector oil firms want a massive Rs 5 per litre increase in petrol and Rs 4.30 a litre hike in diesel prices from April 1 in step with the steep rise in cost of raw material (crude oil) and new investments made in producing cleaner fuel. With the basket of crude oil that Indian refiners import, touching an all time high of 51.64 dollars a barrel, Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp have sought a Rs 3.50 per litre increase in petrol and Rs 2.80 a litre hike in diesel prices, a government official said. Besides, the oil firms also want a Rs 1.50 per litre increase in the two fuel prices commensurate with the investments they had made for producing ultra low sulphur Euro III grade petrol and diesel for 11 major cities and Euro II auto fuel for the rest of the country from April 1. The oil companies are investing over Rs 40,000 crore in upgrading fuel quality. IOC, which controls half of the oil market, will loose Rs 250 crore on selling petrol and diesel below the cost in the second fortnight of March. For the full month, the loss is pegged at Rs 400 crore, the official said. The official said the raise sought by the oil companies was besides the Rs 2.85 a litre increase in petrol and Re 1 per litre hike in diesel prices necessitated by the budget 2005-06 proposal to raise excise duty on the two fuel. Not passing on the increased incidence of excise duty would result in around Rs 264 crore (about Rs 106 crore on petrol and Rs 158 crore on diesel) loss to them every fortnight. The budget 2005-06 cut customs duty on petrol and diesel to 10 per cent from 15 per cent but rejigged the excise duty on both products to a mix of ad valorem and specific rates. Additionally, the cess for road development has been increased by Rs 0.50 per litre to Rs 2.00. Officials says that the duty changes has left the oil firms poorer with the public sector refineries losing Rs 1,200 crore a year as their duty protection rate got reduced by one per cent with cuts in customs duty on products. For producing cleaner fuel, IOC is investing over Rs 20,000 crore and its associate refineries another Rs 3600 crore. BPCL and its associate refineries are investing Rs 5,000 crore and HPCL Rs 3,248 crore. Major private player in the field, Reliance Industries is making an investment of Rs 2,160 crore.
	() Thanks

18th March 2005, 17:26	#2
Rtech Team-BHP Support Join Date: Apr 2004 Location: Bombay Posts: 5,769 Thanked: 254 Times View My Garage	This is absurd! As it is, we have some of the highest fuel prices in the world (considering percentage of income). Now they want to raise it by Rs.5! We are already paying more than 1$ a litre for petrol. How come we don't get the benefit when crude prices drop? The oil companies go silent at that time. The last price drop we got was last year, when the price was lowerd by Rs.0.40!!! That was a week after the price was increased by Rs.1.60.
	() Thanks

18th March 2005, 17:27	#3
vinsanity BHPian Join Date: Nov 2004 Location: Patna Posts: 609 Thanked: 2 Times	Faint!! 2 mins later.. Rs 5, oh my god.... Wonder if it continues at this rate, we'l have a lot of lpg kitted rides by the middle class fellas.. Sad that these prices keep rising all the time.. Wish we had oil like the gulf nations....
	() Thanks

18th March 2005, 17:32	#5
iceman91 Senior - BHPian Join Date: Nov 2004 Location: melbourne/bangalore Posts: 1,958 Thanked: 22 Times View My Garage	"a fully modded baleno up for sale" this is what i will have to put up in the papers vey soon and get myself one of those 65kmpl bikes.
	() Thanks

18th March 2005, 17:55	#14
vance0712 BANNED Join Date: Jan 2005 Location: mumbai Posts: 142 Thanked: 0 Times	Icu.... I see 3 options ahead of me a] Reva - electric car . b] Kawasaki Bajaj Boxer . c] Take a lift from others .
	() Thanks

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