[veyron1]

The current scenario is sheer gimmick. Nothing else. The common man is being penalised to fill the oil marketer's purses.

I am a novice in terms of comprehending the factors influencing the oil market, and even I can say that the so-called subsidy regime that the govt is dilly-dallying with now, is nothing but a complex series of numbers that Deora has put forth to blind the aam junta. All the taxes that the Central govt. earns from the state-owned PSU's are being pumped in elsewhere, whilst the PSU's are given I-O-U's for making up losses (the so-called subsidies)...

The oil game is mucky. The deeper you go, the muckier it gets. In simple terms, Oil importers and refiners are minting cash. So is the Central govt, as it's their golden goose....

P.S - Indian crude basket never was at the figures that are being quoted so. A chunk also comes in from Venzuela, which we used to import at around $40-45 a barrel when the market was swaying at 70 (as told to me by a friend who works at ONGC) ....

[iraghava]

You really think that Venezuela will give us Oil at $40-45 when the international prices are at $130-145 levels? Come on, don't be naive.

And even if they did, what percentage of the total supply are we talking about? Plus, you do know that if the Oil companies under value the Oil they are importing, they can get into serious trouble?

[DarkEraser]

You really think that Venezuela will give us Oil at $40-45 when the international prices are at $130-145 levels?

It's possible. There are contracts that helps companies to fix the price for certain period of time. So if the contract price is $45 and Oil prices went to either $10 or $100; still company will get it's oil for $45.

This is what I heard.

FYI to all:

1 barrel crude oil = 75.6 liters petrol (after processing crude oil)

So if company gets 1 barrel crude oil for $45 x INR 50 = INR 2,250

it means

1 liter petrol cost INR 2,250 / 75.6 Ltrs. = INR 29.76 per liter

Of Course there are other operating cost and taxes that will be added to the above price.

Note from the Team-BHP Support : Please use the "edit" button if posting within 15 minutes of the first post, instead of creating another back-to-back post

Also use "Multi Quote" option for quoting Multiple posts.

[lurker]

Oil revenue goes into the Central Pool. It is used for financing budget deficit. This is the dark game being played behind the cover of oil pricing in India.

[veyron1]

@iraghava: Read my post again, pal. I was saying that a certain percentage of our import basket was being bought at $45-odd when our basket was being quoted at $70....and that's OVER-evaluation, my friend. Quite the opposite of what you're thinking. We're talking about a few thousand crores (daily) here....a lot of hands get greased...and happy....

[HKP]

Indian public is being cheated royally by the government and the oil companies. Why so much time is being taken to consider reduction of oil prices? If it were for increasing, they would have acted so fast.

None of the politicians are raising any concern about this. For all the other nonsense issues, we have bundhs and hartals. Why not for this?



\\hkp

[lurker]

they will decrease it a few months before the elections if prices stay where they are. That much you can be sure of.

Until then the loot continues ..

[agbenny]

We can expect Rs. 1-2 drop for Petrol and Diesel before the elections.

[tarunmadhok]

Originally Posted by agbenny

We can expect Rs. 1-2 drop for Petrol and Diesel before the elections.

You r right, but it would be nice if it;s droped around 3-4Rs which would not happend.

[lurker]

Originally Posted by tarunmadhok

You r right, but it would be nice if it;s droped around 3-4Rs which would not happend.

they can do that also if they feel that they are not going to be re-elected. They can watch the fun of the incumbant handle the hot potato.

[agspins]

I think...Since assembly elections are around in some states,dont think that prices will come down as code of conduct will be enforced..as well as there was a statement from Min Deora that prices wont come down as when the prices will come at around $65,oil companise will achieve BEP...so price drop cannot be expected in near future...

[veyron1]

Deora is all talk. Oil's just dropped to $61. And that's international crude. Our basket's at least at $54-$56, if indications are anything to go by.

Bah, humbug.

And to think that the only reason for enforcing these taxes by our ancestors was for us to search, implement and gradually convert to other means of efficient fuels (bio-fuel, electricity & their ilk)...!

[akshay4587]

it would be icing on cake if price difference between normal and premuim is rollbacked to what it was earlier

Speculations-sigh

[rranjith_kum]

I am just waiting for the action to happen.

[hrman]

Originally Posted by vasudeva

Look at the present fiscal situation of Pakistan. The public was paying Rs. 25/litre, yet the Govt. was paying more. On a micro level, consider what would happen if you had sell at no profit or at a loss. Where would you be, in our home or out on the streets.

Originally Posted by NetfreakBombay

And Pakistan is close to bankruptcy because of such policies.

India faced similar situation of extremely low reserves in early 90s (or was it late 80s). And we had to resort to Gold reserves. Fortunately, current PM understands finance and economics.

This info is icorrect. The last time I checked with my colleague in Pakistan in June 08, the price per liter of petrol was INR 58-60 equivalent.
Pakistan relies a lot on LPG for their domestic automobile usage.
It is also a fact that these internet forwards should be taken with a pinch of salt. Petrol Rs.25 in pakistan? Which year? Ill bet its 10 years back.

As regards the fuel price reduction, I can see a reduction at 61-62$ per barrel level. But this will be to the tune of Rs.2 per liter, not more. And our Hon. petroleum minister promising a reduction in prices and then cleverly retracting the statement the next day? He does'nt seem very keen to bring down prices in a hurry does he. Im sure he will also be concerned about the so-called losses faced by the Govt owned oilcos when crude prices started hitting the roof.

Any idea whe reliance will start selling the oil it discovered from the KG basin? I heard their pumps will be back in business from Q1 2009 onwards, and their oil will be priced slightly below the Govt.Oilcos.