[xBhp Universal Thread]: Petrol price fluctuation and monitoring (India)

[blisteringintelligence]

MODERATOR MESSAGE: Please use this thread to discuss the fluctuations in petrol prices in India.




Petrol prices may be raised by about Rs 2 per litre and diesel rates cut by Rs 0.30 a litre if a proposal to free auto fuel prices from state control is approved by the incoming Cabinet.

Petrol and diesel prices may be freed from governmental controls,. which means companies would now be free to set prices according to global price movements...

Read more: Petrol price may go up by Rs 2

Source: The Deccan Herald, May 21st, 2009

[Sunny]

News Approved and Locked

[antz.bin]

NEW DELHI: The government may, from next week, find it easier to decontrol petrol and diesel prices as softening global rates would require fuel costs to be raised by just Rs 3.50 a litre for the purpose.

An Empowered Group of Ministers (EGoM), headed by Finance minister Pranab Mukherjee, is scheduled to meet on June 7 to consider a Kirit Parikh Committee report that calls for the freeing of petrol and diesel prices from governmental control, besides steep hikes in LPG and kerosene rates to cut fuel subsidy.

"Earlier, there were doubts if the government would actually free auto fuel prices — particularly that of diesel — as the hike required to make them at par with international rates was over Rs 6 per litre. But the fall in global oil prices has made the task easier," an oil ministry official said.

The EGoM will have to raise the price of petrol by Rs 3.35 per litre and that of diesel by Rs 3.49 a litre to free them from government control.

Petrol in Delhi currently costs Rs 47.93 a litre, while diesel is priced at Rs 38.10.

International crude oil prices have shaved off over $10 per barrel to bring them down to $72-74 a barrel.

"The hike needed to free auto fuel prices till last week was Rs 6.07 a litre in petrol and Rs 6.38 a litre in diesel. Raising prices, particularly that of diesel by such an amount in one go, was considered politically difficult," he said.

"Things have, however, changed now," the offical added. The revenue loss that state-owned Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum incurred on fuel sales came down to Rs 203 crore per day, from Rs 255 crore a day till last week.

They currently sell petrol at a loss of Rs 3.35 a litre, while that for diesel is Rs 3.49, Rs 18.82 for PDS kerosene and Rs 261.90 for every 14.2-kg LPG cylinder.

The official said the EGoM may not agree with the Parikh committee's recommendation of raising the kerosene price by Rs 6 per litre and LPG rates by Rs 100 per cylinder. "To my mind, a Rs 20-25 per cylinder increase in LPG price may be approved," he added.

Besides Mukherjee, the EGoM on fuel prices also includes Oil minister Murli Deora, Agriculture minister Sharad Pawar, Chemical and Fertiliser minister M K Alagiri, Railway minister Mamata Banerjee, Road Transport minister Kamal Nath and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

State retailers are projected to lose Rs 72,300 crore in revenue this fiscal if fuel prices do not change.

According to the terms of reference (ToR), the EGoM is to consider a pricing policy for petrol and diesel, including decontrol, he said, adding that it also has to decide on ways to bridge the deficit between the imported rate and retail price of LPG and kerosene.

Source: Rs 3.50 hike in petrol, diesel prices on the cards - India Business - Business - The Times of India

[Aryan]

News Approved.

After this comes into effect, petrol in Delhi would cost Rs.50/- a litre! And I was thinking of buying a bike in a month's time!

[chicane1879]

A straight Rs 3.50 hike would pinch a lot!!

[Binoy]

Originally Posted by Aryan

News Approved.

After this comes into effect, petrol in Delhi would cost Rs.50/- a litre! And I was thinking of buying a bike in a month's time!

Oh god again... Its already 50.27 RS/- here in kerala... so it will become 53.77 Rs/-
i am going to buy a Platina for sure...

[ravi@17bhp]

53.65 in Hyderabad now. It would be 57.5 if increased. If the Oil Cos want profits on fuel, expect more hike than this.

[Ram1883]

Originally Posted by Aryan

News Approved.

After this comes into effect, petrol in Delhi would cost Rs.50/- a litre! And I was thinking of buying a bike in a month's time!

Sir, lets not even start about the prices in Bangalore.

[Puneet1]

Damn ! will hurt a lot on our pockets .

[MR ACE]

Oh...jeez I should stick with my discover till prices drops.