Petrol prices update thread

[RanjithMN]

Is the price going up again?some guys in collg were saying!

[darkknight]

Is the price going up again?some guys in collg were saying!

Most probably yes in a week's time --

[RanjithMN]

Most probably yes in a week's time --

Oh god,any idea by how much?

[zincha]

The Fuel prices to go up again

Another round of oil price hike likely by month-end - Hindustan Times

friends i had posted this few days ago...
to hell with the govt. of india ! :-(

[Satyamzma]

this may be due to unstable conditions going on in Arab countries like Egypt, Libiya...crude oil climbing high rates daily may be the reason of regular price hike this year....

[Rony]

Petrol pumps in UP to observe strike tomorrow !

Lucknow, March 23:Source : Business Line : Industry & Economy / Government & Policy : Petrol pumps in UP to observe strike tomorrow

[Rony]

Why state-run oil companies selling petrol below market rates: CAG

Rajeev Jayaswal & Anindya Upadhyay, ET Bureau, Apr 21, 2011, 03.13am IST

NEW DELHI: India's top auditor will investigate why state oil companies are selling petrol, a deregulated fuel, below market rates allegedly because raising prices may hurt the ruling party in the on-going assembly elections, official sources said.

State retailers Hindustan Petroleum Corp, Indian Oil Corp and Bharat Petroleum Corp are selling petrol at nearly 7, or about 10%, below market rates and have not raised prices since mid-December although crude oil prices have climbed by a third since then. Company officials say the three retailers are expected to lose about $1 billion revenue in 2010-11 for selling petrol below market rates.


The audit is suo moto, to ascertain the impact of deregulation on state-owned oil companies - IOC, BPCL and HPCL, a CAG official told the ET . "If the deregulation policy is bleeding petrol companies' bottom line, we will definitely draw the government's attention to it ... The CAG undertakes many such audits suo moto," the official said requesting anonymity.

Executives at the three state-run fuel retailers say their marketing freedom in fixing petrol prices is only in theory as the fuel is still unofficially regulated by the oil ministry. IOC, BPCL and HPCL have been forced to freeze petrol rate in the run-up to the assembly elections, said an official in a state-run oil firm, who did not want to be identified because of the sensitivity of the matter.
Assembly elections in West Bengal, Tamil Nadu, Kerala and Assam will be completed by the second week of May.
The CAG official said the audit would not evaluate the merit of the policy but its implementation. "Our job is not to say whether a policy of the government is right or wrong, but to draw attention to its outcome," the official said.

Oil ministry officials denied its role in fixing petrol prices. On June 26 last year, the government had freed pricing of petrol from its control saying that the move would improve the finances of state-run oil companies.
The petrol pricing freedom on paper is a double whammy for state-run oil companies that could not even seek compensation for losing money on the sale of the fuel. The government continues to compensate them for selling diesel, kerosene and cooking gas below cost as these fuel are still under price-control.

Another sufferer of the distorted pricing policy are private sector oil firms - Reliance Industries, Essar and Shell India. They are losing huge money on fuel retail due to predatory pricing by state-run retailers that dominate the business with over 95% market share.

Source : Why state-run oil companies selling petrol below market rates: CAG - Economic Times

[eliksir]

does this imply the prices would shoot up once the election results are out ?

[vipin_s]

None of the OMC (oil Marketing Company) has ever suffered loss b'cos of subsidy. The reason is international crude prices have dips in-between peaks, so the loss they make during peak is compensated by dips in the prices. And note that once the hiked price is announced it will not come down even if per barrel cost comes down by $30 and OMCs will make killing during such dips !!!

Regulation is required else our economy will behave crazily, veggie prices, autorikshaw rentals, commodity prices, bus fares, transportation cost will fluctuate every day depending on crude prices.

Let de-regulation be a subject study for MBA final years & so called 'economic thinkers'.

[ravi@17bhp]

There is an article in ET which says, a hike of 7-9 rupees per liter (petrol) next month.

[n_aditya]

Today's TOI reports that IOC will be raising prices of petrol over the weekend. Tank up guys.

There is an article in ET which says, a hike of 7-9 rupees per liter (petrol) next month.

Cool. Thats keeping up with the increase in prices of beer and alcohol. The race is not over yet.

[sooraj_vs]

Topic for another wonderful episode of the show "It Happens Only In India"

[Eshan-P180]

All the english abuse dictionary and marathi abuse dictionary to all these F&*^%$ B#$^%$#@ who are driving the nation mad.....
6-7 thats gonna make it 70 a liter here in pune!!!!!!

[ksameer]

Let the fuel prices increase and come to their true levels. This will actually be beneficial in the longer run. If the conventional fuel is beyond the reach of common man, he will look for alternatives, i.e, electric vehicles currently.

But if electric vehicles are to be the only vehicles on the road, the existing automobile industry will come to a grinding halt. To prevent this, efforts will be put in developing synthetic fuels. And slowly, the demand will shift to these non-conventional fuels leaving the conventional petrol in lurch.

Unfortunately, all this will never happen because such a scenario will drain Gulf countries of their only source of income. They won't want to become beggars overnight. So, petrol will remain subsidized heavily and minor jolts of price hike will be kept subtle enough to not wake up the common man.

[Eshan-P180]

Let the fuel prices increase and come to their true levels. This will actually be beneficial in the longer run. If the conventional fuel is beyond the reach of common man, he will look for alternatives, i.e, electric vehicles currently.

But if electric vehicles are to be the only vehicles on the road, the existing automobile industry will come to a grinding halt. To prevent this, efforts will be put in developing synthetic fuels. And slowly, the demand will shift to these non-conventional fuels leaving the conventional petrol in lurch.

Unfortunately, all this will never happen because such a scenario will drain Gulf countries of their only source of income. They won't want to become beggars overnight. So, petrol will remain subsidized heavily and minor jolts of price hike will be kept subtle enough to not wake up the common man.

agreed bro but since minor jolts can at times dissolve or erase the common man from the picture. We are typing this it means we can suffice it....what about those who cant...they might be washed off in such Hike Tsunamis.....
We have a hopeless government ruling here which has no clue about globalization and economy.....they only know how to globalize their pockets economically.......