[srishiva]

Originally Posted by Jignesh

Hello Srishiva,

HPCL, IOC, BPCL, ONGCare Government owned & comtrolled companies.

The more the profits of these companies, the biggest benefit goes to Government in form of Dividends declared.

Government holds more than 50% / 60% in each of these companies & if you just google the dividend that Government receives you will definitely be surprised.

Thus Government is giving from one hand (Subsidy) & taking from another (Taxes & Dividend).

So to cut the long story short - Nobody losses except the Comman Man.

Thanks,

The govt does lose if the current prices in the international market goes up and what they get from consumer does not.
Ultimately it is the govt's loss for a few days or week. Also, these companies are not owned by the govt 100%. (you need to look at loss as less profits )

Does the govt pay the back dues in subsidies to make sure the companies do not show losses?

[faustus77]

Hi everybody
Very good posts by the members here.
Jignesh
Very true about the 31st may bandh and the long and short of the story is that the common man pays.
On a different thread I have reproduced an article from the Economic Times where the IOC salaries are given.Somebody else has also given the same culled from the results of IOC.A driver gets more than 20 lakhs per annum.Surprising isnt it?
Regards

[sgiitk]

@Jignesh; What is wrong in a politically 'correct' timing. A Rs.1.50 cut was on the cards the day the price rise was implemented! Attitude of Mamata (she apparently has been told that her WB package depends on this) and DMK (must have been told that the Congress - oops Central Bureau of Investigation will be let loose again) say it all about the hypocrisy of the politicians.

[Jignesh]

Originally Posted by faustus77

Jignesh
Very true about the 31st may bandh and the long and short of the story is that the common man pays.

Hello Faustus77,

Thank you.

Hello Everybody (especially Petrolheads),

After Bharat Bandh, a bad new for Petrol buyers: Petrol price: Oil firms, govt play politics at consumers' cost - The Times of India

Seems the Bharat Bandh date selection game played by NDA & other political parties have gone against the Petrol Consumers.

Oil Marketing Companies were planning to cut Petrol Prices today, but they deferred the decision (probably at direction of Govt). Because if the Prices are reduced today, NDA & other political parties will claim credit for the same.

Thus, what I said above is once again proved - "Nobody losses except the Comman Man" Many people would have lost their livelyhood for one day & Bandh failed to serve its purpose.

Thanks,

[ruchirtnt]

Originally Posted by sgiitk

@Jignesh; What is wrong in a politically 'correct' timing. A Rs.1.50 cut was on the cards the day the price rise was implemented! Attitude of Mamata (she apparently has been told that her WB package depends on this) and DMK (must have been told that the Congress - oops Central Bureau of Investigation will be let loose again) say it all about the hypocrisy of the politicians.

I agree in totality, a mighty hike of around 7.5 and a recall of only 1.5

[Jignesh]

Hello Friends,

A piece of Good news (as expected) - Petrol Prices reduced by Rs. 2 with effect from 3rd June 2012.
Petrol cheaper by Rs 2 a litre; Mamata, BJP, Left reject partial cut - The Times of India

As we all expected, Oil Marketing Companies increased prices by Rs. 7.50 & finally after all the protests, have reduced by token amount of Rs. 2 per liter.

Also Mr. Vayalar Ravi (Union Minister) slams Oil Marketing Companies on their claims of huge loses - Vayalar Ravi slams oil companies, says their claim of loss 'untrue' - The Times of India.

Thanks,

[Warwithwheels]

Here's what the Govt gets on every liter of Petrol sold in Delhi.



Source

[Karan1981]

I doubt researching more on this subject is going to change anything except that you'll be left with less time for yourself. The hike has happened and is on paper as well!

On a lighter note, this is going to be the new launch for us to commute going forward. With govts doing stuff to make the common man more able to own a decent car and life, ours seems to be taking us back to stone age.

Cheers to some Petrol!

[prashanthyr]

I wonder why oil companies and the government are not trying the Brazilian model of ethanol blended petrol? That would reduce prices without adding to the subsidy burden.

[NPV]

Read this in the Indian Express newspaper couple of days ago:
With Petrol being deregulated it was due for a price review/revision on May 31 but the government postponed it since they did not want the opposition parties to claim that the reduction was due to their (quite successful) bundh. So the downward revision of Rs.2 was effected on 3 June (it was bound to go down since the international prices had dropped significantly).
How much lower can we stoop for such victories of ego ?

[samarjitdhar]

Originally Posted by prashanthyr

I wonder why oil companies and the government are not trying the Brazilian model of ethanol blended petrol? That would reduce prices without adding to the subsidy burden.

This kind of model works where the land is already used to produce crops/plants which give by-products that can be used to create ethanol/bio-fuels. Brazil and to some extent Argentina has lots of land which either grow these types of crops and plants naturally or are cultivated helping to get the product cheap. Some western nations tried to follow the same model and they destroyed their food bowls in the process. Agricultural land used for growing crops were converted to grow lots of maize in the US and some others which yield molasses from which ethanol is made. These nations have suffered a huge hit on their food production and have now become net importers of food at a huge cost (actually this story doesn't get much play in the mainstream media). Also the gain from using ethanol was not very high to my knowledge hence it turned out to be a failed experiment (maybe some expert can shed some more light on this. In fact our own HVK sir ji has very good knowledge in this field). In fact when this industry was booming in the US, car makers in the US were quickly churning out cars running on flex-fuels, I distinctly remember some of the popular Chevy models like the Impalas which ran on flex-fuels like E85 which was a mix of ethanol and gas, but as of now this has petered out. Specially after the advent of the electric cars and the hybrids. The Prius I think killed that market and now folks are very interested in the Nissan Leaf and the soon to be released Mitsubishi Mi-EV. Remember all this is driven by the price of fuel in these countries specially the US. They have very low taxes on fuels hence adoption of alternate energy cars is low. It goes higher only when the fuel prices pinch them a lot due to the price of crude.

Of late I have read that the US is now using a lot of fracking to build their oil supplies and wean their market off the middle-east oil slowly . Fracking has some serious environmental costs though but funnily India is now involved in this too in a big way and maybe it can come at a huge cost with no benefit at all. Fracking incidentally needs some sort of an organic glue like chemical which can be easily obtained from guar (a relative of bean, not Mr. Bean ) hence farmers have now started cultivating guar instead of crops in their land as it is fetching a lot of profits for them through exports to the US. In fact some farmers are now using their terraces and roofs for cultivation. This is really scary and worrisome for our own food needs. The more US relies on fracking for its oil needs (which is huge to the tune of 82 million barrels per day the last I had read) the more dependent they become on guar. I read this article a couple of days back in Reuters. This problem can get more serious but our own media houses have no clue about it as far as I know. They are more interested in publishing sensational news like "Gadkari falls at Ramdev's feet" though the reality is far from what they report. Sorry about the long post.

[anoopap]

Originally Posted by samarjitdhar

Of late I have read that the US is now using a lot of fracking to build their oil supplies and wean their market off the middle-east oil slowly . Fracking has some serious environmental costs though but funnily India is now involved in this too in a big way and maybe it can come at a huge cost with no benefit at all. Fracking incidentally needs some sort of an organic glue like chemical which can be easily obtained from guar (a relative of bean, not Mr. Bean ) hence farmers have now started cultivating guar instead of crops in their land as it is fetching a lot of profits for them through exports to the US. In fact some farmers are now using their terraces and roofs for cultivation. This is really scary and worrisome for our own food needs. The more US relies on fracking for its oil needs (which is huge to the tune of 82 million barrels per day the last I had read) the more dependent they become on guar. I read this article a couple of days back in Reuters.

Thanks for sharing this information !

Good news is, off late guar prices have soared to such an extent (10X) that manufacturers in US have started looking out for alternatives. Lets pary that happens.

Bad news is, India itself is now going to promote exploration of shale gas from December 2013. Major player being Reliance Industries. Shale oil exploration based on fracking has met with serious resistance in US. But other than fracking, open cast mining is a proven method and already been used in Estonia for more than 30 years.

Looking at the potential only, (approx 450 years) it is definitely a source which can free us from crude oil imports. Lets hope our leaders choose the right method to explore and give out the benefit to citizens rather than exporting; for profiting "certain" oil companies.

There has been coverage about this in Indian media but not highlighted as you rightly said.

Sources:
http://m.ibnlive.com/blogs/cnanand/3...g-pollute.html
Guar crop to climb on prices, boosting exports
http://www.thehindubusinessline.com/...ue&ref=wl_home
Guar - Wikipedia, the free encyclopedia

[samarjitdhar]

Originally Posted by anoopap

Good news is, off late guar prices have soared to such an extent (10X) that manufacturers in US have started looking out for alternatives. Lets pary that happens.

Yes I read that too but it seems they are still to find some good inorganic alternative for now. Till then we can only pray. Specially when the monsoon rather the lack of monsoon bullet is about to hit this year .

Originally Posted by anoopap

Bad news is, India itself is now going to promote exploration of shale gas from December 2013. Major player being Reliance Industries. Shale oil exploration based on fracking has met with serious resistance in US. But other than fracking, open cast mining is a proven method and already been used in Estonia for more than 30 years.

From what I had loosely gathered this process needs lots of water and results in serious contamination of the water table. With land and water becoming precious resources in India its nothing but daft thinking about adopting this process here. Going too much OT here so should take this discussion on an appropriate thread.

[volkman10]

Petrol prices may drop by Rs 3 per litre within this week. Hope this is coming soon!

Petrol car owners can take a sigh of relief this week as petrol prices are expected to come down by another Rs 3 per litre this week, as the price of crude oil has dropped below $96 a barrel for the first time in more than a year. According to government and industry officials, the drop in price for crude oil will not only enable the government to reduce the petrol prices but will also result in a significant fall in oil subsidies if the prices and exchange rate remain steady at current levels.

The price cut will be put into effect before June 16, and it is being said that the price will be reduced by about Rs 3 per litre thus bringing down the price gap with diesel to some extent.

Petrol prices may drop by Rs 3 per litre within this week | Latest Autos & Car News | OnCars.in

[musicmanaman]

There was so much buzz around this thread last month when Petrol prices went up by Rs 7.50, now this thread seems pretty quiet, I think the Government achieved exactly what it wanted raised by Rs 7.50 and then bought it down by Rs 2, and everyone seems to have forgotten about the rise. This 2 steps forward and 1 step backward approach by the government seems to have worked. I still feel bad seeing though Diesel cars enjoying subsidized fuel, what if I do not like Diesel cars will I always have to pay a penalty to drive Petrol is the question.