[romeomidhun]

Crude oil rates are falling in international markets. On 23rd, it was $108 per barrel, and today it is $103 / barrel. Will they do something to reduce the price at least now? Or will they still say falling-rupee theory?

[el lobo 6061]

Originally Posted by romeomidhun

Will they do something to reduce the price at least now? Or will they still say falling-rupee theory?

They would still say

• Falling rupee nulifies the drop in brent crude prices.
• Secondly to recover losses incurred previously.

[sgiitk]

@el_lobo)6061; The BPCL chap said Rs.1.50 due to drop in crude prices. Added that it could have been Rs.2.00 but for drop in rupee.

[samarjitdhar]

Originally Posted by sgiitk

@el_lobo)6061; The BPCL chap said Rs.1.50 due to drop in crude prices. Added that it could have been Rs.2.00 but for drop in rupee.

Even 2 weeks before the actual price rise, the OMCs were only looking to increase by about Rs 4-5 scaling down from the Rs 8 when crude was in the 120s. Since most of India was engrossed with the IPL and/or SRK they failed to notice and its mission accomplished now.

In my opinion the real fun should start when most of the Southern Europe countries reach la la land, Spain is almost there now. Crude should trend even lower after that. However a general negative movement everywhere will burden the Rupee even more due to falling exports. Very interesting theater going on there, just wondering if Germany would like to cut its losses and leave the Euro before the southern periphery countries do. Sorry for going so .

[lurker]

How can a single fortnight's increase in revenue turn their astounding losses into record quarterly profits ? Surely we live in a country where statistics is the tool of the perverted. Who will believe Indian statistics when this is what is dished out at the highest levels as official stat ? India seems hell bent on proving right a certain section of anglo-saxon opinion that Indians will lie,cheat, steal to make a quick buck.

[sam003]

Rs 1.60 has been rollback. After crores of Rs has been wasted in Bandh we get this.

[shankar.balan]

Originally Posted by lurker

How can a single fortnight's increase in revenue turn their astounding losses into record quarterly profits ? Surely we live in a country where statistics is the tool of the perverted. Who will believe Indian statistics when this is what is dished out at the highest levels as official stat ? India seems hell bent on proving right a certain section of anglo-saxon opinion that Indians will lie,cheat, steal to make a quick buck.

Unfortunately thats the impression that we create with our officials being the way they are! Given the no of scams we've had right from Independence, we have kind of earned the un enviable reputation of being rogues and thieves!

[RajeshK]

Originally Posted by romeomidhun

Crude oil rates are falling in international markets. On 23rd, it was $108 per barrel, and today it is $103 / barrel. Will they do something to reduce the price at least now? Or will they still say falling-rupee theory?

IMO India is more dependent on WTI crude more than Brent. At this moment CRUDE OIL PRICE: Oil | Energy | Petroleum | Oil Price | Crude Oil Charts | Oil Price Forecast shows the lowest crude price at least last 6months ($87.94)

Thanks
Rajesh

[vineethvazhayil]

Originally Posted by RajeshK

IMO India is more dependent on WTI crude more than Brent. At this moment CRUDE OIL PRICE: Oil | Energy | Petroleum | Oil Price | Crude Oil Charts | Oil Price Forecast shows the lowest crude price at least last 6months ($87.94)

Thanks
Rajesh

Watching the news in the morning, I hear that crude prices are going to hit the lowest since 2008. And India's petrol prices are at their highest ever. This world is funny.

[ottocycle]

Just read this. This type of politics will swallow india some day.

Petrol price: Oil firms, govt play politics at consumers' cost - The Times of India

State-run fuel retailers don't tire of flashing their "autonomy" to justify raising petrol price. But when it came to a reduction on Thursday, they suddenly appeared to have developed political bones: the three oil marketers firms hastily pulled back plans to cut price by Rs 1.60 or so, excluding taxes, to prevent the opposition from taking credit.

The retailers had raised petrol price by Rs 6.28, excluding taxes, on May 23. The heads of oil marketing firms and the government predictably justified the steepest-ever increase. But they also held out hope of a sharp cut on June 1, citing emerging price trends in Singapore bulk market for crude and gasoline - trade name for petrol.

Broadly, oil marketers review prices on the 15th and last day of each month. Petrol price is arrived at by calculating the average Singapore price of gasoline in the preceding fortnight and the rupee's exchange rate against the dollar.

According to oil ministry data, the average benchmark gasoline price declined to $114-115 a barrel in the second fortnight from $124 in the first fortnight of May -- which was used to jack up the price. Crude too has declined to $106-107 a barrel from $111. The dollar exchange rate averaged Rs 54.96 against Rs 53.77. Here's how the math works: Every $1 rise in crude price impacts fuel price by 33 paise and every rupee fall in dollar exchange rate needs pump prices to be raised by 77 paise.

No wonder, during the fortnightly review, enough room was found to reduce petrol price by Rs 1.60 or so. Even Bharat Petroleum chairman R K Singh at one point appeared on TV saying petrol price would be cut by Rs 1.60 or so. R S Butola, chairman of market leader IndianOil Corporation, was away on leave and unavailable for comment.

Oil company executives gave the lame-duck excuse of dollar's marginal appreciation for deferring the cut. But government sources said no sooner had a cut become certain, the company brass received a signal from the ministry to hold their horses. Other officials said the ministry had told the oil companies to defer the cut much earlier.

But both versions have a common argument: Reducing the price on the day of the bandh, or even a day or two after the routine date, could make the government look like it had succumbed to opposition pressure.

Government sources said the oil companies were now likely to reduce the price sometime in the middle of next week. But given the rupee's continued slide against the dollar, there may not be much room. "Even if there is a reduction, not reducing the price on Thursday means consumers would be paying more than they should for the next few days," an executive said on condition of anonymity.

[samarjitdhar]

Originally Posted by ottocycle

Just read this. This type of politics will swallow india some day.

Petrol price: Oil firms, govt play politics at consumers' cost - The Times of India

Just read the news on Bloomberg that Brent has now fallen below $100. Given the economic situation, it might even fall further.

Any reason why the OMCs are now silent about a rollback apart from political reasons? It is sickening to think that our government is being cheered on by our media houses while the common citizen must continue to pay a price for their politics.

[sgiitk]

The market is now in a free fall (250 points for the day) and the rupee may hit 60 soon. So they are hedging their bets!

[NPV]

Originally Posted by RajeshK

Will this be true...?? The news came in News9 channel today

I wish they do this, just like it was done in Goa recently. But our government first needs to find some time off from their internal squabbles and power struggles before they can talk and make a decision on this.

Petrol prices from my recent trip over the past weekend:
1. Sulthan Bathery, Kerala - Rs.74.76 (IOC)
2. Valparai, Tamil Nadu - Rs. 78.04 (BP)
3. Dharmapuri, Tamil Nadu - Rs. 78.04 (BP)

Notice that Petrol in God's own country is cheaper by almost Rs.7 as compared with Bangalore !

[libranof1987]

Petrol price cut by Rs. 2 effective tonight!

So, actual cut will be more, right (considering taxes will be cut too)?

[wilful]

Running to script all right. Effective from midnight.
The diesel drama next?

http://timesofindia.indiatimes.com/b...w/13740842.cms