[sandeep108]

A newspaper today carried an interesting observation: India is currently paying more slightly more per barrel of crude today at price of $105 per barrel than when crude was $145 per barrel 2-3 years ago! This is due to the exchange rate - the rupee depreciation has been somewhat higher than the 30% or so drop in crude prices. So even when international crude price has dropped 30%, petrol prices in the name of de-regulation have increased by 30% or more - Rs. 55/- to Rs. 75/-. Actually somebody should undertake a study as to how oil companies using their monopolistic power have increased petrol prices like this. Since ideally rupee depreciation and crude price drop generally cancel each other out or maybe it is 10%, then why has petrol price increased by about 40%? This is simply cheating the public by the government. Sometimes they use Singapore gasoline rate as base, sometimes crude price, sometimes rupee depreciation - whatever is convenient at the time. Would not the oil companies be carrying out prudent hedging in oil and currency markets?

In effect we are paying for complete mismanagement of the economy by our leaders - rampant inflation, printing of money, unchecked corruption, etc.

[Jignesh]

Hello All,

Is another round of hike in Petrol prices is round the corner? Going by this article, it seems to be a distinct possibility - http://economictimes.indiatimes.com/...w/20902439.cms

The article claims - Indian refiners are paying a little more for oil than they did when crude was near its record five years ago as the rupee was stronger then, at Rs 44-45 against the dollar.
Bharat Petroleum Corp's Chairman & MD RK Singh said - "It is too early to say definitively now as we review input costs and prices every 15 days. But if the rupee continues to depreciate over the next 7-10 days, we will have to revise petrol prices again. It will be difficult, as we have just raised prices twice. But we will have to do it,"

If the another hike actually happens petrol will almost touch Rs. 80 per litre, which will be literally a slap on the face of comman man.

Thanks,

[Jignesh]

Originally Posted by gomzi

I read in the papers that the CNG price is a complex calculation, but none of the papers here described exactly what basis of the calculation is. I would have though govt. should be promoting use of CNG as a cleaner fuel.

Hello All,

There is a comprehensive three page article in Economic Times explaining in detail - Where India went wrong in its Gas Pricing Policies: http://economictimes.indiatimes.com/...w/20981245.cms

The article highlights how India has actually gone back in time when it comes to Gas exploration, Supply & Usage. It explains the tale of 5 Petroluem Ministers since 1999 & how each one was distinctly different from the other in his vision and notions of how energy policies are to be shaped.

A astonishing quote from the article:
"The (Government) has rolled back every reform in the oil and gas sector," says Sunjoy Joshi, former official in the petroleum ministry who was in charge of exploration during 2004-05. "They did not stop at rewriting new contracts, but went on to change old contracts and commitments."

Thanks,

[saket77]

Petrolheads! Gear up to increase your cost heads as petrol is all set to fire again.

Faltering Rupee?? That's a constant reason and with it now hovering around 62/- to buy a dollar (yes, in case you have not been following), the prices are all set to be increased. BUT wait, its not the sole reason!

According to Deccan Herald, " Egypt’s political crisis could be the next to push up petrol costs.".

Hence, brace yourself...but how? Something that the stupid aam janta like us do not know! (wanted to use a frustration smilie, but I have used my 2 already)

http://www.deccanherald.com/content/...ad-petrol.html

[volkman10]

2013 Budget in Karnataka.

Reduced sales tax on diesel from 16.75 percent to 15.65 percent which would bring down the price of the fuel by 51 paise per litre at Bangalore from the present Rs.55.39 per litre.

http://www.deccanherald.com/content/...ly-budget.html

[drmohitg]

Another hike within days of the last one. Petrol prices to be raised by Rs. 1.55 + taxes effective midnight today. Possibly the effect of falling rupee? No change in diesel prices though.

http://profit.ndtv.com/news/industri...-lateststories

[hellmet]

According to this source:

The revision in prices, as per the practice of changing rates in line with cost every fortnight, was due on Tuesday July 16 but will be raised a day earlier.

Why?

[BraveArc]

Petrol prices being raised by Rs.1.55 tonight at midnight.

[Saanil]

Just filled my Sx4's tank full at the rate of Rs 75.86. Surprisingly there was no rush at all at the petrol pump.

[mpksuhas]

Originally Posted by Saanil

. Surprisingly there was no rush at all at the petrol pump.

By the time you use up a tankfull of petrol its is time for next hike so I guess it is just waste of petrol to drive all way to bunk just to top up.

[rajshenoy]

Increasing the fuel prices helps to some extent by reducing fuel consumption thereby reducing the imports which will strengthen our economy !!

But In this country, there will always be artificial gap between petrol and diesel. And the percentage of people using petrol(personal vehicles) is far less than the diesel consumption.

So unless diesel prices catch up, there is no end to this cycle. Sadly the gap stands 20+ rs as of today and it might stay the same.

[NPV]

Originally Posted by rajshenoy

But In this country, there will always be artificial gap between petrol and diesel. And the percentage of people using petrol(personal vehicles) is far less than the diesel consumption.

So unless diesel prices catch up, there is no end to this cycle. Sadly the gap stands 20+ rs as of today and it might stay the same.

Yes, this gap will always remain, even with the Rs.0.50 per month(!) increase in Diesel prices that was announced few months ago. In the meantime, Petrol prices have been hiked 2-3 times already

[drmohitg]

I have said this earlier too. Do not expect the govt to let of this easy cash cow. Fuel is a major source of revenue for them in the current scheme of things. Diesel is still equated with the poor man's fuel due to its various usage patterns across different sectors. all the govt is doing is playing extra smart by raising diesel prices ever so slightly in between elections in order to keep the Petrol only and those economics pandits happy. But as soon as the public gets used to the new prices, they go ahead and raise the petrol price further. This is a never ending cycle and I do not think that the 2 fuels will be priced at the same level anywhere in the near future.

[rajshenoy]

Originally Posted by NPV

Yes, this gap will always remain, even with the Rs.0.50 per month(!) increase in Diesel prices that was announced few months ago. In the meantime, Petrol prices have been hiked 2-3 times already

I will switch to diesel by this month end. This decision would have been same even if diesel was priced close to petrol. But with current differential, i will take that as a bonus.

[gsurya]

Originally Posted by Saanil

Just filled my Sx4's tank full at the rate of Rs 75.86. Surprisingly there was no rush at all at the petrol pump.

Because ultimately its a non issue for vehicle owners If u drive a car for 10000 kms with an avg of 10 kmpl, for every 10 Rs hike in cost of petrol, you are paying Rs 10000 more on fuel bills every year. Surely a sedan owner driving a 10 kmpl car can afford that...