[lurker]

Indian govt statistics are miraculous, it's like the old rope trick. What goes up is not actually up.

As per an oil company official, refining cost of both petroleum and diesel is 35rs/l.

[sgiitk]

Now a cut + deregulation in one shot
http://economictimes.indiatimes.com/...w/42569927.cms

Everybody now talking that subsidy is zero. Waiting for the oil min to return.

[lurker]

no hurry, they can continue to think for another 2 weeks before implementing this earth-shattering decision.

[napster1311]

Today's results of the by-poll may push the diesel deregulation for sometime. And to please people prices may even be reduced.

[sgiitk]

Looks like 15 October is the earliest - model code of conduct?

[gsurya]

Originally Posted by napster1311

Today's results of the by-poll may push the diesel deregulation for sometime. And to please people prices may even be reduced.

Lets hope not, this Govt has a stronger mandate & must show it.

Even our last Govt bit the fuel subsidy bullet & deregulated petrol prices, introduced diesel 50 ps increase despite severe negative public perception & opposition calling Bharat Bandhs. That is called real leadership in the interest of the nation.

[lurker]

Isn't it truly surprising that whenever time comes to reduce prices, the oil 'permanently accumulating losses' companies suddenly come face-to-face with some debilitating handicap or the other.

Dear readers will also note how when it comes to increasing prices. It displays lightning speed and precision of swiss watches and timing of the shrewdest jackal.

here is an article by former principal advisor, Ministry of power and hydrocarbons, Govt of India.
http://www.business-standard.com/art...2200637_1.html

Indian oil marketing companies, look like a cozy club which float the boat of many a crooked bureaucract and corrupt businessman/employee/service provider.

[StarScream]

Originally Posted by lurker

BPCL Profit before tax: 4035 Cr (2012-13)
1884 Cr (2011-12)

Net Cash Flow from Operations: 5478 Cr (2013)
925 Cr (2012)

Somehow accumulated losses are leading to quadrupling in profits.

Please see my post right before yours. It explains where the profit is coming from. It is accounting/paper profit. Numbers without context are of no help to anyone.

In addition, if the government gets an opportunity to get out of its oil bond commitments by letting these companies earn back some of their profit, it will do so.

Originally Posted by gsurya

Profits are necessary to invest in refinery upgrades to Euro-5, capacity expansion, new refineries, pipelines, depots etc.

If there are no profits, there is no money available capital investment or expansion & business will die!

Its because of oil prices are controlled, the international oil players have not come into India to explore, invest. We need full decontrol of pricing, transparent & competitive oil markets so that competition ensures there is no cartelization & prices are kept rational.

Well said. Somehow profit for oil companies is a bad thing. Car companies are allowed to do well. We all clap when Honda turns around its Indian operations. But oil companies are somehow bad when they aspire to do the same. I don't understand the double standards and I don't understand why fuel pricing is such an emotive issue.

[lurker]

Originally Posted by StarScream

Please see my post right before yours. It explains where the profit is coming from.

Plz also see my post above yours. It explains where profit is going.

here is an ex-oil company official making similar claims.

http://indianexponent.com/40844/why-...rol-fraud.html

[StarScream]

Originally Posted by lurker

Plz also see my post above yours. It explains where profit is going.

here is an ex-oil company official making similar claims.

http://indianexponent.com/40844/why-...rol-fraud.html

You obviously have your mind made up, so any cogent argument is dismissed with one-liners and rants against the evil empire.

This is my last post on the subject, since this discussion is not adding any value.

The Business Standard article is on KG basin gas. I'll happily engage with you on that but this is a different argument/thread. Incidentally, I do think gas should be priced in the vicinity of $8/BTU.

As far as Indian Exponent is concerned, I have never heard of them as a credible publication. You'll find conspiracy theorists for anything on the web.

Your point about oil money supporting a corrupt establishment is a good one but again this discussion is not about that. That fact is also true for numerous other state-controlled enterprises - Coal India anyone? As gsurya said, true liberalization is the only solution.

[lurker]

dear starscream, I have read nothing compelling from your arguments so far to change my perception yet. But I do try my utmost to keep an open mind as far as possible even in most treacherous circumstances.

btw did you actually read that link ?

& speaking of Ravi Srivastava ..

http://www.moneylife.in/article/kero...try/19690.html

Ashok Singh and Ravi Srivastava were sacked for trying to expose alleged wrongdoing by the oil ministry on the direction of the minister and help from oil company officials. Now, the government is delaying action on CBI, CVC inquiries into the entire affair. Mr Srivastava, one of the whistleblowers gives an account of their struggle.

Fuel adulteration (petrol and diesel) is a huge lucrative business operated by the oil mafia together with unscrupulous oil company officials who pocket crores of rupees together with ministry officials, transporters and retailers. It's been a long-standing menace for the Ministry of Petroleum and Natural Gas (MOP & NG) that has been possible mainly because of the artificially low price of kerosene.

[napster1311]

Originally Posted by gsurya

Lets hope not, this Govt has a stronger mandate & must show it.

Even our last Govt bit the fuel subsidy bullet & deregulated petrol prices, introduced diesel 50 ps increase despite severe negative public perception & opposition calling Bharat Bandhs. That is called real leadership in the interest of the nation.

Yes. I agree. In the larger interest they must do it. But haven't we seen these poll gimics.

Sorry . Is your Twitter handle @gsurya?

[sgiitk]

I did hear a rumour on the box that a 40p cut now and deregulation on the 15th or so. The OMCs are making a profit of 35p per litre of Diesel, so they will be in hurry to cut.

[rahulk2510]

Some more links for the news on Diesel price cuts:

http://www.moneycontrol.com/news/cnb...5_1180151.html

Though this one says there won't be any price cuts in Petrol!

[gsurya]

Originally Posted by napster1311

Sorry . Is your Twitter handle @gsurya?

Yes, indeed it is my handle.