[SunnyBoi]

Heh I'm sure the prices wont be dropped by more than 1rs. Expect another absurd and senseless excuse by OMCs.

[RM Motorsports]

Come Friday, and there could be some cheer for the common man as oil marketing companies could effect a steep cut in petrol and diesel prices.

If one looks at the current fortnightly average prices of diesel and petrol, the retailers have a legroom to reduce diesel and petrol by about Rs 4 per litre each, although oil marketing companies are tight-lipped about a likely fuel price revision.

Considering current fortnight average free on board (FOB) prices of diesel ($62.13 per barrel) and petrol ($70.48 per barrel) and currency average of rupee versus US dollar of 63.75, diesel over recovery comes to Rs 3.99 per litre, and petrol over recovery comes to Rs 4.17 per litre.

The final call would of course be taken by the three oil marketers Indian Oil Corp (IOC), Bharat Petroleum Corp and Hindustan Petroleum Corp based on commercial considerations.

IOC, the largest of the three companies, when contacted declined to comment.

On July 16, the base diesel and petrol prices were reduced by Rs 2 per litre, although some states, including Delhi raised local taxes, which nullified this reduction. While diesel sells in Delhi for Rs 49.72 per litre, petrol sells for Rs 66.90 per litre.

Over recovery refers to the amount that the fuel retailers make over and above the cost plus the profit margin. Thus, the quantum of the final cut would depend on how much of these over-recoveries are passed on to the retail consumer.

[pgsagar]

Originally Posted by RM Motorsports

Come Friday, and there could be some cheer for the common man as oil marketing companies could effect a steep cut in petrol and diesel prices.

If one looks at the current fortnightly average prices of diesel and petrol, the retailers have a legroom to reduce diesel and petrol by about Rs 4 per litre each, although oil marketing companies are tight-lipped about a likely fuel price revision.

Considering current fortnight average free on board (FOB) prices of diesel ($62.13 per barrel) and petrol ($70.48 per barrel) and currency average of rupee versus US dollar of 63.75, diesel over recovery comes to Rs 3.99 per litre, and petrol over recovery comes to Rs 4.17 per litre.

The final call would of course be taken by the three oil marketers Indian Oil Corp (IOC), Bharat Petroleum Corp and Hindustan Petroleum Corp based on commercial considerations.

IOC, the largest of the three companies, when contacted declined to comment.

On July 16, the base diesel and petrol prices were reduced by Rs 2 per litre, although some states, including Delhi raised local taxes, which nullified this reduction. While diesel sells in Delhi for Rs 49.72 per litre, petrol sells for Rs 66.90 per litre.

Over recovery refers to the amount that the fuel retailers make over and above the cost plus the profit margin. Thus, the quantum of the final cut would depend on how much of these over-recoveries are passed on to the retail consumer.

What is the use? If the prices are reduced drastically, State Govt. moves in and increases VAT. We the citizens are at the mercy of Central Govt., State Govt. and Oil Manufacturing units. This trio of cartel makes sure that we do not enjoy the fruits of global price fall.

[supremeBaleno]

Originally Posted by Mohan Mathew A

... as Brent crude has dropped by another 10% since last revision and rupee has more or less remained steady ....

That is the theory part, which as seen from experience is not the path the Govt/OMC will take. So all we can expect is a paltry reduction in fuel-price.

Ofcourse when global crude prices are going north, they will go by the theory and slap on an exhorbitant hike in prices.

[lapis_lazuli]

Slight OT:

In UK, people are rejoicing for a reason, which is a way of life here...:

http://www.bbc.com/news/business-33594585

They are celebrating the fact that diesel has become a bit cheaper than petrol, first time in almost a decade!

[Rodie09]

Petrol price cut by Rs 2.43 per litre and diesel price cut by Rs 3.60 per litre effective midnight.

Source : NDTV

[hellmet]

Originally Posted by Rodie09

Petrol price cut by Rs 2.43 per litre and diesel price cut by Rs 3.60 per litre effective midnight.

Source : NDTV

Thus effectively increasing the gap between the two fuels even more!

[amansanc]

Although the price cut is good, i don't understand one thing. Why is the gap between petrol and diesel price being increased if both the fuels are supposedly "deregulated"?

Originally Posted by lurker

It's a way of saying 'Stop complaining, and get on the diesel bandwagon'.

I would rather drive less instead of driving a diesel car

[lurker]

Originally Posted by amansanc

Although the price cut is good, i don't understand one thing. Why is the gap between petrol and diesel price being increased if both the fuels are supposedly "deregulated"?

It's a way of saying 'Stop complaining, and get on the diesel bandwagon'.

[ram_hyundai]

Still i believe this move has been good. We are seeing very low fuel prices now which never was seen before. It was always going up and i always had a feeling that by the time my son starts fueling his vehicle it would be 500 Rs a liter for petrol.

[hrman]

Diesel prices are almost at the Sept 2012 levels. Still thanking my good sense to go for a diesel car three years ago.. The gap between diesel and petrol has gone up to roughly Rs.20/- with this hike
This is somewhere between the highest gap of Rs.33.xx/-(in 2012) and low of Rs.10.xx/- (Aug 14)

[sathya_g_m]

I was thinking refineries make more diesel per barrel than petrol hence even after de-regulations diesel costs less, in contrary my friend in US thinks that diesel os still subsidized in India becase you get more petrol per barrel of crude than diesel. That is why diesel cost more on US than petrol. Here nothing is subsidized. Is that correct?

[ontheroad]

I think petrol is taxed more than diesel. Not sure.

[n_naik]

In Bangalore, the difference between petrol and diesel prices per liter is Rs 20/- (or 19.50 or so). That is quite huge !!
Recently, I had read in one of the forums here about how the petrol and diesel price gap is reducing and how buyers are shifting towards petrol cars again. All those discussions have suddenly started looking absurd now.

To share my own experience: I owned a petrol car (swift Lxi) for 7 years and I now own a diesel car (ertiga vdi). In those 7 years, I drove just 32k km due to high petrol price and low mileage of the car but now with my ertiga i have no such worries. In the last 11 months, I have already driven for 15k km. Whatever may be the argument towards petrol cars, as a former-petrol car owner, i feel that the diesel cars make a lot of sense (economically) if you drive a lot.

[shankar.balan]

Petrol prices and Diesel prices have fallen a bit.

With the amount of driving that I am doing these days, I think I just may as well have owned a Petrol car - I just don't do enough driving to justify the ownership of a Diesel when it comes to an economic standpoint.

I hardly drive more than 700-800 kms per month on average. Most of this is in the city - home-office-home-golf club-shops-home kind of commute. I don't do long trips much any more because the roads are so crowded and I just have lost energy for these long trips by road.

But I love the torque, the power surge and the overall cruising capability in my Diesel Yeti and irrespective of however little I drive in a month, I am not complaining.