Shouldn't price of petrol be reduced by 10 Rupees ?

[sehwag1830]

So today crude oil is trending at 89$ . At the time of price increase by Rs 7.5 , it was 108 $ . So shouldn't there be 15% reduction in petrol price.

 

[pmaitra]

I'd rather hike petrol prices by another Rs. 20 and use the proceeds to fund construction of public transit and metro systems.

 

[thakur_ritesh]

The price at which crude is negotiated happens long back, temporary price fluctuations dont hamper the negotiated price.

That said, petrol in India is sold for a profit, but they make it a zero in the books to make it look as if there is no profit being made.

 

[sehwag1830]

I'd rather hike petrol prices by another Rs. 20 and use the proceeds to fund construction of public transit and metro systems.

More like it will be spent on NREGA.

 

[sehwag1830]

The price at which crude is negotiated happens long back, temporary price fluctuations dont hamper the negotiated price.

That said, petrol in India is sold for a profit, but they make it a zero in the books to make it look as if there is no profit being made.

OK about 1 month from now.

 

[Daredevil]

I'd rather hike petrol prices by another Rs. 20 and use the proceeds to fund construction of public transit and metro systems.

I don't understand as to why the price of the petrol be hiked when its already costliest in the world. Why not stop wasting money on schemes like MNREGA that leak money and instead spend it on building some real infrastructure that could actually lift people from poverty.

 

[pmaitra]

^^

Yes, indeed. That is what I advocate. Spend it on stuff that will encourage people to not use their personal vehicles. That way, we save on our fuel imports, thus saving forex, and also reduce congestion on our roads.

 

[Yusuf]

ideally we should be payning 50 a ltr

 

[ejazr]

The ministry of petroleum publishes the crude oil per barrel in US $ and INR daily. So its worthwile to follow the prices on the press information bureau to get the price increase or decrease that happens every day.
http://pib.nic.in/newsite/erelease.aspx?relid=84979

As per the most recent release crude oil is down to 44.5INR / Litre. But yes, it certainly has come down from May when the hike was announced. At that time it was around INR 50.50 / Liter (5 957.89 Rs / 1 barrel (118 Litres)).
Ofcoure, crude oil price is not the same as petrol price, you have to add the cost of refining, transport e.t.c. and since most of our petrol is delievered through PSUs, there is no real competition driving diffrent companies to compete on producing petrol, diesel e.t.c. more efficiently.


The 7.5 Rs was inclusive of state taxes. The actual increase exclusive of state taxes was 6.3 Rs/ Litre (Petrol price hike: Government holds firm, hike to stay - Economic Times).

We soon had a 1.85 INR / litre exclusive state taxes at end of May giving a total increase of 4.45 Rs / Litre since May. So I would say another 2-3 Rs decrease exclusive of taxes would in order.

The eventual goal would be to deregulate petrol in reality and get private players in who can then compete with each other and given cheaper fuel prices. Ofcourse, reducing state taxes like Goa would help as well.

In any case, it looks like with China and the US heading for a slowdown, we might be in for low oil prices again.