FischerTal Posted October 22, 2014 Posted October 22, 2014 We have enough oil even in India. Issue is private companies like Reliance who are extracting oil from Indian resources also selling it according to International prices. They are in huge profits. While govt. companies are forced to export it. Have a cousin who works in reliance. Told me the company is easily more corrupt than any government body
seedhi Posted October 22, 2014 Posted October 22, 2014 AFAIK' date=' it was not fully implemented. Also, [b']wasn't it discontinued in January 2004 before the elections?Was it? I don't know. Anyway, the UPA never deregulated diesel prices - they only started increasing it in steps around 2 years ago, so that the oil companies don't under recover. That is not deregulation, which is directly linked to crude oil import prices.
jusarrived Posted October 22, 2014 Posted October 22, 2014 Have a cousin who works in reliance. Told me the company is easily more corrupt than any government body So are the Tatas having worked there
Malcolm Merlyn Posted October 22, 2014 Posted October 22, 2014 So are the Tatas having worked there Have a cousin who works in reliance. Told me the company is easily more corrupt than any government body We have enough oil even in India. Issue is private companies like Reliance who are extracting oil from Indian resources also selling it according to International prices. They are in huge profits. While govt. companies are forced to export it. Reliance has deliberately kept the ouput from KG basin low so that they can sell more gas when the prices go higher. Also arent Tatas supposed to be the most ethical of all Indian corporates?
Crookbond Posted October 22, 2014 Posted October 22, 2014 Was it? I don't know. Anyway' date=' the UPA never deregulated diesel prices - they only started increasing it in steps around 2 years ago, so that the oil companies don't under recover. That is not deregulation, which is directly linked to crude oil import prices.[/quote'] I am not sure about it too. The reason the deregulation did not happen was because there would be a Rs3,4/- immediate price hike and that would be bad for consumers. Moreover, they said that they would make it market price after all the losses are recovered and/or the international oil prices fall and/or rupee appreciates.
FischerTal Posted October 22, 2014 Posted October 22, 2014 So are the Tatas having worked there Just last week, he told me he was offered by one of his vendors a paid trip to Shimla for Diwali in exchange for you know what :--D He rejected it but he told me in his office this is a routine affair
FischerTal Posted October 22, 2014 Posted October 22, 2014 Reliance has deliberately kept the ouput from KG basin low so that they can sell more gas when the prices go higher. Also arent Tatas supposed to be the most ethical of all Indian corporates? Doesn't India have any antitrust laws? I still don't know how reliance has been allowed to monopolize an entire market.
Malcolm Merlyn Posted October 22, 2014 Posted October 22, 2014 Doesn't India have any antitrust laws? I still don't know how reliance has been allowed to monopolize an entire market. Well its their field so they control the output.They can be fined for not meeting output targets.Afaik they have invoked arbitration on that matter.
StriKe Posted December 15, 2014 Posted December 15, 2014 JUST IN: Petrol, diesel price cut by Rs 2 per litre each
Crookbond Posted December 15, 2014 Posted December 15, 2014 Doesn't India have any antitrust laws? I still don't know how reliance has been allowed to monopolize an entire market. We do have the Competition Commission of India (CCI) is supposed to look into such matters. It is the equivalent of the FTC. http://www.cci.gov.in/ I don't know much about the anti-trust laws though.
diga Posted January 16, 2015 Posted January 16, 2015 BTW why is the govt not reducing fuel prices? Is the crude basket price too high? Find the silence of the media on this intriguing
G_B_ Posted January 16, 2015 Posted January 16, 2015 BTW why is the govt not reducing fuel prices? Is the crude basket price too high? Find the silence of the media on this intriguing taxes... best to keep prices stable. Use the taxes to build infra and sure up the fiscal deficit.
Sachin=GOD Posted January 16, 2015 Author Posted January 16, 2015 taxes... best to keep prices stable. Use the taxes to build infra and sure up the fiscal deficit. They have already increased duty on petroleum/diesel earlier and now today again there was a Rs 2 increase so they are already getting their taxes. Also, the oil companies save Rs. 4000 crores for every 1 dollar decline in global oil prices and since oil prices have come down from $113 to around $50 , that's a LOT of saving for oil companies hence less subsidy burden for the Govt. I expect the Govt to reduce petroleum/diesel prices soon.
Kalia_Test Posted January 16, 2015 Posted January 16, 2015 BTW why is the govt not reducing fuel prices? Is the crude basket price too high? Find the silence of the media on this intriguing A country like India keeps inventory of crude for I think 6-8 weeks so the effective price is not yet lower for Government/Upstream companies. Once the price of oil stays lower, we should see the benefit passed to consumers to some extent atleast. This lag effect is the reason why even the dollar has not yet weakened against INR. With such massive fall in crude price ( meaning India needs significantly less dollars to meet crude import bill and therefore impacting dollar demand), it is a paradox that dollar is actually strengthening. Part of this can be explained by the lag effect. There are other intercurrency and interest rates and carry trade variables but the lag factor is most important IMO.
Sachin=GOD Posted January 16, 2015 Author Posted January 16, 2015 Petrol and Diesel prices cut by Rs. 2.42 and Rs. 2.25 respectively.
randomGuy Posted January 16, 2015 Posted January 16, 2015 taxes... best to keep prices stable. Use the taxes to build infra and sure up the fiscal deficit. A country like India keeps inventory of crude for I think 6-8 weeks so the effective price is not yet lower for Government/Upstream companies. Once the price of oil stays lower, we should see the benefit passed to consumers to some extent atleast. This lag effect is the reason why even the dollar has not yet weakened against INR. With such massive fall in crude price ( meaning India needs significantly less dollars to meet crude import bill and therefore impacting dollar demand), it is a paradox that dollar is actually strengthening. Part of this can be explained by the lag effect. There are other intercurrency and interest rates and carry trade variables but the lag factor is most important IMO. well put. Also the international prices fell too fast. Some are saying they may bounce back n stabilize at $70 a barrel for the long run.
gattaca Posted January 16, 2015 Posted January 16, 2015 well put. Also the international prices fell too fast. Some are saying they may bounce back n stabilize at $70 a barrel for the long run. Goldsachs is predicting 35 $ per barrel.
randomGuy Posted January 16, 2015 Posted January 16, 2015 Goldsachs is predicting 35 $ per barrel. that is lowest price i guess. have they given where the price will stabilize in long run (say 8-9 months down the line)? The lower the better for India Trade deficit was down at $9 billion for dec. Vs $ 16 billion for Nov. due to oil price cut. Imagine India becoming a trade surplus country :woot:
G_B_ Posted January 16, 2015 Posted January 16, 2015 A country like India keeps inventory of crude for I think 6-8 weeks so the effective price is not yet lower for Government/Upstream companies. Once the price of oil stays lower, we should see the benefit passed to consumers to some extent atleast. This lag effect is the reason why even the dollar has not yet weakened against INR. With such massive fall in crude price ( meaning India needs significantly less dollars to meet crude import bill and therefore impacting dollar demand), it is a paradox that dollar is actually strengthening. Part of this can be explained by the lag effect. There are other intercurrency and interest rates and carry trade variables but the lag factor is most important IMO. sentiment plays a part as well in forex
Sachin=GOD Posted January 16, 2015 Author Posted January 16, 2015 that is lowest price i guess. have they given where the price will stabilize in long run (say 8-9 months down the line)? The lower the better for India Trade deficit was down at $9 billion for dec. Vs $ 16 billion for Nov. due to oil price cut. Imagine India becoming a trade surplus country :woot: Long term should be around $35 only. OPEC has also said that it won't raise prices so that's a big factor that will keep prices lower than $50 easily.
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