India’s diversified crude and product basket was one reason that helped India in avoiding the Saudi Aramco crisis.

Concerns over the price and supply of oil, sparked by the recent terror strikes on Saudi Aramco’s oil infrastructure, have now subsided, Petroleum Minister Dharmendra Pradhan said on Thursday. Oil marketing companies will now see the price of petrol and diesel coming down soon.

On Thursday, petrol price dropped by 10 paise to Rs 74.51 a litre and diesel by 6 paisa to Rs 67.43 a litre in Delhi, the first reduction since September 8. “At present, there are no concerns. The world has averted a big crisis,” Pradhan said on the sidelines of the India Economic Summit. Sanjiv Singh, IndianOil Corporation chairman, said, “The price in India has started coming down from today. After the attacks on Saudi facilities, product prices were also affected. Gasoline (petrol) and diesel price had gone up.”

India’s diversified crude and product basket was one reason that helped India in avoiding the Saudi Aramco crisis. Because of the shortfall in supply from Saudi Aramco, India was staring at a liquefied petroleum gas (LPG) supply crisis in states like Maharashtra, Karnataka, Punjab and Goa.

End to relentless petrol, diesel price rise brings no joy as cuts minuscule

These small cuts contrast against the nearly Rs 4 per litre rise in petrol prices during May 14-29, with the daily hike in prices varying around 15-30 paise a litre

High fuel prices have burnt a hole in the common man's pockets. With mounting frustration, rates have been cut for the third consecutive day today. However, this is likely to be cold comfort for most given that the reduction in prices has been minuscule. Prices for petrol and diesel fell by 6 paise and 5 paise per litre, respectively, on Friday. After a one paisa cut in fuel prices, petrol prices across the four metros were cut on Thursday by seven paise a litre and diesel prices fell by five paise.

Petrol now costs Rs 78.29 per litre in Delhi, while the price of diesel has been revised to Rs 69.20 a litre. The revised Petrol prices in other metro cities are -- Rs 80.92 in Kolkata, Rs 86.10 in Mumbai, and Rs 81.28 in Chennai. The revised diesel prices are Rs 71.75 in Kolkata, Rs 73.67 in Mumbai, and 73.06 in Chennai.

How does this measure up against the previous hike in petrol prices? These cuts contrast against the nearly Rs 4 per litre rise in prices during May 14-29, with the daily hike in prices varying around 15-30 paise a litre. Similarly, diesel prices in all the four metros also were at record levels during the period.

A direct comparison of prices brings home the point. In the national capital on Thursday, petrol was sold at Rs 78.35 per litre, down from Rs 78.42 on Wednesday. Compared to Friday's prices, that is just a 13 paise difference in the favour of the consumer.

On Thursday, in the other key cities of Kolkata, Mumbai, and Chennai, the fuel was priced at Rs 80.98, Rs 86.16, and Rs 81.35 a litre, respectively. All these prices were down by seven paise from Wednesday's levels.

On Thursday, diesel prices in Delhi, Kolkata, Mumbai, and Chennai stood at Rs 69.25, Rs 71.80, Rs 73.73, and Rs 73.12 per litre, respectively.

After 16 days of relentless price hikes that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls, petrol and diesel prices were cut for the first time on Wednesday. However, the quantum of reduction was just one paisa.

Why the cuts after 16 days of hikes?

The reductions follow softening of international oil rates and the rupee gaining against the US dollar.

According to Reuters, crude oil futures lost more ground on Friday, with the US market set for a second week of decline on pressure from record US production and expectations of the Organization of the Petroleum Exporting Countries (OPEC) boosting output. Global benchmark Brent crude, which was little changed in the previous session, was down 9 cents, or 0.1 per cent, to $77.47 per barrel.

On Thursday, Brent crude was priced around $77 per barrel.

The Finance Ministry has reportedly pinned its hopes on further reduction in global crude oil prices. Economic Affairs Secretary Subhash Chandra Garg on Thursday indicated that the retail prices of petrol and diesel could see a further decline. When asked about the mere 1 paise reduction in petrol prices announced by oil companies on Wednesday, Garg termed it "formula driven", but added that the trend for reduction had begun.

'Petrol, diesel prices may stay high in immediate future': 10 points

Even as people across India see rising fuel prices burning a hole in their pockets, the price of petrol has touched Rs 85 a litre in Mumbai and Rs 77.17 a litre in Delhi

Petrol and diesel will continue to burn a hole in your pocket as Hindustan Petroleum Corporation Limited (HPCL) Chairman and Managing Director Mukesh Kumar Surana has told news agencies that fuel prices might remain high in the immediate future. Petrol prices in the country's financial capital, Mumbai, touched Rs 84.99 a litre on Wednesday, while the fuel's price inched higher to a new record of Rs 77.17 in Delhi. In Delhi, Kolkata, Mumbai, and Chennai, diesel was sold at Rs 68.34, Rs 70.89, Rs 72.76, and Rs 72.14 per litre, respectively.

As of Wednesday, one trigger after another had led to the 10th consecutive day of increase in retail selling price of petrol and diesel. As frustrations mounted across the country, Union Law & Justice, Electronics, and Information Technology Minister Ravi Shankar Prasad on Wednesday said that the Narendra Modi government was working on a long-term plan to tame fuel prices. "Instead of an ad-hoc measure, the government wants to have a long-term view that addresses not only volatility but also takes care of the unnecessary ambiguity arising out of frequent ups and downs," Prasad said.

The government has come under attack from the Opposition as fuel prices have gone up day after day. Former finance minister P Chidambaram claimed that the rates could be reduced by Rs 25 per litre but the government was not doing so. "It is possible to cut up to Rs 25 per litre, but the government will not. They will cheat the people by cutting price by Re 1 or Rs 2 per litre of petrol," he said in a Tweet.

Here are ten top points on rising petrol and diesel prices:

1) Congress protesting in Mumbai today as petrol nears Rs 85 a litre: The Congress targeted the Narendra Modi-led government at the Centre over high fuel prices, seeking to know why the petrol and diesel rates have gone up despite a fall in international crude oil prices. The party said it would hold a protest in Mumbai on Thursday over the matter. Mumbai Congress president Sanjay Nirupam said the residents of the city are paying the highest in the country for petrol and diesel.

Petrol prices in Mumbai touched Rs 84.99 a litre on Wednesday, while diesel was sold at Rs 72.76 per litre.

2) HPCL chief says review taxes on petrol, diesel: HPCL CMD Mukesh Surana on Wednesday said that there is a need to review taxation on petrol and diesel to provide relief to consumers. According to Surana, the solution has to be found while balancing the budgets of oil companies, the consumer, and the government.

3) 'Petrol, diesel prices might stay high in immediate future': In the immediate future, fuel prices might stay high, Surana told news agency ANI. He said that there is an Organization of the Petroleum Exporting Countries (OPEC) meeting scheduled to take place soon from where some triggers might come. "If OPEC countries increase production of oil, that could help fix the perception of high demand and less supply," he said.

Modi has an oil price headache and Saudi Arabia may just make it worse

Saudi Arabia is aiming for $80 to support the valuation of Saudi Aramco before an initial public offering

 

 

India’s Prime Minister Narendra Modi has an oil problem. And it’s set to worsen with Saudi Arabia rooting for the commodity to push through the $80 barrier.

Modi’s government made the most of cheap oil by substituting any fall in prices with taxes that kept retail fuel rates unchanged for consumers and boosted the federal revenue. Now, pressure is mounting to forego some of that windfall as pump prices of gasoline and diesel hit records, likely marring the ruling party’s prospects at the national ballot in 2019.

“There is a strong case for the central government to take another excise duty cut, and ask state governments to reduce value added tax,” Anil Sharma and Ravi Adukia, analysts at Nomura Financial Advisory and Securities India Pvt. wrote in a note Tuesday.

Fuel prices have started to pinch as Brent, the benchmark for more than half of the world’s oil, hit $80 a barrel last week. It’s still short of its all-time high of $147.50. But cutting local taxes, which account for more than half of the retail gasoline and diesel prices, would stretch government finances at a time when the subsidy burden on kerosene and cooking gas is climbing.

Assuming an average oil price of $70, the fiscal 2019 subsidy would total about 355 billion rupees, or 105 billion rupees higher than budgeted, according to Kotak Institutional Equities. Meanwhile, Moody’s Investors Service estimates that fuel subsidies could total 340-530 billion rupees in fiscal 2019, the highest since fiscal 2015, if Brent crude oil prices average $60-$80 per barrel.

While Saudi Arabia has avoided pinpointing an exact price target for oil, Bloomberg reported citing people familiar with development that it is aiming for $80 to support the valuation of Saudi Aramco before an initial public offering.

Read More : Oil Price India 

Petrol, diesel price hike: Guide for middle-class Indians on fuel prices

For the tight-budgeted Indian, the petrol and diesel price hike is a serious damper. Here's a guide to petrol and diesel prices in pan India

As the fuel price hike was announced on Tuesday, common people were greeted with the highest petrol and diesel prices since September 2013. On Tuesday, petrol and diesel prices in Delhi touched a high of Rs 76.87 and Rs 68.08 a litre, respectively, while in Mumbai, petrol reached Rs 84.7 a litre and diesel at Rs 72.48, the highest ever. If taxes are kept unchanged, the retail price of petrol in Mumbai could cross Rs 90 per litre in the near future if crude oil touches $85 per barrel. This is based on the government’s statement that the crude oil price increase could add $50 billion to India’s oil import bill in 2018-19.

The Business Standard analysed that the retail price of petrol in Delhi may reach Rs 85 a litre, while that for diesel reach Rs 73 a litre.

For the tight-budgeted Indian, the petrol and diesel price hike is a serious damper. As the mercury continues to soar, people may have contemplated on a road trip to a hill station, or a family vacation as many school children are on summer vacation. However, a cautious traveller can keep a few things in mind before embarking on a journey:

Check fuel prices online

Consumers can visit the Indian Oil website. Once on the website, they can use the 'RO Locator' tool to locate the Indian Oil retail outlet nearest to them based on their location. The website displays prices of various products sold.

Check petrol, diesel prices through app:

* Indian Oil's mobile app, called "Fuel@IOC - IndianOil", also enables customers to check current prices.

* This mobile application by Indian Oil is available on both Google Play and Apple Store, for Android and iPhone smartphone users respectively.

"Bonanza to central government is Rs 25 on every litre of petrol. This money rightfully belongs to the average consumer. Central government saves Rs 15 on every litre of petrol due to fall in crude oil prices. It also puts additional tax of Rs 10 on every litre of petrol," he added.

As reported earlier, the Prime Minister's Office will on Wednesday take a final call on whether to cut excise duty on petrol and diesel.

Meanwhile, BJP President Amit Shah said that the issue will be resolved within three to four days.

Diwali bonanza: Petrol, diesel to cost less in Gujarat, Maharashtra

The Maharashtra government reduced petrol and diesel prices by Rs 2 and Rs 1 respectively

economy today : A week after Petroleum Minister Dharmendra Pradhan urged the state governments to cut the value added tax or VAT on petrol and diesel, two BJP-ruled states Gujarat and Maharashtra have today slashed the VAT on fuel.

The Gujarat government on Tuesday announced a 4 per cent cut in VAT on petrol and diesel, effective from midnight, to bring down fuel prices in the state.The Maharashtra government reduced petrol and diesel prices by Rs 2 and Rs 1 respectively.

Loss to Gujarat, Maharashtra

 

Slashing VAT would put a burden of Rs 2,316 crore a year on Gujarat’s exchequer. Gujarat annually earns Rs 12,000 crore by way of VAT on petrol and diesel.

 

Maharashtra, on the other hand, will lose an annual revenue loss of Rs 2,000 crore to the state exchequer.

 

Petrol, diesel price cut

 

Last week the finance ministry decided to cut excise duty Rs 2 per litre on both branded and unbranded petrol and diesel.

Terming it a ‘risk for the benefit of the people’, Dharmendra Pradhan told state to take up the responsibility and cut VAT on petrol and diesel by at least 5 per cent.

 

States’ VAT

States levy VAT in the range of 25-40 per cent on petrol and between 15-25 per cent on diesel. While Kerala had increased VAT on petrol to 34 per cent from 26 per cent, Mahrashtra had increased to 47 per cent from 27 per cent and Delhi to 27 per cent from 20 per cent with in a year. | Readmore…

Maharashtra may cut VAT on petrol, diesel, suffer Rs 2,600 cr revenue loss

BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country

After Gujarat, the Maharashtra government may opt for a Rs 2 per litre cut in value-added tax (VAT) on petrol and diesel, adding to the losses of the debt-ridden state.

BJP-ruled Maharashtra levies 46.52 per cent VAT (47.64 per cent in Mumbai) on petrol, the highest in the country. Moreover, a surcharge of Rs 11 per litre and Rs 2 per litre is already collected on petrol and diesel, besides the VAT.

After the implementation of the goods and services tax (GST), several states have increased the value-added tax, leading to a rise in fuel prices.

VAT cut impact on Maharashtra

The move will not only hit Maharashtra’s exchequer but also lead to a revenue loss of Rs 2,600 crore, reported Indian Express.

Farm loans: The cost of waiving farm loans will shoot Maharashtra’s debt stocks to Rs 4.13 lakh crore in FY17, the report added. Therefore, the cut will further aggravate the state’s burden to revive economy.

Gujarat becomes the first state to cut VAT

Gujarat, which currently levies 28.96 per cent VAT on petrol and diesel, became the first state to cut VAT.

ALSO READ: Gujarat first state to slash VAT on fuel prices

Most BJP-ruled are likely to follow Centre’s move, even though Devendra Fadnavis government had earlier rejected Centre’s suggestion for the same. Even Madhya Pradesh, which levies 38.79 per cent VAT on the fuel, indicated considering the option. However, non-BJP ruled states like Kerala and Odisha opposed against lowering of taxes.

Govt cuts excise duty on petrol, petrol

For the first time since Narendra Modi came to power in 2014, the NDA government cut excise duty on petrol and diesel by Rs 2 per litre to cushion the impact of rising international crude prices. The Centre took a hit of Rs 26,000 crore in revenue in the cut in excise duty….READ MORE

Excise duty on petrol, diesel cut by Rs 2/L; Govt may suffer Rs 26k-cr loss

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 per litre

economy news: Facing public resentment over the recent spike in fuel prices, the government on Tuesday cut the excise duty on both branded and unbranded petrol and diesel by Rs 2 a litre from Wednesday. According to sources, the finance ministry was initially reluctant to reduce the duty due to revenue concerns, but relented after discussions with the petroleum ministry on implementing steps to bring down petrol prices to Rs 60-65 a litre.

While this would hit the revenues of the exchequer by Rs 13,000 crore in the second half of the current financial year at a time when the fiscal deficit has already touched 96 per cent of the Budget Estimates, consumers will get relief as the move would reduce the consumer price index (CPI)-based inflation rate by 9 basis points as a first round impact.

“(The) government has reduced the basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 a litre with effect from October 4, 2017. The revenue loss on account of these reductions will be about Rs 26,000 crore in a full year and Rs 13,000 crore in the remaining part of the current financial year,” the finance ministry announced on Twitter.

This comes at a time when diesel in Delhi scaled an all-time high of Rs 59.14 a litre, while other cities, too, saw a considerable increase in prices. The price of petrol in Delhi was at a two-year high of Rs 70.88 a litre on Tuesday. Currently, taxes constitute the excise duty of Rs 21.48 a litre, 30 per cent of the price of petrol, and Rs 17.33 a litre, 29 per cent, of the price of diesel.|Readmore…

Shoddy fuel: After new highs, specialists see oil, diesel costs falling soon

Experts say domestic prices will track international ones, which have shown a declining trend

economy today:Diesel costs in Delhi on Tuesday scaled another record-breaking high of Rs 59.14 for each liter, while different urban areas too observed a significant increment. In any case, industry specialists and the legislature trust that costs will ease in the following couple of weeks as worldwide costs are demonstrating a declining pattern.

In Delhi, the petrol price. as well, was at a two-year high on Tuesday at Rs 70.88 for every liter. Since the execution of day by day valuing from June 16 this year, Indian bushel unrefined petroleum has gone up by around 19 for each — from $46 a barrel to $55.36 a barrel. Be that as it may, residential retail offering costs of petroleum and diesel in Delhi have gone up by just eight for every penny amid this period.

As indicated by Petroleum Minister Dharmendra Pradhan, the fundamental explanation behind the expansion in item costs was the expansion in worldwide costs because of the two sea tempest – Harvey and Irma – that hit the US. Thirteen for each penny of the US refinery limit was closed down because of the typhoons. "In the previous three months, the FOB (free on board) cost of oil and diesel in the worldwide market expanded by 20 for every penny. The current ascent in costs is transient in nature and will ease in the coming days," said a source near the improvement...Read more

 

Worried about daily fuel price changes? How to check prices via SMS

Dealers would get updated price by way of customized SMSs, e-Mails, mobile app, web portals

Amid protests by dealers on the daily price revision of petrol and diesel, State-run Indian Oil Corporation has claimed that it will ensure the best possible prices to customers.

According to the companies, dealers will ensure price updation at their fuel stations before start of sale, every day. Updated prices will be immediately exhibited at all petrol pumps for information of the public. “For their convenience and assurance, customers would be able to fetch daily updated prices of petrol and diesel at all cities through IndianOil’s mobile app - Fuel@IOC. Alternatively, customers may cross-check the prices applicable in their cities by sending SMS RSP<SPACE>DEALER CODE to 92249-92249,” the statement added. Protesting against the move to have daily pricing, dealer groups had called for "no-purchase" starting from June 16. | Economy news

It claimed that extensive training of dealers will be held to ensure that customers do not face any pricing misinformation or glitches. “All the 26,000 Indian Oil dealers will be given timely information on the effective prices at a pre-designated time – say 20:00 hrs for the next day. At a large number of IndianOil’s 10,000 automated Fuel Stations, the daily price can be automatically updated centrally, besides technology also provides to schedule the price change at 00:00 hours,” it added. At the non-automated petrol pumps, dealers would get the updated price by way of four means: customized SMSs, e-Mails, mobile app and web portals.

Diesel, petrol prices to change daily from June 16; dealers raise concerns

Since May 1, the dynamic fuel pricing model has been applied on a pilot basis in 5 cities

State-run oil marketing companies (OMCs) have decided to roll out the daily revision of fuel prices nationally from the second fortnight of June.| ECONOMY NEWS

However, this has raised concerns about viability and inventory management among dealers. Currently, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) review retail fuel prices every fortnight while taking global crude oil prices into account. "We are planning to have a national launch of the dynamic pricing system by the second half of this month. However, dates are yet to be finalised," said a top official from an OMC. This development comes after reports that petrol and diesel prices will be revised on a daily basis from June 16.

It was on May 1 that the dynamic fuel price model was launched at five locations – Pondicherry, Chandigarh, Jamshedpur, Udaipur and Vishakhapatnam – in line with global practices. Interestingly, private fuel retailers like Essar Oil and Reliance Industries too followed the system in these cities.

"This will be a cause of concern as dealers will not be able to plan on how to manage their inventories. Moreover, not all the outlets in the country are automated. This may also affect our margins," said A D Sathyanarayan, president, the Consortium of India Petroleum Dealers (CIPD). CIPD has a presence in states like Kerala, Tamil Nadu, Karnataka, and Maharashtra. On a monthly basis, each of these outlets consumes an average of 170 kilolitre of fuel. (READ FULL STORY)

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Take note! Petrol, diesel prices to change every day from May 1

Daily price change will remove big leaps in rates that need to be effected at end of fortnight

 

Come May 1, petrol and diesel prices will change every day in sync with international rates, much like what happens in most advanced markets.

State-owned fuel retailers Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which own over 95 per cent of nearly 58,000 petrol pumps in the country, will launch a pilot for daily price revision in five select cities from May 1 and gradually extend it to all over the country.

"Ultimately, we will be driving towards market linked rates on a daily basis at all pumps across the country," IOC Chairman B Ashok told PTI.

A pilot for daily revision of petrol and diesel price will be first implemented in Puducherry, Vizag in Andhra Pradesh, Udaipur in Rajasthan, Jamshedpur in Jharkhand and Chandigarh, he said.

State fuel retailers currently revise rates on 1st and 16th of every month based on average international price of the fuel in the preceding fortnight and currency exchange rate.

Instead of using fortnightly average, pump rates will reflect daily movement in international oil prices and rupee- US dollar fluctuations.

"It is technically possible to change rates daily but we have to first do a pilot. Once pilot is done and its implications studied, we will extend it to other parts of the country," he said.

While Ashok said the pilot is to be "launched within one month" and did not give a specific date, industry sources said the pilot is planned to be launched on May 1.

Daily price change will remove the big leaps in rates that need to be effected at the end of the fortnight and consumer will be more aligned to market dynamics.

While petrol price was freed from government control in June 2010, diesel rates were deregulated in October 2014. Technically, oil companies have freedom to revise rates but often they have been guided by political considerations.

Rates differ by only a few paise between pumps of the three state fuel retailers. Unbranded petrol at IOC pumps in Delhi costs Rs 66.29 per litre, while the same at BPCL pumps in the city is priced at Rs 66.37 a litre. HPCL pumps sell for Rs 66.48 per litre.

(READ MORE)