The great Petrol Price divide.

[raj87verma88]

Originally Posted by Ayan

haskjdhkasdhakjshdkashdkahsdasdasd

Originally Posted by Ayan

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Originally Posted by Ayan

To Test How Forum Works and Get Knowledge of its Flow this is written

Nobody is asking you to post such gibberish in this thread. If you do not have something good to add to the discussion, you might as well keep out of this. If you have something good to say then you will be welcome and people will respect you as a value adder to the forum. But if your idea is to just increase your number of posts by such stupid spam, then I don't know what to say about you.

[ash]

Originally Posted by Ayan

haskjdhkasdhakjshdkashdkahsdasdasd

Hello Ayan.. as Patty said, this is not the place to be posting "spam". If you really want to practice using the posting features, please go here: CE - Newbie Training Center - CrazyEngineers Forum

Back on topic. Mayurpathak, can you enlighten us with the break up of how companies controlling oil will suffer? I'm pretty curious

Regarding the inflation.. besides the supply and demand function you've mentioned, one of the reasons why different countries show different rises in prices is government intervention (eg subsidies, policies, trade barriers etc). The government can decide whether basic commodities should be subsidized for the benefit of the common citizen, like rice and petrol. They can only do that if they have a budget surplus (or at least minimal deficit) or very large foreign reserves.

If you subsidize a certain commodity, complementary goods related to it will not suffer inflation. The opposite is true too.. if petrol prices are rising without government intervention, costs of transporting food will rise too, and so on.

They might also want to tax imports from other countries which sell cheaper goods than your country so that the local industries is protected.

Thus, priorities and budgets can vary country to country. The priorities can change depending on the state the economy is in too.. whether they are still developing, etc. Quite a number of factors involved.

Maro, hows the food prices there now? I saw on the news a while back about the crisis with the bread supply. Still the same situation?

[mayurpathak]

Originally Posted by ash

Mayurpathak, can you enlighten us with the break up of how companies controlling oil will suffer? I'm pretty curious

I don't know really. I read it in the mail about the number of companies (there are only about 10-12 in India) supplying oil and their average earnings per day. So if we didn't buy petrol for a day, how much loss would they suffer. But thats not really true. Even if we delay the purchase by a day or so, the amount of fuel our vehicle will consume would more or less remain the same.

Originally Posted by ash

They might also want to tax imports from other countries which sell cheaper goods than your country so that the local industries is protected.

Why would a government want to do that when the fuel suppliers are only a handful? Moreover in India, foreign players are not allowed to sell directly. We have about 4 public and 3 private players here. Thats it!

I agree with your argument on subsidies on the primary goods (if we consider motor fuel as primary, in India its not). For example, in India, the consumption of LPG and kerosene is cheap due to marginal subsidies on it. However its not the case with Petrol or Diesel.

I believe if food is subsidized, so should be fuel. Otherwise we will never be better off.

[ash]

Originally Posted by mayurpathak

Why would a government want to do that when the fuel suppliers are only a handful? Moreover in India, foreign players are not allowed to sell directly. We have about 4 public and 3 private players here. Thats it!

Of course, it might not apply with fuel It applies very well with agriculture (eg food grains from your example) and any infant local industries, to protect from strong external competitors from wiping them out unfairly (thus, affecting the livelihood of the local people).

I doubt that applies to fuel, since any company dealing with the extraction and refinement of fuel would have to be big (and rich) anyway. I suppose its safe to say all of them are some sort of globalized MNC, so trade barriers don't really apply.

But of course, anyone who can sell fuel can be considered a fuel supplier. Eg, you can syhpon off fuel in a tanker from a neighbouring country that sells fuel cheaply, and sell it in your country. Thats why governments frowns on smuggling. With the dozen of fuel suppliers in India, supplying fuel might be sort of a competition. In other countries, its just a monopoly, haha.

I believe if food is subsidized, so should be fuel. Otherwise we will never be better off.

Yep.. of course, the weightage of the subsidies between them might vary according to economic conditions. If a country has limited farming land, subsidies for for food would have to be given a higher priority than fuel. In India, I suppose its different. Perhaps different states within India have different priorities too? Its all about balancing them yea?

[mayurpathak]

Hmmm! Thats a good answer Ash. Are you a politician or are you a television presenter, eh?

Different states do have different priorities. For example, my state, Maharashtra has been more focused of industrial development and attracting foreign investment. Where as states like Punjab, Haryana have given more importance to agriculture and Kerela and Goa to tourism. Depends on whats the core competency of the state.

Except for Reliance refineries and GAIL, no body in India does exploration. There are private players such as British Gas, British Petroleum or Schlumberger. But no body owns anything. Everyone buys from the gulf and sells it here. Moreover government claims that the exploration activities are already subsidized. They blame the rise of the crude oil prices.

My question still remains unanswered. Is there a way to curb the price rise of the crude oil?

[ash]

*gasp* I hate politicians!

I doubt theres nothing we end users can do, except seek efficient use of crude oil, or find alternatives to decrease the dependence on petrol.

[mayurpathak]

Don't worry. All politicians are not as bad.

Originally Posted by ash

I doubt theres nothing we end users can do, except seek efficient use of crude oil, or find alternatives to decrease the dependence on petrol.

Anyway, thats very sad to hear we can't do any thing about this. Do all CEans echo Ash's voice? I think we are crazy bunch of guys. We can do any thing.

Can some body answer me?

[ash]

Well.. we COULD lock all oil speculators in the basement

I believe instead of trying to control the price of petrol, we should focus on it's efficiency and renewable alternatives. The use of petrol should be ultimately restricted in the long run (for environmental purposes and limited resources, anyway).

[mayurpathak]

Alternatives like building an efficient hydrogen car or a truck that runs only on batteries.

May be we develop some thing here on CE. may be!

[MaRo]

I don't think it's a global increasing in fuel price, in Saudi Arabia fuel prince get down from 1 riyal to 60 halalas (1 riyal = 100 halals = 0.26 cents)