The great Petrol Price divide.

[mayurpathak]

I recently traveled to Delhi for a personal trip. I was roaming around with my brother in law in the New Delhi city, enjoying the heat from inside of the air conditioned car. So we pulled over a fuel filling station. A liter of petrol in New Delhi will cost you around 45 INR (roughly a little more than a dollar, at current conversion rate). So we roamed and we had to go to the filling station again, this time in Noida. I was amazed looking at the petrol prices in the country national capital reserve! The price was well over 50 INR. So for every 10 liters I purchased, I could get a liter free if I did the same purchase in New Delhi?

Well well well... it was really surprising how petrol prices could change in space of mere 100 meters. So much for the taxation difference in states. (Noida is in Uttar Pradesh).This put a big question in my mind. Who governs the prices across the globe? Is it the oil moguls? Is it the suppliers? As usual I have turned to CE for help. Can I have an insight from the wise and knowledgeable CEans?

We have a global audience here. I hope we could be able to compare global prices, the differences and the reasons for fluctuation. May we we can come up with some thing to revive the lost cause of controlling the fuel prices.

[MaRo]

In Egypt, fuel getting high according to raising of people salary, as by 1st May all salaries raised 30% next day fuel price raised from 1.30 (25 cents) to 1.85 LE (35 cents) for litre no obvious reason, but I have to say that it's much better here than India for prices of fuel

[Ayan]

Originally Posted by mayurpathak

I recently traveled to Delhi for a personal trip. I was roaming around with my brother in law in the New Delhi city, enjoying the heat from inside of the air conditioned car. So we pulled over a fuel filling station. A liter of petrol in New Delhi will cost you around 45 INR (roughly a little more than a dollar, at current conversion rate). So we roamed and we had to go to the filling station again, this time in Noida. I was amazed looking at the petrol prices in the country national capital reserve! The price was well over 50 INR. So for every 10 liters I purchased, I could get a liter free if I did the same purchase in New Delhi?

Well well well... it was really surprising how petrol prices could change in space of mere 100 meters. So much for the taxation difference in states. (Noida is in Uttar Pradesh).This put a big question in my mind. Who governs the prices across the globe? Is it the oil moguls? Is it the suppliers? As usual I have turned to CE for help. Can I have an insight from the wise and knowledgeable CEans?

We have a global audience here. I hope we could be able to compare global prices, the differences and the reasons for fluctuation. May we we can come up with some thing to revive the lost cause of controlling the fuel prices.

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

[ash]

Unleaded petrol in Malaysia is around $0.60 per liter, thanks to government subsidies. However, with the price of oil at high levels, I doubt the government can sustain it.. the net petrol price will increase for sure.

I'm guessing its speculators who are pushing up the global price to crazy heights.

[Ayan]

Originally Posted by Ayan

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

Originally Posted by mayurpathak

I recently traveled to Delhi for a personal trip. I was roaming around with my brother in law in the New Delhi city, enjoying the heat from inside of the air conditioned car. So we pulled over a fuel filling station. A liter of petrol in New Delhi will cost you around 45 INR (roughly a little more than a dollar, at current conversion rate). So we roamed and we had to go to the filling station again, this time in Noida. I was amazed looking at the petrol prices in the country national capital reserve! The price was well over 50 INR. So for every 10 liters I purchased, I could get a liter free if I did the same purchase in New Delhi?

Well well well... it was really surprising how petrol prices could change in space of mere 100 meters. So much for the taxation difference in states. (Noida is in Uttar Pradesh).This put a big question in my mind. Who governs the prices across the globe? Is it the oil moguls? Is it the suppliers? As usual I have turned to CE for help. Can I have an insight from the wise and knowledgeable CEans?

We have a global audience here. I hope we could be able to compare global prices, the differences and the reasons for fluctuation. May we we can come up with some thing to revive the lost cause of controlling the fuel prices.

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[Ayan]

Originally Posted by Ayan

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[mayurpathak]

Prices of petrol rising due to salary rise? Well thats very strange. Whay is that so MaRo? But alas, they are not as bad as India. We purchase one of the most costliest petrol here in India.

Good quality petrol in Mumbai is as high ar 54 INR. Could you believe it? Almost double the price of what Ash quoted for Malaysia. Wish I could be there Is there a way we can curb the rise? I mean, as a common man, can I do some thing?

What is this Ayan doing by the way! Ayan I suggest you write some thing on the forum that we could understand.

[MaRo]

Yes, so strange but I realized that because last year this also happened, we have this conference that president talk to people and stuff, last year he raised salaries and fuel raised on the same day from 1 LE (0.15 cents) to 1.30 LE (25 cents) raised (30 piastres), I think when busniess owners find the salary get raised they raise their prices as well we feel it in fuel the most because it's one of the most used single goods.

I means in food, cloth..etc you can get the cheaper for fuel it's a single type no chocies.

[mayurpathak]

Couldn't agree any lesser. And I think one more reason is that because we can not do with out petrol, it gives all the more reason for these warlords to up the price.

As the overall prices inflate, so does petrol. But then I have always failed to understand one point. I know that inflation is a function of demand and supply. Still, why is it so that some countries show phenomenal rise in the prices where as some of them and moderate. May be the purchase power parity and growth have a say on this. And if thats the case, how come even food grains are very costly in India compared to other economically equal states?

[mayurpathak]

Another point. Few weeks or may be months back, I received an email urging not to purchase petrol on 22nd September. It also gave a break up of how much the companies controlling oil supply will suffer with this "one day ban" of petrol.

I don't know, was it true or was it a hoax? Will such an initiative peg the march of these oil moguls? Will it prevent another Iraq or gulf war?

[raj87verma88]

Originally Posted by Ayan

haskjdhkasdhakjshdkashdkahsdasdasd

Originally Posted by Ayan

sdalskjdlajsdlakjslajlskdjalskda

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.