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Created by : Vineet Prakash, Sales/BD Manager, Tata Power  | 03 25 2010 12:35:00 +0000
Industry : Oil & GasFunctional Area : India(Markets)
Activity:  233 views;  last activity : 07 06 2010 20:18:09 +0000

Petrol price in cities like Delhi and Mumbai may go up by Rs 0.41 per litre and diesel by Rs 0.26 a litre from April one when cleaner Euro-IV grade auto fuel will replace the existing grade in 13 big cities. Oil Ministry is pushing for increasing auto fuel price so that the cost of supplying cleaner fuel does not add to the current Rs 6 per litre loss on selling petrol and Rs 4.06 per litre loss on diesel.

This (Rs 0.41 a litre hike needed in petrol price and Rs 0.26 per litre in diesel rates) is not on the basis of (Rs 40,000 crore) capital expenditure (oil firms incurred in upgrading their facilities to producer cleaner fuel) but a requirement to bring domestic rates to international parity. The actual price hike needed to cover the cost would have been 3-4 times the proposed increase.

So users, will you be willing to pay more for cleaner fuel?

 
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Types of vehicles considered Almost three in five (58%) adults plan on purchasing a new vehicle, and while 37 percent say they are most likely to seriously consider a traditional, gas-fueled vehicle, many say they will seriously consider a hybrid (25%), ethanol-fueled (7%), or diesel-fueled (2%) vehicle. Those most likely to consider alternative-fueled vehicles include: -- Those who live in the West (38%) -- Young adults age 18 to 34 (36%) -- College graduates (44%) -- Those with an income of $75K or more (40%)


By ravindra shrivastava, Information Systems(MIS)-Manager, iifs pvt ltd  03 26 2010 11:56:41 +0000
 
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It is the drama of oil companies. Oil companies wants more money, therefore they want to increase the cost of fuel. They are increasing. There will not be any change in the fuel grade. As the discussion started, if they are really interested to sale good graded may be Euro-III or Euro IV fuel, the cost would be higher. Then what is the logic go increase the price only by small amount. One more, already the different graded fuel is available, why not they high quality fuel is not sold attractively? it is all the magic like things made by the oil companies to increase their revenue.


By Kumara Swamy, Project Associate, IIIT-H  03 26 2010 04:15:04 +0000
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While debating on this or any other issue related to price hike of petroleum fuel one need to keep in mind is that oil business is not like other business. Majority, rather all the petroleum product marketing companies are government company. India has seen the consequence of the petroleum product marketing private company druing high price rise in crude oil stock. The company stopped selling petroleum product during that perion and there after. Which means private sector is not geared up to take the jolt of unpredictable price rise in crude oil stock. Therefore, all the pricing policy of petroleum product should be balanced such that government petroleum marketing can sustain and also requirement of needy people of India is also met.   

In view of above, I feel we should leave both the option to the customer whereby the environment concerned people can use this fuel with little more price and subsequently over a period of time the other fuel can be abolished from the market.     


By PRANJAL SARMA, SUPERINTENDING ENGINEER (MECHANICAL), ONGC  | 03 26 2010 19:20:33 +0000
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As Kumar Swamy said, when we plan a project we always put forward Estimates. But, always, what we see on the execution phase is a cutting corners to remain to the budget or put forward a new proposal for deficet.OR, when a client needs a modification in the plan abruptly, all of a sudden & you decided to reach him out, what we do is to rise the cost. It is what we have here.Hope I clarified my point.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 03 26 2010 04:30:44 +0000
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Whether we move on par with international rates or not but it is clearly explained that the cost is due to switch over from Euro III to Euro IV, a much more refined fuel. When better things are made available in the market we need to welcome it rather shrug our shoulder. It is also meaningless to say that we march towards progress. Environmental concern is also one aspect we need to look into.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 03 25 2010 16:28:47 +0000
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I don't think there is any loss in paying some more money. This proposed price doesn't include the current Rs 6 per litre loss on selling petrol and Rs 4.06 per litre loss on diesel. The actual price hike needed to cover the cost would have been 3-4 times the proposed increase. Also, cleaner fuel will filter a lot of carbon resulting in less carbon dioxide and less pollution. So these kind of fuels should be promoted thats why, there is no loss in paying some more money for cleaner fuel.


By Vineet Prakash, Sales/BD Manager, Tata Power  | 03 25 2010 12:39:10 +0000
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