Petrol price to be cut by Rs 1.89-2.38/litre from August 15
ET Bureau Aug 14, 2014, 03.55AM IST

Tags:
Petrol price|Oil minister|Indian Oil Corp|Dharmendra Pradhan|Chairman|B Ashok

(Till now, state-owned oil...)
NEW DELHI: Petrol will become cheaper by Rs 2.18 a litre in Delhi and up to Rs 2.38 in some cities on the Independence Day, bringing its pump prices to the lowest in one year, as the fuel slumped in international markets.

ET reported on Tuesday that state oil firms would announce the price cut before Independence Day. Oil minister Dharmendra Pradhan on Wednesday tweeted about the change in pump prices "in the range of Rs 1.89-2.38" per litre. Prices vary depending on cities and states because of local levies.

This is the second biggest price cut announced since October 1 when companies slashed petrol price by Rs 3.66 a litre in Delhi. And, two consecutive price cuts this month have reduced retail price by Rs 3.27 per litre this month — on August 1, oil companies had cut Rs 1.09 a litre in Delhi.

Petrol will be sold at Rs 70.33 per litre in the capital from Friday, which is close to the retail price prevailing a year ago."Since last price change, while international petrol prices have further declined, the rupee-dollar exchange rate has significantly depreciated.

The current levels of international oil prices and exchange rate warrant a decrease in selling price of petrol in the domestic market," Indian Oil Corp said in a news release.

A diesel price hike by about 56 paise in Delhi is expected by the end of this month.

The Cabinet in January last year allowed state oil companies to raise diesel rates in small monthly doses until its pump rate is aligned with market price.

Meanwhile, the oil ministry is preparing to approach the Cabinet soon with a proposal for comprehensive fuel-pricing reforms that would end uncertainty over subsidy sharing by state explorers such as Oil & Natural Gas Corp. ET reported this first on July 23.

marketing companies; consumer firms back in focus too
Suraj Sowkar, ET Bureau Aug 22, 2014, 10.29AM IST

Tags:
oil marketing companies|Market interest|IndianOil|Crude Oil Prices|Consumer companies|Bharat Petroleum

(On the back of the falling...)
On the back of the falling crude oil prices, the Street seems to be focusing on oil marketing companies such as IndianOil and Bharat Petroleum which will be the biggest beneficiaries. However, consumer companies will also gain as 25-60%% of their cost of goods is directly or indirectly linked to crude prices and raw material is 40-60% of sales.

For instance, prices of raw materials such as palm oil and packaging material are linked to crude prices. This include Bajaj Corp, Pidilite, Asian Paints, Berger Paints, HUL, Jyothy Lab and Dabur.

In addition, petrol prices are now market-linked and lower crude means lower petrol prices. This augurs well for passenger vehicles and two-wheeler makers such as Maruti, Hero, TVS and Bajaj Auto. With the gap between diesel and petrol prices narrowing, demand for petrol vehicles may revive in the coming quarters.

marketing companies; consumer firms back in focus too
Suraj Sowkar, ET Bureau Aug 22, 2014, 10.29AM IST

Tags:
oil marketing companies|Market interest|IndianOil|Crude Oil Prices|Consumer companies|Bharat Petroleum

(On the back of the falling...)
On the back of the falling crude oil prices, the Street seems to be focusing on oil marketing companies such as IndianOil and Bharat Petroleum which will be the biggest beneficiaries. However, consumer companies will also gain as 25-60%% of their cost of goods is directly or indirectly linked to crude prices and raw material is 40-60% of sales.

For instance, prices of raw materials such as palm oil and packaging material are linked to crude prices. This include Bajaj Corp, Pidilite, Asian Paints, Berger Paints, HUL, Jyothy Lab and Dabur.

In addition, petrol prices are now market-linked and lower crude means lower petrol prices. This augurs well for passenger vehicles and two-wheeler makers such as Maruti, Hero, TVS and Bajaj Auto. With the gap between diesel and petrol prices narrowing, demand for petrol vehicles may revive in the coming quarters.

Petrol prices may fall by Rs 2.50 by Independence day
Rajeev Jayaswal, ET Bureau Aug 12, 2014, 01.05AM IST

Tags:
Rupee|Petrol|ONGC|gasoline

(The cut may be steeper if...)
NEW DELHI: Petrol prices are likely to fall to the lowest in one year on Independence day as state oil firms are planning to cut the fuel's rate by Rs 2.50 per litre, the biggest fall in many months, government and industry sources said.

Petrol would fall to about Rs 70 per litre. The cut may be steeper if the downward trend in international petrol rates continues and rupee appreciates against dollar by August 15, when fortnightly review of prices is due.

"But for weakening of the rupee, petrol would have been cheaper by about Rs 3 per litre. So far this month average depreciation in rupee against dollar is over 70 paise, one source said. Average international gasoline price has slumped by about $7.5 per barrel compared to the previous fortnight, sources said.

This will be second consecutive petrol price cut in a month. Companies reduced the fuel rate by Rs 1.09 per litre in Delhi from August 1 for the first time since mid-April. Currently petrol is sold at Rs 72.51 per litre in Delhi.

Revenue losses will go up marginally from current Rs 1.33 per litre, sources said. Meanwhile, the oil ministry is preparing to approach the Cabinet soon with a comprehensive fuel pricing reform plan that would end uncertainty over subsidy sharing by state explorers such as ONGC. ET reported it first on July 23. The ministry is considering a proposal of upstream companies to retain minimum $65/barrel revenue, sources said.