(i) Why do you think the price of petrol is increasing day by day ?
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because of the central and state government
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The price of transport fuel i.e. both petrol and diesel are set to a revision daily morning at 6 a.m. and this already is being implemented successfully since 16th June 2017 across India.
The price change is reflected on the various portals and mobile apps of the oil companies like IOCL, BPCL and HPCL (including others like Shell/Essar/Reliance).
Also, it is displayed at every petrol pump very clearly
I come to understand that changing the petrol and diesel price
In India, the petrol and diesel prices are benchmarked with prices in Singapore and they decide the price on something called import parity. In other words, that will be the cost of you import them yourself.
The international prices fluctuate daily. So they may be doing it for domestic price also.
The problem in this is it is day light robbery that these oil companies are doing. When you say international parity, it does not account for the cost of production and distribution in India but considers since intentional index. The cost of production and distribution in India is much lower than other countries. Still the oil companies insist on this parity price. This actually removes the companies in improving efficiency of their outrun and reduce the cost as they are already making huge margins.
When you look at Reliance who imports crude, refines it and export it for sale and make a profit.
Gasoline prices tend to increase when the available supply of gasoline decreases relative to real or expected demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gasoline specifications.
The supply of gasoline is largely driven by crude oil supply and refining, imports of gasoline, and gasoline inventories (stocks). Stocks are the cushion between major short-term supply and demand imbalances, and stock levels can have a significant impact on gasoline prices.
If refinery or pipeline problems or reductions in imports cause unexpected declines in supply, gasoline inventories (stocks) may drop rapidly. This drop in inventories may cause wholesalers to bid higher for available supply over concern that future supplies may not be adequate.
Imbalances may also occur when a region changes from one gasoline formulation to another, and refiners, distributors, and marketers adjust supply for the new product
The price change is reflected on the various portals and mobile apps of the oil companies like IOCL, BPCL and HPCL (including others like Shell/Essar/Reliance).
Also, it is displayed at every petrol pump very clearly
I come to understand that changing the petrol and diesel price
In India, the petrol and diesel prices are benchmarked with prices in Singapore and they decide the price on something called import parity. In other words, that will be the cost of you import them yourself.
The international prices fluctuate daily. So they may be doing it for domestic price also.
The problem in this is it is day light robbery that these oil companies are doing. When you say international parity, it does not account for the cost of production and distribution in India but considers since intentional index. The cost of production and distribution in India is much lower than other countries. Still the oil companies insist on this parity price. This actually removes the companies in improving efficiency of their outrun and reduce the cost as they are already making huge margins.
When you look at Reliance who imports crude, refines it and export it for sale and make a profit.
Gasoline prices tend to increase when the available supply of gasoline decreases relative to real or expected demand or consumption. Gasoline prices can change rapidly if something disrupts crude oil supplies, refinery operations, or gasoline pipeline deliveries. Even when crude oil prices are stable, gasoline prices fluctuate because of seasonal changes in demand and in gasoline specifications.
The supply of gasoline is largely driven by crude oil supply and refining, imports of gasoline, and gasoline inventories (stocks). Stocks are the cushion between major short-term supply and demand imbalances, and stock levels can have a significant impact on gasoline prices.
If refinery or pipeline problems or reductions in imports cause unexpected declines in supply, gasoline inventories (stocks) may drop rapidly. This drop in inventories may cause wholesalers to bid higher for available supply over concern that future supplies may not be adequate.
Imbalances may also occur when a region changes from one gasoline formulation to another, and refiners, distributors, and marketers adjust supply for the new product
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