Dismiss Notice
Welcome to IDF- Indian Defence Forum , register for free to join this friendly community of defence enthusiastic from around the world. Make your opinion heard and appreciated.

Indian Oil Corparations says it is in loss due to lowering of Crude price

Discussion in 'World Economy' started by kiduva21, Feb 14, 2015.

Thread Status:
Not open for further replies.
  1. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    Most refineries in India maintain a stock of 45-60 days of crude which they purchase 75-90 days in advance at spot rates. crude has had largest fall in last three months so what we are getting today is costly crude and not the cheap crude which will start flowing in next few weeks. If you read my previous posts on this thread I had stated that today oil companies may be in red but once the crude heads north, they will make windfall gains and all their loses will be wiped out.
    HOWEVER I do not agree with govt policy of pairing domestically produced crude with import price parity. This is really bad and amounts to cheating Indian public. This pricing was set up by UPA-1 in 2004 and still continues. I hope BJP does something about this. I had written long back that even the gas pricing formula will be revised by BJP govt and they did that. very few people know that Reliance biz of oil wells is actually owned by Italian waitress and her children and Mukii is just a frontman. he owns the refining biz and that is whr he makes his billions.
    AAP has not spoken a word against Italian waitress till date. WHY???????????
     
    kiduva21 likes this.
  2. screambowll

    screambowll IDF NewBie

    Joined:
    Feb 13, 2015
    Messages:
    35
    Likes Received:
    5
    Country Flag:
    India
    there are 895 unauthorized colonies in delhi as per Delhi state government.
     
  3. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

    Joined:
    Aug 4, 2013
    Messages:
    6,186
    Likes Received:
    903

    they have filed FIR against Mukesh Ambani & RIl

    did modi & BJP have guts to followup on this FIR in the last 9 months they ruled in delhi thru president rule ?

    if on paper as you claim if oil & gas is owned by RIL on paper - cases can only be filed on paper based evidence not on hearsay
     
  4. Paliwal Warrior

    Paliwal Warrior Lt. Colonel ELITE MEMBER

    Joined:
    Aug 4, 2013
    Messages:
    6,186
    Likes Received:
    903

    here i will differ with you

    reliance refinery is as big as IOC combined refining capacity
    RIL is making profits IOC losing money

    because

    of focus on Petrochem

    RIl has bigger focus on petrochem & IOC has lesser focus on petrochem

    these are primary reasons and not the only reasons


    refienrs dont buy crude in spot market they buy 80% in 6 months fowards

    and the rates of forwards too are falling not only of spot rates

    plus the comitte of refiners which decide the fuel prices every 15 days takes all these things into account like 6 month pricing gap loss profit in the interim + individual contract pricing then deciding the indian crude basket weighted average price
     
  5. screambowll

    screambowll IDF NewBie

    Joined:
    Feb 13, 2015
    Messages:
    35
    Likes Received:
    5
    Country Flag:
    India
    The Crude oil produced domestically is at similar price to compensate the loss to oil companies, as it is a non renewable resource. You can reduce the price by not adding tax to it and less transportation cost.

    No oil wells are owned by any Italian waitress. Yes there was corruption in allotting petrol pumps during Captain Satish Sharma, but he resigned later on. Yes, Reliance played good tactics in acquiring the license. But that's what they have been doing.
     
  6. vstol jockey

    vstol jockey Colonel MILITARY STRATEGIST

    Joined:
    Mar 15, 2011
    Messages:
    13,790
    Likes Received:
    15,448
    Country Flag:
    India
    Let me correct you here and also my own post.
    India buys fuel in two ways. One are the longterm contracts with govts which are a bit lower than market prices and other is spot rates.
    90% of our crude basket is govt to govt contracts and only 10% is spot buy. The spot buy as rightly pointed by you is based on futures trading.
    Infact even govt to govt rates are based on these futures trading value. so we do have a problem today but we will laugh our way home after few months.
     
  7. kiduva21

    kiduva21 Lieutenant FULL MEMBER

    Joined:
    Apr 16, 2012
    Messages:
    730
    Likes Received:
    238
    Country Flag:
    India
    as Nuclear reactors are fueled once in 20-25 yearscan any body say that how much amount of fuel in kilograms is required for a koodam kulam sized (1-1.2 giga watts) reactor?


    also what about the 123 nuclear deal with USA to by 10 (?) nuclear reactor. can't that ensure the Uranium supply?

    , if India don't have uranium how we build 200+ nuclear bombs ?
     
  8. Foxtrot

    Foxtrot Captain SENIOR MEMBER

    Joined:
    Sep 11, 2011
    Messages:
    1,453
    Likes Received:
    420
    Reduce your employee salary and perks....
    I know many Indian oil guys........gets a fat cheque at the end of the month....but does nothing.
     
Thread Status:
Not open for further replies.

Share This Page