Why Government is not reducing the price of Petrol and Diesel??

Jeremy

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Re: Oil Futures Drop Below $80 for First Time in Eight Months
by CSE.SAS Today at 11:36 pm

Oil drops to fresh 8-month low near $80 in Asia

SINGAPORE (AP) — Oil prices dropped to fresh 8-month lows near $80 a barrel Thursday in Asia after the U.S. central bank balked at implementing vigorous stimulus measures to boost waning economic growth.

Benchmark oil for August delivery was down $1.40 to $80.05 a barrel, the lowest since October, at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract fell $2.90 to settle at $81.45 in New York on Wednesday.

In London, Brent crude for August delivery was down $1.61 at $91.18 per barrel on the ICE Futures exchange.

The Federal Reserve on Wednesday extended an interest-rate reduction program known as Operation Twist, pledging to sell $267 billion of short-term Treasury bonds and buy longer-term Treasurys through December. However, traders had been hoping for a more aggressive stimulus package known as quantitative easing.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=54974

sanjeewa88

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GMNet wrote: Re: Oil Futures Drop Below $80 for First Time in Eight Months
by CSE.SAS Today at 11:36 pm

Oil drops to fresh 8-month low near $80 in Asia

SINGAPORE (AP) — Oil prices dropped to fresh 8-month lows near $80 a barrel Thursday in Asia after the U.S. central bank balked at implementing vigorous stimulus measures to boost waning economic growth.

Benchmark oil for August delivery was down $1.40 to $80.05 a barrel, the lowest since October, at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.

The contract fell $2.90 to settle at $81.45 in New York on Wednesday.

In London, Brent crude for August delivery was down $1.61 at $91.18 per barrel on the ICE Futures exchange.

The Federal Reserve on Wednesday extended an interest-rate reduction program known as Operation Twist, pledging to sell $267 billion of short-term Treasury bonds and buy longer-term Treasurys through December. However, traders had been hoping for a more aggressive stimulus package known as quantitative easing.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=54974

http://forum.srilankaequity.com/t19255-oil-futures-drop-below-80-for-first-time-in-eight-months

UKboy

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I think government should not reduce the prices in short term. Reducing the prices is just a popular action but hurts a cash trapped economy in a long run.

Guess at least 9 out 10 people believe how corrupted our CPC is. Since 1956 CPC was abused by all governments. We are an unlucky nation to have this many politicos without any vision.

This time luckily we don’t have a corrupt minister but sadly one of the most laid back ministers in the cabinet to run CPC. So I don’t put any bet imaging he will bring any glory back to CPC soon. Sad

smallville

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We should be really lame when it comes to managing state companies that control a commodity. If someone says CPC cannot make profits that could be a first hand lie.
CPC is a company that could be brought to a profitable venture if assessed all the problems carefully.

I think the biggest one is the collection of debts from state owning companies.

Also I heard that 70-80% of our fuel imports are re-fined fuel. If its true the world market changes of an oil barrel cannot be granted immediately.

Agree that it’s a popular case reducing the price but it’s been months since oil hit low levels and they should at least reduce fuel by Rs. 10/- for now as its been too high with the applicable taxes.
If they continue to stand on the current price I think they can cover their losses with the high profits they receive now.

One more thing that hurts CPC is rupee devaluation IMO.. We're also paying an unnecessary amount as the currency deficit which can be dropped down to a more manageable and meaningful level if CB comes into the aid.

Light of Hope

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I agree with UKBoy, they shouldn't reduce prices. apart from the money we save where we directly pump from the shed, other benefits will take a long time and may not actually benefit the consumers.

True, rupee devaluation is a major issue for CPC.

There should be a mechanism, where the consumers gets a benefit in the long run.

I maybe bias in this opinion and a lot may not agree, maybe they should only reduce petrol for the moment. but then again that will create lot of havoc.

wiki

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Now the system has adopted to fuel price. Our hydro power generation capabilities has gone down due to drought and we need to depend on thermal power generation.
And this opportunity can be used to stabilize the economy to somewhat. can consider concessionary prices for much needy sectors (fisherman, transport )

Universalgoal

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if can reduce definitely oil price must reduce bcs it effect from A to Z in a country, but these peaple have no productive mechanism they say one think does one think,
** our rulers
(It’s like vehicle doesn’t run bcs of no fuel but they repair the Engine

K&M

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[quote="GMNet"] Re: Oil Futures Drop Below $80 for First Time in Eight Months
by CSE.SAS Today at 11:36 pm

Oil drops to fresh 8-month low near $80 in Asia

its quite simple, we cant decrease the price of oil because of the rupee.our currency is getting weaker day by day now its at record low. even though oil prices drop drastically we still have to buy it at past levels. therefor we cant reduce the domestic oil price.

imagine what will happen when oil prices starting to rise, and our rupee dampens more, again their will be a price increase to stable the current account. our economy is in a mess and need more effective policies to stable it. most of the policies taken by regulators only benefit the politicians. if this trend continues we can expect more woes and instability. i hope people who can make a change understand this situation and start acting on it imminently.

Whitebull

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I think if there is considerable benefit from reduction of world oil prices it should go to general public also.I do not think CPC can recover their losses from this world oil price reduction as the problem is not it.They are not selling oil for discounted prices.They have very good profit from oil selling.

They have to use the different stratergy to reduce the losses.(We all know the reason for losses.)

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Why Government is not reducing the price of Petrol and Diesel??

1 Why Government is not reducing the price of Petrol and Diesel?? Thu Jun 21, 2012 11:40 pm

Jeremy

2 Re: Why Government is not reducing the price of Petrol and Diesel?? Thu Jun 21, 2012 11:59 pm

sanjeewa88

3 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 3:01 am

UKboy

4 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 6:56 am

smallville

5 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 9:26 am

Light of Hope

6 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 10:49 am

wiki

7 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 11:16 am

Universalgoal

8 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 11:33 am

K&M

9 Re: Why Government is not reducing the price of Petrol and Diesel?? Fri Jun 22, 2012 8:08 pm

Whitebull

10 Re: Why Government is not reducing the price of Petrol and Diesel??

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