Are refiners profiteering ??

Refiners in India, the world's third biggest oil importer and consumer, have been snapping up Russian oil through spot tenders since the war broke out on February 24, taking advantage of deep discounts as other buyers back away. India has purchased at least 13 million barrels of Russian oil since February 24, compared with nearly 16 million barrels in all of 2021, according to a Reuters report. Russia is offering a discount of $35 a barrel to price levels prior to the start of the Ukraine crisis in February.

The question is that refiners arw getting a deal and consumers are paying 7-10 rupees more since then. So are we supporting profiteering here?

Shouldnt prices of petrol and diesel be reducing. May the experts please throw some light?? more  

View all 21 comments Below 21 comments
Our goals determine our arguments. If we are okay supporting Russia, then alone this reduced price, can be argument. Fortunately we have ahead in development that our government may make more choices from her free will rather than kowtowing to an oppressor. Death all around brought around and the nation responsible comes to us selling oil, a commodity. तेल बेचकर कमाई करना रूस की मजबूरी हमारी उनसे तेल खरीदना नहीं! more  
Let me address your question from a technical stand point. India's import of Russian crude is just about 2 to 3% of its total import. Though Russia has offered deep discounts, India cannot buy its entire crude or even say 50% of crude from Russia because most of the refineries of oil PSUs are not capable of processing Russian crude due to its high sulphur content. This is called heavy crude. Only Reliance refinery, probably ESSAR refinery and possibly some of the new refineries of oil PSUs can process heavy crude. But almost all of the old refineries of HPCL, IOCL and BPCL cannot do this processing. Hope you got the reason. more  
Even Reliance and Essar which can process the Russian crude are not buying because of their exposure in the American market. They fear of sanctions imposed on them if they buy from Russia. more  
I guess that Petrol items must come down in proportion to the reduction in crude oil price. But, how do we ascertain the truth about discounts? more  
helpful On Sat, 02 Apr 2022 09:52:35 +0530 Shailesh Deshmukh wrote > more  
It is interesting that no one talks about the Centre's proposal to bring petrol prices under the ambit of GST which was rejected by non BJP state governments. This would have eased the burden quite a bit. Secondly, I do not see a reduced offtake of petrol by anybody due to price rise. Thirdly, we have to learn to use fossil-fuel driven vehicles less. Use cycle, walk more and use (also demand) public transport. Using individual vehicles is an environmentally unsustainable concept. more  
Post a Comment

Related Posts

    • 60 of most polluted cities out of 100 in India

      See attached friends. 60 of the 100 most polluted cities in the world are in India and lets face this, none in southern India so pollution is a north India problem. I saw LC’s envi...

      By Vinita Agrawal
    • Wow Localcircles survey impact

      Friends of LocalCircles, our survey escalation and news papers publishing the same has worked. The aviation minister called meeting of airlines yesterday and asked them to check their loot.

      By Shailesh Deshmukh
    • GST looters compromising peoples data

      So a couple in Noida with their family of CAs conducted a 10000 crore scam in which they used over 600,000 pan cards. Created a ton of shell companies and played the input tax credit game. They bee...

      By Sneha Goyal
    • Special airline fares for emergency and bereavement

      This is just a wonderful wonderful idea to restrict airline loot.

      By Reeta Kumar
    • Inconvenience because some VIP wants to show off

      So japanese ambassador hired an army of security guards and Govt officials to clear the platform in Mumbai and the coach for this stupid photo-op ! What a joke ! Inconveniencing thousands of citize...

      By Shivani Khiste
    • Seperate category for bereavement air fares

      As well as medical emergencies should be the norm in India. Mumbai Times of India is quoting attached LocalCircles survey saying that either fare caps must be reintroduced or a seperate category of...

      By Seema Shah
    • Digital India has issues

      Sony Liv takes 90 days to cancel a subscription. Even monthly subscription. HDFC doesn’t let you cancel auto-pay online seamlessly. So you have to go to the branch and fill a form...

      By Sudesh Rai
    • Gutka Or chewable tobacco ban a must

      We have 4-5 members in the extended family who are addicted to this and 4-5 times a day they must have the Gutka. It is available easily and unless supplies are shut down nothing will happen. All t...

      By Shivani Batra
    • RBI not doing well on 2000 rupee

      If you want to exchange RS2000 at HDFC Bank, people must carry a valid government ID Proof without KYC people can't exchange single 2000 note. RBI must clarify in people interest is KYC mandatory o...

      By Ajay Dutta
    • Ashamed of our cricket and bollywood stars

      Kapil Dev, Gawaskar, Sehwag from cricket and the video teacher below Shahrukh Khan, Ajay Dewgan, Akshay Kumar and even Amitabh Bachchan are all doing pan masala ads teaching the next generation how...

      By Shweta Kotharii
    • Tax BCCI

      Govt will establish fresh regulations and ways to impose additional tax on existing taxpayers but won't amend laws to include BCCI in the tax bracket, one of the World's richest sports body that ge...

      By Shailesh Deshmukh
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)