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

    • Junk consumption soaring only bad to follow

      Varun Beverages sold 480 Cr Litres of Pepsi and other Beverages in FY23 Dominos India sold 6.7 cr to 7.83 cr Pizzas in FY23 Pizza hut India (Sapphire) sold abou...

      By Sudesh Rai
    • Are we going to have a rabies and dog bit epidemic

      LocalCircles Manager and members are doing excellent work in sensitising the Government to take dog bite menace seriously and on the other hand we have officers like District Magistrate Noida who a...

      By Radha Puri
    • Banking difficulties of people

      Thrilled to see LocalCircles banking difficulties survey in multiple english hindi news papers yesterday.

      By Shailesh Deshmukh
    • Appeasing minorities by giving vehicle subsidies

      Is a really wrong policy that is being deployed bh Karnataka Government. The only way such subsidies must be given is based on economic status (basis tax returns) and not caste. We all r...

      By SN Mittal
    • Kudos LocalCircles

      Great work on bank malpractices and escalating this issue to RBI. All members who have a loan need to save the attached notification in their mobile/computer. Your bank will now have to...

      By Shikha Jain
    • Need safety standards for commercial public events

      A lot of women who went to the AR Rahman concert this weekend had to face horror. Many, i mean a lot were groped and assaulted.

      By Sarita S
    • High costs of medical education

      It is costing anywhere between 1.5 crores to 4 crores for a medical specialisation MD degree. How many people in middle class have this kind of money in their banks which means only chi...

      By Sarita Ravichandran
    • G-20 India - Declarations

      Attached for all those who are interested. This circle has such knowledgeable people. We should discuss how these broad areas of consensus can be translated into real areas of actions on the ground

      By Ashima Gupta
    • Medicine Side Effects information to consumer

      Both the news papers I receive here in Noida have the localcircles survey published on the unknown side effects of medicines

      By RN Chopra
    • Fantastic survey by LocalCircles on airline seat charges

      Yesterday someone in my mom’s school group shared the LocalCircles survey in charges for seats in flights.

      By Radha Puri
    • 10 years gone by

      In May 2014 the price of petrol was ₹ 71.41 and now it is ₹101.94 Price of diesel was ₹ 55.49 per litre in May 2014 and now it is ₹ 87.98 per litre Crude O...

      By Ruchika L Maheshwari
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.)