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
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