Crude oil futures have dropped about 15% over the past three months, yet fuel prices in India haven't come down accordingly.
Other countries have announced cuts when global oil fell.
I know petrol and diesel prices depend on more than just crude - taxes, refining, transport, exchange rates and government policies all play a role.
But as a consumer it feels odd:
When crude goes up, fuel prices seem to rise quickly.
When crude goes down, why don't we see the same benefit?
What am I missing?
Looking for informed opinions, not political arguments.
(https://i.ibb.co/7x6NdCLV/6rh40jqd8d9h1.jpg)
Because everyone's looking out for themselves and there's no election coming up soon.
Because prices for the common man always seem to rise.
(https://i.ibb.co/yckX66Nr/j3885oua9d9h1.jpg)
(https://i.ibb.co/xtHBSTvv/p982v5m3ad9h1.gif)
Our contracts are 30-60 days ahead, so it takes that long to bring cheaper supply to our shores and reflect a lower price.
Because oil is bought on futures contracts, not at the spot market price.
And this is a trading subreddit, after all.
They'll probably do that, and then the Union government may start adding its surcharge again, which it had reduced to avoid price hikes when crude rose.
Kya bola?
(https://i.ibb.co/6cMdvn0Y/lzzkptsxgd9h1.jpg)
Because it takes months to take delivery at those prices - the oil you're using right now was priced 2-3 months ago. It's not like onions or potatoes; crude prices don't change instantly. The quoted price is just on paper, plus insurance premiums and many other factors keep it high.
What goes up rarely comes down in India, especially when prices are controlled by the government.