What goes down will surely go up

Have you ever wondered why when petrol prices go up or down they do so uniformly across the retail outlets of the three oil marketing companies — Indian Oil, Hindustan Petroleum and Bharat Petroleum? If they are three different companies with their own refineries and distribution systems, then surely their costs and selling prices must be different? Welcome to the strange world of petroleum product pricing in the country. A world where the laws of economics are turned on their heads, where there is no competition between the different players and where the price that we pay for petrol (or for that matter diesel or aviation turbine fuel) has no resemblance whatsoever to its cost of production.

Read Full Story>>