Riddle me this

I was wondering last night about the diesel price hike. First and foremost let me clear this, I am not against it. Reasons as to why I am not against it can be discussed in person or via email (dewang@denip.in).

However I would want the Government of Indian to come out and explain how and when they increase the prices of diesel and petrol.

What I want to know is the following:

• Let's say that when they hiked the diesel prices crude oil was trading around 108 and the USD/INR Pair at 55. However today when the USD/INR pair is at 54 and crude around the 102 mark, will the prices be rolled back? 

I mean I know the fall is barely 3.7% average (1.8% for USDINR and 5.6% for Crude) but would the roll back be considered? Is there a limit after which they would consider it? For e.g. 15% fall?

I would also like to know if the Government of India is looking to make these oil marketing companies profitable without subsidies, because if that is the case then a price hike will never be rolled back. Under such circumstances, I would very much like to own these businesses (rather than crib about the price hikes) since most of them are listed on the Indian stock exchange.

They might be naive thoughts but would like to understand this situation better. Calling any and all experts. Please comment or drop me an email on dewang@denip.in

PS: Needless to say, I am game for petrol price roll backs as well.

Thanks,

Dewang K. Mehta

DENIP Consultants Pvt. Ltd.