Speculation of fuel prices at petrol pumps

[Mr.G]

The whole concept of hedging is explained in "Way of the Turtle" by Curtis Faith book. PDF is freely available on net.

I know about hedging but it didnt occur to me. I have one worry, the correlation between petrol/diesel prices : crude oil. Will have to make a study on this one. Anyone wanna volunteer and help with the project? It will be good opportunity to learn more.

We need to find a correlation if its high then probably we can hedge it with minimal basis risk.

 

[Mr.G]

I dont know if this will sound harsh to any dealer, but I must say it here as a consumer of fuel.

The dealers had free lunch for the past few years when the petrol and diesel prices were being adjusted every month to bring the price at par with cost!

Few dealers used to stop selling fuel on the last evening of the price hike just after the announcement of the hike.

Now they are digesting those free lunches!

BTW I am not a heavy user of fuel so it dont affect me that much.

But just shared my observation here.

Thank you.

I was there at midnights, We own a reputable establishment and we keep that repute. We sold as much as people wanted, never kept our tanks dry.
But some dealers bring bad name to everyone.

I can personally tell you that I have managed traffic jams when people came before midnight and had to break up fights. Ive seen that stuff. :thumb:

As a businessman even you should understand that we all are here to make money. Petrol pump ownership is not as lucrative as it used to be now we are living by the skin of our teeth, Thats why I am investigating this.

 

[techani]

Mr. G, please, please dont take my comments personally. I never meant any individual pump owner here. Thats why after writing the above post, I reread it. Then I put the underline in "Few" just to emphasize it particularly.

Actually after reading the previous posts thats scenes came to my mind that`s why just shared my feeling.

Thats all.

Thank you.

 

[comm4300]

would have been better if we had something like this....

http://finance.yahoo.com/news/want-to-lock-in-today-s-gas-prices--it-s-possible--but-complicated-204044967.html

 

[Mr.G]

would have been better if we had something like this....

http://finance.yahoo.com/news/want-to-lock-in-today-s-gas-prices--it-s-possible--but-complicated-204044967.html

Thats a really nifty idea, but i am very sure the GOI will get a thorn in their side at the very wiff of this idea. Lets research this more and get out the workings of these, we need to find how these people are going this. Atleast we have made a start. :clapping::clap::clap::clapping: