I'm using the following to display the time at which a musing entry was created:
<%= l musing.created_at, :format => "%d/%m/%y at %I:%M %p" %>
And the time is delayed by 5 hours, for example if I generate a musing at "2012-10-30 19:21:35 -0700", this is the time displayed:
31/10/12 at 02:21 am by me@benigeri.com