A very good poser. The consumers should know what they are paying for. I hope many people will read this article and discuss among their friends, colleagues and many others and will force a public debate on this.
You are concerned about the petrol price, a product which constitutes only about 3.4% of total petroleum products sales. But tell me who is going to subsidize for kerosene, LPG and diesel. I tell you this is your favorite product i.e. petrol who is cross subsidizing for other loss making products. Govt. is not giving any subsidy to oil cos.
I would like to say that limited knowledge of Mr.Veeresh Malik regarding pricing structure of petroleum products in India is creating confusion in the minds of readers. Petroleum cos. are not making money or wasting on some so called wasteful expenditures. Economy of a country depends upon the fuel usage. Higher the usage more developed the country. But the point is of conservation. Petroleum cos. are facing cut throat competitions. They need promotion and publicity like any other FMCG co. To get their message clear, they need advertising. It is true that the price of petrol or diesel consist of various duties, but these go directly to govt. and not to oil cos. So before writing such articles proper understanding of subject is necessary.
Veeresh malik article on price of petrol is good; it would have been more better if we could get some cost breakdown of petrol. The government should come clean on this and inform the public what is the price breakdown of 1 litre of petrol. Taxes and unnecessary expenditures of government should be reduced/controlled. Taxes at all levels should be reduced. Only way for this is to find out what constitutes less priority expenditures and unnecessary expenditures.
When the prices of petrol in Pakistan are Rs. 17 why can't India take a cue from Pakistan and reduce the prices to a certain extent. Secondly in the BJP led govt. which was in power they allowed oil companies to add some % of ethanol in the process while extraction of petrol but the UPA govt. abolished this procedure and hence the rise in prices of petrol which are the back breakers of the AAM Junta of India.
Mr Veeresh's article on petroleum products is truly an issue worth pursuing with the govt. I, often get perplexed by the way every Oil Minister & state FM cry abt oil companies losses. The entire govt runs on taxes on oils which is the biggest of all blunders since independence. The best way forward for India is 'boycott' of oil from these 'poorer' oil marketing cos and start using private cos.(Reliance,Shell, Essar, etc) eventhough as on date, it does not give any cost advantage. It is an irony of our country, being one of the leading consumers of oil products alongside US & China,are unable to bend int'l prices, when generally in the market, big buyers get better prices. We face the reverse situation. This shows our poor ability to bargain. There is oil available in Russia & Latin America (leave alone traditional Middle East & Africa), natural gas in Myanmar, Central Asia. We should tap these markets rather than clinging on to oil from MiddleEast which is vulnerable. Anyway, India buys only the low-grade sweet crude, which is avbl elsewhere in plenty. Let govt get out of oil marketing, then we will get a better deal
"oil is as precious as gold". It is one of the reasons that wars are raging around the world. Prices are controlled by international organization where our country hardly has say. Besides meeting all safety and pollution norms, the aging machines ..cost money. and the problem of rising prices is global not indian. And its difficult to believe that there are not already experts hired to understand all this, instead of random public analysis. The real reason of rising prices lie in the geo-political equations in the world where we live, not in the hands of a few organizations that we have in our country.
hi.. i accept what Mr. veerash is trying to pin point..It is surprising why there is no transperance in such multi core oil deals..after all the kind of money our country pay is so huge.. There should be some mechanism to keep the system transperant..If the system is not transparen means there is AN EXISTANCE OF CURRUPTION...
The petrol prices have nearly double the in last 2 years, riding on the logic of international crude oil price flare up. Howver, what goverments have not explained it the logic that is used to increase the price. There are some point worth mention here :-
1) It is widely know that India is almost self-reliant on pertrol. Then what makes goverments punish its citizens on by price hikes.
2) The selling price = cost-of-making petrol + Govt Duties (Central and State) + Oil company profits/margin. If the actual values for this are filled and shown to every citizen of this country, they will find the biggest shock of their life time. For all practical purposes Govt Duties (Central and State) would come up to be more that cost-of-making petrol. Despite Left asking govt to reduce these duties to ease pressure on comman man, govt choose to overlook it. After all who doesn't want easy money.
