OIL CRISIS IN
One barrel consists of approximately 160 litres. So Price of crude oil per litre will be INR 2940/160 = INR 18.375. Add 103.595% under different heads of taxes and duties and other costs, the consumer price will be INR 37.411 WITHOUT GOVT SUBSIDY.
4. What the government of
a. Buy crude oil on the basis of future projections of oil prices, rising or falling, and keep adjusting its crude oil inventory accordingly. It can raise its oil inventory when the price is low, and decrease it when the price is high.
b. Fix reasonable refining cost for the oil refineries and ask them to improve upon their operational efficiencies to lower their refining cost.
c. Fix reasonable profit margin for oil marketing companies and ask them to improve upon their operational efficiencies to lower their marketing cost.
d. The refineries and oil marketing companies should be allowed net profit margins in accordance with the prevailing corporate dividends in the stock market.
It is time for all to tighten their belts. The government, the refineries and the oil marketing companies need to improve their operational efficiencies, re-negotiate shipping costs of crude oil to
"With hike in prices of diesel and petrol, oil companies will be able to avoid red ink in their balance sheet as they were bleeding under the burden of subsidies, discounts and oil bonds," Sajjan Jindal, president of the Associated Chambers of Commerce and Industry (Assocham), said in a statement.
The Confederation of Oil Industry (CII), another industry lobby, said the hike would add around 1.3 percent to inflation.
"In view of the continuous rise in global crude prices, a marginal increase had become unavoidable," he argued and said the petrol price was raised by "only" Rs four against Rs 6.9 as desired and diesel price by "only" Rs two against Rs 4.11 "keeping in mind the interests of 'aam aadmi' (common man)."
He said the retail prices of PDS kerosene and LPG were not increased by the government for which the projected subsidy burden amounted to Rs 30,000 crore.
Respectfully submitted for due consideration on high priority as the high petrol and diesel prices are bound to adversely affect the economic well being of the people at large who are already undergoing hyper inflation of other items of daily use.
The people of
This is an exercise of Robbing Peter to pay Paul.
You are the 70% of the silent majority
Raise your VOICE
Stand up and be counted
DR. Babur Zahiruddin