Oil PSUs to lose Rs 1,22,000 cr

Discussion in 'Economy & Infrastructure' started by nrj, Aug 5, 2011.

  1. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    Despite the recent steep fuel price hike, state-owned oil firms will lose a whooping Rs 122,000 crore on diesel, domestic LPG and kerosene sale this fiscal, Oil Minister S Jaipal Reddy said today.

    "We were compelled to increase prices," he said in Lok Sabha where members criticised the recent Rs 3 per litre hike in diesel, Rs 2 a litre increase in kerosene and Rs 50 per cylinder hike in LPG rates.

    Price of international oil, on which India is 80% reliant to meet its needs, is rising, he said, adding the average price of crude for the current financial year is $113 per barrel.

    The government has cut customs and excise duties on crude oil and products coupled with a "moderate increase", he said adding that in spite of the increase the oil companies' under recoveries would be Rs 1.22 lakh crore for the current fiscal.

    Replying to a supplementary, he informed the House that in last three years, the prices of diesel have been increased four times while prices came down twice.

    Similarly, in case of LPG, prices were increased four time and reduced only once.

    Giving a comparison of prices in the neighbouring countries, he said petrol price is highest in India. It is currently Rs 63.70 a litre (Delhi) compared to Rs 41.81 in Pakistan, Rs 50.30 in Sri Lanka and Rs 44.80 in Bangladesh and Rs 43.59 in the US.

    Prices, however, in European nation are much higher as compared to India.

    In case of LPG and Kerosene, prices in India are lowest compared to neighbouring nations. While diesel prices are comparable.

    Oil PSUs to lose Rs 1,22,000 cr
     
    Last edited: Aug 5, 2011
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  3. sob

    sob Moderator Moderator

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    This is the biggest piece of shit rolled out y successive governments. The total fiscal deficit of the govt. Is 3.5 lakh crores and we are to believe that the oil companies are losing 1.2 lakh crores alone. If the govt is taking care of the under recovery of the oil psus then the fiscal deficit figures should be different.

    Here it is a very clever accounting practice with every dollar increase in price of crude the revenue of the finance ministry increases due to increased duty recovery while the oil psu's losses increases. At the same time more than 50% of the prices of the oil products go towards taxes and octroi.it is very clever manipulation. One account will be always inw deit and the other account will always remain in credit, which nobody ever focuses upon.
     
  4. sob

    sob Moderator Moderator

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    If this was the extent of the loses then why would the price of BPCL share with a face value of Rs. 10 close today at Rs688,
    IOC with face value of Rs.10 is quoting at Rs329, these shares should be valued in paise if not in the negative. This just shows that the above figures are so misleading.
     
  5. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    i wont be surprised if by sometime next year the price of petrol would be some where around rs100/lt.

    the easiest to target is the middle class, they dont act as much of a vote bank for any so they be used to subsidize everyone, the poor, the government and their expenses.

    how about for a change the governments say they will heavily cut their own expenses, but then that wont happen and you and i will keep footing in all their bills either directly or indirectly.
     
  6. sob

    sob Moderator Moderator

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    The biggest user of diesel is the Railways. They consume almost 60% of the national figure, and the amount of wastage there is colossal.
     
  7. Iamanidiot

    Iamanidiot Elite Member Elite Member

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    old engines with zero efficiency
     

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