Wednesday, July 09, 2008
There has been quite a number of articles on the print media( a.k.a frontline) about the illogical petroleum pricing. The very obvious thing which everyone can understand is the taxation. There is excise, cess and a couple of other melliflous tax terms Which adds to the basic cost for the crude. Added to this is the sales tax levied by the respective states.
Almost 70% of the country's crude is imported to meet demand and a minimal amount of crude is explored in house whose barrel cost is way below the present day trend of 130/140$ per barrel. Roughly the in house price comes to 50/60$ per barrel and due to the flawed "Import Pricing Parity" logic the local crude is pegged at the international price leaving windfall margins for the private explorers( read Reliance)!! And the burden being transferred to the common man leading to spiralling price rise! When there are certainly other options, our PM with an "enlightened national interest" increases the petrol/diesel price to unacceptable rates to cut the OMCs under-recoveries( note that it is under-recovery and not direct losses) A rough check of the IOC's balance sheet revealse that it is a successful corporate showing charts flaunting quartely upward trends!!
Hiding the essential fact of wekening USD President Bush comments saying crude prices are pushed due to increased demands from emerging economies(read india and china) and Manmohan tow-towing Bush lines. If all this browbeating is happening when the nuclear deal is under negotiation imagine when it is done and We are entangled with the uranium supply. sovereignity?? , Panchsheel?? Non-aligned stance?? Indigenous three-stage thorium powered nuclear program?? Foreign policy!!
Dude...My commitment to Bush is Important!!!