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After poll results, petrol prices rise Rs 5 a litre

Discussion in 'National Politics' started by xXX-Nair:::Saab-XXx, May 15, 2011.

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  1. xXX-Nair:::Saab-XXx

    xXX-Nair:::Saab-XXx Major SENIOR MEMBER

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    NEW DELHI: Within 24 hours of state election results oil marketing companies increased petrol prices by Rs 5 a litre, the steepest ever hike. This is the seventh time in 11 months that petrol prices have gone up and are set to upset household budgets, already reeling under the burden of higher food costs and loan instalments.

    And as if this was not enough, you may have to deal with Rs 4 hike in the price of diesel and cooking gas cylinders could cost Rs 25-50 more. The ministerial panel on fuels is expected to take a call on raising these prices next week.

    Since UPA returned to power in May 2009, petrol prices have gone up by over 50%. In the last one year alone the increase is of the order of 30%.

    On top of this milk producers have increased prices by Rs 2 a litre, while home loan player HDFC on Saturday joined the likes State Bank of India and ICICI Bank in increasing lending rates. HDFC raised rates by 50 basis points.

    "It is very tough. Everything costs more, be it vegetables or milk. Mutton will soon be out of reach. This (petrol price) increase will put more burden on us," said Anshu Roy, a housewife living in Noida.

    On their part, oil marketers argued that since the last revision on January 15, the mix of crude they buy has gone up to $118-119 a barrel, whereas the present pump price was tuned to around $95 a barrel. Petrol price was raised five months ago by Rs 2.52 per litre.

    "We have been holding the price line for five months to avoid putting burden on consumers. Even now, we are passing only half the burden. We have been losing Rs 10.50 on a litre of petrol," R S Butola, chairman of India's biggest fuel retailer IndianOil Corporation, told TOI.

    Butola said another revision was in the offing since higher crude prices and losses on fuel sales were forcing the company to borrow Rs 8,000 crore every month. "There's no option left. Our borrowings have exceeded Rs 67,000 crore...finances are under tremendous strain...the company can't go on."

    Though household budgets are under strain, the pain might not be visible in the government's inflation numbers. After all, petrol accounts for just over 1% of the wholesale price index (WPI). A subsequent increase in diesel and cooking gas price would reflect part of the problem since these fuels have about 5% weightage in WPI. In any case, it will have a cascading effect as transportation cost will rise.

    Inflation was estimated at 9% in March, which is much higher than the government's comfort level.

    To escape the charge of cartelisation, the three state-run oil marketing companies would keep marginal difference of a few paise in their petrol prices. State-run retailers deliberately keep this difference to avoid charges of carterlisation from private refiner-marketers such as Reliance Industries, Essar Oil and Shell.

    The oil ministry had been preparing for a round of price increase. Officials had secured the Election Commission's green signal to raise petrol price just after the last round of polling on May 10. It was, however, decided to wait till the fortnightly price review by the oil companies.

    State-run oil marketers are free to revise petrol price but never do it without the oil ministry's cue.

    Last heard, the firms were losing about Rs 10.50 a litre on petrol, Rs 16.76 on diesel, Rs 29.69 on kerosene and Rs 329.73 on a cooking gas refill. They have projected a loss of Rs 180,000 crore this fiscal, calculated at $110 per barrel of crude.

    The government had on Tuesday deferred a ministerial panel's meeting to consider raising diesel and cooking gas prices. The ministerial panel was to meet on Wednesday to consider raising prices of diesel by Rs 2-2.50 a litre and cooking gas by Rs 25-50 per refill. The government controls price of diesel, cooking gas and kerosene.

    http://timesofindia.indiatimes.com/business/india-business/After-poll-results-petrol-prices-rise-Rs-5-a-litre/articleshow/8327723
    :angry::angry::angry::angry::angry:
     
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  2. xXX-Nair:::Saab-XXx

    xXX-Nair:::Saab-XXx Major SENIOR MEMBER

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    Congressis have Done it again they have back stabbed the Common Indians who have voted for them...they Bark every minute about AAM ADMI & this is what they deliver them...now 1 liter petrol about 70 rs in Mumbai...
     
  3. divya

    divya 2nd Lieutant FULL MEMBER

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    Damn it i should ask my dad for 1 year petrol ka kharcha rather than financing me a car.....
     
  4. StingRay

    StingRay 2nd Lieutant FULL MEMBER

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    People should get used to the higher petrol prices... till how long will the govt keep subsidizing oil? Encourage public transportation and move to more alternate energy vehicles... lets not get too reliant on oil... if not today 2 - 3 years from now we have to deal with it.
     
  5. Bad Wolf

    Bad Wolf Major SENIOR MEMBER

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    we are produce only 30% of our oil requirement and 70% import and as per rule government apply 100% i tax on imported oil
    state government also apply tax but as per the logic only 70% oil can pass this process but for profit they apply this tax rule for rest 30 % oil also
    they make us fool
     
  6. xXX-Nair:::Saab-XXx

    xXX-Nair:::Saab-XXx Major SENIOR MEMBER

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    We are not crying out about the Price rise...but about the Cunningness of this coward & incompetent government...:sick:who back stabbed the common man... its not affordable even to Travel in buses & rikshaws ...:shout:the minimum charges of Buses are above 20 rupees for 10 kilometers distance on non BEST buses in Mumbai...in poor country like India where a person who earns less than 2 to 3$ dollars a day how much is it affordable to pay 30 to 40 rupees as bus fare...just imagine...:tdown:
     
  7. chachachoudhary

    chachachoudhary Captain SENIOR MEMBER

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    Time to introduce 10% alcohol in petrol. Our farmers will benefit a lot. We should do "brazil" here. If brazil can have 25% ethanol in petrol, why cannot india do the same. We must start building our own biofuel economy.
     
  8. xXX-Nair:::Saab-XXx

    xXX-Nair:::Saab-XXx Major SENIOR MEMBER

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    Chodo yaar Darum ab kam Mahenga haii kya...jo ab tum aur mahenga karna suggest far rahe ho...

    Good suggestion...
     
  9. StingRay

    StingRay 2nd Lieutant FULL MEMBER

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    Yes the govt is cunning... all political parties are cunning ... it is politics... we just have to accept it. The international prices have increased and the public needs to pay for it ... if the material costs grow in the international market, we never raise our voice against the rising prices of cars, household items, or finished products... so why always crib about the fuel costs?

    There are many other places where the prices are way higher than they need to be... it is not just about fuel prices alone. Rather all prices have gone up... it is inflation. These price pressure will eventually help us in the long run... in order to introduce alternate modes of transportation which moves us away from oil. We as a nation cannot go in the lines of the developed nation to rely on petroleum.... when we are starting to develop out transportation infrastructure, we need to develop our modes away from reliance on oil.
     
  10. xXX-Nair:::Saab-XXx

    xXX-Nair:::Saab-XXx Major SENIOR MEMBER

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    & what have this government done for alternate way of fuel or alternate way of transportation...& Indians are paying Highest rate for 1 litre petrol in the whole world
     
  11. Osiris

    Osiris Major SENIOR MEMBER

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    A good gift for the voters of Bengal and Assam
     
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  12. Hembo

    Hembo OLD MOD STAR MEMBER

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    Nair yaar, This is something that cannot be avoided. How long you think Govt and the Petroleum marketing company's will keep on bearing the losses? It is something we have to live with since we're dependant on outsiders for majority (>70%) of our petroleum demand. In fact, we should thank Gaddafi (& Libyan unrest), which had atleast reduce the international crude price, which at one time was threatening to go beyond 120 $/ barrel.

    And, as far as the timing of the raise, it is actually a cunning ploy and good one IMHO. All dirty decisions, which cannot be avoided, should be taken at the beggining of one's tenure only. You tell me if any sane political party will take such decision towards end of their terms? Those marketing companies were incurring huge loss on sale of Petrol, Kerosene & LPG and they were pressing govt for rise in price since almost a year.

    Anyway, hope diesel prices were not touched, as it has direct implication on food inflatation and public transportation cost.. But that too is inevitable I guess at one point.
     
  13. StingRay

    StingRay 2nd Lieutant FULL MEMBER

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    I dont think so... the leaders in terms of cost of petrol are still the Europeans... that has helped them rely on fuel efficient cars. Even the filthy rich would have a small car for his daily commute.... and what do we see in India... any goddam guy who has some extra money will go ahead and buy the hugest SUV giving 4-5 kmpl.... we got to stop this culture. With more and more people going for bigger cars, it is a dangerous precedent in the future.

    If you see China, more people have bought bigger vehicles to make it a status symbol rather than convenience and as more and more Indians are able to afford cars it will create more global competition to secure oil resources. I see a similar trend in India too and it is not a healthy trend if you ask me.
    Govt can still subsidize the petroleum for public transportation if they want to... and I am in support of that... but people should not get addicted to petrol and should demand more alternate modes of transportation.
     
  14. Hembo

    Hembo OLD MOD STAR MEMBER

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    Efforts are already on (at least in IOCL, where I used to work) to produce Petrol with 10% methanol and they are encouraging production of bio-diesel from Jathropha for blending with High speed Diesel. IOCL had tied up ith Indian Railways to plant Jathropa on the sides of all Railway tracks and will soon be producing Bio-Diesel o their own.

    IOCL, Haldia Refinery has already started methanol injection (5% at present) with Petrol (Industry name MS or Motor Spirit/ Gasoline) in 2009 or 2010. I left IOCL in 2008, so don't know the current Industry practices of other companies. I'll try to find out.
     
  15. StingRay

    StingRay 2nd Lieutant FULL MEMBER

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    @hembo... are you aware of any research by IOCL on algae based biofuel? I am sure the Indian climate will be quite beneficial for algae based biofuel.
     
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