Petro Shock: Anatomy of Petroleum Prices | WeForNews | Latest News, Blogs Petro Shock: Anatomy of Petroleum Prices – WeForNews | Latest News, Blogs
Connect with us

Blog

Petro Shock: Anatomy of Petroleum Prices

Published

on

Petrol Price

Modi Govt may have been blaming the rising international crude prices for the current rise in the prices of Petrol and Diesel but anyone who is familiar with how prices move up and down in the international market would say that the government has only to blame itself because it failed to see the looming crisis while reaping rich dividends on account low crude prices.

Undoubtedly, the current surge in the prices of petrol and Diesel is on account of falling rupee against the US dollar and also the rising international crude prices but at the same time it is important to ask why the government failed to take any corrective measures in order to insulate the consumers from this unexpected fluctuations of weak Indian rupee.

It’s time to ask our Prime Minister as why he let his government rest smugly and claim efficient fiscal management while knowing all along that it was a result of cheaper oil prices worldwide? Why his government raise excise duties on petroleum products 12 times in last over 4 years and why it was kept out of the goods and services tax (GST)? After Modi became Prime Minister in May 2014, the excise duty on petrol has gone up by 211.7 % and on diesel by a staggering 443.06 %.

In 2014, the excise duty on Petrol for each litre was 9.20 Rs which increased to the present 19.48 Rs. Similarly, the excised duty on Diesel was 3.46 Rs in 2014 but after 4 years it climbed to a massive 15.33 Rs. If today, Modi Govt decides to bring the excise duty at par with 2014 level, the average drop in the prices of Petrol will be 10.42 Rs and 12 Rs for every litre of Diesel.

According to an estimate, the central Govt has collected a whopping Rs 11 lakh crore in tax from Petrol and Diesel in last 4 years between 2014-15 and 2018-19.BJP Govt came at the centre when the international crude was at all time low and Modi Govt not only took the advantage of the soft oil prices but on contrary it adopted a predatory policy on oil prices.

We are hearing various arguments from the leaders of ruling party as why suddenly the prices of petroleum products are touching the roof. Perhaps, the weirdest explanation came from a union minister who said that fuel prices in India are rising because of the high international crude prices .This is farthest from the truth and Prime Minister Modi is brazenly trying to fool people on this sensitive issue of petrol and diesel prices.

Let us have the reality check about the international crude prices. Since BJP came to power in 2014, the price of crude oil in the Indian basket fell from $109.05 per barrel in June 2014 to $46.56 per barrel in June 2017, a fall of almost 57%. Subsequently, it again it rose to $73.83 per barrel in June 2018.

This data comes from Petroleum Planning & Analysis Cell (PPAC) which falls under the Ministry of Petroleum and Natural Gas. Therefore, the prices have, as a matter of fact, dropped by about 32% since Modi government came to power. India still imports her 80% requirement of petroleum products through imports.

But there is more than meets the eye. The lies of spin-masters of Modi government is further exposed by the fact that international crude oil prices have little to do with what an average consumer pays for it. The prohibitively high taxes on Petrol and Diesel are the real villains which are something, government should control but strangely it has kept silence on these vital issues.

On contrary, it is hell bent on proving that all this will be ultimately beneficial to the people because Govt will have more fund at her disposal to pay for the welfare programmes. This could have been true, had the government have been spending the money for the benefit of the people.

But, if we see the track record of this government, we find that there have been cutbacks in almost all central welfare schemes over the years in the last 52 months with paucity of resources given as the main excuse. So, the argument of passing the benefit to people falls flat since the centre doesn’t seem to be redirecting the windfall from oil taxes to any public good.

Almost 46% of the retail price of petrol is made up of taxes charged by the Central as well as the state governments. If we look at the figures, in 2014-15, Modi government was making apprx Rs.1,22,200 crore from taxes that it levied on oil which by 2017-18, increased to more than double at Rs. 2,80,000 crore, a gigantic increase of 129%.

BJP Govt also seems to be passing the buck to the state Govt by saying that it is state governments who are actually responsible for the spiraling of oil prices. As far as state taxes are concerned, it has seen a 32% increase during the past four years. But if we calculate the total taxes collected by states, the figure comes out to be Rs.1, 86,000 crore on fuel which is nowhere near the princely amount of Rs.2, 80,000 crore, which is going to centre’s kitty.

Moreover, BJP is either on its own or in coalition with other parties is ruling government in 21 states; hence the onus to lower the exorbitantly high taxes is more on them than the opposition ruled states. Only yesterday, has Rajasthan, one of the BJP ruled state government has reduced the tax, but that is more because of political compulsion than anything else as the state is likely to have the Assembly elections in a few months.

While the common man is reeling under the pressure of high Petrol and Diesel prices, the corporate houses appears to have no such issues as the government seems to be more than generous with them. The big business houses, despite having a poor credit score have been indiscriminately given loans which they are now refusing to return.

It’s a strange coincidence that such bad loans given from public money collected through taxes have reached over Rs.11 lakh crore, the same amount which Modi Govt collected through tax on petroleum products in last 4 years. It raises a pertinent question-are the consumers of Petrol and Diesel in India paying for the profligacy of delinquent corporate houses.

If we see the pricing pattern of petroleum products like Petrol, Diesel and LPG, it appears as if the government has resorted to extortion towards the common people of this country in order to satisfy the greedy appetites of business houses. The government needs to understand the basic fact that these petroleum products are used not just by the rich or middle class people but also used for the irrigation purposes by the farmers, for transporting the essential commodities across the country and is directly connected to the prices of everyday products. These abnormally high prices of Petrol selling at almost Rs 90 for a litre and Diesel at Rs 77 per litre rob the people of their hard-earned money and no amount of lies by this government will assuage the anger of common man who is forced to undergo through this daylight robbery.

Disclaimer: These views are solely of the author.

Blog

Newsprint paper manufactures voice concerns

Published

on

By

News Papers

New Delhi, Aug 13 : Indiscriminate import and dumping of newsprint paper is threatening the very survival of the domestic newsprint industry, says the Indian Newsprint Manufacturers Association (INMA), the apex body of newsprint manufacturers in India.

In the first quarter of the current fiscal year, as much as 85 percent of domestic demand for newsprint paper was met by imports while the country has adequate manufacturing capacities to meet the demand both in terms of quality and quantity. In a SOS communication to the Prime Minister, INMA has asked for urgent remedial measures to safeguard the interests of the industry.

“The adverse impact of dumping is so serious that currently no good orders are in place to keep the plants running, resulting in severe financial stress, endangering the continuity of the mill operations and retaining employment,” INMA has said in a statement.

“Domestic newsprint production capacity was 2.6 million tonnes in FY 2014-15 but has come down to 2.2 million tonnes in view of continued challenging environment leading to closure of mills. However domestic capacities are still adequate to meet the domestic demand. There is an urgent need to curb dumping and other unfair trade practices operating in the industry,” states INMA.

Due to imports being cheaper than the domestically manufactured newsprint product, during FY18 and FY19, domestic sales of newsprint stood at 1.2 million tonnes per annum which reduced drastically to 0.7 million tonnes in FY20 in view of dumping.

According to INMA, against the import price of $800 per tonne of newsprint in FY18, the news print is currently being dumped by exporters at $390-400 per tonne which is almost $250-300 per tonne cheaper than their home country sales price. With Covid pandemic leading to demand reduction worldwide, market intelligence points to dumping of newsprint paper at $350 per tonne.

INMA says it is not against legal import by actual users but against unfair trade practice being adopted by the exporters. As an urgent measure, INMA has asked for imposition of a five-year moratorium on newsprint imports, among other asks.

Continue Reading

Blog

Pilot stays in hunt for bigger role, to be rewarded in 2021 by high command

Published

on

Sachin Pilot

Jaipur/New Delhi, Aug 11 : The can may well have been kicked down the road in Rajasthan but the vexed leadership issue remains wide open. Contrary to popular perception, former Deputy Chief Minister Sachin Pilot, who camped in Gurugram these past few days, has not beaten a hasty retreat.

Optically, he may have lost the skirmish, but he is very much in the game. This was a battle in a long drawn-out war. A war based on principles and one of anger over maltreatment.

Sources close to developments told IANS that his meeting with the Gandhi siblings – Rahul and Priyanka – at the former’s residence was one where he did not merely reveal his state of mind and reservations but was equally given cast iron assurances about the future.

Pilot, it is believed, didn’t hanker for any position but told them that belittling him by levelling charges of sedition was nothing short of outrageous. The Special Operations Group and Anti-Corruption Bureau charges were a travesty and he was pained and appalled at the charges levelled against him.

IANS has gathered that Pilot did not want to be a Deputy CM with a car and a bungalow for he had worked hard on the ground over the last six and a half years to help the Congress storm back to power in the state in the late 2018 election. To be viciously targeted by his own government was an abomination, according to him.

Apparently, he was given a fair hearing and while a decision on the party leadership in Rajasthan may have been kept in abeyance for the time being, a view will be definitely taken on this issue in early 2021. This assurance was given to him.

What is more is that Pilot has managed to get a fair and equitable settlement for all his followers, particularly those who camped with him in the last few days when they went underground. In a mockery of democracy, these MLAs were spied upon by the state CID which kept them under daily surveillance under Chief Minister Ashok Gehlot’s orders. This was intolerable for Pilot.

These things rankled with Pilot and while he was adamant that he won’t join the BJP from the outset, he was clear that he would stay with the Congress. All he wanted was a proper hearing and a just recourse to the problems and issues that he and his followers were facing in Rajasthan.

The Gandhi siblings have also come to realise that their footprint continues to shrink with the BJP trying to topple their state governments, the most recent case being Madhya Pradesh.

They didn’t want the BJP to take advantage of the fluid situation and hence sought closure. Once Pilot had given his side of the story, it was appreciated by the siblings.

It is clear that the Congress will want to hit the ground running with a young Pilot at the helm in the race for the state in 2023. It appears that Pilot may well become Chief Minister of Rajasthan in early 2021 to prepare for the battle in late 2023.

Continue Reading

Blog

Political circles mourn Rahat Indori’s demise

Published

on

Rahat Indori

New Delhi, Aug 12 : Condolences have poured in for noted Urdu poet Rahat Indori, who passed away on Tuesday after suffering a cardiac arrest. The poet had also tested positive for Covid-19.

Offering his condolences, Defence Minister Rajnath Singh tweeted in Hindi, “I am deeply saddened by the news of the demise of noted poet Rahat Indoriji. He was an ardent personality of Urdu admiration. He has left an indelible mark on the hearts of people by his memorable poetries. It is a great loss for the literary world. I extend my condolences to his loved ones in this hour of grief.”

“My heart sank after I got to know about your demise. It has created a vaccum in the literary world which will be difficult to fill,” Madhya Pradesh Chief Minister Shivraj Singh Chouhan tweeted in Hindi.

Quoting pne of Indori’s couplets, Congress leader Rahul Gandhi tweeted, “Ab na main un na baki hai zamane mere, phir bhi mashhoor hai shahron mein fasane mere… Alvida Rahat Indori sahab.”

Leader of Opposition in the Upper House, Ghulam Nabi Azad, said in his condolence message, “He will be remembered for his free, fair and fearless poetic expressions.”

“India has lost a great Urdu poet; I salute the departed soul of Rahat Indori, the voice of millions of Indians,” Azad tweeted.

Indori, a poet and painter, taught Urdu literature at the Indore University before foraying into Bollywood as a lyricist.

Among the many memorable verses he created for Hindi films are “Neend churayi meri” and “Dekho dekho jaanam” (“Ishq”), “Chori chori jab nazrein mili” (“Kareeb”), “M bole toh” and “Chhan chhan” (“Munna Bhai MBBS”), “Dil ko hazaar baar” (“Murder”), “Tumsa koi pyaara” (“Khuddar”) and the title song of “Sir”.

His popular books include “Do Kadam Aur Sahi”, “Maujood”, “Chand Pagal Hai”, “Mere Baad” and “Naraz”.

Continue Reading
Advertisement

Most Popular

Corona Virus (COVID-19) Live Data

COVID-19 affects different people in different ways. Most infected people will develop mild to moderate illness and recover without hospitalization.