Petrol prices were raised by 7.50 rupees in Delhi and by similar amount all over the country 2 days back since then I have read, heard, talked, debated, joked a lot about this topic so I thought it is going to be a topic I am going to write about.
Petrol as we know now is the deregulated petroleum product in our country which forces many people to simply believe that its not government which is rising the prices but the Oil marketing companies who just want to cover the losses as they are not compensated by government for their losses on Petrol. But this is not the complete truth.
So petrol being considered as rich-man's fuel was deregulated by our government on june 2010, which basically means government will not give subsidy for petrol and therefore have no control over prices and Oil companies will decide the petrol prices. Government did this in order to bring the fiscal deficit down and improve the overall health of Indian economy.
So starting with some facts:
FACT 1:India imports crude oil from different nation where oil is in abundance. This crude oil goes to refineries where it gets converted to Petrol,diesel and other products, and finally oil mkt. companies provides it to customers. So price of petrol In our country should be driven by crude oil price.. and you will be shocked to know that crude prices has been falling from the last 3 months the net fall has been around 12-13%.
FACT 2:The government which deregulate petrol to control fiscal deficit waves off half a trillion dollars to corporates. The lesser I say about this the better it would be. Read this : http://www.thehindu.com/
FACT 3: Even if when Petrol is deregulated why is it that oil companies wakes up after 6 months to raise 7.5 RS and not raise Rs 1-2 every month for 6 months . Note that with the deregulation Oil company chiefs can revise the rates every 1st and 16th of every month depending on the international prices. The only reason I can think of is Government intervention but why would government ask oil companies to raise prices after 6 months ...???? answer is simple STATE ELECTIONS ...
http://www.thehindu.com/opinion/editorial/article3453040.ece
I got these facts just by Googling and reading newspaper so if one decide to do a complete research can find answer to many questions which pops in my mind every now and then :
QUES 1: How much petroleum subsidy contributed to total fiscal deficit pre june 2010 ? If this is not a major contributor to fiscal deficit what are the other sources??
QUES 2: What will be the impact on inflation with this rise ?? epecially food inflation?
QUES 3 : Government deregulated petrol in June 2010 they why did that had no impact on Fiscal deficit infact , Fiscal deficit has always been rising steeply sice last year .. why ??
No comments:
Post a Comment