National

Whether lack of earnest or GST is the reason of Higher Oil Price?

Newscast Bureau,22-04-2018

It is all about hypocrisy. GST is not the reason behind the increasing oil price. GST is a recent story,less than a year old,but the Modi government is four years old.Ever since NDA government ascended the thrown of Delhi in 2014 Oil price has been a pain for the middle class.

Once Oil Minister Dharmendra Pradhan had defended with a peculiar logic replying to the question of increasing oil price that, “No one is taking away the profit to his home,it is being invested in the development of the country”.

May be half true,but not the whole reality.Leaders from opposition alleged that BJP is collecting large scale party fund through this exorbitant investment in the infrastructure of Oil and Gas Sector by exploiting the Country through the Oil business.It is true that Oil Industry is a big source of revenue and the profits thereof are directly controlled and invested by the Union Government.

This is the basic difference between the ideology of BJP and Congress.BJP has a feudotary mindset of medieval India where development were made by  an oppressive taxing policy,where as Congress has a liberal approach to the taxation system,which is the foundation of democracy.Congress has never oppressed the middle class by any painful taxation. By booking  massive profit from the petroleum sector Modi Government has undertaken many infrastructure projects.Now the question is whether a intolerable  pressure on Indian middle class is justified?

During UPA rule also India was not a taxfree country,there were taxes on petroleum products but the intention and earnest of the Government was very clear and transparent towards the ease of Indian middle class.

Let us go by the data,Crude oil price has fallen by two-thirds in 9 years, but petrol price has risen by a half.

Post the deregulation, price of petrol rose in line with the rise in crude oil prices till the early 2013, but after that, it either kept increasing, or kept steady in spells despite falling crude oil prices.

The price of Indian basket of crude oil fell by 65% in nine years to 56 dollar  per barrel in June 2017. At the same time, the price of retail petrol sold in Mumbai rose by 43%.

Petrol Price  has risen by as much as Rs 5.42 per litre in less than two months, after initially falling post the implementation of daily fuel price revision across the country. A major contribution to this hike in the retail price of petrol is the recent support that the global crude oil price has found from the sustained supply cuts by OPEC.

The Indian basket of crude oil was at $132.47 per barrel at its peak in July 2008, according to the data from Petroleum Planning and Analysis Cell. Since then, the price has fallen by 65% to $46.56 per barrel in June 2017. At the same time, the price of retail petrol sold in Mumbai rose by 43% from Rs 55.04 in June 2008 to Rs 78.44 in June 2017.

The price of petrol was under the government control when the crude oil was at its peak. Biting the bullet, the government deregulated the price of the fuel from its control in 2010, allowing the oil refining and marketing companies to set it in line with the market dynamics, specially crude oil prices. Following that, the price of petrol rose in line with the rise in crude oil prices till the early 2013.

This chart shows price of Indian basket of crude oil (USD per barrel) and price of petrol in Mumbai (Rs per litre) over the last nine years. This chart is only indicative, and does not capture month-by-month price movement. (Source: PPAC and Indian Oil Corp)

Petrol prices fell by Rs 3.45 per litre in just a span of 13 days, with the oil companies cutting prices or keeping it unchanged for 12 days in a row. Then, it started rising, beginning with a humble 1 paisa per litre hike on June 28-29 -2017 — an amount not worth batting an eyelid. Petrol price has been on the upmove since then, with the oil companies continuously raising it in small doses everyday, barring a few even smaller cuts in between. Since June 28-2017, petrol price in Delhi has risen by Rs 5.63 per litre to Rs 69.09 per litre as on Monday, 28 August 2017.Today Oil Price is at its highest level in four years and it seems that the Modi Government has some hidden agenda with the oil revenue of India.

 Following instructions from the Petroleum Ministry, oil and gas PSUs have paid at least Rs 200 crore for the Statue of Unity, the 182-metre-tall statue of Sardar Vallabhbhai Patel which is being installed at the Sadhu Bet island, 3.5 km south of the Sardar Sarovar Dam at Kevadia in Narmada district of Gujarat.

On 8th December 2017 Prasant Bhushan twitted claiming the GSPC acquisition by ONGC a scam, ” 7700 Crs of our money with ONGC was used to bail out GSPC.Modi claimed huge ‘Gas’ discovery,wasted 20KCrs,much of it on contracts to Companies owned by his Ministers,for drilling (with no gas).Then appointed Patra to ONGC board as ‘expert”.

 

 

 

 

 

 

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