PETROLIUM PRICES

Hello Sudhir,

Good point. Actually when they announced the price cut to Rs 5, the Govt. was contemplating a cut of Rs10. (source general news channel)

But the talk is also that OPEC may keep cutting production till such time crude oil touches $60-$70 to a barrel, could be the reason for the wait.

Regards,

Devarajan

Sorry

"cut to Rs 5"  should actually be "cut BY Rs 5"

regards,

Devarajan

 IOCL, BPCL, HPCL & other petro retailing Co.s are making losses on the sale of Petro products & LPG since a long time. The Government compensates half of the losses resulting from its dictate to oil companies to not to raise fuel prices in line with cost, through issue of oil bonds. Even if u take the example of the July-Sep 08 Qtr, had it not been the oil bonds, these 3 Co.s wud hv posted multi crore losses. Moreover, in the 1st Qtr of 2008, these Co.s made a loss of 14431Cr together...

The Petroleum and Natural Gas Ministry was supposed 2 seek reduction of excise duty for petrol & diesel, by half. Lets see if that makes a difference...

IS IT NOT A TAX ON INDIAN PUBLIC?

Yes, but the economy is as we all knw, dependent upon the above mentioned Co.s and if they perpetually make losses...it will be a grave problem as well...

But a solution is certainly needed. hope the current global crude price gets settled thr & the prices in india are reduced...