Is Petroleum Pricing in India dubious ? Debate
I strongly feel the public is being taken for a ride without much clarity on pricing of this vital commodity. The prices of all the by products of Crude works out to below Rs 10 per litre. The retail price of Petrol is Rs 5 in dubai, Rs 7 in Qatar and around Rs 4 in Saudi per litre. Similarly diesel and gas are priced very competitively. Considering the above fact and prevaling crude price of Rs 1200 for 200 litres works out to Rs 6/- per litre. Let us assume refining and transportation it would work out double the cost Rs 12/- per litre. What constitutes the rest of pricing is the taxes, duties, dealer margin etc. Debate guys
Some say it is conspiracy theory but i always thought it had some truth and logic. It is said that alternate energy solutions are supressed by the oil industry. Turnover of oil industries is in trillions. If some novell solutions comes forward. The oil industry will collapse in fortnight. The whole world economy will be shaken to its roots. The world will never be the same. The economies of the OPEC countries will go on a landslide. When the stakes are so high, there will be immence pressure to surpress alternative technology.
It is said that hydrogen fusion energy is actually very practical and with some development can be actually used very safely, but the research in the field has been always surpressed. If i am not wrong there was also a interesting documentary made on the above subject "Who killed the electric car" may be i will watch it now.
One of my teacher used to always advice that if you ever discover any novell alternative to petrol first make your will, fulfill your life wishes and then declare the discovery because you wont have much days to live after that. 
@ Mayur, Any breakthrough faces hurdles, but with time everything is cleared. when telegraph sytem was invented, and wiring of poles started in America, somebody broke all the poles and wires at night, after a month's investigation it was found that postoffice head was involved in it. he was afraid people will stop sending letters. & his business would collapse.
We cannot grudge against profiteering by oil companies and government, for various politico-social considerations, but definitely what we deserve uniform pricing of petroleum products across the country. The current pricing is like old Maharaja days, wherein each one decides according to whims and fancies.
Pramod i don t mind ONGC and other Oil PSU s earn more but they should not cry foul that they are loosing heavily. Whenever the International prices of crude comes down, very rarely price of petrol or diesel is scaled down. The costing of Petroleum products should be transperant. Secondly rationalisation of Sales tax is the key to ensure uniform pricing all over India.
i remember once in train I met a medicine shop owner, and a debate started up. they were on strike for salestax hike. he was adamant that hey were doing it for the public. to decrease their burden. I put it into his head that if they werereallyworried of public, why not reduce your profit margins. some products you earn 50% margin even, some are mere sugar syrups in the name of vitamins, but since dr. has written it, he gets his cuts, you also blindly sell it. then you never think of the poor souls.
he understood he had started off a wrong topic in train.
Correction figures to read as 18,920 crores of profit since it is quoted in millions the balance sheet and projected as 30,000 crores profit in case gas prices are hiked. Still it is substantial profit guys
My philosophy is let them earn, more and more, and more. ultimately it remains in India, and will be re employed to open up new job making ventures.
high prices are to deter consumption I think. but that doesn't happen. vehicals giving very low mileages continue to drain the economy.
I like chinese system on this. they encouraged bycicles there. even old people can be seen on luxury bycicles. in trains they have proper system to keep your bycicles so that one can easily make use of it on reaching destination.
this saves a lot of foreign exchange.
In india forex burden is very high. due to uncontrollable consumption.
they need to have some proper check on consumption of liquid gold.
Rs 1,89,240 Crores is the Profit for ONGC last year. IF THE GAS prices are hiked to international level the profit margin will shoot up to over Rs 3,00,000 crores. The slogan will continue that oil companies are making losses Lolz Aam aadmi Jago
The government should focus on other source of green energy. They should motivate research in green technologies. They should promote use of alternative fuels where use of Petrol and deisel can be avoided. It is estimated that oil reserves will end most probably til 2050. If india doesnt start investing in alternative energy it will have a tough path ahead of it.
I too think the petroleum prices should not be same for everybody. The prices should be based on the financial status of the consumer. The prices should be different for different purposes like the petrol needed for economic development of the country should controlled. Whereas petrol used for non essential things eg. car racing should be heavily priced.
The hunt for alternate energy sources is on for ages, hydrogen technology seems the way to go, with H20 as the prime fuel. Now coming to the pricing of petroleum products have to be uniform across India. For example Rs 70 petrol all over India pricing from Jammu to Kanyakumari. Secondly the price of Gas is appropriate at current levels. In fact kerosene for domestic consumption should be totally withdrawn instead BPL gas can be provided, it will immediately result in huge profits to Oil PSU's
Ideally without padded up taxes and duties Petrol price in India should be Rs 50/- Diesel Rs 40/- Gas Rs 25 per kg and Kerosene Rs 40 per litre. The biggest profiteering is ensured by taxation which is nearly 50% in most states including excise duty paid.
adulteration too is an issue. pricing also one factor,
PAT of IOC is Rs 7445 in 2010-2011 & Rs 10,220 in 2009-2010 the genera reserve is Rs 45000 crores, even if they keep these in fixed deposits it would earn them Rs 4500 crores. ONGC (PAT ) profit Rs 1,89,240 crores Fixed deposits in Banks Rs 1,39,744 which would earn them at least Rs 13000 crore per annum. Where is the profit coming from obviously it is from indigenous gas production, which is costing maximum Rs 6/- per kg and sold at a whopping Rs 18/- to Rs 25 per kg to consumers.
Sign in to reply to this thread
