Oil Companies are losing a record Rs19.26 a liter, on Diesel. Why these losses need to be absorbed by Oil Companies? Everyone knows Political leaders are not increasing the price of these critical items in the name of inflation. The actual reason is Vote Bank politics. Due to this political compulsion some rich people are also taking advantage of low diesel price. Government has shown its intention to hike this price so many times during the last few Months but it is never serious. Oil Companies has been forced to book huge losses to fulfill the political wish of some vested interest parties. Economy sense should prevail and there should not be any reason why Diesel as well as domestic cooking gas (LPG) and kerosene prices have not been raised since June 2011 even though cost of production has jumped nearly 28%. Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) are losing close to Rs 560 crore per day as they sell diesel, domestic LPG and kerosene way below cost to keep inflation under check. As per some estimate diesel is being sold at a loss of Rs 19.26 a liter, kerosene at a loss of Rs 34.34 per liter and domestic LPG at Rs 347 per 14.2-kg cylinder. Why so much loss to be absorbed by Government? Kerosene is being Black Marketed by Oil Mafia for mixing with Diesel to run commercial vehicle. This year it is expected that Indian Oil PSU will lose 1,92,951 crore in revenues in the financial year ending March 31, The combined borrowing of Oil Companies is INR 1,40,000 Cr and interest cost is 10,000 Cr per year . Indian Policy Maker need to raise themselves above politics to let the Economy prevail
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