Petrol price hike can't wait any longer: OMCs

April 18, 2012

petrol

New Delhi, April 18: Fed up with the Centre's “indecision” on allowing an increase in fuel prices in the face of the rising international crude prices, the oil marketing companies on Tuesday virtually threatened to increase petrol prices by Rs. 8.04 a litre, asking the government to either cut excise duty on petrol and give them Rs. 49 crore a day in compensation.

In a joint representation, the oil marketing companies asked the government to bring petrol back under the regulated regime.

Petrol prices were deregulated in June 2010. With a 20 per cent value-added tax, the price of petrol, if an increase is effected, will go up by Rs. 9.60 in New Delhi.

“We have been very patient, not raising prices since December despite our cost of production spiralling. But there is a limit to which we can borrow money and produce fuel for the country,” Indian Oil Corporation (IOC) Chairman R. S. Butola said here. IOC issued a formal statement, pointing to the anomalies in the subsidy mechanism and highlighting related issues.

IOC, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited are losing Rs. 49 crore a day on petrol sales alone. They are losing another Rs. 573 crore a day on the sale below cost of diesel, domestic LPG and kerosene.

Mr. Butola said the oil marketing companies lost Rs. 745 crore in the first 15 days of April in revenue from petrol sale. “We have suggested that the government temporarily end deregulation and give subsidy to make up for the difference between the cost of production and the sale price. Alternatively, the government can cut the excise duty of Rs. 14.78 it collects when a consumer buys one litre of petrol.”

The States levied VAT or sales tax, ranging from 15 to 33 per cent (Rs. 10.30- Rs. 18.74 a litre), and this too could be cut to avoid a price increase. “If our suggestions are not accepted, we will have no option but to increase the price of petrol by Rs. 8.04 a litre (excluding the State levies) with immediate effect,” the IOC statement said. The last revision of petrol price was effected on December 1, 2011. Then, IOC cut the price by Rs. 0.65 a litre on top of an earlier reduction of Rs.1.85 on November 16 that year.

“The international petrol prices have since gone up progressively and stand at $132.45 a barrel in the current pricing period. This is much higher than the price of $109.03 a barrel at which IOC and other oil marketing companies are selling petrol,” the statement said. The company's inability to effect the hike between December 16, 2011 and March 31, 2012 resulted in Rs.1,036 crores of under-recoveries for IOC alone, and Rs. 2,287 crore for all companies.

The statement said IOC and other companies approached the government several times for revising petrol prices, suggesting that motor spirit be brought within the ambit of controlled products temporarily, or statutory levies on it lowered to the extent of loss being suffered by the companies owing to their inability to pass on the increase in prices to consumers.

“The current situation is not sustainable and therefore cannot continue. The continuation of such [a] pricing [formula] will only impede the ability of the company to import crude oil and may affect the supply-demand balance. The company is awaiting the government's response to its requests; should no relief come, it will have no option but to effect the aforesaid increase in motor spirit prices,” the statement said.

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News Network
July 17,2020
New Delhi, Jul 17:  Congress leader Rahul Gandhi on Friday said that as India's COVID-19 tally has crossed 10,00,000 mark and issued a warning that by August 10, more than 20,00,000 people may be infected in the country. He called on the government to take concrete steps to control the pandemic.
 
Taking to Twitter, Gandhi marked his earlier tweet from July 14 that stated: "This week the figure will cross 10,00,000 in our country."
"The tally has crossed 10,00,000 mark. If COVID-19 continues to spread at the same speed, by August 10, more than 20,00,000 people will be infected in the country.
 
The government must take concrete, planned steps to stop the epidemic," he tweeted today.
With the highest single-day spike of 32,695 cases and 606 deaths, India's COVID-19 tally on Thursday reached 9,68,876, informed the Union Ministry of Health and Family Welfare on Thursday.
 
The total number of COVID-19 cases includes 3,31,146 active cases, 6,12,815 cured/discharged/migrated and 24,915 deaths. 

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News Network
April 19,2020

New Delhi, Apr 19: The government on Sunday prohibited the sale of non-essential items through e-commerce platforms during the ongoing lockdown, four days after allowing such companies to sale mobile phones, refrigerators and ready-made garments.

Union Home Secretary Ajay Bhalla issued an order excluding the non-essential items from sale by the e-commerce companies from the consolidated revised guidelines, which listed the exemption given to the services and people from the purview of the lockdown.

The order said the following clause "E-commerce companies. Vehicles used by e-commerce operators will be allowed to ply with necessary permissions" is excluded from the guidelines.

The previous order had said such items were allowed for sale through e-commerce platforms from April 20.

However, the reason for reversing the order is not known immediately.

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Agencies
February 6,2020

New Delhi, Feb 6: Unemployment rate in the country as per a new survey was 6.1 per cent in 2017-18, the government informed Rajya Sabha on Wednesday.

Minister of State for Labour Santosh Gangwar said the government is conducting a new Periodic Labour Force Survey (PLFS) with new parameters and bigger sample size, and its results cannot be compared with previous surveys in this regard.

"As per the new Periodic Labour Force Survey being conducted by the government, the labour force participation is 36.9 per cent and the rate of unemployment for 2017-18 is 6.1 per cent," he said.

Replying to supplementaries during the Question Hour, the minister said the report of this survey is very different than the surveys conducted in previous years.

This survey is not comparable to previous surveys, he said, adding it was an attempt to provide authentic data with the new survey conducted through the Ministry of Statistics.

"We are focusing on infrastructure development and ease of doing business and India's position in the world has improved. India has improved its position to 63rd rank now in 2019 against 196 in previous years," he said.

"Our government is very conscious of creating employment opportunities and is running such programme which generates employment.

"The way our government is functioning, employment opportunities are being created and the youths are getting jobs also," the minister said.

Gangwar said the government has stopped the previous survey as the sample size was low and an attempt is being made to improve the data by adding various parameters and provide more authentic data.

The minister said it will take time for collection of data as households have to be visited on the ground for authentic data collection in rural areas also.

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