Post-poll: Brace for up to Rs 5 and Rs 3 per litre raise in petrol, diesel prices

Agencies
May 8, 2019

New Delhi, May 8: Petrol and diesel prices may increase sharply soon after new government comes to power at the Centre with oil companies looking to raise the retail price of the two transport fuels between Rs 3-5 per litre in phases and make up for losses they incurred by keeping the prices at artificially low levels in the run up to elections 2019.

Government sources said that oil companies sold petrol at almost Rs 5 per litre discount and diesel at Rs 3 per litre discount in March and April when average crude oil price of Indian basket hit a high of about $ 67 a barrel and $ 71 barrel respectively. At this level of crude oil prices (of over $70 a barrel), petrol was priced at over Rs 78 a litre and diesel over Rs 70 a litre in August, 2018.

It is, however, priced at around Rs 73 and Rs 66.66 per litre now respectively suggesting that oil marketing companies (OMCs) losing again heavily on retail sale of the two products.

"Oil PSUs have avoided hiking oil prices in tandem with global crude rates for almost two months now and the pattern may well continue till the end of May when elections gets over. So, it would not come as a surprise if domestic oil prices witness a sharp spike after the election season comes to a close unless the new government issues fresh advisory to stagger the required hike to prevent a public outrage," said an energy sector expert of a global audit and consulting form who did not wish to be named.

OMCs have been soft on increasing petrol and diesel prices since the beginning of 2019 but it has become more pronounced from March when election dates were announced. Since March, there have been numerous days when both petrol and diesel prices have remained static despite sharp movement in global oil prices.

While experts term this a big loss for oil companies, officials in leading oil sector PSUs said that as the retail price of petrol and diesel are determined on the basis of global oil prices in trailing 15 day period and also as prices are determined on the basis of movement of international petrol and diesel prices and not crude oil, retail prices could remain static even through crude prices move.

While oil companies have built losses on sale of petrol and diesel by not carrying forward the requisite hikes during election time, they have not shied from passing any cut in retail price of the auto fuel when international crude price has shown some softening in the month of May. Petrol price has been cut by almost 7 paisa and diesel by 5 paisa since May 4.

"We have to remember companies like Indian Oil Corporation, Hindustan Petroleum, and Bharat petroleum are all government run companies. So even if petrol and diesel prices are, so called, freed from any administered control, government still continues to use its hold over the companies to get prices that they feel is right for a particular time," said an official source.

This is not the first time that government has controlled the price of petrol and diesel. During Karnataka state elections last year, petrol and diesel prices remained unchanged for a 19-day period despite rising global crude oil prices. And soon after polls, there was a non-stop 16-day hike period, resulting in an overall rise of approximately Rs 3.5 in both petrol and diesel rates.

The same trend was observed during the Gujarat elections in 2017 when oil PSUs had stopped revising/increasing fuel prices 14 days prior to polling.

* Average crude price (Indian basket) in August 2018: $ 72 a barrel

* Petrol price in August: Rs 78.5 a litre in Delhi

* Diesel price In August: Rs 70 a litre in Delhi

* Average crude price (Indian basket) in April 2019: $71 a barrel

* Petrol price in April: Rs 73 a litre in Delhi

* Diesel price in April: Rs 66.5 a litre in Delhi

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News Network
February 18,2020

Bengaluru, Feb 18: Deputy chief minister Laxman Savadi was elected to the legislative council on Monday and although it was a done deal that he would win, a vote from across the aisle spiced up the election.

Counting was conducted soon after ballots were cast and Savadi polled 113 of the 120 votes cast, including the vote of disgruntled JD(S) legislator GT Devegowda. Seven votes were declared invalid. Members of the two opposition parties — Congress and JD(S) — abstained from voting.

The election was necessitated following the resignation of Rizwan Arshad of the Congress. Rizwan resigned after he was elected to the legislative assembly from the Shivajinagar constituency in the assembly bypolls held for 15 seats in December last year.

BR Anil Kumar, who was initially promised the support of both Congress and JD(S) was supposed to contest as an independent candidate. However, as both parties refused to support him at the last minute, he withdrew, paving the way for Savadi’s victory.

The BJP has 117 members in the 225-member assembly, but N Mahesh of the BSP and two independents, H Nagesh and Sharath Bachchegowda, besides GT Devegowda also voted, taking the total electorate to 120 (including the speaker). BJP’s SA Ramadas did not turn up because of health reasons.

“I would like to thank all those who were responsible for my victory. Special thanks to leaders of my party and chief minister BS Yediyurappa, who gave me the opportunity to be the BJP candidate,” said Savadi.

Winning this council election was crucial for Savadi to retain his ministry as he was not an elected member of either of the houses. Rules mandate that a non-member must get elected either to the assembly or council within six months after taking over as minister. February 20 was the deadline for Savadi, who had lost 2018 assembly polls from Athani, to get elected.

Officials in the assembly secretariat said seven votes were invalid because voters had wrongly marked their choices on ballot paper. According to norms, a voter has to mark numerical one, two and three against the names of the candidates in order of preference. Marking only numerical one is allowed. However, six ballots had a tick mark, while a voter had registered a cross mark. Since it was a secret ballot, it was not known who the MLAs were whose votes were invalid.

“The ballot papers bear serial numbers and they are randomly distributed. It is virtually impossible to say who a voter cast his or her vote for,” said assembly secretary MK Vishalakashi, the retuning officer for the bypoll.

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News Network
July 6,2020

Riyadh, July 6: The government of Saudi Arabia has announced health protocols to prevent the spread of the new coronavirus in the 2020 Hajj season, banning gatherings and meetings between pilgrims.

Saudi Arabia decided in June to limit the number of domestic pilgrims attending the Hajj to around 1,000 to prevent the spread of the coronavirus, after barring pilgrims abroad from the rite for the first year in modern times.

Touching the Kaaba, the holiest site in Islam, will be banned during the Hajj this year, and a social distancing space of a meter and a half between each pilgrim during the rituals including mass prayers and while in the Kaaba circling area will be imposed, a statement by the Center for Disease Prevention and Control (CDC) elaborated.

Also, access to holy Hajj sites at Mina, Muzdalifah and Arafat will be limited to those with Hajj permits starting Sunday July 19 till Aug. 2 2020, and wearing masks all the time will be mandatory for both pilgrims and organisers.

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News Network
July 17,2020

Bengaluru, Jul 17: Karnataka Medical Education Minister K Sudhakar held a meeting through video conference on Thursday with private and government establishments involved in testing and treatment of COVID-19 in the state.

A total of 51,422 cases including 19,729 recoveries and 1,032 deaths were reported in the state till yesterday.

On the same day, K Sudhakar also paid a surprise visit to the Bengaluru's CV Raman Hospital and urged the administration to follow COVID-19 guidelines properly. He also took stock of the hospital's preparedness to fight the deadly virus.

"Surprise visits will continue. I will be in touch with every lab and get the right number of tests done on a daily basis," the minister said while speaking to the media.

He also urged the people who have recovered from coronavirus to donate their plasma to save other lives, adding that donors will receive a reward of Rs 5,000 as a token of appreciation.

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