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
April 20,2020

New Delhi, Apr 20: The Centre on Monday said that India's COVID-19 doubling rate has improved to 7.5 days from 3.4 days before the lockdown was enforced to check the spread of the coronavirus.

"India's doubling rate before the lockdown was 3.4 days. It has now improved to 7.5 days. As per data on April 19, in 18 States, the rate is better than the national average," said Lav Agarwal, Joint Secretary, Union Health and Family Welfare Ministry, at a daily briefing here.

"The number of districts where no case has been reported in the last 14 days has increased to 59 in 23 States and UTs. Goa is now COVID-19 free," he said.

India's total number of coronavirus positive cases has risen to 17,656 including 14,255 active cases, 2,842 cured/discharged/migrated and 559 deaths, according to the Ministry of Health and Family Welfare.

"Mahe in Puducherry, Kodagu in Karnataka and Pauri Garhwal in Uttarakhand have not reported any COVID-19 case in last 28 days," said Agarwal.

Let us take a look at the top developments of the day regarding the COVID-19 situation in the country:

1. There are 23 active COVID-19 cases in Himachal Pradesh. 11 patients have recovered, four migrated out of the State and one person succumbed to the disease. A total of 2,902 people have been tested for COVID-19 so far, said Himachal Pradesh Health Department.

2. The number of COVID-19 cases has risen to 408 in Karnataka including 16 deaths and 112 discharges, according to the state Health Department. 18 new cases have been reported in the last 24 hours.

3. "14 new COVID-19 cases reported, all from Kashmir. The total number of cases now stands at 368, Jammu-55 and Kashmir-313," said Rohit Kansal, Principal Secretary, Planning, Union Territory of Jammu and Kashmir administration.

4. According to Punya Salila Srivastava, Joint Secretary, Ministry of Home Affairs, the Ministry wrote to Kerala government yesterday, expressing concerns over modified guidelines regarding lockdown. "Kerala has allowed some activities that violate the Ministry's instructions issued under the Disaster Management Act," she said.

5. Five more police personnel from Chandni Mahal police station have tested positive for COVID-19. Till now eight personnel from the police station have tested positive for the virus, according to the Delhi Police.

6. Total 57 new COVID19 cases and two deaths have been reported today. Cumulative positive cases now stand at 1,535, and toll at 25, said Rajasthan's Health Department.

7. Indian Council of Medical Research (ICMR) has said that RTPCR kits are US FDA approved and have good standards and these should be stored under 20-degree temperature for better result.

8. "A total of 283 more COVID-19 cases have been reported in Maharashtra, taking cumulative positive cases in the State to 4,483, as of 11 am today. Of the 283 new cases, Mumbai has recorded 187," said Rajesh Tope, Maharashtra Health Minister.

9. One new COVID-19 positive case was reported today in Bokaro, taking the total number of cases in the State to 42, said Nitin Madan Kulkarni, Jharkhand's Health Secretary.
10. According to Punjab's Health Department, only one person has been tested positive for COVID-19 in the State today. The person is a contact of the COVID-19 patient.

11. "There is only one red zone district in Chhattisgarh. For the last 72 hours, no COVID-19 positive patient has been found even in that red zone district. I am hoping that whole of Chhattisgarh will be green zone soon," said Chief Minister Bhupesh Baghel.

12. Six new COVID-19 cases were reported in Kerala, all from Kannur, of which 5 have foreign travel history. Total cases in the State at 408, including 114 active cases, said Kerala Chief Minister Pinarayi Vijayan.

Meanwhile, the Centre has constituted six Inter-Ministerial Central Teams (IMCTs), two each for West Bengal and Maharashtra and one each for Madhya Pradesh and Rajasthan to make an on-spot assessment of the situation and issue necessary directions to the state authorities for their redressal and submit a report to the Central government in the larger interest of the general public.

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News Network
April 15,2020

New Delhi, Apr 15: CPI-M leader Sitaram Yechury has sought a substantial increase in relief spending of the Central government in the fight against coronavirus, saying that there should be cash transfer of Rs 7,500 to families not paying income tax and distribution of free foodgrains to all needy.

In an article in the forthcoming issue of the party's mouthpiece -- People's Democracy -- Yechury said that India ranks among the countries that are testing the least for the coronavirus and testing should be increased rapidly.

Yechury said the financial stimulus package should be raised from the current 0.8 per cent to at least 5 per cent of GDP and States should be provided liberal funding.

"We must ensure that there are no starvation deaths that occur in our country. It is, therefore, imperative that the government must immediately implement a Rs 7,500 ex gratia cash transfer to all non-income tax-paying families and resort to universal distribution of free foodgrains to all needy people," Yechury said.

He said all MGNREGA workers should be paid wages irrespective of work and employers should be assisted financially to protect workers from job losses and wage cuts and arrangement should be made for the return of migrant workers to their homes.

"Testing is of crucial importance to identify the clusters where the pandemic is spreading in order to isolate and insulate them to contain the community spread. Inadequate testing does not provide us with such information. It is dangerous both for the inability to contain the spread and to identify the critical areas," the article said.

It said that till April 9, India's record of testing was 0.092 per thousand, while in Germany it was 15.96, Italy 14.43, Australia 12.99, Denmark 10.73 and Canada 9.99. "Unless our testing rate increases substantially, our strength to combat the pandemic will not grow," the article said.

Yechury said that the first case in India was reported on January 30 and "no substantive measures were taken despite this for seven long weeks" until the declaration of the lockdown on March 24.

"As far as the lockdown is concerned, many countries in the world moved with greater urgency - China locked down Wuhan on January 23, the whole of Italy was locked down on March 10, USA declared a national emergency on March 13, Spain on March 14, France on March 17 and UK on March 23," he said.

Yechury said the people were looking forward to the Prime Minister's address to the nation on the last day of the three-week countrywide lockdown.

"These three weeks have thrown up many experiences that need to be addressed urgently in order, both, to strengthen our fight against the COVID-19 pandemic and to protect the lives and survival of crores of our fellow citizens. On none of these issues of vital importance did the Prime Minister have anything substantial to say," he said.

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News Network
February 28,2020

New Delhi, Feb 28: The months of March, April and May are "likely to be warmer than normal" over northwest, west, central and parts of south India, the India Meteorological Department said today in its summer forecast.

Above normal heat wave conditions are also likely in the core heat wave (HW) zone during the season (March-May), the weather department said.

The core heat wave zone covers the states of Punjab, Himachal Pradesh, Delhi, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh Gujarat, Madhya Pradesh, Bihar, Chhattisgarh, Jharkhand, West Bengal, Odisha and Telangana and parts of Maharashtra and coastal Andhra Pradesh.

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