Petrol Price Hike – The Facts and the Truths

These days, Oil price hike is not unexpected news, even though it affects common man's life  as this will cast extra burden on them. Oil Price hikes will eventually raise prices for provisions too. This creates imbalance in family budget.

Our Central Gov (UPA) has given privilege to petroleum companies in last June 25^th for fixing petrol prices. And the petrol price was INR 47.93 (@delhi). Within these 11 months, the price was increased 11 times!!! That means around 30% hikes within this short span of time. Now the petrol price is higher than the price of AviationTurbineFuel- ATF (which is used in Air crafts). Now ATF has 60.50 @ delhi. So I think we need to buy a jet for our use instead of Bike/Car ;)

Now oil companies can raise the price without any notification or any approval from the government. Yet another hike is expected within a week or two. And also the Gov is planning to withdraw the subsidy for LPG gas. If it happens, the economists predict that it’s price may become around 650.00. Now its price is 360.00. UPA has given this privilege to companies for helping Ambani's Reliance and Ravirooya-Sasirooya brother's Essar private petroleum companies. Till last June, they were struggling in Indian Oil Market. So the Gov has given privilege for them to fix the Oil price and for increasing the price whenever they want. These steps Point that the congress led UPA Gov is not concerned about the common people in India. They always say that the Oil companies are in loss. It is actually misleading arguments. If we look at the share values of these oil companies in National Stock Exchange, we can't say that they are in loss. I think the Gov is concerned only about the Reliance and Essar. To make these companies on profit, we - the common people - need to take more burden. The Gov is acting as a promoter for these companies :(.

One more important thing is that, the UPA Gov has given 12,000 Crs subsidy to petroleum companies. Then I don't know how they can again *CRY* with the BIG LOSS story. Another point that I would like to bring to your attention is about the salary scale of the our Co-operative oil company employees. Most of the employees have more than Rs.1,00,000/- of salary and they have the highest salary scale in co-operative setter. That means the major portion of the income goes for salaryL.         

While I spending some time on the Internet, I got to visit our Oil companies’ websites from which I understood that "the loss" arguments are fake. From their site itself, they pointed that they are running on Crores of profit. So I would like to share that information with you. Just go through the below information that i have taken from their own websites and realize the BIG *LOSS* our petroleum companies. 

Indian Oil Corporation

From their site itself, they announced that the company is running with Rs 10,221 Crs for the year 2009-2010.

 

See the quarterly based details,

Hindustan Petroleum Corp.

About HP, they have 1300 Crs of profit after the tax for the year 2009-2010. For the period 2008-2009 it was 575 Crs. I have taken this information form HP’s annual report-2010 (Page No 4).

You can collect the turn over details from their site itself.

Bharat Petroleum Corp.

From BP’s 2010’s annual report, I found that the company is running with the profit of 1537.62 Crs (Annual Report 2010, Page No.107).

I think you got a clear picture about this.

My Recommendation: I think, the only one possible way to express our objection against this, is to minimize the use of petrol. Try to avoid our private vehicles Bikes/Cars as much as possible and depend on public transport.  

So be aware about the story of *BIG LOSS* of petroleum companies  and try to reduce the usage of petrol. This is only thing that we can do from our side :(

Thanks for visiting blog post...

Anish Panthalani