Hinting that a hike could be imminent, Prime Minister Manmohan Singh, on Saturday, favoured a rationalisation in fuel prices while pointing out that there was a need to ensure that the poor and needy were shielded from the effects of such an exercise.
Dr. Singh voiced his opinion while addressing a function to dedicate to the nation the Rs.21,500-crore Guru Gobind Singh Refinery, a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Singapore-based Mittal Energy Investment Pte Ltd, which is a subsidiary of the Lakshmi N. Mittal group.
The Prime Minister said that the challenges faced on the energy front were formidable as the country needed adequate supplies of energy at affordable prices. “Domestic sources of crude oil and gas are inadequate to meet the growing demand of our rapidly expanding economy. With imports accounting for about 80 per cent of our crude supplies, the spiralling prices of crude in the international market have put a severe strain on our import bill,” Dr. Singh said adding that to insulate the common man from the impact of rising oil prices, the government shouldered a sizable portion of the burden by pricing diesel, kerosene and domestic LPG below their market prices.
As he sounded a caution that there was no room for inefficient and wasteful usage of fuel, Dr. Singh advocated the need for rationalising fuel prices and emphasised the need to adopt better technology for ensuring efficient conservation of resources.
Speaking earlier, the Union Minister for Petroleum and Natural Gas, S. Jaipal Reddy, said that the crude oil import bill had crossed the Rs.10,000 crore-mark in 2010-11. Minister of State, RPN Singh, pointed out that public sector companies were shouldering combined losses of Rs.1.40 lakh-crore by providing diesel at Rs.15 less for every litre than the market price, Rs.32 less per litre of kerosene and Rs.515 less on every cylinder of LPG.
The effort by the Prime Minister and his colleagues to build a case in favour of a fuel price hike is interesting as Punjab's ruling Akali Dal, had already announced its decision to oppose any hike in prices of diesel arguing that it would adversely impact the farm and transport sectors. There was an interesting verbal duel between Dr. Singh and Mr. Badal, with the latter sparing no accolades like “desh de mahan neta” to influence the Prime Minister to make some announcements, while he continued his anti-Centre rhetoric. On his part, Dr. Singh defended that the UPA had always stood by Punjab's side, which had been the torch-bearer of the Green Revolution that contributed to the nation's food security. He pointed out that the Guru Gobind Singh refinery could come up in a record 42 months due to the support from the Union Government. He said that with such projects and dedicated freight corridors to provide Punjab with rapid connectivity to the Eastern and Western ports, the State could once again become a hub of industry and reclaim the traditional role it played for centuries.
The Chairman of the Mittal group, Lakshmi N. Mittal, said that the capacity of the refinery would be increased from 9 million metric tonnes to 18 million metric tonnes per annum within the next five months. He said that apart from meeting the energy needs of the country, the project would ensure that Punjab became a petrochemical hub, especially in the northern region initiating major trade, commercial and ancillary industrialisation activity.
Those present on the occasion included Deputy Chief Minister of Punjab Sukhbir Singh Badal, leader of BJP's legislature party Chunni Lal Bhagat, Union Minister of State Ashwani Kumar, and Bathinda's MP Harsimrat Kaur.
For decades no central government has given any incentive for alternate sources of energy particularly solar. The cost of running a typical residence fully on solar power is nearly four times the cost in China. This is so even though much of the manufacturing is done locally. There is clearly a strong lobby with vested interest that is doing everything possible to limit the use of solar energy. Subsidies on diesel is a huge national waste. Nobody owning diesel cars or farm lands ploughed by tractors can claim to be poor.
Indian Government, as a representative of 1/6 th of the World population should take a firm stand on the 'Speculative and Unfair'crude prices in this World instead of rationalizing that price for the people of India, Oil price was $19/bbl in 1999. In fact oil price was running around $ 18/$22bbl during 1975-2000- a period of 25 years because of US's putting 'Windfall Profits' tax on Crude oil durin 1975 when Opec was trying to raise Oil price from $12/bbl to $18/bbl by Committee without any concern for supply and demand which they themselves can control. Right now same thing is happening and oil price has gone up from $32.bbl in March 2009 when speculators were out of market to $104/bbl which is more than 300% marked up. So Government should resist this high price and bring the mateer to UN for rational discussion. Let not Speculators ruin the World Economy.
Indian Government, as a representative of 1/6 th of the World population should take a firm stand on the 'Speculative and Unfair' crude prices in this World instead of rationalizing that price for the people of India, Oil price was $19/bbl in 1999. In fact oil price was running around $ 18/$22bbl during 1975-2000- a period of 25 years because of US's putting 'Windfall Profits' tax on Crude oil during 1975 when OPEC was trying to raise Oil price from $12/bbl to $18/bbl by Committee without any concern for supply and demand which they themselves can control. Right now same thing is happening and oil price has gone up from $32.bbl in March 2009 when speculators were out of market to $104/bbl which is more than 300% marked up. So Government should resist this high price and bring the matter to UN for rational discussion. Let not Speculators ruin the World Economy.
Crude oil basket has steadily risen since January 1999 from $20 to $125 a barrel or by 6.25 times and we have gradually increased its consumption as evidenced by increase in oil import bill from Rs. 27000 crore or 1.54% of GDP in FY 99 to about Rs. 810,000 crore about 9 % of GDP in FY 12 or by massive 30 times increasing its role in our energy mix. How long it will go on? How long we will keep hurting poor Indian economy by high energy cost and all important oil and gas sector by very high under recoveries? Why we are not looking at free option of infinite solar in place of cooking water heating fuels and free electric traction in place of costliest motor fuels? Easily replaceable cooking fuels are being subsidized while irreplaceable petrol is being highly taxed. This remains the greatest puzzle for me. Only pleasing part of the story is recent increase in petro products export to 60 billion dollars a year from India. Petro products should be used, priced, subsidized and taxed rightly so that these remain conducive to growth rather than jeopardizing the same.
GOI of india should levy Tax on Diesel Cars- People who can afford cars should pay more subsidiesed diesel. GOI should encourage Transporters of PUBLIC & GOODS to use CNG as it evironment friendly and also it is cheaper than Petrol / Diesel. Government should charge more from High Worth Individuals for LPG used for cooking. These measures would help GOI to reduce its Fiscal defecit.
Due to rising crude price, a burgeoning oil import bill is already a big worry for Union government. But the UPA government has not handled the situation tactfully. It is simply not able to a decision about decontrol of diesel price; nor has it taken a decision to impose additional excise duty on diesel driven cars and utility vehicles. Further, the subsidized kerosene easily finds its way in the black market. Thus, although the PM’s intention to deal with the fuel crisis is sincere, his government has not demonstrated necessary urgency about actions required to be taken to tackle the issues. It is time the PM takes quick actions in this regard.
Every time the congress party forms the government at the center,it is
hellbent in increasing the prices of fuel at regular intervals,which
increases the prices of all items including food,medicines and others
immediately,causing unbearable hardships to the ordinary man.Life
becomes a peril for the people under such drastic actions by the
central government.There are so many by-products from crude oil
refining stages,which yields very high prices in the markets,unknown
to the ordinary man.When crude oil prices rose to $147 a barrel some
years back,the fuel prices were also increased,but were nor reduced
when the crude oil prices came down to $40 odd a barrel.But when crude
oil prices rose to the present level,the fuel prices were increased
which is never acceptable to the people.I request the concerned
decision making authorities not to resort to such actions that causes
hardships to people anymore.
We need to search for alternate source of energy, and reduce our
dependence on crude oil as the major source of fuel and energy. Solar
energy, windmills, hydro power can be the major sources of energy.
Innovation is very much required in the energy and transportation
sector.
It appears that Dr.Singh is maintaining double standards.While at one side,he was emphasizing the need to adopt better technology for ensuring efficient conservation of resources,besides rationalizing fuel prices.But, on the other side,his govt was hard put in opposing the apex court's ruling over the issue of cancellation of 115 licenses on 2G spectrum,which were awarded on the basis of first cum first served,making a dent on the state's economy to a greater extent,does have no meaning at all.He should follow,what he preaches.
Why keep on hinting ? Get it done at once if needed. That's the problem with MMS and his government. Only talk and no action.He has Abdulla to take care of renewable energy, who knows nothing about the word. Progress on using solar energy has been nothing. Put in a few crores on solar energy research instead of putting it in Air India and see if our scientists can discover something new instead of copying what is done in the west.What is great in copying and sending rockets if we cannot solve our energy problem?
Instead of paying lip service to the poor every time he ratchets up fuel prices, the PM should 1.have a nationalized fuel supply grid which will supply fuel to the market transport fleet at low prices 2.have dedicated fuel outlets for public transport which will also supply subsidized or partially subsidized fuel 3.improve the govt rations supply system 4.improve public transport. And he should emphasize research into tapping renewable energy sources because they are almost free (that is, the energy itself is openly available so free). Step 1 itself will go a long way into insulating the nation from fuel price rise, since the fuel price rise will be isolated from food and other prices.
M M Singh has no ground, moral,technical or otherwise to raise the prices of fuels.The reasons:- 1.Till 2004 the OMCs were running on HUGE profits,wehn BJP was in Power. 2.From 2004,when MM Singh became the PM,the "accounting trick" and LIE,UNDER-RECOVERIES,were MISUED.Hence the OMCs WERE shown to be running on LOSS,from then on,though they were and ARE, actually making HUGE profits.
There are ever so many ways by which we can practise economy in the use of
energy which will go a long way in drastically reducing our bill on import of fuel.
Avoid the use of costly vehicles which involves heavy consumption of fuel and go
in for cheaper ones with less fuel consumption. Follow the Gujerat example by
resort to solar energy in every household right from today. I myself have seen a
friend using solar energy for meeting all domestic needs. Use of bicycles and
public transport to cover short distances for shopping visiting temples friends etc
should form a regular habit . The same purpose could also be met by daily walks a
healthy exercise at no cost to one's purse. Switching off lights fans etc when not
in use should be strictly followed. The cavalcade of large umber of vehicles for
security purposes by VIPs could be reduced drastically. Ads on economy on energy
consumption could be displayed prominently at public places to create awareness
among the general public.
So here is the issue, we have a growing middle class that has to depend on oil no matter what to show progress in our lives. All the talk about alternative energy is only fantasy since we are not even close on a technical breakthrough for cheaper energy. The only option left is to raise the price of Gas such that we can control the consumption of energy.
A green field refinery constructed in 42 months..! The efforts put-in by all the engineers is worth appreciating. It is time that we need such policy decisions with speedy executions to help achieving our aimed economic progress.
Govt of India should remove the tax on Petrol balance it on Diesel and CNG India is only country where public is paying more tax on petrol than Actul cost. Some time crude oil goes up and down and some time dollar goes up and down for it the Indian public is paying a constant price 2.75 Rs per liter
Actul cost of Petrol is 29.62 Rs per liter
Central govt tax 14.75 Rs per liter
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44.37 Rs per liter
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above are the state govt tax
Delhi Govt 21.27 Rs per liter
Tamil Nadu 25.18 Rs per liter
Mumbai 26.25 Rs per liter
West Bengal 26 .65 Rs per liter
Due to above tax policy on Petrol the consumption of Diesel and CNG has increased
and Central govt is taking tax on Diesel 4.75 Rs per liter due to farmers but Rich are using it and its effecting common man Rich has purchased the Diesel car or converted their car into CNG Only Motor bike users and Scot er users are effecting because they have no other option than Petrol
In any country of World Cost of Petrol is not above Rs 50 Rs per liter Govt of India should also consider according to world price of petrol . the consumption of petrol will increase govt will get more revenue where others side due to Tax policy on Central govt on Diesel is 4.75 Per liter
Govt and public both are effecting due to it
India needs to implement ideas which have become feasible with increased
fuel costs.
1. In situ gasification of deep coal seams and high ash coal.
2. Use of this gas as piped fuel, power production through gas turbines
and conversion to liquid fuels and Dimethyl ether.
3, Coal rejects could be gasified overground.
Conserving and efficient use of fuel is a minor part of bigger
problem. Most of the problem faced by our country or many other
countries, is inability of the leaders to see what is quite obvious.
Countries like our, suffer from bigness, huge populations,
concentrations at cities shattering the city infrastructure, huge
work places concentrated in and near huge cities, polluting shanty
towns, rampant power thefts and long list can go on. The only
practical workable solution is decentralization and autonomous
million inter dependent villages take caring of its own affairs, is
the way to go. It is critical for the survival of the country to
plan for decongestion of urban areas. Problems like lack of power.
corruption and other common ills will just melt away. Gandhi in his
genius had realised this but for Indian leaders he was but outmoded
impractical saint ill fitting the "modernity"!
Solar energy is indeed an answer to our ever growing energy thirst. World’s first canal-based solar power plant on Sanand Branch Canal of Narmada was recently inaugurate in Gujarat by their Chief Minister. At least this will be able to cater the need for street lights.Every state can follow this method.
Again a good news for Indians.
From last week or two Indians have several reasons to smile and proud
upon.First came Missile (Agni-V), then came RISAT-1 n now this. After a
long sequence of corruption cases- hope is still there.
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