The rationale behind the price hike losses to navratna oil companies as explained by the Union Ministry of Petroleum & Natural Gas in its advertisement (June 8) is unacceptable. Navratnas are to be nurtured indeed. But should it be done at the cost of millions of people?
Crude oil has many by-products such as LPG, lubricants and tar, which also generate revenue. Not a drop of crude is wasted. Then how can the companies incur losses? It is not the loss but a decline in profit that seems to worry the Government.
* * *
The Government, which is trying hard to convince the people that it has hiked the prices of petrol and diesel only to help the public sector oil companies, should ask the companies to cut costs, refrain from pompous lifestyles, limit the perks of employees, minimise pilferage, use energy, water and raw material more efficiently and effectively, improve employee productivity and so on. Surely, price hike cannot be the one and only way to prevent huge losses?