CRUDE …………$$$…??? PETROLEUM?2008

Indian oil corporation limited, Hindustan petroleum, Bharat petroleum corporation limited are huge names which play important roll in transmigration in India. They were bearing continuously a gaint loss of crores of Rs. Per day; as the OPEC sharply hiked the price of crude oil.
IOCL which contributes more over 50% to provide petroleum products in India. The chairman of IOCl was continuously in touch of petroleum minister of India ‘Murli Deora’ to step down the price of crude oil by OPEC; or any another solution which recover the losses.
OPEC increased prices suddenly; there may have been some political reason responsible for petroleum crisis, as they are the monopolist in field of crude in whole world; or there may be really deficiency.
Are the petroleum prices at their peak stage? Is there really a shortage of crude oil inside the pit of Earth?
In opinion of most of the people; yes, they explained that they saw a time also when it was just 2$ per barrel, but now it has achieved upto 150$ per barrel. So what can be much more now? That’s the end of crude & we will have to explore any other alternative fashion for energy with the aspects of less pollution soon.
But scientifically we use only upto 60% of deposited crude inside Earth & rest is unreachable or we can say reachable but with very low margin, as it to sell.
So ‘Murli Deora’ was continuously pressurizing prime minister as well as external affairs minister ‘Pranab Mukharji’ for consensus with OPEC. In order to keep inflation in control, India’s finance minister ‘P.Chidambaram’ talked, but OPEC were not agree to reduce the prices.
Now it comes on central government to handle condition, as BPCL & HPCL gave a timelimit upto july while IOCL’s ultimatum was upto august 08. IOCL also supplied their financial data, which showed adequate to 21 Rs. They refine one liter petrol & its cost in market is 45 Rs./lit.
Why there is so much difference in the producing price & selling price? What does this gap covers?
It’s actually the government policy; governmrnt realise a gaint tax on petroleum products, this includes excise tax of importing crude oil, sales tax as major taxes. And from refinary to pumps also faces the comission betwixts.
‘P.Chidambram’ again went to head office of OPEC in ‘Viena’ in a meeting on step-down the prices of petroleum along with several countries & raised same question & supported it by increasing inflation, but again he returned with a deep despondency.
Now responsibility to preserve ‘middle class’ on the head of UPA government & had also a pressure of refinaris also to save them. Finally they raised the prices of petroleum products.
Petrol by 5 Rs./lit.
Diesel by 3 RS./lit.
LPG by 50 Rs./lit.
And the price of kerosen remained untouched.
That was a crucial time when already cost of all commodities was increasing & now at the same time petroleum also; inflationtouched the sky level again in the history of last 13 years.
(As inflation raised in 1995 upto 16.9%.)
The opposition got an opportunity to abash UPA government & they begun their activities rapid against UPA government. They insinuated people all over India on this issue; that was unfortunately right, as UPA was just ignoring this matter & was concentrating only to N-deal.
Hence people also enraged & initiated a protest against UPA. So keeping in mind next elections state government cut-down the prices by reducing sales taxes accordingly. There were different rates in diferent states; Delhi government had done the impressive work, they didn’t increase the prices except LPG by Rs.10 & in same way some other states like AP also cut –down prices upto a reasonable extent.
This was the time when poor & middle class people were facing a rise in inflation that had achieved upto 11%; & central government was busy in playing state politics. Congress cut down prices in those states where it was rulling as state government to get votes in next elections of loksabha as well as protect state government against the protest by oppositions.
They actually got scapgoat ‘AAM ADAMI’ to be trampled, to get grist in their antiquated mills.
In the same way BJP also did the same , party leader ‘Rajnath singh’ gave order telephony to the CMs of those states, where BJP was rulling.
In order to defend the bitter arrows, attacked by opposition; UPA’s ‘P.Chidambram’ & ‘Mammohan singh’ answered to media, ris ein price was very obvious; as they controlled it since past 4 years, & also figured out high growth rate in these 4 years in comparision to NDA government did it.
Opposition also alleged to OMCs; they alleged that financial data given by OMCs is unjustified, they are not showing the proper profit gained by them. As Reliance refinary has actual data of thousand of Rs. Of profit they gained without providing even a single rupee in form of tax; this indicates OMCs had enough profit.
Apart from all this politics, crude producers in India in Assam, bombay high etc. were gaining a prominent profit by exporting it to outside of India, without any taxation on that huge benefit gained.
Instead of assuring the crude producers, why did government step-up the cost of fuel?
UPA could impediment crude producers to export it & force to utilize it in India. This would definitely make independent upto some extent. But why did not they do this? Again the same answer, politics, & all know what politics is.