Pranab Mukherjee Talks Of Diesel Price Deregulation...

Pranab Mukherjee Talks Of Diesel Price Deregulation...

Petrol And Diesel prices 'deregulation',NOT JUSTIFIED....
 
Many manipulations are involved,like imaginary claims,not considering exports,etc...A Government is not expected to resort to these,which the Indira Congress party,does on the diktats of the World Bank etc
As per Press Information Bureau,GOI,Ministry Of Petroleum And Natural Gas,dated,2/8/2011,the following apply,as regards Diesel price,applicable as on 1/8/2011.

Diesel price as on 01.08.2011

(Rs. per litre)

Price paid to refinery @ Trade Parity	37.46
Inland Freight	+ 0.69
Marketing Cost and Margin	+ 1.39
Excise Duty (including cess etc.)	+ 2.06
Total Desired Price before VAT and Dealer Commission	= 41.60
Less: Under recovery	(-) 6.06
Price Charged to Customer - Depot Price	= 35.54
Dealer Commission	+ 0.91
VAT (Including VAT on dealer commission.) *	+ 4.84
Retail Selling Price	= 41.29

                  *VAT as per Delhi.  It ranges from 26 % to 9.08 % from State to State

As informed by the Indian Oil Corporation Limited the build up of the current retail selling price of Petrol at Delhi is as under:

1.Marketing Cost and Margin = Rs 1.39
2.Under recovery =Rs 6.06.THIS IS IMAGINARY,and has to be ignored.
3.Dealer Commission = Rs 0.91
4.VAT on Dealer Commission = Rs 0.25,maximum.
 Why do the reportedly,loss-making OMCs offer such a huge Dealer Commission and VAT on the same?Please google for:-
1.What are under-recoveries.
2.PIL against under-recoveries
An Audit of the accounts is a must.

From TOI dated,6/10/2011 
KOCHI: The under recovery concept, which is so often cited by petroleum companies in the public domain as the reason for hiking fuel prices in the country, is under challenge at the Kerala high court through a petition filed by former ember of Parliament PC Thomas.While political organizations here are calling for reducing taxes, PC Thomas is attacking the concept of under recovery itself, challenging that levying rates by comparing with international prices while refining is done within the country amounts to duping the public.

Prices of petroleum products are fixed by adopting Import Parity Price. The logic behind the said calculation is that had there not been any oil refining companies in the country, all petroleum products should have been imported from foreign countries. Therefore, the citizens are liable to pay for petroleum products at the import rate.
[My comment:-This is absurd]
PC Thomas, who appeared at the High Court in person challenging the oil price policy, states that the central government is conveniently concealing the fact that oil production in the country is 30 per cent higher than the actual need and 25 per cent of the actual need of crude oil is extracted domestically.Moreover, India doesn't import petroleum products but only crude oil, which is refined in refineries domestically at a much lower rate than the global rate. However, the oil companies are charging Import Parity Price for petroleum products, not of crude oil, which is unethical and is an irrational pricing method, PC Thomas contends.The former MP is calling for a roll back from deregulation of petrol price and impose control over the same so that oil companies cannot increase the price arbitrarily. He is also seeking a court order to roll back from charging International Parity Price for petroleum products.

To be continued....