Petroleum Fuels marketing is a very big scam in India,after M M Singh became PM,when he allowed Shell India,a Rothschilds Co,in collaboration with Total of France, 100% FDI in LNG marketing,with a terminal,in Hazira Port.
IMF Riots, a term used for THE DICTATORSHIP of the IMF and the World Bank ,resulting in:-
i)DICTATORIAL [UNDEMOCRATIC],DECISION-MAKING,by the formation of Panels and Committees and asking them to recommend what the Western Globalist MNCs want.
ii)Absence of Debate and participation of the Public in the same.
That is no Public debate.Dissent not tolerated,heard.
iii)Because of (ii) above,UNJUST and UNPOPULAR decisions.
1.The pricing is in US Dollars based on International/Singapore benchmark,while refining is done in India. The price should be in Rupees, based on Total refining Cost.
Singapore benchmark cannot be used,as:-
i)Majority Indians, belong to the Middle Class,POOR and Fixed-income Groups.Their earnings are very low compared to the International Standards.Even the per capita income of Indians is very LOW by International Standards,though much if it can be due to a FEW RICH Indians…
ii)The Indian PSU OMCs are VERY OLD and hence DEPRECIATION will be much less,contributing to huge profits.
iii)There is over-capacity in India in Crude oil,refining as per reports.
2.Landed Cost is misused in pricing.Landed coast applies ONLY for imported items,but this is applied to refined petroleum products produced in India.
It is worth noting that the PS OMCs,get about 30% of their Crude from India,[indigenous],at SUBSIDIZED rates.These do not entail,ANY import duty,at all.
The above two are the main items in the so-called “under-recoveries” a LIE by the OMCs.Under-recoveries began to be misused,from 2005,only after M M Singh became PM in 2004. Vikram Singh Mehta,CEO of Shell India[a Rothschild Co],was ADVISOR,to the Ministry Of Oil And Natural gas, for 4 years!In an INTERVIEW,on 27th April 2012,He is BOASTING that Shell India is selling,LNG at 3 times the price of Domestic Gas!
IT SHOULD BE MENTIONED THAT THE, “ÜNDER-RECOVERIES”,ARE NOT ACTUAL LOSSES INCURRED,BUT IMAGINARY ONES.THERE IS NO ACTUAL LOSS,AT ALL.
Besides,the claim of losses,is NOT convincing,as:-
i)Crude oil IMPORT is not REDUCED.In manufacture/production,break-even point is a very important factor.But the break-even price of Crude is never mentioned.Above the break-even price the Refining Operation becomes untenable,
ii)India has over-capacity in Crude oil refining.If they are NOT profitable,then there won’t be any over-capacity.
iii)As per Petrofed,CAPEX is on in India in Crude oil refining.One source mentions,250MMT Crude refining by 2020.How can this be,if the operation is NOT profitable?
Under-recoveries,have been taking away huge chunks from the National Exchequer,from 2005,every year.The amount for the Fiscal 2011/12,was a whopping,Rs 1,38,000 CRORES.Since this is IMAGINARY,where has this amount,been going,for the last 7 years,EVERY YEAR?
IT IS WORTH NOTING THAT,THE NATIONAL EXCHEQUER GAINS MORE BY WAY OF TAXES THAN THE “UNDER-RECOVERIES” OUTGO.
The SCAM is all the more pronounced,as the under-recoveries are going on soaring every year even after the prices of Petrol,Diesel,LPG etc have been raised.For example,the figure,for the last Fiscal was Rs 1,38,000 Crores and it is expected and reported to be,about, Rs 1,63,000 CRORES,THIS FISCAL.The price of crude is almost the same or less.How,is this possible?The “under-recoveries’ should be less.And they are IMAGINARY,to boot.Double Whammy for Indians!!
The Finance Ministry,admits mistake [PARTIALLY!], but does NOT mention about cutting prices of the petroleum fuels!
The misuse of the so-called “under-recoveries”,is for,RAISING THE PRICES OF INDIVIDUAL FUELS,LIKE PETROL,DIESEL,LPG ETC,WHICH IS NOT POSSIBLE,WITH COST-BASED PRICING!
THIS link shows P.Chidambaram admitting that the OMCs are indeed,making profits.
An excerpt, from the link, above:-
“However, for the 14 PSUs in the oil sector, including Oil & Natural Gas Corp, Indian Oil and GAIL India, the ministry has sought a 30 per cent dividend, official sources said.
The Finance Ministry believes dividend from CPSUs is a return on investment made by the government and it should be commensurate with profits.”
To be continued……….