You surely would want to kill yourself for being born in these crisis years. The Oil companies are pestering the government to raise the price of petrol by 6 rupees. If this happens driving or biking will become a nightmare as petrol priced at around Rs.62 will retail at Rs.68!
It seems that the oil firms are selling petrol Rs 8 lesser than the International market prices but the Government gave a red light to the hike due to assembly polls which got over on May 10. The (unofficially) Government regulated oil companies cannot bear more losses and want to hike the price as soon as possible. It is speculated that the hike can take place any time now.
Oil companies thought that the panel of ministers would raise prices of kerosene, cooking gas and diesel for the first time since June 2010. Subsequently then, crude oil has climbed from $75 a barrel to $124 a barrel before tripping over $16 last week. In spite of the drop, crude oil prices are apparently higher than acceptable.
The government gave a cash compensation of 21,000 crore to IndianOil, Bharat Petroleum and Hindustan Petroleum for their revenue damages in the first three quarters of the prior fiscal year. The companies grieved a revenue loss of about Rs78,000 crore in 2010-11 on account of selling fuel below market rates. Reddy, The Oil Minister has demanded 26,000 crore more from the empowered group of ministers (EGoM) to make sure state oil firms do not report a loss in 2010-11. Again the oil companies are now in a fix as they fear that the government might limit the compensation figures to Rs 30,000 crore.
Any which ways the consumer i.e. we all are going to suffer and soon there will be a time when petrol will be Rs 100 and we would prefer horse carts to engines.
Source : ET