Wednesday, February 20, 2013

Moily's Absurd Claims Regarding Hikes In Petroleum Fuels' Prices

 As per a news item on,18/2/2013, Oil Minister Moily claims:-"  “Our country imports 73-75 percent of oil. We need to pay Rs 7 lakh crore for the imports. Where do we find that kind of money,”
    While he himself,should be aware of his own dishonesty,as regards this point,the following, are pertinent:-
1.The claim of the "under-recoveries" by the OMCs from 2005 ,is a LIE.
2.India has, over-capacity in refining Crude.Why the Crude import is, NOT REDUCED?Why there s no mention of the break-even price for Refining Crude in India?
       As per one calculation,in 2012,the break-even price for Crude Refining in India is,Rs 7028/bbl or $129.98,as on 20/2/2013[ Rs 54.07 = 1 US Dollar].
       The present Crude is ONLY $117 per bbl!!! 
And with each hike,.the break-even price of the Crude will go on increasing!
3.More Capex is planned in the Crude Oil refining Space.
i)Does he mean that the price of petroleum fuels be increased,when that happens,as MORE Crude will HAVE to be imported?
ii)Will one plan capex in a losing sector?If so,is not anti-National and thus TREASONOUS?
     This means that there is no LOSS in Crude refining and marketing for the Indian OMCs.
The following Table is from THIS link:-

To be continued.......