OMCs profiteering from consumers
It’s the state-run oil retailers, not consumers, who are gaining the most from the plunge in crude. Marketing margin that oil companies earn on the sale of every litre of petrol and diesel is now at its all-time high as retail prices of auto fuels have not fallen as much as the crude has tumbled from its last peak.
Since the last peak on Oct. 15, the conversion cost has fallen nearly 18 percent for diesel and 27 percent for petrol but Retail prices, however, declined 8 percent and 10 percent, respectively during the period.
Can the members of this circle raise this issue with Government? more
Since the last peak on Oct. 15, the conversion cost has fallen nearly 18 percent for diesel and 27 percent for petrol but Retail prices, however, declined 8 percent and 10 percent, respectively during the period.
Can the members of this circle raise this issue with Government? more
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Dear Mr. Rai, The mandate of GOI to Oil marketing companies is to adjust the price as per the market fluctuations of Crude and not repeat not adjustment as per economies achieved in processing. Firstly, there is no authenticity to your claim of such reduction in processing costs and no theory of economics endorses mandatory adjustment of price with reference to processing costs. Forgetting about economics, Mr. Rai should consider how would he have reacted to such price control, had he been an entrepreneur himself and similarly placed. more
Nov 28
It should be proportionate to the increase in the crude oil, as the other cost in refinery remains the same. The ministry should not think that the public can be cheated by sweet words of sympathy. more
Nov 28
All OMCs are given to political party members. hence there will be no question of any accountability or reduction in prices more
Nov 27
Crude is one of the component of raw material for producing both petrol and diesel and to get the final product other expenses are also needed. A manufacturing unit is very essential and a lot of man power is required at various level for production, distribution and sale. Hence it is not proper to apply arithmetic to compare without taking into account other expenses. Of course the OMC's are also earning some profit so as to invest it whenever the need of expansion arises to meet the increasing demand. Otherwise tax payers money is to be used for such purposes. more
Nov 27
The price of crude oil has crashed by 30% and Modi should feel lucky even though with hard negotiation with US, Russia, Iran and SA. He should instruct the OMCs to pass on the benefit to the consumers as per the price fixation mechanism. These companies should not prosper at the cost of consumers. The Excise Duty should also be reduced by 20% and the resultant budget deficit should be met by reducing cost of governance and wasteful expenditure which had been the neglected areas so far. more
Nov 27
