Power shortage impact on diesel - oil prices part -4

The ongoing power crisis across Tamilnadu has created a new concern for diesel availability. Ever since the power shortage started there is a sharp surge in quantity of diesel sold. This diesel consumption surge is due to usage of diesel for generators. Many industries depend on power for mass production of their goods. Because of non availability of power they are forced to operate industries with influence of diesel generators. The subsidy provided to diesel is again misused for purposes other than transportation of commodities. This will lead to additional import of crude oil which in turn adds burden to the oil companies which is already reeling under potential losses. The government need to shell out few dollars in addition to compensate for the misuse of subsidies. Continuous use of diesel for power generation will lead to increase in diesel prices and the basic commodity prices will also rise in parallel to It leaving aam aadhmi in the dark.

The regulation authorities also need to draw certain lines to curb this misuse of subsidy.

It is high time that we all should learn to use the resources in the best possible way. The burning of diesel for generating electricity is adding to pollution woes. The solar energy which is abundant and is the limelight for our future generations is highly untapped. Why don’t we focus on using this energy which is abundant and green to the environment?

Meltdown of premium petrol variants - oil prices part - 3

                                                 If you are a frequent user of gas stations, you might have noticed the increase in prices of premium petrol products like speed, extra premium etc which were wooing customers with increased efficiency, mileage and with lot of stuffs. Three major oil companies Hindustan petroleum, bharat petroleum and Indian Oil Corporation all set to stop production of these premium variants. 

There is a sharp decrease in consumption of these premium products in market due to continuous rise in oil prices and when government withdrew its subsidy the curtains are almost down. The price difference between premium versions and normal versions earlier would be in the range of 2 to 3 max. But with governments subsidy cut, now the difference mounts to 8 rupees. This can distance consumers from using it. The slump is major setback for the oil companies because of the huge investment spent in branding and infrastructure facilities. Statistical data reveals the setback is already projected three years back which stopped oil companies from further investment in this particular division. It also reveals high end SUV users, who were the main consumers of these premium variants also looking to prefer normal variants. The much hyped premium petrol products which were the cash cows once were now set for a decline.

oil price concerns - part 2

Whoa! When the whole nation is up against the rise in diesel prices, hardly we accept the fact that we are responsible for the surge in diesel prices. The diesel subsidy which is given by the government to keep the prices of essential commodities in an affordable manner is getting defeated on a daily basis. One has to believe that instead of showing dissent on rise in diesel prices, we should utilise the fuel efficiently and thereby we will be able to bring down the consumption quantity of diesel. Because of increased utilisation of diesel, the public sector oil companies have been left with only one option but to buy the fuel at any cost.

 The misuse of subsidised fuel for our personal transportation has led to this crisis. Recent survey by government have revealed data showing 30 % of the subsidised fuel is being used for purposes which it should not be meant for, resulting in extra imports of diesel at increased prices. This further is used as a marketing strategy by automobile companies wherein they sell diesel cars at higher prices because of growing demand. As citizens of India we should be responsible for wellbeing of fellow Indians, where nearly 30 per cent of Indian population is below poverty line. However the situation has become alarming now and with government deciding to take on bulls with horns by a proposal on taxing diesel cars with higher tax and bringing a cap on number of cylinders per household. It’s high time that oil consumers need to change their approach or in future they will be forced to change. 

Oil Price

OIL PRICE

Oil prices are the biggest concern of every common man. Infact after deregulation of petrol, there is a big surge in prices. The fluctuation have increased by many folds. Whenever there is a hike, the govt. distances itself from the hike by pointing its finger towards the global hike in oil prices.Recently the increase in petrol price by rupees 7 per litre, still remains the highest ever hike amended in a single day.

The subsidy given for diesel and LPG actually keeps the common man in a kind of comfort zone. The LPG cylinder which weighs 14 kg priced after subsidy at approximately 400INR is still the lowest when compared with any other nieghbouring countries except OPEC nations. Diesel and LPG regulations fully function under the control of govt. Diesel which is the main mode of transportation for all the basic needs of people is a key player in fixing up of commodity rices. Increase in diesel prices indirectly increases the commodity prices which loops into inflation, GDP etc ..

With rising losses to the govt run oil companies due to increase in subsidy, the govt has deviced a strategy wherein the susbsidy will be exempted for diesel passenger cars which actually accounts for 30 % consumption of subsidised diesel fuel. This is still at the planning stage, but implemented will definitely help in bringing down future increase in diesel prices to an certain extent.

After the awareness on global shortage in oil have spread across the globe, nations have focused on meeting their needs through solar,wind and hydro power and recommends the usage for all the developing and developed nations.

Oil has become a very basic need because of its endless demand for transportation. The rising consumption and burning of carbon into atmosphere, actually demands for more efficient use of fuel.