Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 150
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | A bullet still unbitten    </title>
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-The Business Standard





Petrol decontrol has become a farce





It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below..."/>
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-The Business Standard





Petrol decontrol has become a farce





It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below..." />
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    <h1 class="cat-box-title">A bullet still unbitten</h1>
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                            <div style="text-align: justify"><br /></div><div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Petrol decontrol has become a farce</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below the market-determined price, exactly as was the case in the pre-decontrol era. The promise made then to decontrol diesel prices and allow periodic adjustment in prices of kerosene and liquefied petroleum gas or LPG for domestic use is yet to be fulfilled. Worse, political interference in pricing of petrol has not been discontinued, causing &ldquo;decontrol&rdquo; to be viewed as something as a farce. The policy change in June 2010 should have meant that some margins could be made on the sale of petrol, but state oil marketing companies have continued to lose money sharply through retail sales. Oil companies are upset that they have to make huge losses on petrol sales &mdash; which go uncompensated, unlike for the three controlled petroleum products, diesel, kerosene and LPG. The three companies lost Rs 2,200 crore in the first year of decontrol, and are estimated to have lost another Rs 5,000 crore in the fiscal year just ended. This year looks no better. Some constituents of the ruling United Progressive Alliance have made their disagreement to price increases known; the Trinamool Congress has even threatened to pull out. Decontrol has also failed miserably to bring a level playing field and competition to a market dominated by three state-controlled oil companies. The cash flow of these maharatna and navratna oil companies remains affected, and their high-cost borrowing continues to surge. Unsurprisingly, the companies are seeking government compensation for their losses on petrol, implying almost a formal return to the pre-decontrol era.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">On various occasions, oil companies as well as the government have claimed that the companies have the freedom to decide prices. But it&rsquo;s hardly a secret that their majority owner, the government, has the last word on the subject. Early last year, oil companies didn&rsquo;t change prices for months as four states prepared for elections. This year, too, assembly elections in five states ensured that price increases were not passed on. Except, this year, there was no change even after the polls. Despite the rhetoric from the oil companies&rsquo; leadership of their intention to raise prices from April, no such increase happened. The last price increase was more than five months ago &mdash; although companies are expected to review prices on a fortnightly basis. This is in spite of the fact that, meanwhile, the world price of oil has increased and the rupee has weakened further.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Any initial excitement over rapid re-opening of private outlets and their expansion has now run its course. Private players are back to square one, after seeing more than a 100 per cent jump in sales in the weeks immediately after decontrol. With time, the price differential between public and private sector outlets started widening, since public sector companies did not raise prices regularly. Public-sector unwillingness to pass costs on to consumers affected the pricing of private retailers like Essar Oil and Reliance Industries. If decontrol is to be followed in its true spirit, the oil companies will need to increase their price at the pump by around Rs 9 per litre, including taxes. A cash-strapped government cannot afford to postpone &ldquo;biting the bullet&rdquo;.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/" class="re" target="_blank">The Business Standard, 16 April, 2012, http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/</a><div class="clear"></div>
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-The Business Standard





Petrol decontrol has become a farce





It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below..."/>
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Petrol decontrol has become a farce





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    <h1 class="cat-box-title">A bullet still unbitten</h1>
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                            <div style="text-align: justify"><br /></div><div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Petrol decontrol has become a farce</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below the market-determined price, exactly as was the case in the pre-decontrol era. The promise made then to decontrol diesel prices and allow periodic adjustment in prices of kerosene and liquefied petroleum gas or LPG for domestic use is yet to be fulfilled. Worse, political interference in pricing of petrol has not been discontinued, causing &ldquo;decontrol&rdquo; to be viewed as something as a farce. The policy change in June 2010 should have meant that some margins could be made on the sale of petrol, but state oil marketing companies have continued to lose money sharply through retail sales. Oil companies are upset that they have to make huge losses on petrol sales &mdash; which go uncompensated, unlike for the three controlled petroleum products, diesel, kerosene and LPG. The three companies lost Rs 2,200 crore in the first year of decontrol, and are estimated to have lost another Rs 5,000 crore in the fiscal year just ended. This year looks no better. Some constituents of the ruling United Progressive Alliance have made their disagreement to price increases known; the Trinamool Congress has even threatened to pull out. Decontrol has also failed miserably to bring a level playing field and competition to a market dominated by three state-controlled oil companies. The cash flow of these maharatna and navratna oil companies remains affected, and their high-cost borrowing continues to surge. Unsurprisingly, the companies are seeking government compensation for their losses on petrol, implying almost a formal return to the pre-decontrol era.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">On various occasions, oil companies as well as the government have claimed that the companies have the freedom to decide prices. But it&rsquo;s hardly a secret that their majority owner, the government, has the last word on the subject. Early last year, oil companies didn&rsquo;t change prices for months as four states prepared for elections. This year, too, assembly elections in five states ensured that price increases were not passed on. Except, this year, there was no change even after the polls. Despite the rhetoric from the oil companies&rsquo; leadership of their intention to raise prices from April, no such increase happened. The last price increase was more than five months ago &mdash; although companies are expected to review prices on a fortnightly basis. This is in spite of the fact that, meanwhile, the world price of oil has increased and the rupee has weakened further.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Any initial excitement over rapid re-opening of private outlets and their expansion has now run its course. Private players are back to square one, after seeing more than a 100 per cent jump in sales in the weeks immediately after decontrol. With time, the price differential between public and private sector outlets started widening, since public sector companies did not raise prices regularly. Public-sector unwillingness to pass costs on to consumers affected the pricing of private retailers like Essar Oil and Reliance Industries. If decontrol is to be followed in its true spirit, the oil companies will need to increase their price at the pump by around Rs 9 per litre, including taxes. A cash-strapped government cannot afford to postpone &ldquo;biting the bullet&rdquo;.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/" class="re" target="_blank">The Business Standard, 16 April, 2012, http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/</a><div class="clear"></div>
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        LATEST NEWS UPDATES | A bullet still unbitten    </title>
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-The Business Standard





Petrol decontrol has become a farce





It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below..."/>
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-The Business Standard





Petrol decontrol has become a farce





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    <h1 class="cat-box-title">A bullet still unbitten</h1>
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                            <div style="text-align: justify"><br /></div><div style="text-align: justify">-The Business Standard</div><div style="text-align: justify"><br /></div><div style="text-align: justify"><em>Petrol decontrol has become a farce</em></div><div style="text-align: justify"><br /></div><div style="text-align: justify">It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below the market-determined price, exactly as was the case in the pre-decontrol era. The promise made then to decontrol diesel prices and allow periodic adjustment in prices of kerosene and liquefied petroleum gas or LPG for domestic use is yet to be fulfilled. Worse, political interference in pricing of petrol has not been discontinued, causing &ldquo;decontrol&rdquo; to be viewed as something as a farce. The policy change in June 2010 should have meant that some margins could be made on the sale of petrol, but state oil marketing companies have continued to lose money sharply through retail sales. Oil companies are upset that they have to make huge losses on petrol sales &mdash; which go uncompensated, unlike for the three controlled petroleum products, diesel, kerosene and LPG. The three companies lost Rs 2,200 crore in the first year of decontrol, and are estimated to have lost another Rs 5,000 crore in the fiscal year just ended. This year looks no better. Some constituents of the ruling United Progressive Alliance have made their disagreement to price increases known; the Trinamool Congress has even threatened to pull out. Decontrol has also failed miserably to bring a level playing field and competition to a market dominated by three state-controlled oil companies. The cash flow of these maharatna and navratna oil companies remains affected, and their high-cost borrowing continues to surge. Unsurprisingly, the companies are seeking government compensation for their losses on petrol, implying almost a formal return to the pre-decontrol era.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">On various occasions, oil companies as well as the government have claimed that the companies have the freedom to decide prices. But it&rsquo;s hardly a secret that their majority owner, the government, has the last word on the subject. Early last year, oil companies didn&rsquo;t change prices for months as four states prepared for elections. This year, too, assembly elections in five states ensured that price increases were not passed on. Except, this year, there was no change even after the polls. Despite the rhetoric from the oil companies&rsquo; leadership of their intention to raise prices from April, no such increase happened. The last price increase was more than five months ago &mdash; although companies are expected to review prices on a fortnightly basis. This is in spite of the fact that, meanwhile, the world price of oil has increased and the rupee has weakened further.</div><div style="text-align: justify"><br /></div><div style="text-align: justify">Any initial excitement over rapid re-opening of private outlets and their expansion has now run its course. Private players are back to square one, after seeing more than a 100 per cent jump in sales in the weeks immediately after decontrol. With time, the price differential between public and private sector outlets started widening, since public sector companies did not raise prices regularly. Public-sector unwillingness to pass costs on to consumers affected the pricing of private retailers like Essar Oil and Reliance Industries. If decontrol is to be followed in its true spirit, the oil companies will need to increase their price at the pump by around Rs 9 per litre, including taxes. A cash-strapped government cannot afford to postpone &ldquo;biting the bullet&rdquo;.</div>                                                           
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    <br><a href="http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/" class="re" target="_blank">The Business Standard, 16 April, 2012, http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/</a><div class="clear"></div>
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Home हिन्दी

A bullet still unbitten

Published on Apr 16, 2012   Modified on Apr 16, 2012

-The Business Standard Petrol decontrol has become a farce It will soon be two years since petrol was decontrolled, but few will happily celebrate this second birthday. The government-controlled oil companies that dominate the fuel market continue to sell petrol way below the market-determined price, exactly as was the case in the pre-decontrol era. The promise made then to decontrol diesel prices and allow periodic adjustment in prices of kerosene and liquefied petroleum gas or LPG for domestic use is yet to be fulfilled. Worse, political interference in pricing of petrol has not been discontinued, causing “decontrol” to be viewed as something as a farce. The policy change in June 2010 should have meant that some margins could be made on the sale of petrol, but state oil marketing companies have continued to lose money sharply through retail sales. Oil companies are upset that they have to make huge losses on petrol sales — which go uncompensated, unlike for the three controlled petroleum products, diesel, kerosene and LPG. The three companies lost Rs 2,200 crore in the first year of decontrol, and are estimated to have lost another Rs 5,000 crore in the fiscal year just ended. This year looks no better. Some constituents of the ruling United Progressive Alliance have made their disagreement to price increases known; the Trinamool Congress has even threatened to pull out. Decontrol has also failed miserably to bring a level playing field and competition to a market dominated by three state-controlled oil companies. The cash flow of these maharatna and navratna oil companies remains affected, and their high-cost borrowing continues to surge. Unsurprisingly, the companies are seeking government compensation for their losses on petrol, implying almost a formal return to the pre-decontrol era. On various occasions, oil companies as well as the government have claimed that the companies have the freedom to decide prices. But it’s hardly a secret that their majority owner, the government, has the last word on the subject. Early last year, oil companies didn’t change prices for months as four states prepared for elections. This year, too, assembly elections in five states ensured that price increases were not passed on. Except, this year, there was no change even after the polls. Despite the rhetoric from the oil companies’ leadership of their intention to raise prices from April, no such increase happened. The last price increase was more than five months ago — although companies are expected to review prices on a fortnightly basis. This is in spite of the fact that, meanwhile, the world price of oil has increased and the rupee has weakened further. Any initial excitement over rapid re-opening of private outlets and their expansion has now run its course. Private players are back to square one, after seeing more than a 100 per cent jump in sales in the weeks immediately after decontrol. With time, the price differential between public and private sector outlets started widening, since public sector companies did not raise prices regularly. Public-sector unwillingness to pass costs on to consumers affected the pricing of private retailers like Essar Oil and Reliance Industries. If decontrol is to be followed in its true spirit, the oil companies will need to increase their price at the pump by around Rs 9 per litre, including taxes. A cash-strapped government cannot afford to postpone “biting the bullet”.

The Business Standard, 16 April, 2012, http://www.business-standard.com/india/news/a-bullet-still-unbitten/471417/

Tagged with: subsidies Energy Inflation

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