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OPEC president Chakib Khelil on Tuesday said that Oil prices “will not come down.” He however assured that the oil cartel has already done what it can do in the matter but there is no hope of coming down of surging oil price rates.

“OPEC has already done what OPEC can do and prices will not come down,” Khelil told journalists as he arrived for a meeting with EU energy officials in Brussels.

Due to the increase in international crude oil price, government wants a price hike in fuel to combat the crisis. Can’t the central government reduce the price in the same situation??

Yes, government can reduce the price. But centre is busy in making profits by fooling the public.

Have a look at the following data (approx) which will itself explain all the fact:

Total petrol price paid by public: Rs. 56.61

• Basic Price of Petrol = Rs. 21.93
• Excise duty = Rs. 18.35
• Education Tax = Rs. 0.43
• Dealer commission = Rs. 1.05
• VAT = Rs. 6.30
• Crude Oil Custom duty = Rs. 1.10
• Petrol Custom = Rs. 1.54
• Transportation Charge = Rs. 6.00

Hence for Rs 22 liter petrol at pumps we people pays Rs 34 tax extra. It’s more than double the actual rate of petrol. Should tax be so high? Can’t government reduce this tax to a satisfactory level? What you say?

Tags: Oil, Oil Prices, OPEC, Rising Price

Once again inflation is showing an increase and this time it surges to seven year high at 8.75% for the week ended on May 31 as compared to 8.24 % of previous week.

The costlier food and vegetables accounted for 0.51 percent increase in inflation from the preceding week leading fears to cross 9 percent after rise in fuel prices earlier this month.

The Wholesale Price Index (WPI) rose up by 0.6 percent touching 231.1 compared to 229.8 the last time. The WPI for manufactured products was up 0.7 percent whereas that for primary articles it was up by 0.9 percent.

Prices of foods and vegetables, cereals, milk, spices and some manufactured products are increased along with mustard oil and groundnut oil also. Despite, several government measures to contain cement rates, prices marginally increased.

Several measures are taken into account to reverse the inflation, including RBI’s raise of short-term lending rates to banks by 25 basis points on Wednesday but inflation is reaching new records every time.

It was 8.24% the week ending May 24 and 8.1% for the week ending May 17. The inflation was 7.82% for the week ended May 10 as compared to 7.83% for the previous week, said the official figures released today indicating a steady rise in prices from the past several weeks.

During the corresponding week a year ago, the inflation stood at 5.62 percent. Wholesale prices-based inflation stood at 5.15 percent a year ago.

Tags: India, Inflation, inflation rate, Price hike, Rising Price

Airline industry, which according to the Civil Aviation Minister Praful Patel is facing a staggering loss of about Rs 4000 crore, is in major crisis after air turbine fuel (ATF) cost has become 50% of the companies cost. Praful Patel seeks the government to save the airline industry from the ongoing crisis.

The minister on Wednesday said he did not want any airline to shut down due to the rise in fuel price. The minister was speaking after meeting with Prime Minister Manmohan Singh to seek a cut in government taxes ATF. In such a situation, the airline companies will be forced to take steps to prune their costs.

He told the PM that government intervention is needed to combat this problem.

On increasing fuel rate, he said that he would be approaching oil companies and the Petroleum Ministry on reducing the base cost of ATF. “We are also looking at reducing route navigation charges,” he added.

Low-cost carrier Spice Jet is expected to make a total loss of Rs 80-100 crore in the current fiscal, up from Rs 70 crore in the last financial year, due to higher ATF price. It is now planning to curtail flights on various routes due to the crisis.

Reacting to the losses that Aviation industry has suffered, Kingfisher Chief Vijay Mallya said, “Heavy losses of the Aviation industry is primarily due to the unprecedented increase in the price of jet oil. To make the matter completely worse, there is a huge element of taxation of government. Meeting with the Prime Minister is to request for tax relief.”

Jeh Wadia, Director of the Wadia group which owns GoAir hopes some tax slash as a solution on the rise in the jet fuel prices and its effect on the rise in the prices of airline tickets.

He said, “We are rationalizing routes and hope for some relief on the sales tax and ultimately we hope that it would be achieved.”

Tags: Airlines, ATF, Aviation, Manmohan Singh, Praful Patel, Rising Price

Oil companies of India has decided to finish the subsidies going on in LPG cylinders in India. In a recent movement they have decided to not provide any new connections.

Right now Government is giving around 300 Rs. subsidy on each LPG cylinder and if it has been removed then it will go out from the reach of the common people in India.

Right now cylinder is costing around 300-400 Rs. and after the removal of subsidy it can cross the 600 Rs. mark. This way middle class families will not be able to see the face of the LPG cylinder.

PM office and UPA Govt. has to decide yet on this topic and it is not sure whether they will accept it since it is the year of election.

Tags: LPG, LPG Cylinders, PM, Rising Price, Subsidy, UPA