<p>Judgment of the Calcutta High Court in the matter of Yeasin Molla & Others Vs Union of India & Others dated 12/09/2023.</p> <p>The petitioners are the ration card holders and members of Priority
Beijing: The Chinese government has raised the price of petroleum products by 18 per cent. This is expected to cause a dramatic rise in inflation, which is at a 12-year high. But the government has taken care not to upset the middle class by exempting bus and rail passengers and LPG users across the country besides the earthquake hit Sichuan region from the ill affects of the price hike.
Two small-time city businessmen, who allegedly forged documents in connivance with a sub inspector to get a tanker containing spurious diesel released from a police station, were denied bail by a city court on Tuesday. The duo, suspected to be suppliers of adulterated fuel to truckers were denied relief by the court which said their being behind bars was important for the cops to trace the SI who is absconding.
Prime Minister Manmohan Singh, in an address to the nation on Wednesday, explained the circumstances under which the government effected the revision in the fuel prices. "I know that the price increases we have had to announce today will not be popular, though they are only modest,' he said while noting that the Centre was taking a revenue hit of Rs.22,660 crore during the 10 months of the current fiscal.
A cess or surcharge on income tax and corporate tax may be levied to bail out oil firms reeling under high global prices as the Petroleum Ministry's proposal to raise petrol price by Rs. 10 a litre, diesel by Rs. 5 a litre and that of LPG by Rs. 50 a cylinder finds few takers. The new proposal follows Finance Minister P. Chidambaram's reluctance to cut duties on crude oil and petroleum products unless alternative source of revenues are identified.
Despite political setbacks for the Congress leaving little room for a hike in motor fuel prices, the Petroleum Ministry is toying with the proposal for a "massive hike in petrol' prices to bring them on a par with the market rates. Diesel, LPG and kerosene, however, will be left untouched. The deregulation of petrol could see its price jumping by Rs.15 to Rs.16 a litre.
As the country battles with the fallout of rising crude, it is time for the policy makers to relook at the faulty pricing policy of petroleum products. More often than not, the blame of high crude prices is laid on the taxes - customs duty, sales tax and excise duties etc. The rationale for cutting taxes is definitely there, but when we talk about crude rising by nearly 50 to 60 per cent from the present levels, a harder look has to be given to the way the oil companies are paid for the production of petrol, diesel, LPG and kerosene.
The prices of diesel and kerosene have registered a sudden increase in Barisal over the couple of days reportedly due to artificial supply shortage created by a section of traders. Local said diesel and kerosene prices had increased in the city by Tk 7.00 to 10.00 per litre. Oil depot sources said they had supplied kerosene at Tk 7, 842 per barrel and diesel at Tk 7, 762 per barrel to the dealers. The dealers have been directed to sell those at Tk 8,000 per barrel in the wholesale markets.
Rationing oil cannot address the larger issue
Noted social crusader Anna Hazare who called on Chief Minister Vilasrao Deshmukh on Monday does not seem convinced by the latter's assurance and hence has threatened to go on fast unless his demands are accepted in totality. He has trained his guns on Food & Civil Supplies Minister Sunil Tatkare for alleged corruption in the Public Distribution System (PDS) including kerosene distribution. Hazare, in his comment on the three-year rule of the Democratic Front government led by Deshmukh, said they are working on the principle of
Even though the government has recently allowed state-owned oil marketing Companies to marginally increase the prices of petrol and diesel, one doesn't need to use rocket science to figure out that the hike is just not enough to help Indian Oil Corp, HPCL and BPCL to tide over their losses. These downstream Companies have been selling petrol, diesel LPG and kerosene much below the actual price. To keep voters happy, the government decided to limit the hike in a range of Re 1-Rs 2 a litre when Rs 9 for petrol and Rs 11 for diesel were actually required. Also, the prices of LPG and kerosene were left untouched. This was when kerosene needed to be increased to Rs 20 a litre and an LPG cylinder priced close to Rs 330. At the same time, a partial relief package was promised to the oil Companies. This included issuance of oil bonds of a higher quantum
