Revision of Gas Prices in India. Our UPA2 Government feels the Domestic Gas Prices should have been revised (read: nearly Doubled) with effect from 1st April, 2014. It said that the purpose was to primarily get ONGC and OIL (both PSUs) reasonable price for their escalating cost of production. Nothing wrong there, anyone would like to believe, not withstanding the role of the biggest beneficiary, a Private player in the oil & Gas industry. However, what baffles me (and would shock others if they knew) is that our Upstream PSUs (that explore & produce oil and gas) dont get the market price of these commodities. Add to that the huge Subsidy burden towards the Downstream PSUs (that undertake refining, transporting and marketing of final products in oil and gas), various Taxes and Levies (like Royalty, Cess etc.), that the private players dont even apparently share in Joint Venture operations (even where the latter are majority stake holders). Shouldnt in a free economy, any company (Government or Private) be given Even playing conditions? And, why should the Government shed Crocodile Tears for their own companies, without actually bothering to provide better opportunities & prices to the Upstream PSUs? If the price of gas is increased and the Subsidy burden along with Taxes are also increased disproportionately for the Upstream Public Sector Undertakings, then who gets the final price benefit; is the moot question.
Posted on: Fri, 04 Apr 2014 14:01:56 +0000
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