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Industry : Oil & Gas Functional Area : India
Activity:  22 comments  880 views  last activity : 07 12 2011 15:06:06 +0000
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The ministry proposes to limit the number of subsidized cylinders for even BPL (below poverty line) at four cylinders a year. But the government would give them a one-time assistance of Rs 1,400 for getting a connection The proposal outlines the criteria to identify those who have to pay market price for refills. These include anyone who owns a car, two-wheeler, house or figures in the income-tax list. The subsidy to BPL cardholders would be delivered through the unique identification number, Aadhar, as it is commonly known, regime that is in the works. The proposal rationalizes the move on the ground the present system does not differentiate between the needy and those who can afford to pay market price. It says even billionaires get their fuel at subsidized rate in the present system. The Centre at present supplies 9-10 million tonnes of subsidized kerosene a year for selling to poor through ration shops controlled by state governments. Several government and independent studies have said nearly 40% of the fuel is diverted for adulteration of motor fuels, giving rise to a black market worth over Rs 16,000 crore at today's market price. Consumers now pay an average of Rs 400 for a cylinder because of a subsidy of Rs 395. The government had last month raised cooking gas price by Rs 50 a cylinder, kerosene by Rs 2 per litre and reduced oil taxes. Still, together with diesel, it expects a subsidy bill of Rs 120,000 crore in 2011-12. We are struggling already and now we will struggle more. Is there any end to this struggle??

 
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24 comments on "LPG refills may cost us Rs 800"
  Commented by  KALIYAMOORTHY, Oil & Gas Area Coordinator, Undisclosed    | 07 12 2011 15:06:06 +0000
No excuse for such things changing drastically. We can not price an object's cost differently, on the basis of one's income. Be it poor or rich,  whether lives in Metro / Village, individual need to buy things on same price. Because of Govt program that launched to introduce GAS to rural, does not mean that it will increase it price on section so that, the subsidy incurred on them is recovered. The best option is to find out means to procure LPG from outside source adequately & meet the requirement at cheaper rate as possible.
  Commented by  maheswar dash, student, M.S.Law College    | 07 12 2011 09:44:16 +0000
we should ask the government first its employee to use 4 gas cylinder in a year, then we should think
  Commented by  Jagdeep Ohlan, Engineer Maintenance, Advantec Coils Pvt. Ltd,Bahadurgarh, Haryana    | 07 12 2011 06:10:27 +0000
yes Darshna, again well topic. Our government only think about industries and not for the prospective of common people. Please check how much they waisted on voter card initiative and now going for UID. When they launch voter ID scheme it is also mishype its benifit. All these policies are to waste our hard earned money they get from taxes.
  Commented by  Ravichandar S, investment    | 07 11 2011 17:26:41 +0000
its all wrong policies, Darshana! the petro products are taxed [whatever be the form] at more than 50% as pointed out at various forums. let the tax be reduced to acceptable level and then, even if subsidy is removed we can breath.
  Commented by  SHRIKANT MANOHAR DANKE, Consultant, Project Management Consultancy Firm    | 07 11 2011 11:46:17 +0000
It is only due to taking back of subsidy which is near to 50 t0 60% in the initial stage.
Thanks for referral, Darshana.
  Commented by  Rathin Deb, Freelance Retail Consultant    | 07 11 2011 09:49:56 +0000
At a difficult time when price rise are out of the roof government should increase the price where in there will be no profit but as it is obvious all the oil companies are making good profit so is center and Delhi Government. This, if stopped the inflation will go down and the people will feel relived.  
giving subsidy from the taxes we paid is far better than en-routing these subsidies in form of scams and diverted to politicians swiss bank accounts.  is it 16.1kg cylinder really cost 800/- if it is true how pakistan economically below than us able to give petrol to their citizens at 25/- per liter.  our country population mostly middle class and salaried people.  who thinks about them. they cannot save single pie in these type of atomosphere. they can`t settle any more in their life. for what they will save, whether they can save for their children education, for health for what? no body support them, nor govt.  BPL people get every thing, they get houses under rajiv awas yojana, they get subsidies, they get NREG benefits, they get pension, they get reservation every thing, they are not poor, real poor man is middle class common man. we lost humanity in thinking.
To the extent possible, the Govt. is trying to stretch out people by failing to contain the inflation, prices and essential commodities and increasing the fuel prices.  Is it enhancing the purchasing power of the people.  This is nothing but mismanagement of Govt. affairs.  It seems to that they have no plan of action at all.  This Govt. is squeezing the people.  No wonder even they enhance the price of LPG cylinder. 
  Commented by  Vrushank Bharatkumar Dave, Area Business Manager, Elder Pharmaceutical Ltd    | 07 10 2011 16:00:35 +0000
Kerosene is provided by govt. to BPL card holder by subsidized price. is it reaching to the BPL card holder as per quota allocated by govt? No Because of black marketing. Same thing will going to be happane with LPG cylinder. And Who will suffer out of it? Middle class and upper middle class population. Because they have to pay high price. This idea will not work at all. subsidy is not required on the total consumption of kerosene and LPG. That is very true. But first thing, On government has to work is on the suply system. If it can be strengthen and blac marketing can be wipe out then only it has value. Otherwise it is not going to be work at all.
  Commented by  raju kumar singh, B.Com(Delhi university) & mba student (icfai)    | 07 10 2011 13:29:22 +0000
stupid management of govt. no analysis, no innovation,as those people are engaged in money making business,having no time for this way.
  Commented by  S. Muralidharan, Head, Project Planning/Strategy, Knowledge Foundation    | 07 10 2011 10:27:06 +0000
This is over-kill, Darshana! There are better ways to handle things, not this way!
  Commented by  Mohammad Bakhsh, Project Leader/Managing Consultant, Freelancer    | 07 10 2011 05:20:42 +0000
Thanks,Darshana for referral.The subsidy covers from poor to rich.Those who can pay should not avail subsidy as a matter of principle.But before that,every citizen of India want to know what GOI is doing to enhance purchasing power of common people. As in other case,white paper should be issued with commitment of enhancing the purchasing power within 05 or more years.Otherwise Government should stop ruing the inability.I do not think LPG Refills will cost us Rs 800/- in near future.
  Commented by  Dipak Nilange, Sr. Commercial & Planning Enginner, ITD Cemenetation India Ltd    | 07 09 2011 18:39:44 +0000
In my opinion the material prices are same only we are revolving our money (The papers printed by govt.). As the fuel prices increase there in increase in each price. Like we got increments, increase in grains prices etc so it is likelyhood that we need to spent more as what we got.
Further the to decrease we can increase prices of liquor, cigrates, bidi's, soft drinks etc by incresing taxes and giving subsidy (to maintain scam ration & to maintain "lokshahi" to fuels.
One another method is to drive fuel on hadrogen (taken out from water) on intial stges it will be costly but later on we will be in habit of that. This will reduce fuel consumption (Wrong use of LPG in vehicles)
2nd method is as in nigeria people are operating one 250 MW plant on the leafs collected from wood (droopped leaves only and not cutting trees. The power plant run on internal combustion and producing coke for exxternal combustion. In this we can get help from our IIT as well as IIM peoples.

Hmmmmmm- we have to make habit for increase in prices.

  Commented by  Dipak Nilange, Sr. Commercial & Planning Enginner, ITD Cemenetation India Ltd    | 07 09 2011 18:38:43 +0000
In my opinion the material prices are same only we are revolving our money (The papers printed by govt.). As the fuel prices increase there in increase in each price. Like we got increments, increase in grains prices etc so it is likelyhood that we need to spent more as what we got.
Further the to decrease we can increase prices of liquor, cigrates, bidi's, soft drinks etc by incresing taxes and giving subsidy (to maintain scam ration & to maintain "lokshahi" to fuels.
One another method is to drive fuel on hadrogen (taken out from water) on intial stges it will be costly but later on we will be in habit of that. This will reduce fuel consumption (Wrong use of LPG in vehicles)
2nd method is as in nigeria people are operating one 250 MW plant on the leafs collected from wood (droopped leaves only and not cutting trees. The power plant run on internal combustion and producing coke for exxternal combustion. In this we can get help from our IIT as well as IIM peoples.

Hmmmmmm- we have to make habit for increase in prices.

  Commented by  Pradeep Saran, Technical Expert    | 07 09 2011 16:49:09 +0000
It is of no use expecting any relief from this government. It is a question of monopoly of oil producing companies due to high demand and less supply. Their lavish spending and inefficiency results in the high price of all petroleum products including natural gas. The middle class/salaried class should start using a combination of alternate means for cooking: use of microwave ovens, electric ovens for re-heating stored food, induction hearths, solar & hybrid cookers & electric kettles and milk boilers to reduce consumption of gas. Once the sale of LPG falls  to such an extent that the refills lie in stock for days together the Petroleum companies will realize their folly and try to improve their working efficiency to provide the gas at cheaper rates.
  Commented by  sanjay kr srivastva, ddnews/air ,editor -social vision    | 07 09 2011 15:53:41 +0000
stop subsidy but no ignore rurl peaple
  Commented by  sanjay kr srivastva, ddnews/air ,editor -social vision    | 07 09 2011 15:53:17 +0000
stop subsidy but no ignore rurl peaple
  Commented by  Amit Pandey, Embedded Engineer    | 07 09 2011 13:42:29 +0000
Ya they need to increase prices otherwise how the 76000 crore loot of CWG and  2 Lakh crore loot  of 2G  will be balanced ? do u think Madam will  balance that from her Swiss account ? 
  Commented by  Amit Pandey, Embedded Engineer    | 07 09 2011 13:37:23 +0000
Ya they need to increase prices otherwise how the 76000 crore loot of CWG and  2 Lakh crore loot  of 2G  will be balanced ? do u think Madam will  balance that from her Swiss account ? 
  Commented by  Amit Pandey, Embedded Engineer    | 07 09 2011 13:35:30 +0000
Ya they need to increase prices otherwise how the 76000 crore loot of CWG and  2 Lakh crore loot  of 2G  will be balanced ? do u think Madam will  balance that from her Swiss account ? 
  Commented by  Shyam S, Project Leader/Managing Consultant, A leading EDA firm    | 07 09 2011 12:21:35 +0000
How about  restricting the number of  SPGs  for  Sonia Gandhi and asking our bogus leaders to pay for their security ?
While such a large sum out of the tax payers money is used for the security of those worthless persons,  the common man is  asked to pay so heavily for LPG.
I think the people should revolt against this wretched Government.
  Commented by  puneet kaushik, Operations Manager,Financial Analysis,hedging, NBFC    | 07 09 2011 11:29:41 +0000
it's govt who has to decide vt best they cn do for people.
  Commented by  sudhakar, Head Markering, codezene (P) ltd    | 07 09 2011 09:55:16 +0000
IN ORDER TO ARREST THE SITUATION WHAT WE NEED BY THE GOVT IS TO INCREASE THE PRICE CEILING. OR GOVT CAN SUPPLY THROUGH RATION ESPECIALLY FOR BPL FAMILY SO THAT MAL PRACTICES CAN B AVOIDED. 
  Commented by  Munshi Ramchand, Chief Muni/CMD/CEO, Agastya Muni Inc    | 07 09 2011 08:12:50 +0000
The proposal to limit the number of cylinders for BPL is a joke because a good number of BPL people who get these cylinders do not use them.  In the state of Tamil Nadu,Karnataka and Andhra, BPL people sell their cylinders at Rs 600 to even Rs 1000.
In Kerala, BPL families sell their subsidized cylinders for Rs 1000 to Rs 1500. I don't have the figures for other states but should be close to these. So, government's subsidy is misused - there is no harm in helping the BPL people but this is pure non sense. 

Cooking gas is necessary ONLY in cities for both BPL and non BPL people. I don't understand why people in the villages, where there are plenty of firewood are given cooking gas at a subsidized rate?

"The subsidy to BPL cardholders would be delivered through the unique identification number, Aadhar, as it is commonly known, regime that is in the works."
What difference is this going to make?.  BPL people will still sell their cylinders for a higher price.

"The Centre at present supplies 9-10 million tonnes of subsidized kerosene a year for selling to poor through ration shops controlled by state governments."
Everybody knows what is happening to this subsidized kerosene.

Overall - the attitude of the government is good but it does not know how to deliver and control a commodity like LPG.

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