Tuesday, June 19, 2012

:Letter To the President Of India

Your Excellency Madam President,
                               CRORES of Pranams to you.I have made a grievance to your Excellency, regarding the so-called,"under-recoveries" of the PSU Oil Marketing Cos.Under-recoveries,grab a huge chunk of the National Exchequer,and have been doing so from ONLY 2005,AND NOT BEFORE.This is a very significant point.
                               Refining of Crude Oil is done in India but pricing,of the petroleum products thus produced,(IN India),and marketed by the PSU OMCs, is on the basis of International Benchmark,that too in US Dollars.THIS SHOULD BE IN RUPEES,BASED ON TOTAL REFINING COST.
                               Landed cost is misused,in the above,as refining is done in India.Landed cost applies ONLY for IMPORTED items,and not to the ones, produced in India.
   Please use the following links:-



   I have copied a sample, for making Judgement easy.Please, see below.
Price Build-up of Domestic LPG (14.2 Kg Cylinder) at Delhi
Sr. No. Elements Unit
1st June'12
1* FOB Price at Arab Gulf of LPG $/MT 852.78
2* Add: Ocean Freight from AG to Indian Ports $/MT 43.39
3 CF (Cost  Freight) Price $/MT 896.17
OR /Cylinder 689.03
4* Import Charges (Insurance/Ocean Loss/ LC Charge/Port Dues) /Cylinder 5.82
5* Basic Customs Duty /Cylinder 0.00
6* Import Parity Price (Sum of 3 to 5) /Cylinder 694.84
7* Refinery Transfer Price (RTP) for Domestic LPG
(Price Paid by the Oil Marketing Companies to Refineries)
/Cylinder 694.84
8* Add : Inland Freight, Delivery Charges etc. /Cylinder 39.46
9* Add : Marketing Cost of OMCs /Cylinder 12.38
10* Add : Marketing Margin of OMCs /Cylinder 6.68
11* Add : Bottling Charges (Filling and Cylinder Cost) /Cylinder 38.68
12 Total Desired Price (Sum of 7 to 11)
-Before Excise Duty, VAT and Distributor Commission
/Cylinder 792.04
13* Less : Subsidy by Central Government /Cylinder 22.58
14* Less: Under-recovery to Oil Marketing Companies /Cylinder 396.03
15* Price Charged to Distributor (Bottling Plant Price) (12-13-14)
- Excluding Excise Duty  VAT
/Cylinder 373.43
16* Add : Excise Duty (Including Education Cess) /Cylinder 0.00
17* Add : Distributor Commission /Cylinder 25.83
18* Add : VAT(including VAT on Distributor Commission) applicable for Delhi /Cylinder 0.00
19 Retail Selling Price (Sum of 15 to 18) /Cylinder 399.26
20 Retail Selling Price at Delhi (Rounded Off) /Cylinder 399.00
21 Under Recovery due to Rounding Down /Cylinder 0.26
* The explanatory notes are given in the attachment.

     The above is ONLY a sample.
     There is more to this,as aligning of the petroleum products' price with the Global ones is being contemplated,despite the per capita income in India is different from other countries and hence such an alignment is bad for and will adversely affect Indians, at large.
     But this has a mala fide aim.The FDI in retail being proposed now, has a connection will all the above,as the MNCs will benefit a lot,if FDI in retail is implemented at all,with very huge profits.The reason for "removal of subsidy",is also for the sake of the MNCs.In this context,it should be mentioned that the stimuli,which are continuing from 2008,,are nothing but HUGE SUBSIDIES,to the rich Oligarchs.
     I hope your excellency will do the needful.
Thanking Your Excellency,
Yours truly,
Your Request/Grievance Registration Number is : PRSEC/E/2012/

Note: Kindly note your Request Registration Number for further references            

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