Letter To the President Of india dated,23/2/2013

Honourable Presidemt,
                      Crores of Pranams.
     This has reference to the HUGE hikes in petroleum Fuels prices.My calculations show that the OMCs are MASKING profits.
     1.The India Crude Basket is about $113.50.The Total Refining Cost is generally, 90% Crude price.So the break even price based on this is $126.11.Based on this,the profit of the OMCs should be around,Rs 681/= per barrel of Crude refined (Rs 54.05 = 1 US Dollar).The OMCs run old Refining Plants.Hende their DEPRECIATION,should be low,comparatively,enabling them to make higher profits.
    In 2010 India was ,refining 3200,000 Barrels per day of Crude both private and PSU included.

http://www.indexmundi.com/energy.aspx?country=inproduct=oilgraph=consumption

Generally there is a 3.6% rise,per year in the Crude refined in India. Extrapolating,the amount Crude refined is about 3414,000 barrels per day,PSU and private sectors combined.
       The profit,based on a 330 working days per year is, Rs 76723 Crores per annum.(Both private and PSU Combined).    
    FOR THE SAKE OF SIMPLICITY,A UNIFORM CRUDE PRICE BASED on THE INDIAN BASKET IS ASSUMED.
    2.But based on the current prices of petroleum fuels,I have found that the OMCs make a profit of about Rs 2000 per barrel of Crude refined. The profits,after the price hikes of the petroleum fuels is very HIGH,indeed.
    3.Under-recoveries are first of all IMAGINARY and NOT ACTUAL losses.
    4.Even after HUGE hikes in the prices of Petroleum Fuels,the under-recoveries,GO ON INCREASING.This is very starnge to say the least.
    5.To further,strengthen my arguments,I am providing two links.Please use them.

    http://indiatracker.wordpress.com/2012/06/23/unethical-pricing-of-petroelum-products-in-india/
   


    http://veerar-sharesandcommodities.blogspot.in/2013/02/unethical-pricing-of-petroleum-products.html
   
    Honourable President,I request that there be transparency in the pricing of petroleum fuels,with clarifications on:-
i0Under-recoveries of the OMcs
ii)Do they actually constitute losses?If so,how
iii)Any business should have the break even prices of the raw-materials, and the break even point for the capacity,on which it must be run.I request that these two figures be provided.
iv)CAD is going on increasing due to import-export disparity.One of the items contributing to the massive CAD is the HUGE Crude import.Based on the break even price or the value of CAD this HAS TO BE REDUCED.Else india's Fiscal Positions wil,continue to be  be weak.
       Honourable President,the inflationary and anti-POOR.Middle Class and Fixed-Income Groups' polices,from 2004,has eroded the, "wealth" of the Citizens of India,more so after the massive 2008 stimulus,alas subsidy to the rich oligarchs. Needless to say,the masses are finding ti difficult to make both ends meet.
       Honourable President,I hope,you would be helpful,in mitigating the sufferings of these three most vulnerable sections of the Indian Society.
      Thanking You,
Yours truly,
K.V.sadasivan
   
Your Request/Grievance is Registered Successfully!!
Your Request/Grievance Registration Number is : PRSEC/E/2013/