ORI riding Petrol in Pakistan, Russia Cheaper than in India

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ORI riding

Petrol in Pakistan, Russia Cheaper than in India

 

A random look at petrol pricing in India, China, Russia and Pakistan shows that while the prices in India and China are quite similar, in Pakistan and Russia they are cheaper by about Rs 12/litre and Rs 20/litre, respectively.

 

RATE CARD

Country

Petrol

India

68-77*

Pakistan

57.98

China

71.09

Russia

5054

*Varies according to Local Taxes
A random look at petrol pricing in India, China, Russia and Pakistan shows that while the prices in India and China are quite similar, in Pakistan and Russia they are cheaper by about Rs 12/litre and Rs 20/litre, respectively.
Despite a sustained rise in crude oil prices, the Government restricts the public sector oil marketing companies (0MCs) from raising retail prices. Diesel prices were last revised in June 2011, along with kerosene and LPG.• Though the Government deregulated petrol prices in June 2010, an informal control continues. Non-revision of prices of these fuels since then has severely impacted the liquidity and profitability of OMCs and has inflated the Govern- ment’s subsidy burden China, in 2009, adopted an oil pricing mechanism that allows the economic planning agency to adjust retail fuel prices when world crude oil prices change by than four per cent over 22 consecutive work­ing days. This policy is set by the Gov­ernment to limit the upper price of oil products and to neutralise the impact of a sudden fluctuation of international oil price on the market. It, however, com­pensates its two largest oil companies Sinopec and PetroChina on its refining losses. Chinese refiners have been re­porting wide refining losses because of State-capped pump rates.
Russia’s petroleum marketing sector has an oligopolistic structure. Despite the fact that there are many competitors in the market, oil prices are set by select companies. There is no subsidy mechanism. Former Russian Deputy Prime Minister Igor Sechin has founded the “oil club”, which brings together top executives of major Russian oil companies which meet regularly to discuss their business status.
In Pakistan, the prices of petroleum products include internal freight, oil marketing companies fixed margin, dealer margin, petroleum levy and general sales tax (GST).

CURRENCY  FLUCTUATION AND ITS IMPACT ON FUEL PRICEThe prices of oil products are published in Platts in US dollars. The extent to which currency fluctuations affect the petrol/diesel pricing thus depends on local currency depreciation/appreciation versus dollar. Any depreciation increases the domestic prices of these products and vice-versa. China has managed currency fluctuations on petrol/diesel pricing by a floating exchange rate policy. So, cur­rency fluctuations have, been minimal, depending on the extent of the central bank’s intervention in managing the yuan with respect to the US dollar. In Russia, the prices nominated in dollars are translated into rouble at average dollar/rouble exchange rate for the respective period. Difference between movement of prices denominated in dollar and those denominated in roubles is explained by the nominstl rouble appreciation against dollar.

 

kOttemaanwe U[rolrooti Fasray

Miami Water Transport Route From Myanmar To

North-East

A framework agreement between the India and Myanmar was signed in April 2008 to develop Sittwe port on the mouth of the Kaladan river as an alternative IWT (inland water transport ) route to move goods to and from India’s North eastern region through Mizoram.
Recently, Bhupinder Prasad, Chair­person, Inland Waterways Authority of India (IWAI), visited Sittwe, the capital of Rakhine in Myanmar, to inspect the port development work there. IWAI is responsible for the implementation of the first component estimated to cost Rs 342 crore. IWAI entrusted the job to Essar Projects India Ltd in May 2010.
The detailed project report (DPR) pre­pared by Rites in 2003 was revised and updated to suit IWAI’s requirements.
The project, known as Kaladan Multimodal Transit Transport Project, is being funded by the Ministry of External Affairs and has three components. First, construction of a port at Sittwe, undertak­ing dredging and installing navigational aids to make.the Kaladan river navigable over its 158-km long stretch from Sittwe to Paletwa in Chin in Myanmar. The second component involves upgrading the highway from Paletwa to Myeikwa near the Indo-Myanmar border in Mizo­ram covering a distance of 125 km. The entire stretch will be within the Myanmar territory. The third component presup­poses construction of a 100-km long road from the border to Lawngtlai in Mizoram. The construction of road, both within. Myanmar and India, is extremely criti­cal for the project as the port will not 1:,e able to function without it. ;Myanmar has provided the required land free of cost for port development work. India critically needs an alternative transit facility for its people in the North-East. The diver­sion of North-East bound cargo through. Sittwe would benefit the North-Eastern states, especially Mizoram, Nagaland and Manipur.

India goes ahead with J&K Hyde! Project : Ignoring protests by Pakistan, India has decided to commission the Nimoo Bazgo hydef project on the Indus in Leh, Jammu & Kashmir. The project Is seen as critical to tackling chronic shortage of electridty in the tourism-nen and strategically-important district, which runs mostly on diesel and kerosene generators. Islamabad had demanded that the 45 MW project must not be commissioned as, considering its design and build, it would reduce the flow of water into Pakistan, thus violating the 1960 Indus Waters Treaty. The Indian side maintains that they are net violating the treaty and hence the project will shortly be commissioned. Many in the Inc;:an establishment believe Islamabad tried to stall the project as Part 01 its strategy to use the issue of river water sharing to foment negative opinion against India within Pakistan. The two neighbours are also locked in legal confrontation over the Kishanganga hydel project on the Jehturn in Kashmir, with Islamabad having taken India to the International Court of Arbitration. A team led by senior lawyer Fall Nariman is currently n The Hague to make its final submission before the court to counter Pakistan’s objections to the project.

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