Could you please explain that in more simpler term???As you can see i am a new bee

I think we need to be careful. I remember around 10 years back also people bought these stocks at a price higher than today on some dis-investment. But we know that no one had courage to do that.

Oil is sensitive commodity and always expect govt control.

Slowly we will get there but not in near future.

Edited by nav_1996 - 03/Jun/2009 at 2:26pm

if not expect a good correction in the market..................they would have to increase the ceiling upto 75$ at least........................

They may not touch kerosene..........................but if they not move on the somewhat free pricing movement..............then what will happen to market.........although it is just one issue.........but muralijee had given good sound bites on TV


but the crude is already at $68

Deregulation is indeed possible if projected in the right manner. Consider these facts :

1) Cooking gas : most of us spend more per month on our cable TV than on a gas cylinder. Many people in towns and villages (even in cities) are forced to buy their gas cylinder in black. This is due to a combination of scarcity of supply and unremunerative pricing. Further, there are innumerable hassles in getting a gas connection, particularly the elusive "second" cylinder -- ration card, address proofs, bribes, waiting-list, etc. So, suppose the govt says the gas cylinder will be available on demand, but for Rs 500, most people will jump at it.

Again, pvt refiners are not entitled to the subsidy on cooking gas, which means
that a Reliance opts out of LPG retailing.

2) Diesel : Why should a guy driving a Mercedes and a tractor pay the same subsi
dised price for the fuel ? The price of diesel can easily be increased. Farmers
can be compensated, if needed (since this is a politically sensitive decision),
by post-dated coupons / cheques etc, based on some stringent criteria (say, proportional to the type of land they own). A similar thing can be done for public transport or government/ army vehicles based on fuel efficiency criteria or something similar.

3) Kerosene : The really poor people do not use this at all. The subside on firewood. The distribution of this can be linked to the NREGS or something similar.

Long time back, there was an "Oil pool account". A part of the surplus earnings of oil companies when oil prices ruled low went into this fund. This money would then subsidise the oil companies when the oil prices went high. The govt scrapped this well-working system ostensibly to rationalise fuel prices, but no political party has the guts to properly implement deregulation.