CAG To Audit "UNDER-RECOVERIES" CLAIMED BY THE OMCs......
This LINK explains that the claims of LOSSES claimed by the OMCs,based on the so-called,"under-recoveries",is wrong.An excerpt from the link:-
"While a common man perceives under recoveries as losses suffered by state run oil marketing companies, these losses are just 'notional 'and not actually incurred by the companies. This is because the Government uses import parity basis to calculate under recoveries. For example in case of diesel, the fixed selling price of the diesel is compared to the amount the companies would have paid had they imported the diesel (this will include international price of diesel, custom duties, transportation costs and marketing costs and margins). However, the price thus arrived has nothing to do with the actual cost of producing diesel which will be lesser (considering domestic over capacity in petroleum products refining markets). The way whole thing is projected makes one feel that the Government is making net losses in oil marketing business so as to keep the fuel prices affordable. "
My comments:-
1.The concept of under-recoveries,and the claims of LOSSES based on these were started by the OMCs ONLY from 2005.Till then,they were making PROFITs?How come?
2.A very important point is:-
"The concept of UNDER-RECOVERIES" was started,by the OMCs, ONLY from 2005,AFTER M M SINGH,BECAME PM!!!"
3.Some starnge coincidences regarding ,"under-recoveris" and the influence of the MNCs,is established.
To be continued....
This LINK explains that the claims of LOSSES claimed by the OMCs,based on the so-called,"under-recoveries",is wrong.An excerpt from the link:-
"While a common man perceives under recoveries as losses suffered by state run oil marketing companies, these losses are just 'notional 'and not actually incurred by the companies. This is because the Government uses import parity basis to calculate under recoveries. For example in case of diesel, the fixed selling price of the diesel is compared to the amount the companies would have paid had they imported the diesel (this will include international price of diesel, custom duties, transportation costs and marketing costs and margins). However, the price thus arrived has nothing to do with the actual cost of producing diesel which will be lesser (considering domestic over capacity in petroleum products refining markets). The way whole thing is projected makes one feel that the Government is making net losses in oil marketing business so as to keep the fuel prices affordable. "
My comments:-
1.The concept of under-recoveries,and the claims of LOSSES based on these were started by the OMCs ONLY from 2005.Till then,they were making PROFITs?How come?
2.A very important point is:-
"The concept of UNDER-RECOVERIES" was started,by the OMCs, ONLY from 2005,AFTER M M SINGH,BECAME PM!!!"
3.Some starnge coincidences regarding ,"under-recoveris" and the influence of the MNCs,is established.
To be continued....
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