eliminate-petroproduct-subsidies-firm-decision-will-improve-the-health-of-omcs

[vcp]

http://economictimes.indiatimes.com/opinion/comments-analysis/eliminate-petroproduct-subsidies-firm-decision-will-improve-the-health-of-omcs/articleshow/14044109.cms?curpg=1

Eliminate petroproduct subsidies: Firm decision will improve the
health of OMCs
-- RK Pachauri

"However, this subsidy provides only part of the difference between
the cost price (including marketing costs) and the selling price of
these petroleum products - resulting in under-recoveries for the oil
marketing companies (OMCs) - which are calculated as the difference
between the cost price and the regulated price at which the petroleum
products are sold by OMCs to retailers after accounting for subsidies
paid by the government"

With some reliable numbers, article explains that subsidies on
petro products is just one part (of money spent by govt.), finally
under recoveries (Diesel is the largest category) are ALSO paid by the
government.

"By far the most important challenge in these relates to the energy
sector. It is for this reason that The Energy and Resources Institute
(Teri) has brought out A Citizen's Guide to Subsidies in India."

I just googled for the guide mentioned in the article and found this
link:
A Citizens’ Guide to Energy Subsidies in India
http://www.iisd.org/publications/pub.aspx?id=1581

-- Vijay