Accept the world as it is, UNLESS YOU CAN CHANGE IT !

Monday, May 23, 2011


Recently the oil companies have increased petrol prices. Increase in prices of diesel and LPG is on the corner. As usual the reason given is increase in crude oil prices in international markets. However, is it really necessary to increase the prices of petrol, diesel and LPG, i.e. the items used by almost all?

1.      During Iraq war, the crude prices were touched $140 per barrel. At that time the prices were increased. Thereafter the prices of crude oil have started reducing and touched to $70 per barrel. But not a single rupee was reduced in the prices of petrol or diesel. Not only that, but there after the oil companies have kept increasing the prices of petrol at every increase in crude oil prices. Even now the prices of crude oil are not as high as were at the time of Iraq war, but the petrol price is much higher than what it was at that time.
2.      Oil companies argue that they are loosing substantial amount on petrol, diesel and LPG. As all knows, oil companies are making hefty profits every year. The salaries of the employees of these companies are considered the best amongst public sector undertakings. Then what is the problem? It all rests with the cost computation system of these companies. When crude oil processed in the refinery, more than 100 different products are manufactured. The company calculates, as per their standards, manufacturing cost of each item. On the basis of this calculation, they decide that on some of the products they are loosing money. But what about hefty profits they are making on other products?
3.      In multi-product manufacturing process form a single raw-material, this is common phenomena. Banks loosing lot of money on ATM transaction facility provided to the deposit customers. But for that reason, banks can not stop this facility. Banks do pay interest on deposits and earn interest on loans. But this does not mean that they should not accept deposits. If banks stop taking deposits they can not land money and earn interest. Similarly, the oil companies can not stop producing petrol, diesel and LPG because they are loosing on these products. If they do so, the total wastage of crude oil will be more than the amount they are loosing on these products. Moreover, production of petrol, diesel and LPG is integral part of overall process of the refining the crude oil. So if they want to manufacture the profit making products, they have to manufacture these products also.
4.      It is argued that government provides huge subsidy on these products to the oil companies. There is nothing wrong if government provides subsidy for products of mass consumption. Government gives subsidy from the taxes paid by the public. Taxes are paid as direct taxes by those who have taxable income or in form of indirect taxes like excise duty, VAT, service tax etc. The tax payers get back some of the taxes paid by them in form of subsidy on petrol, diesel and LHG. In addition, those who have not paid tax because their income is not that much, are also getting some portion of the tax collection in form of subsidy on these petro-products. If it is so, what is wrong? Those who are earning more than the others, are supposed to support the poor country-fellows. This is indirect support to the lower-income group of the society. In fact government should continue providing subsidy on such products even by collecting more taxes from the higher-income group of the society.

But unfortunately our rulers are thinking on other way. They do not want to increase prices of ATF (fuel used in aircraft). Even though the class traveling in aircrafts is in a position to pay more for the journey, the government is not interested in collecting more money from them. Similarly more income can be generated by levying more taxes on luxury spending and the same can be used for providing relief to the poor by way of subsidy on certain items of mass consumption. This does not mean that we should go for 100% socialist economy. But, in a country like us where the rich are becoming richer by using the resources available in the country and poor remains poor, some cross-subsidization of certain mass consumption items is must.

Tuesday, May 10, 2011


Bin Laden killed by American Navy-SEAL. They entered into the Pakistani borders without even informing Pakistan, performed their task and went back. It was clear violation of international laws. Even Interpol has no authority to arrest any red-cornered criminal without informing the local authorities. But it is another issue.

Days within this episode, our army chief has announced publicly that Indian army was capable enough for doing such operation. Great. Many of us are also of the opinion that Indian intelligence agencies/army should carry out similar operation for some most wanted criminals ‘residing’ in Pakistan. Yes, we have all the rights to make such demands. But is it possible?

A big “NO”.


1.      Any such action will result in retaliation from Pakistan. We are not anyway near the military or economical strength of America. So is Pakistan. But Pakistan has nothing to loose. And in last decade when our rulers, and also military higher-ups, have not strengthened our forces with advanced arms, Pakistan has done it successfully. Whatever done in missile technology is far behind the technology acquired by Pakistan from Chine and N.Korea.  They have acquired latest war air-craft from America.  Well, despite all these, we can take it as granted that our military is capable enough to defeat the Pakistan military in any war, unless Pakistan get direct support from China or America.

2.      But are we as general public, ready for any war? Whatever we say, we are not ready for any such discomfort. War always results in some sacrifice. American public has also paid for the war they have fought in Afaghanistan and Iraq. Remember that those wars were fought on the land of enemy countries. Despite that the richest economy of the world had slipped into the worst ever economic crisis of the recent times. Here we have to be ready for a war on our land and to pay a greater price. Because of various reasons, our patriotism has vanished. We do not want to give up anything for our country.

3.      We are self centered. Instead of thinking for betterment of all, we mostly want a good and comfortable life for ourselves, even at the cost of rightful necessity of the others. No one, even opposition, has said a single word in public against the government when the twin towers of WTC blew-off by the terrorists.  Look at the situation here around. Any small thing happens, the first target is ruling party. Recall the scenes made by relatives of the hostages of the high-jacked Indian Airlines plane. Their only and only demand was to get their relatives back safely at any cost. Of course, perhaps anyone, including myself, would have wanted the same. Again, they were not at fault, because they knew even if they sacrifice, there is no guarantee that the rotten government would give the criminals appropriate punishment. Afazal Guru and Kasab are the examples. But making public scenes have given one more reason to our spineless government to act softly and release the terrorists.

4.      We have no political will for taking such stern action. Remember that government is nothing but some of “us” only. We have elected these selfish, unscrupulous persons and empowered them to take decisions on behalf of us. Do not expect any strong decision from them. Even before got elected, many of them were criminals and most were corrupt. And we gave them power to perpetuate their ‘virtue’ on a big way. Now expecting anything good from them is our fault. 

5.      Basically we are selfish and coward lot. History of Hindustan has witnessed that we have been invaded frequently. The enemies have always found easily their ‘friends’ within the country to help them for patty rewards. Britishers have never brought in their soldiers from England. They have ruled us with the help of our own people. Even today we place our personal need before the need of the country. There is no air of patriotism. We just hoist flags on 15th August and 26th January and then forget what the “nation” is.  We can not force our rulers to take any bold steps like America and assure them that the country will support them whatever the result will be.

So, enjoy the IPL and Saas-Bahu serials.

But it is possible that we may not be an independent country in future. And this is reality and not any stupid reality-show on the idiot-box.