PETROL, DIESEL & LPG PRICES AND SUBSIDY

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.

AMERICA, BIN LADEN AND INDIA

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”.

Why?

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 15^th August and 26^th 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.

USAGE AND WASTAGE

Scene 1 : The party is over. Everybody has left. Staff of catering services has now to wash the plates and bowls. In most of the plates some leftover was there. Hardly any dish was empty in real term. They have no option but to throw the remains in the dishes to the  garbage bins.

Scene 2 : Sharma’s is a rich four member family. Residing in a six bedrooms’ posh bunglow. It is 10.00pm. Mr Sharma is busy in his office work in his study room. His son is doing something in his laptop in his bed-room. Her daughter is watching a movie on her personal LCD TV in her room. Mrs Sharma is watching her daily-soap on 72” LED TV in drawing room. The cook and other servants have finished the work. No one in kitchen or in dining room, but lights were on in kitchen and dining room. Tow lamps were shining the porch area. Three tube-lights were on in the garden area, though no one was there. Four lamps were on in the chandeliers fitted on two entrances. A lamp was on in the terrace also. Electricity bill was not an issue for millionaire Sharmas.

Scene 3 : Shah’s family is in a hotel for dinner. They were six persons including family members and guests. Every one has started placing order of one’s choice. The waiter served the food. Placing of further/repeating orders was continued till the dinner was over. When everybody finished, almost 30% of the food was remained unconsumed on the table. Mr Shah paid the bill with a credit card, even without looking at the amount in the bill. Left a heavy tip for the waiter. The cleaning boy of the hotel collected all the semi-filled dished and throw everything in the garbage bins.

Scene 4 : Mother asked Jonny to buy a bread from the corner shop. Jonny’s bike was taken by his friend. Jonny pulled out 1800cc car from the garage, draw down to less then half kilometer away glossary shop, buy a bread costing 15 rupees  and came back. Petrol consumed by the luxury car was not a problem for Jonny, because his industrialist father was giving him quite large amount as pocket money.

We are witnessing such scenes frequently. Sometimes, knowingly or unknowingly, we become a party to such scenes. In all above scenes, money was not a problem. They have enough money to pay for the wastage they have made. But here the question is about the resources, scarce resources, misused or wasted. The food wasted in the buffet or in hotel could have been saved and made available to the needy. The electricity or water we are wasting can be used for better productive purposes. Of course we are paying for the wastage. But by the power of extra money we have, we are depriving others of the scarce resources, only because they have not enough money to pay higher prices of the resources. And the prices of resources are increasing because of this wastage also.

There are people who are hand-to-mouth. They can hardly meet their minimum requirements. On the other hand there are people who are wasting basic resources like food, electricity, water, fuel etc. on the strength of the extra money they have. Everyone has right to live the best possible life one can afford. But it doesn’t mean that we should waste the resources. If we can afford, we have all the right to eat the best food, live in best house, use electricity/water/fuel etc. for our comfort. But it does not make any sense in just wasting all these stuff only because we have paid for it. Because of wastage done by the rich, the poor either do not get the required resources for living or forced to pay higher prices for the same.

Basically, we are very careless in using the resources. Only because we can pay, we are using the resources which can be saved and used for better purpose. We are wasting electricity like anything and then we have no enough power to run the factories or providing irrigation facilities to the farms producing food grains. And then we keep complaining for increasing cost of the products/produces. We just forget that we can print the currency, but the resources are not in our control. Mother Nature has decided the quota of each resource for us. We use it or waste it, it is our choice. If we waste it, someone will not get his/her quota. Which will ultimately result in social unrest. I am not supporting Naxalites  at all. But it is time to think about the proper distribution and even more proper use of the resources. ( Distribution of wealth is all together a different issue.) Definitely use what you really need and can afford. But ensure that it is really used and not misused or wasted.

Start from your home, today itself. It will be a great contribution to the society.

LOKPAL - CBI, CVC, EC AND ANNA HAZARE

Anna Hazare demanded for formation of a joint committee for appointment of Jan Lokpal (People Ombudsman). Government has agreed to the demand and made a notification forming a committee for deciding the Lokpal Bill. And people of this ‘unfortunate’ country have started celebration to the extent as if corruption is eradicated from the country. As if all dishonest politicians and bureaucrats are punished. Are we really so innocent or are we fools? People of this country have always, from ancient times, waited for some superman to come and remove all the evils. (Our ancient epics like Ramayan and Mahabharat have also same stories where the “ bechhari-janata(poor people)” was saved from all the evils by some “heros” like Ram and Krushn). Perhaps they have seen their ‘suparman’ in Anna.  Poor folk.

The history of independent India has witnessed that such independent entities have not performed well. CBI, EC(election commission) and VC (vigilance commission) are examples of such authorities. These institutions are given immense powers and independence (at least on paper) to perform without any fear or interference of governments. But the track record of these authorities is far from satisfactory.

CBI, the highest investigating agency has always remain a handy tool for the ruling party to use against the opposition or for own benefits. The working of CBI has always remained doubtful because in many cases the flow of investigation kept changing with the change of power in the center. Bofors is one of the best examples of such so called investigations.

Election commission is such another entity having vast powers. However, during sixty years of its existence, only during the tenure of Sh Sheshan, electoral reforms have taken place. People were made aware of rules and regulations need to be followed by the contestants. But after Sh Sheshan has gone, no further reform took place. Not a single politician has been given exemplary punishment for breach of election regulations.

Until the Tomas issue came out, very few have heard anything about the Vigilance Commission(VC). The reason is this institution has done nothing remarkable ever. Looking to the magnitude of corruption in the country, perhaps this authority has maximum opportunity to show its performance. But this authority has just past its tenure and enjoyed facilities available at the cost of the money of the exchequers.

The basic reason of total failure of such agencies is  that the posting of top-brass of these agencies is still in the hand of the government, directly or indirectly. Due care is always taken by the authority to put ‘right’ person at right place in such agencies. Mostly the persons retired from government jobs, and have track-record ‘suitable’ to the ruling party, are placed in such agencies. (Thomas was just befitting the post of CVC for this government.) For such persons the hefty pay-packet and other perks are extra benefits in addition to the pensions. They just pass their tenure peacefully without annoying their ‘aakaas(masters)’ in power to ensure extension or such another posting. No question of performance comes at all. This system need to be changed. (Our constitution does not allow to express anything against the President of India, otherwise lot can be said about election(!) of some of our presidents, also.)

In light of this situation, appointment of a Lokpal will not make much difference. On one hand some of the demands of Anna Hazare are not fair and tenable. His demand for giving full authorities to the Lokpal for receiving complaints, investigating and punishing the culprit is dangerous if fell in hand of some unscrupulous person. Remember, the Lokpal will be a human being after all and that too appointed by the ruling government. Process may whatever be, our experience is that the ruling party in this country can influence any posting, appointment and even election. On the other hand, again the person posted on this post will ensure that he/she get another term or another such assignment from the government for a peaceful and prosperous retired life. This will definitely affect the performance of the Lokpal.

It is not that nothing can be done to remove corruption from this country. But for that every one should have to start from the scratch. Gandhijee has said “Be The Change You Want To See”. How many of us have got a driving license without paying bribe or using influence? We pay donations to get admissions in any good school, teaching our children that this the way of getting work done. We are not ready to follow even simple traffic rules made for our own safety, leave alone thinking about the safety of others. Instead of asking for our rights, we always trying to find out short cuts to get our work done. We elect criminals and send them in parliaments and then blame the system. No Lokpal can do anything unless we are ready to fight against the corrupt and dishonest politicians/bureaucrats. Instead of searching ‘super/spiderman’ in Anna or some other person, it is better to be a ‘man’ ourselves. If most of us, if not everyone, will become a man/woman and fight for his/her lawful rights as a human being, we do not need any Lokpal.

Unfortunately the situation is totally different. Economic crime has become a status symbol. The definition of good character is reduced to sexual relations only. ( Refer to Loose Character....  in this Blog). Instead of social boycott of corrupt politicians, this lot gets more and more supporters. If we want to remove corruption, the simple way is to stop giving bribe. If most of us will refuse to give bribe, the person asking for bribe will have to change his/her mentality. Instead of voting for any party, we need to cast our vote in favour of the least culprit available in the list.  A coalition of honest persons is far better then an absolute majority of criminals in parliament. If we do so, the political parties will have to rethink about selecting their candidates.

So don’t wait for Lokpal or any other ‘superman’. Such heroes exist in stories and movies only. In real life you are the hero/heroine of your life. Prove it.

2G SPACTRUM : JPC : SCAM + SCAM = NO SCAM !!!

At last it has been decided by the government to form a JPC (Joint Parliamentary Committee) to inquire into the 2G-Spsctrum scam. Now just wait and watch. All the culprits of the scam will be held and severe punishment will be awarded very soon to make it a point to other unscrupulous also.

Here I remember the JPC formed after the Harshad Mehta stock-market scam in early nineties.  That JPC has probed into the scam for years. Tons of documents ware verified. ( All documents were required to be first translated into Hindi because many of the honorable members of the JPC did not know English.) After all such deliberation the JPC has finally found the “system” of RBI General Ledger entry was incorrect which ultimately lead to the scam. (This could have been found by a junior RBI auditor also.) Now, you cannot punish the “system”. No big head was found guilty. Small officials from some of the banks were targeted and punished for their role in the scam.

After a few years Ketan Mehta engineered similar kind of scam. (Fortunately no JPC was formed for probing the Ketan scam.)

The moot question is then why the JPC was so strongly demanded by the opposition?  They went to the extent not let the parliament function for the whole session and have threatened the government to repeat the action in budget session too. (It is another question what benefit common man gets even when the parliament functions!) What they actually want to gain from forming the JPC, because definitely they do not want to hang Raja or any other politician for that matter.

Mostly the JPC was demanded for …

1. The amount involved in the scam is huge and all knows that such largesse must be supported by a corresponding amount of kickback. Now, why only the ruling party gets the entire chunk? JPC will ensure that all get some pieces of the cake. If required, the beneficiaries of the 2G spectrum will required/forced to bring fresh cake.
2. The members of JPC will ensure that none of the person of their party found guilty in the process. In this case, particularly, the government has already declared that they have followed the precedent set by the earlier NDA government.  So all party JPC will save all party members.
3. Propaganda will be made to create an air that no culprit was spared. JPC has investigated in the scam and responsibility was fixed. (Whose responsibility, only GOD will know!) Mostly the “system” or “process” will found erroneous.

In fact the formation of JPC itself is a scam, wasting public money. Let us watch performance of this JPC (Joint Parliamentary Circus !) too.

THE QUESTION OF THE YEAR !

During the so called press meet of Dr Manmohan Singh with the editors-in-chief of the electronic-media on 15.02.2011, one of the editors-in-chief ( a lady, I don't know which channel she was representing) asked the question of the year(!) to Dr Singh :

"Sir, the cricket world cup will start very soon. People of India desire from heart that Indian team should win the cup. What is your wish?"

Did she expected Dr Singh to reply he was wishing some other country should win the cup? (that too in a open press-meet!)

She deserves .... what?

Jay Ho !!!

ALL THE BEST FOR FORTHCOMING EXAMS

ALL THE BEST FOR FORTHCOMING EXAMS

USELESS EMOTIONS ….. GUILT AND WORRY

Can we get the lost time back? Certainly not. Surprisingly, many of us frequently trying to get back the time already passed. Not believing?

What we are doing when we are feeling guilty for what we have done or not-done in past? We are trying to get back to the moments, the time, we have already lived.

Surely no one can change one’s past, however capable/powerful one may be. Then what we are getting by just wasting our present in feeling guilty for our past. Yes, we can definitely learn from our mistakes and DO something now to minimize the loss. But just feeling guilty does not pay any dividend. On the contrary it paralyzes our present.

So, my friends, just forget what has happened in past and make your present more fruitful.

Can anyone has even slightest idea what will happened to Mahatma Gandhi or Mrs. Indira Gandhi, just before few minutes of their assassination. These are just examples. You can recall so many happenings, good or bad, in your life which you or no one had ever expected. What can happen very next moment in any one’s life is not certain.

Again, surprisingly, we are spending our precious present in worrying about what will happen if…..

This IF is very dangerous and useless. Life if full of surprises. In fact, these element of life makes the life more livable.
The fact is we are equally helpless for our future as we are for our past.

I am definitely not meaning that we should stop thinking about our future. We must, and also put all efforts in present to make our future better. But at the same time, just worrying about what will happen if “A” is happen or “A” is not happen does not helping in building concrete base for a sound future. Put all your efforts now, without bothering about what will happen tomorrow.

I remember a sweet short story here …

Once there was a king. He had everything then what he has wanted. A large kingdom, wealth, health, loyal ministers. He was very happy.
He once heard about saint who was said to be very knowledgeable with high spiritual power. So the king went to the saint to pay honor. King requested the saint to give him advice for ruling his kingdom more effectively. The saint said that since the king is already doing well and has everything what a king should have, there is no need any advice. However, the saint wrote something on a piece of paper and gave to the king and said him to use the message when he was in dire need of some assistance. King put the paper in pendent he usually wearing.
Time passed, and as witnessed in the history, some of the near and dears of the king rebelled. The king lost all his powers and wealth. However, somehow he managed to escape with some of his family members. They continued to hide themselves in a forest to save their life. One by one, by one or other, the king lost his family members. A time came, when he was alone in the deep forest. He has no one with him. A wealthy, happy, mighty king just before a few days was not striving for like. Since there was no hope or reason for life is remained, he decided to commit suicide. He decided to hang himself on a tree. Just at the time of fixing the knot of the rope on his neck, his hand touched the pendent. He remembered the words of the saint and opened the pendent and unfolded the paper.
Only one sentence was written there. “This Time Will Also Pass”.The king shocked. The saint has written this sentence when the king was a mighty, powerful king of a large wealthy kingdom. If that time did not lasted, why this one will last forever?
The king decided not to surrender to the circumstances which were always changing. And thereafter the story is as usual. He met some of his loyal supporters, gathered weapons somehow… and of course regains the power.

Moral of the story is that The Time Always Keep Changing. Let the preset moment, if not desirable, be passed.

So my friends, just not feel guilty for what has happened in the past or worry about what will happen tomorrow, and just use present moments as you want to use. Passing exam or getting excellent grade is just one of the activities of life. Failing in any exam is not failing in life. There is always other chance.

Just put all your efforts to achieve the target. Whatever result may come, life is still yours.

All the best….

(In view of the forthcoming exams, I have reposted this article.)