ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

PetroleumSubscribe to Petroleum

Taxing Petroleum Products

With the lowering of global crude prices in recent months, the expectation was that this would benefit the users of petroleum products, especially in the industry and transport sectors, and the consumers. This expectation has so far been belied. The central government has not only increased the...

Inflation with Disinflation?

Price inflation in India as measured by the Wholesale Price Index and the Consumer Price Index has shown diverging trends. While WPI indicates a disinfl ationary situation for 16 months, CPI indicates inflation. Explaining the construction of the two indices, the trends of subgroups of both indices are presented. It is found that the different sample sizes and weightages of commodity groups of both indices and price interventions in the market explains, at least in part, this odd situation of infl ation along with disinfl ation.

Oil Sector Deregulation

Will the government postpone the dismantling of the administered pricing mechanism (APM) for petroleum products beyond the current schedule of April 1, 2002? Given the mounting oil pool deficit and the professed disinclination of the finance ministry to take the pool account deficit on to the budget, such a possibility cannot be ruled out. It would be an unfortunate development, however, and wholly avoidable. The government must take a firm stand on sticking to the current timetable for freeing up petroleum product prices. Further, decontrol must go beyond prices and extend to removing the stifling restrictions currently proposed for entry into the business of marketing oil products.
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