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Forum Name : Should the Private sector be given a "level playing field" in marketing of petroleum products?      << Bulletin Board Home

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Should the Private sector be given a "level playing field" in marketing of petroleum products? 21 Mar 2007 12:31 PM
The pricing of sensitive petroleum products in the subsidy ridden Indian oil and gas industry is a source of discomfiture to all. The government has to continuously bail out PSUs which run up huge under-recovery bills on sale of petroleum products. The public sector is constantly at loggerheads with the government over price hikes or reductions and within themselves over discounts. But more than the public sector, it is the private players who are the hardest hit by the subsidy regime. Deregulation should have ideally provided them ample opportunity to aggressively expand their retail networks. But the ground reality is different. The government's decision to subsidise only public sector companies left their private sector counterparts with no option but to shrink their operations as losses ran began to pile up. While a multinational like Shell or a player like Essar Oil felt it prudent not to expand its retail base under the current circumstances, Reliance Industries Ltd embarked on an aggressive expansion spree only to burn its fingers badly as rising international prices wiped out the possibility to keeping retail operations going. Should the government extend subsidy cover to all companies alike? Is it discriminatory to bankroll only the public sector in a market in which the private sector is an equal partner? Click on our Bulletin Board and join the debate.
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ANIL BHATNAGAR Unfair treatment 25 Oct 2007 01:20 AM
While subsidies may be necessary for the poor section of the society, the fact remains that thousands of crores were invested by private companies in creating petroleum infrastructure in the country based on the government's policy for market driven pricing. But the withdrawal of APM has turned out to be the biggest farce. Several multinationals went back waiting for a level playing field to materialise but ironically but the government developes cold feet when it comes to losing votes.It feels no responsibility toward the private companies who were led up the garden path by various policy announcements on the parliament's floor but nothing happened. Subsidies have to be funded in a different fashion but where is the political will to implement the very policy that was the basis for private investment.
Debee Justice denied 22 Mar 2007 07:30 AM
Subsidy is for the customer not for a company / organisation. How can one citizen of this country denied of his right only because he chooses to purchage of assured quality products from a private organisation. There has to be level playing field, ultimetly the end consumer is going to be benifited by this.
Gautam Who will look after the poor? 21 Mar 2007 04:51 PM
Only the government can look after the poor and needy by subsidising SKO and LPG. The private sector will not take part in this. So they should not get any subsidy.
K Paul Unfair 21 Mar 2007 04:48 PM
It is unfair for the government to treat the private sector the way they have done. There should definitely be a level playing field. Otherwise the government is being double faced
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