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Gas prices fall all gas!

Sat, Jan 02, 2016, 06:34 PM
Hardly 48 hours have passed since a fall of 50% in CNG price was predicted by analysts. On the contrary, petrol and diesel prices were raised by the government on Saturday.

Small mercy the petrol price was raised by 37 paise only, while that of diesel was upped by Rs.2. The first is manageable with vehicle owners, but the latter affects lorries and buses. As a result transport prices are very likely to go up sooner than later, and consequent price spiral.

Central excise is said to be the issue. Whenever oil and gas prices move up or down, excise prices are invariably doubled.

So the linkage of oil and gas prices with the international market prices and gradual removal of subsidies for the fossil fuels is that much gas.

Analysts should do their home work well to convince citizens the real nature of oil and gas prices. These analysts like financial analysts should not promise the moon by suggesting to the small investors and the common man to go for the equity market and getting nowhere. So is the case with oil analysts, a reduction in the international market prices does not necessarily translate into price reduction of petrol and diesel prices? How?

For instance, in the recent reduction in the price of LPG by 50% reduction agreement with Ras Gas of Qatar, what is delaying an announcement on CNG price reduction?
Agency: Ap7am Desk

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