11-14-2007, 12:16 AM
<b>No rise in price, oil companies to manage loss </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>India issues bonds to state refiners and fuel retailers to the tune of 42.7 percent of their revenue losses due to product sales, while upstream companies share around 33 percent</b>.
Analysts say the bonds increase India`s fiscal burden.
The government has not raised state-administered retail fuel prices this year even though crude has jumped to a series of record highs. On Tuesday it was trading at about $94 a barrel.
The Indian crude basket has risen by 145 percent since April 2004, but retail prices of petrol have gone up by just 29 percent and those of diesel by 40 percent.
With elections in the key state of Gujarat in early December analysts said the government was always unlikely to risk voters` ire by raising fuel prices, which it discounts to protect poor consumers and help fight inflation.
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Greed of power is so strong, even it means screw India.
Analysts say the bonds increase India`s fiscal burden.
The government has not raised state-administered retail fuel prices this year even though crude has jumped to a series of record highs. On Tuesday it was trading at about $94 a barrel.
The Indian crude basket has risen by 145 percent since April 2004, but retail prices of petrol have gone up by just 29 percent and those of diesel by 40 percent.
With elections in the key state of Gujarat in early December analysts said the government was always unlikely to risk voters` ire by raising fuel prices, which it discounts to protect poor consumers and help fight inflation.
<!--QuoteEnd--><!--QuoteEEnd-->
Greed of power is so strong, even it means screw India.