THE RIDDLE OF FREQUENT OIL PRICE HIKE

                                                          - MILAN K SINHA

Latest media reports suggest that the government is contemplating to increase over Rs 3-5/- per litre the market price of petrol and diesel after the end of monsoon session of parliament – together it constitute more than 75% of total petroleum consumption in the country.

It is very difficult, if not impossible for even experts tracking and analysing the pattern of changes in oil prices in retail market to say for sure as to when and how much the prices of petrol, diesel etc. will be hiked by the concerned authorities, as it is, what these oil company officials and the Govt. assert, market driven.

But as a common consumer, if we see the prices of not only petrol but also diesel and cooking gas in the market, we don't find the rational of either increasing the price or reducing the price in the name of varying crude oil prices in international market now and then.

It is interesting to know that India ranks among the top six largest oil-consuming countries in the world and is also one of the top ten largest crude oil importers – it imports about 80% of its total oil consumption. The importance of oil to our economy is immense owing to its significant forward integration with many other economic activities in different sectors. Obviously, the demand of oil has been increasing very fast.

Talking here specifically about India’s vehicular population, the reports say that it has increased many fold in recent past – presently, there are more than 40 million passenger vehicles alone to consume oil in a big way. In total, the country manufactures 11 million plus vehicles every year. And as domestic oil production is unlikely to keep pace with the demand, it is but natural to have a huge supply deficit. Now, to take care of the rising demand by ever increasing imports, the GDP growth and Current Account Deficit (CAD) would be very adversely impacted. This is one side of the story.

The other side goes like this. It's now a common knowledge that more than 40% of the ruling market price of petrol is due to central excise duty and sales tax of respective state governments. Due to fiscal mismanagement both at central and state level, no government talks of cutting its tax rate on petrol and hence find the most convenient route of passing the burden solely on the consumer. But one state is found to be an exception in this regard. Yes, the state of Goa slashed sales tax drastically in recent months; a few months ago, it cut nearly its entire tax on petrol, making the fuel cheaper by Rs. 11 per litre. If that be the case, why other states under the leadership of the so-called progressive Chief Ministers could neither follow Goa’s example nor embark on something even better?

We know that the foreign exchange outgo of the country is huge on account of oil import bill - a barrel of crude oil, which was costing us Rs 5,500 in April this year, now costs 27% more to over Rs 7,000 per barrel in August’13 – a whopping increase due to two major factors - 7% rise in international crude oil prices and 19% depreciation in value of the Indian currency against the US dollar (Rupee closes at all-time low of 66.24 vis-à-vis US Dollar on 27th Aug’13).

Notwithstanding these hard realities, the policy makers and power that-be are doing almost nothing worthwhile (except playing beautifully the infamous “Blame Game” to befool the countrymen) to reduce the growing dependence on import of crude oil by initiating many known measures in order to cut oil consumption in the country.

Even one simple initiative can make a big difference. Yes, the Centre and the States can very well stop use of official vehicles for personal purposes by all its officials forthwith. This will not only stop blatant misuse of official vehicle and thereby stop avoidable oil consumption to a great extent but also send a strong positive message across the country for judicious use of petrol and diesel for conveyance and transportation. There are many other measures which can be initiated to address this serious issue on priority.

                Will meet again with Open Mind. All the Best.

# Published in Patna Daily.com on 28.08.2013

# Do visit my site : milanksinha.com

COMPETING WITH ONESELF - SURE WAY TO SUCCEED IN LIFE

                                                            - MILAN K SINHA
You have competition every day because you set such high standards for yourself that you have to go out every day and live up to that. - Michael Jordan

Competition has been the buzz word wherever you go. Day in and day out, we are engaged rather in a rivalry race trying to outsmart others to achieve success in life, maybe, at times without knowing what that success really means to us in terms of a sense of fulfillment or a feeling of happiness. Many a times, the competition is so cut throat that we find it very difficult to cope up with the situation.

In our eagerness and compulsion to succeed by hook or by crook, we fail to understand that each individual has his own weaknesses and strengths, potential and capacity to perform. When no two persons are biologically similar, how can they be same and similar in delivering the same results, when subjected to undergo some test or the other in day to day life? Please enjoy and emulate what this famous proverb conveys: “There is nothing noble about being superior to some other person. The true nobility is in being superior to your previous self.”

Though we know, yet forget to appreciate in practice that every individual is a unique entity having diverse levels of knowledge and skills. As such, the competition always is fundamentally with ‘self’ to become better and to enjoy the fruits of improved productivity by getting the grammar of life right.

There are thousands of examples of great and successful personalities, past and present both, from different fields of activities, who proved by their own making that self- improvement is a sure way to achieve both success and happiness in life.

Nobody can deny or dispute the fact that every improvement starts with 'I' and to ensure that to happen, the first step to embark upon is to undertake an objective self - ‘SWOT’ analysis. Here, as you might know, 'S' stands for Strength, 'W' for Weakness, 'O' for Opportunity and 'T' for Threat. You must jot down on a piece of paper your present status in respect of all the four parameters. Then, make reasonable assessment of your capacity to perform to the optimum level for consolidating and then improving the positives and for diminishing the negatives with a well-formulated strategy and action plan to move towards your own goal of life. In Gautam Buddha's golden words, "Know well what leads you forward and what holds you back and choose the path that leads to wisdom."

Learning and acting for improving one's own performance should be a continuous process, that is to say, competing on regular basis with your own old self for definite value addition. So, as Howard Cosell rightly says, “The ultimate victory in competition is derived from the inner satisfaction of knowing that you have done your best and that you have gotten the most out of what you had to give.”

                                                  Will meet again with Open Mind. All the Best.

# Published in Patna Daily.com

                                       

* Do visit my site : milanksinha.com

HOW LONG BEFORE REAL INDEPENDENCE?

                                                                                        - MILAN K SINHA

In a country well governed, poverty is something to be ashamed of. In a country badly governed, wealth is something to be ashamed of. - Confucius

India is celebrating its 66th anniversary of independence with all fanfare and lots of activities right in the national capital as well as in remotest village schools in the country. The Prime Minister of the country will unfurl the national flag from the ramparts of the historic Red Fort in New Delhi on 15th August followed by a speech enumerating the achievements of the central government during the year passed by and making lots of promises for the year ahead. Similar exercise will be performed by the Chief Ministers and Lt. Governors in respective states and union territories on this occasion. Obviously, hundreds of millions of public money will be spent as always.

But the nagging questions related to real independence of the largest democratic country of the world will still remain to be answered by political masters, planners, policymakers... and the questions are about three most basic needs of every Indian: Food, Clothing and Shelter. If few other basic necessities of life are also added such as Health, Education and Employment, it would be fair enough to analyse the outcome of the 66 year long journey of Independent Democratic Sovereign India. All kinds of statistics/data on these basic needs of people of India are readily available for each one to know, ponder and ask the following questions once again:

• Is every Indian getting even two meals a day to eat?
• Is every Indian clothed like a normal human being?
• Is every Indian family residing in a dwelling unit/pucca house?
• Is every Indian getting minimum basic health facility?
• Is every Indian getting even primary education worth the name?
• Is every Indian gainfully employed even for 180 days in a year?

The answer to all these basic questions is in negative. Notwithstanding, the ruling class - be it political leaders, planners, policymakers/lawmakers and bureaucrats, would argue, many of them loudly and shamelessly, that the country has achieved a lot on these counts during the last 66 years, but they find it very difficult to justify the adequacy and urgency of fulfilling these basic needs of people. It is shameful and really hard to believe that a country with GDP size of more than two trillion dollar is still struggling hard to provide toilet and sanitation facility to a majority of households in the country, thereby earning the infamous title of world capital of open defecation.

Our former President and renowned scientist, A.P.J. Abdul Kalam writes in his famous book, 'Ignited Minds' - we have all the resources we need, whether it be people, talent, natural bounty or other assets. India is truly blessed with real, though latent, abundance. Scarcity is not the cause of our problems. Our problems originate in our approach towards them. We are spreading our resources too wide and too thin. With our resources and the money we spend, we could easily accomplish three times what we do, in half the time we normally take, if we were to operate in mission mode with a vision for the nation. The vision generates the best in every field."

Everyone would agree, by any yardstick, 66 years is pretty long a period for a country full of natural resources and human assets to have real cheers and happiness for celebrating the Independence Day in an inclusive and genuinely festive manner.

Isn't it an opportune time to ask ourselves and question our powerful representatives as to why the country failed to perform even on most basic issues of wellness of our own countrymen? Who is responsible and accountable for this sordid state of 66% population earning far less than what needs to have at least two meals a day, ironically for whom, after 66 years of independence, central government now proposes to get the food security bill passed in the parliament? And how long it will take to make India independent in real sense of the term?

# Published in Patna Daily.com on 15.08.2013

                                  Will meet again with Open Mind. All the Best.

* Do visit my site:http://www.milanksinha.com/