Petrol Price Likely to be cut by Rs 4 on July 1

State-run oil marketing companies that have gained from a record Rs7.54 a litre hike in petrol prices last month, amidst high crude prices, have now agreed to cut petrol prices by as much as Rs4 a litre, although hesitantly.   "Yes, there is a scope for reduction in petrol prices. But I will not stick my neck out and say there will be a reduction for sure as we have to watch for volatility in the rupee as well," a top official at one of the three PSU oil retailers said. State-owned fuel retailers, who as per practice revise rates of petrol on 1st and 16th of every month based on average imported cost and forex rates of the previous fortnight, had skipped changing rates on June 16. Petrol at present costs Rs 70.24 a litre at IOC petrol pumps in Delhi. He said the last revision was done keeping in mind an average of USD 115.77 per barrel rate of gasoline, against which domestic petrol prices are benchmarked. Gasoline rates have since fallen to about USD 97 a barrel. But the rupee has devalued to Rs 57 to a US dollar from Rs 54.96 to a US dollar (average of first fortnight of June). There was a scope to reduce petrol price by up to Rs 4 per litre but with rupee falling further, the cost of imports has again risen, he said. "There is a lot of volatility in oil prices as well as value of rupee. We are watching the situation very closely," he said. The official said the gasoline cracks or the difference between cost of raw material (crude oil) and the price of product (petrol) had narrowed to just USD 3 per barrel. In comparison, cracks for diesel were as high as USD 12-13 a barrel. With such narrow spread, any upward movement in crude oil price or devaluation of rupee would force an increase in price in near future, if the rates were to be cut now.

Amarnath Yatra 2012 Started

The Amarnath Yatra-2012 - pilgrimage taken up to Amarnath cave temple in Jammu and Kashmir - has started on Monday with pilgrims from both the base camps starting their journey to the cave shrine where Jammu and Kashmir governor N N Vohra offered prayers amid holy chants. The pilgrims began their journey from both the Baltal and Nunwan base camps. Earlier, inclement weather had delayed the scheduled start of the pilgrimage from the camps. An official of the yatra control room here said that the pilgrims were not allowed in the wee hours as some parts of the track on both Baltal and Pahalgam routes had been rendered slippery due to overnight rains. "The pooja was held inside the cave shrine this morning, marking the beginning of this year's yatra to the holy cave of Amarnathji," chief executive officer Shri Amarnath Shrine Board (SASB) Naveen K Chaudhury told. The authorities have made adequate arrangements for the registered pilgrims but a significantly higher number of intending pilgrims have arrived in Pahalgam and Baltal, the official said. Only registered pilgrims will be allowed to proceed towards the holy cave. The governor, who is also the chairman of SASB, upon his return from the shrine visited the Nunwan base camp here and interacted with the pilgrims. He also took stock of the arrangements made for them. Meanwhile, the second batch of pilgrims today left for the cave shrine from Jammu amid tight security. As many as 2,185 pilgrims, including 985 males, 578 females, 322 children and 300 sadhus left in 66 vehicles from Bagwatinagar base camp around 0425 hours for Amarnath, Police Control Room officials said.

PA Sangma Lambasts Govt For Its Dual Policy

NDA backed presidential candidate PA Sangma, who was denied permission to meet YSRCP president Jagan Mohan Reddin Chanchalguda jail, lambasted the state and central governments for dual policy. Sangma went to the Chanchalguda jail, where Jagan was lodged in connection with an alleged disproportionate assets case, but could not meet him. Sangma told that he was given time to meet Jagan at around 9 AM which was postponed to 11 AM. The meeting was, however, cancelled possibly at the intervention of "state government authorities and Union Government authorities", he alleged. Briefing the media, Sangma told "I went back to my hotel and I was proceeding to the jail at around 10.45 AM so that I am able to be there between 11 and 12 as I have been told to be there by the jail authorities. When we were about to reach the jail, my son James Sangma, who is an MLA, was informed by the jailer that my meeting with Jagan Mohan Reddy is cancelled and that I will not be allowed to meet him because my visit was going to be political", he said. We explained to them that that is not political. We have a long association of Sangma family and YSR family for more than 20-25 years. Late YSR Reddy was my close friend, so it was just a courtesy call." Sangma said that being a politician, he can very well understand that it was a secong thought by the state and central governments to deny him permission to meet Jagan Mohan Reddy. Reminding that Hyderabad-based Majlis Ittehadul Muslimeen (MIM) MP Asaduddin Owaisi had met Jagan earlier in the jail and sought support for UPA's presidential candidate Pranab Mukherjee, Sangma wondered how can he be not allowed to meet the YSR Congress president.  

Boost up in NRI Deposit Rates Before Pranab Signs Off

A boost up in NRI deposit rates is likely as presidential candidate Pranab Mukherjee is expected to take some policy decisions before signing off as Union Finance Minister. Though he did not spell out what kind of policy initiatives were on the agenda that could improve the slowdown, senior finance ministry officials said "tough measures" could include decisions such as announcing partial decontrol in diesel, opening foreign direct investment (FDI) in multibrand retail and announcing the government's intent to rollout other pending reforms. The Finance Minister is set to resign on June 26 and file his nomination for president on June 28. On Saturday, he said that he had spoken to the RBI governor and the finance secretary and certain corrective measures would be taken. The depreciation of the rupee against the dollar is something that the government needs to fix on an urgent basis as the rupee has lost more than 25% against the dollar in the last one year. Some announcement by the central bank by increasing interest rate on foreign currency deposits by non-resident Indians and issue of short-term bonds for NRIs could help the government stem its further slide. Saddled with depleting foreign reserves and flat industrial production, the government is desperate to start rolling out its stalled reforms agenda in the beginning of the fiscal so that the benefits accrue in 2012-13. Top priority of the government is to check the subsidy bill and contain the fiscal deficit within the target of 5.1% of GDP. Raising of petrol prices in May, aligning it with the international crude prices, was an effort in this direction. Now that international crude prices have moderated, the government may consider raising diesel prices marginally in the next few months and is likely to go in for partial decontrol.