Not Such a Good News - Petrol Prices To Rise!

The OMCs are also expected to increase the price of aviation turbine fuel by around Rs 1,250 a kilolitre from the current Rs 56,260 a kl in Delhi.

The weakening rupee and firm international petroleum product prices have expanded the revenue losses of OMCs.

The loss on diesel would also increase by around Rs 1.25 a litre to nearly Rs 6 in the second fortnight of September.

The government had decontrolled petrol prices in June 2010 but has been indirectly exercising control.

The previous rise in petrol was done on May 15, when companies raised prices by Rs 5 a litre, though they were actually losing Rs 10 a litre.

On the same day, it also removed  5%customs duty on diesel and crude oil and raised the prices of diesel, kerosene and liquefied petroleum gas.

Currently, the PMCs -- Indian Oil, Bharat Petroleum and Hindustan Petroleum incur an under-recovery or revenue loss of Rs 4.57 on a litre of diesel.

These companies, which purchase crude oil at market rates, are required to sell diesel, kerosene and LPG at government-set prices, resulting in losses.

All the three government-owned companies incurred a heavy loss in the April-June quarter on heavy under-recovery that was not fully compensated by the government.

Oil companies calculate their under-recovery or over-recovery of a product based on its trade parity (80 per cent import price weight and 20 per cent export price weight) for the previous fortnight.

The price of ATF, 40 per cent of the operating cost for airlines, are already around 40 per cent higher compared to last year's corresponding price.

The decline, a relief, comes after a gap of six weeks during which prices moved up thrice. The rupee has averaged Rs 46.46 so far in September against the dollar, higher than the Rs 44.42 in July and Rs 45.32 in August.

The price of the Indian basket of crude oil, that averaged $107.24 a barrel in the last fortnight of August, has averaged well over $111 so far in the current fortnight.

Source: http://www.rediff.com/business/slide-show/slide
Follow us: www.facebook.com/karvywealth

India 11th in World’s largest Gold Reserves!

Gold has remained as one of the most sought after asset in the world even in the times of economic slowdown continues to be a safe bet for investors. Gold is held as valuable resource by a country’s central bank as it is a guarantee against note holders, depositors etc.

The consumption of gold throughout the world is about 50% in jwellery, 40% in investment and 10% in the industry. The world’s biggest gold reserve is held by the United States at 8133.5 tonnes. And it constitutes of 74.7% of the nation’s foreign exchange reserve.

The United States, leading as the world’s largest gold reserve is followed by Germany at 3,401 tonnes and 71.7% of foreign exchange reserve, the International Monetary Fund (IMF) at 2,814 tonnes, Italy 2,451 tonnes, France 2,435 tonnes, China 1,054.1 tonnes, Switzerland (1,040.1 tonnes), Russia (830.5 tonnes), Japan (765.2 tonnes), The Netherlands (612.5 tonnes), India (557.7 tonnes), European Central Bank (502.1 tonnes), Taiwan (423.6 tonnes), Portugal (382.5 tonnes), Venezuela (365.8 tonnes), Saudi Arabia (322.9 tonnes), United Kingdom (310.3 tonnes), Lebanon (286.8 tonnes), Spain (281.6 tonnes) and Austria at 280 tonnes.

Source: http://www.rediff.com/business
Follow us: www.facebook.com/karvywealth