Oil Companies looting the Nation

Accommodation Times Bureau
By Dr Sanjay Chaturvedi
On 30th April 2011, the Crude Oil Price in the world was US$105 and on May 31 2012 it was US$86.5. But in India, we have never seen the reduction in oil prices, ever since it is deregulated. On 03 Feb 2012 the Basket price on the website of OPEC was US$122 and it had fallen to US$104 on 1st June 2012. The price of OPEC basket of twelve crudes stood at 102.75 dollars a barrel on 27th May 2012, compared with $105.13 the previous day, according to OPEC Secretariat calculations.The reference basket of 12 crude oils of OPEC stood at 79 dollars on Friday, July 30 2010. That year, the OPEC reference basket was moving between $70-$80, to average $76/b. OPEC had suspended its official price band in 2005, so the reference basket doesn’t reflect the oil price in the market as itself. However, it still gives an idea of the value of OPEC’s crude output. So now, why does the OPEC consider the current prices, ‘comfortable’? Well, according to Secretary General Abdalla El-Badri, that’s because, “The economic recovery is sluggish, unemployment is still high and the debt crisis is causing a lot of uncertainty, so if you look at all these factors, the current price is comfortable.”

At Home, Indian Oil majors were citing the basket price at that period of time taking advantage of 2005 basket references. ONGC In its 232nd Board Meeting on 29th May, 2012, ONGC presented an impressive Annual Financial Result for FY’12 while declared two new discoveries. Net Profit of Q4 FY’12 increases 102%, from Rs 2791 crore to Rs 5644 crores in FY’11. Annual net profit of ONGC increases 33%, from ` 18,924 Crore in FY’11 to Rs 25,123 crores in FY’12. Dividend: Recommended payout of final dividend of ` 2/- (Rupees two only) per equity share of ` 5 each fully paid up for the Financial Year 2011-12 which works out to 40 % on the equity share of ` 5 each. This is in addition to an interim dividend of ` 7.75/- (Seven rupee and seventy five paise only) per equity share on 8,555,528,064 equity shares of ` 5 each. Total dividend payout would be ` 8,342 Crore against `7,486 crore in FY’11). Net Profit of the Group ` 28,144 Crore (up 14% from ` 22,456 Crore in FY’11).

Until March 2002, crude oil pricing was regulated by the Government of India. Since April 2002, these controls have been
removed and ONGC was negotiating market-determined prices with customer refineries. Since 2003 with the profit of Rs. 70,000 million, the company had never shown a loss in its books. Now who owns ONGC? The president of India (Government of India) owns 1,056,746,305 shares with 74.11% shares, Indian Oil Corporation owns 137,067,381 shares with 9.61 %, GAIL India Ltd. owns 34,266,845 shares with 2.40% and Public owns 197,853,461 shares with 13.88% of total paid up capital. Since majority of shares owns by government and handsome dividend year after year is distributed, why ONGC who is the major player in oil market still wants government subsidies at the cost of public outrage?
Who are the benificers? At whose cost the company is making such a huge profit. Mind you, the company declared its most proud statement through its chairman on 29th May 2012 inspite of knowing that the nation is angree on its profit motives and undue advantage.

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