{"id":255147,"date":"2023-08-07T21:34:27","date_gmt":"2023-08-07T16:04:27","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=255147"},"modified":"2023-08-29T14:23:57","modified_gmt":"2023-08-29T08:53:57","slug":"opaque-subsidies-govt-control-returns-to-the-oil-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/opaque-subsidies-govt-control-returns-to-the-oil-sector\/","title":{"rendered":"Opaque subsidies – Govt control returns to the oil sector"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cOpaque subsidies –\u00a0Govt control returns to the oil sector<\/strong>\u201d published in Business Standard <\/strong>on\u00a07th<\/sup> August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 2 \u2013 Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.<\/strong><\/p>\n

Relevance: <\/strong>concerns with state regulating oil prices<\/p>\n

News: <\/strong>Previously, the government claimed to deregulate petrol and diesel prices and eliminate indirect fuel subsidies, which were seen as positive reforms.<\/p>\n

However, it seems that the government has come up with a system by which it continues to control prices at the pump while concealing the subsidies involved.<\/p>\n

What efforts have been taken by the government to control prices?<\/strong><\/h2>\n

The Union Budget has allocated approximately 30,000 crore rupees to support three state-controlled oil marketing companies (OMCs) in their climate initiatives.<\/p>\n

It is expected to balance out the losses the OMCs have faced because of under-recoveries<\/strong>, caused mostly due to unchanged fuel prices when global oil prices changed due to the Russia-Ukraine war.<\/p>\n

However, this capital infusion might also involve the government once again taking a stake in HPCL and controlling the oil prices.<\/strong><\/p>\n

Hence, cooperative efforts of the three government-owned enterprises to preserve consumer prices and absorb losses highlight that political factors influence oil prices rather than the free market.<\/strong><\/p>\n

What will be the impact of the state again regulating the oil prices?<\/strong><\/h2>\n

First, <\/strong>it will not only negatively impact future finances but also hinders India’s environmental transition, which was supposed to be funded by investments from existing oil companies.<\/p>\n

Second,<\/strong> this could further convince voters that politicians play a role in determining oil prices, strengthening their lack of trust in the free market.<\/p>\n

Hence, transparent subsidies, independent of the price actually paid, are the only way out.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cOpaque subsidies –\u00a0Govt control returns to the oil sector\u201d published in Business Standard on\u00a07th August 2023. Syllabus: GS 2 \u2013 Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation. Relevance: concerns with state regulating oil prices News: Previously, the… Continue reading Opaque subsidies – Govt control returns to the oil sector<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,212,216,8184],"class_list":["post-255147","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-2","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/255147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=255147"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/255147\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=255147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=255147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=255147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}