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What is the UPA government doing to control oil prices?
The UPA government had issued oil bonds worth Rs 1.44 lakh crore in 2012, instead of handing out subsidies to the oil marketing companies to regulate the oil prices between 2005-10. And now the current government is using it as an excuse to warn off criticism for not reducing the fuel prices.
How much is the oil & gas industry subsidized?
Depending on the date and audience a candidate is speaking to, an observer will hear that the oil & gas industry is subsidized between $10 billion to $52 billion. Before we break down the numbers behind the claims, let’s first define subsidy.
How much has the government paid in interest on oil bonds?
The government has paid over Rs 70,000 crore in interest on oil bonds in the last five years, she said. And it needs to pay over Rs 37,000 crore on these securities by FY26. Here is all you need to know about oil bonds and how they are related to fuel prices. What is an oil bond?
How many oil companies have received PPP loans?
An estimated 7,075 oil, gas, and petrochemical companies received PPP funds totaling between approximately $3 billion to $7 billion, according to an analysis of the SBA data by Documented for Sierra. Over 10 percent of these companies reported no jobs retained as a result of the loan.
Why is the government unable to reduce petrol and diesel prices?
Due to Oil Bonds, the burden has come to our government, that’s why we are unable to reduce prices of petrol and diesel,” she added. The UPA government had issued oil bonds worth Rs 1.44 lakh crore in 2012, instead of handing out subsidies to the oil marketing companies to regulate the oil prices between 2005-10.
How high have petrol and diesel prices been raised in India?
Under the first seven years of the previous United Progressive Alliance (UPA) government, petrol and diesel prices were raised 77 and 66 per cent, respectively — from Rs 36 and Rs 23, to Rs 63 and Rs 38. During the UPA tenure between 2004 and 2014, crude oil prices had seen a 222 per cent rise — from $34.16 per barrel to $110 per barrel.
What is the fiscal burden of UPA’s oil bonds?
Finance minister Nirmala Sitharaman has blamed the fiscal burden of oil bonds issued during the United Progressive Alliance (UPA) government’s term for the inability to provide relief from high petrol-diesel prices. “We’ll still have to pay interest of ₹ 37,000 crores by 2026.