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21 August 2024 at 10:20:16 am

Crude Reality

Since the Iran crisis erupted five months ago and sent tremors through global energy markets, India’s motorists have been spared the full force of the oil shock. Despite a hike, petrol pumps have generally continued to display familiar prices even as crude surged, because state-owned oil companies quietly absorbed the damage. However, with losses now piling up at Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), it appears that the bill, which had been...

Crude Reality

Since the Iran crisis erupted five months ago and sent tremors through global energy markets, India’s motorists have been spared the full force of the oil shock. Despite a hike, petrol pumps have generally continued to display familiar prices even as crude surged, because state-owned oil companies quietly absorbed the damage. However, with losses now piling up at Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), it appears that the bill, which had been deferred all this while, cannot be avoided. Unless global crude prices retreat sharply, Indian consumers may soon feel the full force of the unabating West Asian crisis. HPCL plunged into a consolidated loss of Rs. 12,265 crore in the June quarter, while BPCL reported a loss of Rs. 3,962 crore - the first quarterly loss for the latter in 15 quarters. The crisis has exposed that India’s fuel-price stability remains heavily dependent on the financial health of state-run oil companies. When global markets turn hostile, these companies are expected to sacrifice margins, protect consumers and absorb geopolitical shocks. This model becomes increasingly fragile when crises become prolonged. Crude oil prices briefly approached $125 a barrel during the height of the West Asia conflict, rising more than 50 percent as fears grew over supply disruptions. Though petrol and diesel prices were eventually raised by more than Rs 7.50 per litre and domestic LPG prices by Rs. 89 per cylinder, the adjustments came too late and were insufficient. Government estimates suggest oil marketing companies have accumulated under-recoveries of around Rs. 75,000 crore during the Iran crisis. HPCL’s refining business in fact had delivered an impressive gross refining margin of $23.80 per barrel in the first quarter, compared with just $3.08 a year earlier. Yet those gains were wiped out by losses in fuel marketing. BPCL faced a similar squeeze. Higher revenues of Rs. 1.59 lakh crore during the quarter could not compensate for suppressed margins and LPG losses. This is the familiar political dilemma of fuel pricing. Governments fear the inflationary consequences of raising prices sharply, especially in an economy where transport costs influence everything from food prices to manufacturing expenses. But delaying adjustments merely shifts it from consumers to public-sector balance sheets. The consequences are already visible. HPCL reported LPG under-recoveries of Rs. 3,607 crore, while BPCL recorded losses of Rs. 3,485 crore on LPG sales. Both companies also face thousands of crores in unpaid subsidy dues. If global crude prices remain elevated, the pressure valve will eventually have to open. Either the government compensates oil companies through larger subsidies by squeezing public finances or consumers face higher fuel prices. India has long benefited from relatively stable domestic fuel prices despite global volatility. But energy markets do not respect political calendars.

India working on logistics of Tahawwur Rana's extradition

  • PTI
  • Feb 14, 2025
  • 3 min read

Updated: Feb 18, 2025

Tahawwur Rana

Washington: India is working on the logistics of Tahawwur Rana's surrender and extradition from the US, Foreign Secretary Vikram Misri has said, as President Donald Trump announced that his administration has given the go-ahead to extradite the 26/11 terror attack accused “to face justice".

“This is an issue on which the US authorities have taken very clear decisions. I think you've seen the President announce it himself from the White House podium" the decision of the US to extradite Rana, Misri said at a press conference here on Thursday.


During a joint press conference with Prime Minister Narendra Modi in the White House, US President Donald Trump announced that his administration has approved the extradition of "very evil" Tahawwur Rana, wanted by Indian law enforcement agencies for his role in the 26/11 Mumbai terror attacks, "to face justice in India”.


In response to a question by PTI on the timeframe by when Rana will be extradited to India, Misri said: "We are working on the logistics of his surrender and extradition to India. There are a few final steps to be completed. The two sides are in touch on this particular issue.”


The India-US joint statement issued during the Prime Minister's visit to the US notes that Modi and Trump reaffirmed that the global scourge of terrorism must be fought and terrorist safe havens eliminated from every corner of the world.

“They committed to strengthen cooperation against terrorist threats from groups, including Al-Qaeda, ISIS, Jaish-e Mohammad, and Lashkar-e-Tayyiba in order to prevent heinous acts like the attacks in Mumbai on 26/11 and the Abbey Gate bombing in Afghanistan on August 26, 2021," the joint statement said.


“Recognising a shared desire to bring to justice those who would harm our citizens, the US announced that the extradition to India of Tahawwur Rana has been approved," it said.


The leaders further called on Pakistan to expeditiously bring to justice the perpetrators of the 26/11 Mumbai, and Pathankot attacks and ensure that its territory is not used to carry out cross-border terrorist attacks.

"The leaders also pledged to work together to prevent the proliferation of weapons of mass destruction and their delivery systems and to deny access to such weapons by terrorists and non-state actors,” the joint statement added.

Rana, a Canadian national of Pakistani origin, is currently lodged at a metropolitan detention centre in Los Angeles. He is known to be associated with Pakistani-American terrorist David Coleman Headley, one of the main conspirators of the 26/11 attacks.

Speaking at the joint press meet, Trump said "Today I am pleased to announce that my administration has approved the extradition of one of the plotters and very evil people of the world, and having to do with the horrific Mumbai terrorist attack, to face justice in India. So, he is going back to India to face justice."


The extradition of Rana was cleared by the US Supreme Court in January as it rejected his review petition in the case.


India last month said it was working with American authorities for the early extradition of Rana.


"The US Supreme Court on January 21 declined to hear a petition from the accused. We are now working with the US side on procedural issues for early extradition to India of the accused in the Mumbai terror attack," External Affairs Ministry spokesperson Randhir Jaiswal had said.


In November 2012, Ajmal Amir Kasab, the lone surviving gunman among the Pakistani group, was hanged to death in Yerawada Jail in Pune.

-PTI

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