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Correspondent

21 August 2024 at 10:20:16 am

Fuel Shock

The latest increase in petrol and diesel prices — the fourth hike in just 11 days — underlines how vulnerable India remains to geopolitical turmoil and its own unfinished reforms in the energy sector. Brent crude surged again after fresh American military strikes in southern Iran deepened fears of the renewal of the Iran conflict on a higher scale. Markets are now gripped by uncertainty as hopes of a negotiated settlement continue to fade. For a country like India, which imports more than 80...

Fuel Shock

The latest increase in petrol and diesel prices — the fourth hike in just 11 days — underlines how vulnerable India remains to geopolitical turmoil and its own unfinished reforms in the energy sector. Brent crude surged again after fresh American military strikes in southern Iran deepened fears of the renewal of the Iran conflict on a higher scale. Markets are now gripped by uncertainty as hopes of a negotiated settlement continue to fade. For a country like India, which imports more than 80 percent of its crude oil requirements, every geopolitical tremor in the Gulf quickly translates into pain at the fuel pump. Since May 15, petrol and diesel prices have risen cumulatively by nearly Rs. 7.5 per litre. In Hyderabad and Thiruvananthapuram, petrol has crossed Rs. 115 a litre. Mumbai, Kolkata, Bengaluru and Chennai are all witnessing sharp increases. Even Delhi, traditionally cushioned by relatively lower taxes, has seen petrol move beyond Rs. 102 per litre. This marks a significant shift after nearly four years of relative stability in retail fuel prices. For long periods, state-run oil marketing companies absorbed the burden of elevated crude prices, shrinking refining margins and a weakening rupee. Political considerations, particularly around elections, often delayed price revisions. The Rs. 2 per litre reduction announced ahead of the 2024 national elections was a reminder that fuel pricing in India has never been entirely divorced from politics. But oil companies cannot indefinitely absorb mounting losses, especially when global crude prices remain elevated. The Centre has already cut excise duties, with Finance Minister Nirmala Sitharaman estimating the revenue sacrifice at nearly Rs. 1 lakh crore. That fiscal cushion has now largely been exhausted. The spotlight is therefore shifting towards states. VAT on fuel remains one of the most lucrative revenue streams for state governments, with some states imposing levies exceeding 30 percent through taxes and cess components. This explains why states such as Telangana, Kerala and West Bengal continue to record some of the highest retail fuel prices in the country. The Centre is now subtly nudging states to reduce VAT rates to soften the blow on consumers. Yet states are reluctant. Their dependence on fuel taxes is structural, not incidental. Apart from excise on liquor, few revenue sources offer such steady and politically manageable returns. Bringing petrol and diesel under the GST framework continues to face bipartisan resistance from states fearful of losing fiscal autonomy. Rising fuel prices do not remain confined to petrol stations. They seep into every layer of the economy as transportation costs rise, food inflation accelerates and household budgets shrink. Small businesses, already coping with weak consumption and high borrowing costs, are facing renewed pressure. India’s recurring vulnerability to crude oil shocks exposes the limits of its energy security architecture. Expansion of strategic petroleum reserves and greater investment in renewable energy can no longer remain aspirational talking points. They must become urgent national priorities.

Rags to riches story of Mathadi worker

Curious Case Of Datta Pawar - Part 1


Mumbai: During recently concluded session of the state legislature, BJP MLA from central Nagpur Pravin Datke revealed a mysterious story of rags to riches of a Mathadi worker in Mumbai, who allegedly has amassed a wealth of over Rs 300 crore in a span of about a decade while exploiting various industrial as well as commercial units as well as the Mathadi workers.


According to what Datke told the legislature, Dattatraya Bhaleghare alias Datta Pawar, who has registered himself as a Mathadi worker (the porter who carries load over his head) has at least two luxury bungalows, several vehicles worth Rs 10-15 crore, many houses in his name and several acres of land in his name. Interestingly the guy also runs dozens of companies. Datke accused him of conspiring with high-ranking officials from various Mathadi boards and duping both, the workers as well as the commercial establishments and demanded that a thorough inquiry be conducted in the case. Minister Akash Fundkar immediately accepted the demand and announced setting up a special investigation team (SIT) to probe the charges.


However, while some of the officials of the various Mathadi boards were put under suspension when the SIT probe began, the SIT has ironically excluded Datta Pawar from the probe. But whatever little probe has been done, too has reveal several interesting facts about the so called Mathadi worker.


The story of the riches of this Mathadi worker begins with two PAN cards. The PAN cards appear to be in the name of two different persons, Dattatraya Bhaleghare and Datta Pawar, interestingly names of their fathers and grandfathers too are the same and their signatures also match. It was revealed during a case of alleged extortion against him at Thane wherein the sessions court directed the income tax department to verify and furnish information on how many IT returns were filed by this one person in these two names and also to calculate the income tax evaded and the penalty for the same.


The humble Mathadi worker also has at least 10 high-end luxury vehicles like the Mercedes, Fortuner and Innova Crista.


Interestingly all the vehicles have the same registration number 4499. The court has also asked the police to investigate into the case of these many variety of vehicles with one single number.


Dattatraya Bhaleghare aka Datta Pawar was born in a humble family of Kolewadi village of Jawli taluka of Satara district. Because of dependency of rain-fed farming the family had hardly any means for living. This led Dattatraya Bhaleghare to migrate to Mumbai in search of job in late ‘90s.


He registered himself as a Mathadi worker and started working along with young men from nearby villages. Due to his sharp mind, he quickly became popular among the fellow Mathadi workers. Apart from working as a Mathadi labour, he also started doing some small odd jobs like driving an auto rickshaw.


His nature to involve associated in his businesses led in his popularity growing leaps and bounds and the popularity among fellow labourers raised him in the eyes of politicians. He moved close to some of the politicians. His old associates say that he had a good opportunity to use the closeness with politicians for the betterment of his fellow workers, instead he used it for his own benefit and amassed huge wealth.


He still has a good hold among his followers so much so that a demonstration march too is organised in his home district next week to shield him from any inquiry that might be conducted against him.


Apart from strong political backing, with the ill-gotten money he has made friends not within the Mathadi boards but in various arms of the state administration. These invisible hands are currently said to be shielding him from any action against him and his name was even excluded from the SIT probe. However, he still has several cases registered against him in various police stations of Mumbai and Thane. Even if the police and other departments like the IT follow the instructions of the court and initiate probe against him, the mystery surrounding the rags to riches story will fade away and the crimes behind it will come forth, say the people who have been closely following the case.

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