The favoured Indian refineries are making a killing from the public who are merely consumers. Last year international oil prices dipped to throwaway prices. Companies were asked to just pick up the oil. All manners of storage facilities were filled. In India, there is the ISPRL-Indian Strategic Petroleum Reserves Limited- under the Administrative Control of the Ministry of Petroleum and Gas. It has underground storage capacity of 36.92 million barrels of crude oil, which was filled to capacity at the cheap price in 2020. This oil is for use during disruption of oil imports. At the moment there is no such disruption and the ISPRL should hold on to the reserves. Yet, ISPRL is now selling 30% of the oil to Indian and foreign companies by amending the laws and allowing commercialization of this capacity for leasing.
Why is this oil not used for the benefit of the public? Why this change in law? Because there is total absence of financial acumen resulting in the government having nil cash reserves. A very precarious situation hidden by so many diversionary tactics like Partition Terror Day.
