Wednesday, 10 September 2008

Cooling Time !

The oil price is cooling, it touched $99 per barrel and settled around $103 today. At the same time dollar is firming against INR and hoovering around Rs44-45/- per dollar band. Obviously the gain in the fall of Crude price is being off set by the appreciation of dollar for the oil importing companies (that includes all) in India. So, the concerned ministry has announced that they are not mulling any immediate reduction in oil price. In fact they are projecting how much being subsidized per liter of petrol,diesel, kerosene and LPG cylinder. What is surprising they never highlight how much direct and indirect taxes are levied on any petroleum products. Subsidy on them means just ploughing back a slice of taxes collected on them. The inflation rate has shown the symptom to take a downward trend. May be the better time is back or likely to be back in another two months. Monsoon appears to be good , though it has caused havoc in some areas causing flood or river overflowing or changing its course. In Bihar , particular the change of course by Koshi, has created catastrophe and government has declared it as national disaster. Already Rs1000 crores are offered as aid by the central government to the flood victims. It is not difficult to guess how the money will be utilized for the cause of flood victims, but definitely it will have its own way to slow down the pace of cooling down inflation.
Well with ensuing Diwali... may be we are going to have a better time with the oil price cooling and so the commodity and metal.

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