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Petrol, diesel prices rise again amid volatility in oil market

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New Delhi, Oct 1: Petrol and diesel prices rose simultaneously for the second straight day on Friday amidst volatility in global oil prices with benchmark crude remaining at a high level of over $78 a barrel.

Accordingly, diesel prices increased by 30 paisa per litre in the national capital to Rs 90.17 per litre, while petrol rates rose by 25 paisa per litre to Rs 101.89 a litre, according to Indian Oil Corporation, the country’s largest fuel retailer.

Diesel prices have now increased for six days taking up its retail price by Rs 1.55 paisa per litre in Delhi. Diesel prices were raised on September 24 by 20 paisa per litre and again by 25 paisa per litre each on Sunday, Monday and Tuesday and by 30 paisa per litre on Thursday and Friday.

Petrol prices had maintained stability since September 5 but oil companies finally raised its pump prices this week given a spurt in the product prices lately.

OMCs had preferred to maintain their watch prices on global oil situation before making any revision in prices. This is the reason why petrol prices were not revised for last three weeks. But extreme volatility in global oil price movement has now pushed OMCs to effect the increase.

The wait and watch plan of OMCs had come to the relief of consumers earlier as no revision came during a period when crude price were on the rise over shortfall in US production and inventories and a pick up in demand. This would have necessitated about Re 1 increase in price of petrol and diesel.

In Mumbai, the petrol price increased by 21 paisa per litre to Rs 107.99 per litre, while diesel rates rose to about Rs 97.80 a litre.

Across the country as well, petrol and diesel increased between 20-30 paisa per litre but their retail rates varied depending on the level of local taxes in the state.

Fuel prices in the country have been hovering at record levels on account of 41 increases in its retail rates since April this year. It fell on few occasions but largely remained stable.

After rising over a three-year-high level of $80 a barrel earlier this week, global benchmark has now come down to $78 a barrel.

Oil rates are up 2 per cent for the week and this is the fifth weekly gain. Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $6-7 per barrel as compared to average prices during August.

Under the pricing formula adopted by oil companies, rates of petrol and diesel are to be reviewed and revised by them on a daily basis. The new prices becomes effective from morning at 6 a.m.

The daily review and revision of prices is based on the average price of benchmark fuel in the international market in the preceding 15-days, and foreign exchange rates.

But, the fluctuations in global oil prices have prevented OMCs to follow this formula in totality and revisions are now being made with longer gaps. This has also prevented companies from increasing fuel prices whenever their is a mismatch between globally arrived and pump price of fuel.

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World Banks says agriculture and labour reforms will boost medium-term growth in India

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United Nations: The World Bank has marked India as the second-fastest growing major economy in the world which is expected to grow by 8.3 per cent in the present financial year. The World Bank’s Regional Economic Update suggests that after the “deadly second wave” of COVID-19 in India “the pace of vaccination, which is increasing, will determine economic prospects this year and beyond.”

“The trajectory of the pandemic will cloud the outlook in the near term until herd immunity is achieved,” the report cautioned. India’ gross domestic product (GDP) which shrank by 7.3 per cent (that is, a minus 7.3 per cent) under the onslaught of the pandemic last fiscal year is expected to record 8.3 per cent growth this fiscal year, which will moderate to 7.5 per cent next year and 6.5 per cent in 2023-24. These Updates were issued ahead of the World Bank’s annual meeting next week,

The COVID-19 pandemic contracted not only India’s economy but also the global economy in fiscal year 2020-21 despite well-crafted fiscal and monetary policy support in India. However, growth recovered in India in the second half of the last fiscal year driven primarily by investment and supported by unlocking’ of the economy and targeted fiscal, monetary and regulatory measures. Manufacturing and construction growth recovered steadily.

Although significantly more lives were lost during the second wave of the epidemic this year in India, compared to the first wave in 2020, “economic disruption was limited since restrictions were localised,” with the GDP growing by 20.1 per cent in the first quarter of the current fiscal year compared to the first quarter of 2020-21. It attributed the spurt to “a significant base effect” (that is, coming off a very big fall in the compared quarter), “strong export growth and limited damage to domestic demand.”

The Bank’s Update said that successful implementation of agriculture and labour reforms would boost medium-term growth while cautioning that weakened household and firm balance sheets may constrain it.

The Production-Linked Incentives (PLIs) scheme to boost manufacturing, and a planned increase in public investment, should support domestic demand. The extent of recovery during the current fiscal year “will depend on how quickly household incomes recover and activity in the informal sector and smaller firms normalises,” the report says.

Among the risks included, worsening of financial sector stress, higher-than-expected inflation constraining monetary-policy support, and a slowdown in vaccination. The Indian government has taken steps to strengthen social safety nets and ease structural supply constraints through agricultural and labour reforms deal with the inequality. It said that the government continued investing in health programmes “have started to address the weaknesses in health infrastructure and social safety nets (especially in the urban areas and the informal sector) exposed by the pandemic.

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Government clarifies that Air India employees to be retained for a year

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New Delhi: After the sale of Air India to Tata Sons, the future of its employees was a big concern. As per the deal, all the existing employees of Air India will have to be retained for one year after the privatisation.

The government of India on October 8, 2021 has made it clear by setting a precedent for all public sector undertakings (PSU). Tatas have won the bid to acquire the debt-ridden national career Air India offering Rs 18,000 crore for acquiring 100 per cent shareholding. Tatas beat SpiceJet promoter to bag the deal.

Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM), said that Tatas’ bid of Rs 18,000 crore comprises taking over of Rs 15,300 crore of debt and paying the rest in cash. Both bidders had quoted above the reserve price. Pandey said that transaction was planned to be closed by December. A group of ministers comprising Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Civil Aviation Minister Jyotiraditya Scindia has cleared the winning bid for Air India on October 4.

This marks the return of Air India to the Tatas. Jehangir Ratanji Dadabhoy (JRD) Tata founded the airline in 1932. It was called Tata Airlines then. In 1946, the aviation division of Tata Sons was listed as Air India and in 1948, Air India International was launched with flights to Europe. The international service was among the first public-private partnerships in India, with the government holding 49 per cent, the Tatas keeping 25 per cent and the public owning the rest.

In 1953, Air India was nationalised. The government is selling 100 per cent of its stake in the state-owned national airline, including Air India’s 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.

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Air India goes to Tata Sons, Ratan Tata tweets, Welcome Back!

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New Delhi: Finally, Air India has gone to Tata Group which emerged the highest bidder. This was a much-awaited deal for the Government of India which wanted to sell this national career from a very long time. Welcome back, Air India, tweets Ratan Tata on Tata Sons winning the bid for Air India.
An SPV of Tata Sons – the holding company of conglomerate – has emerged as successful bidder, Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM) — the government department responsible for privatisation, said.

The international service was among the first public-private partnerships in India, with the government holding 49 per cent, the Tatas keeping 25 per cent and the public owning the rest. In 1953, Air India was nationalised. The government is selling 100 per cent of its stake in the state-owned national airline, including Air India’s 100 per cent shareholding in AI Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.

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