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Petrol price hiked by Rs2.35 per litre, diesel by 50 paisa

Petrol price hiked by Rs2.35 per litre and diesel by 50 paisa, excluding state levies, effective midnight today


The government on Saturday raised the price of petrol by Rs2.35 per litre and diesel by 50 paisa a litre, excluding state levies.


The increase in rates, which are excluding local sales tax or VAT, are effective from Sunday, Indian Oil Corporation (IOC), the nation's largest oil marketing company, said.


Earlier, M Veerappa Moily, minister for petroleum & natural gas had made a case for an appropriate increase in price of diesel, kerosene sold under public distribution system, and domestic LPG.


Moily, in a letter sent to prime minister Manmohan Singh, and finance minister P Chidambram had urged them to take corrective steps to check the deteriorating financial health of the oil marketing companies (OMCs) due to mounting under-recoveries (loss incurred by companies) for selling these products at a controlled price.


"…consistent rupee depreciation has a severe impact on the under-recovery of the OMCs and consequently on their financial health. If the present position persists, the total under-recovery would reach to a level of Rs1.80 lakh crore in the current financial year as compared to Rs1.61 lakh crore during the financial year 2012-13," Moily said in letters separately written to the prime minister and finance minister.


The Cabinet Committee on Political Affairs on 17th January decided to increase the diesel price in the range of 40 paisa to 50 paisa a litre per month (excluding VAT), sell diesel to bulk consumers at market price, and cap on subsidised domestic LPG cylinders to nine annually.


In spite of seven increases in diesel price since 18 January 2013 totalling Rs4.25 per litre, the current under-recovery is Rs12.12 a litre. At present, the companies incur a monthly under-recovery Rs6,204 crore on the sale of diesel. “At the current level it will take around 20 months to eliminate this loss provided there is no further increase in the international price of diesel and rupee-dollar exchange rate, the Minister said.


The monthly loss on PDS kerosene is Rs2,398 crore, and domestic LPG Rs3,058 crore.


However, with the significant depreciation of rupee against dollar since April 2013, the under-recovery burden is likely to become much higher, the Minister said adding that it is estimated that every rupee depreciation against dollar increases under-recovery on sale of diesel, PDS kerosene, and domestic LPG by about Rs7,900 crore annually.


"If we consider the average price of India crude basket at $110 a barrel and the average exchange rate at $66 for the balance financial year, the under recovery of OMCs will increase to an unsustainable level of Rs1.68 lakh crore. If the price of international crude oil increase to $115 a barrel the under-recovery will reach to around Rs1.81 lakh crore," the Minister said.


The upstream assistance – ONGC, Oil India – and GAIL (India) is expected at Rs70,500 crore, The remaining under-recovery of Rs97,500 crore can be met from either the Budgetary support from government or appropriate increase in fuel price, the Minister had said.


“At any point of time you should have a valid Will”

Making a Will is simple, but despite its importance, many of us fail to do it. At a packed session organised by Moneylife Foundation, advocate Bapoo Malcolm, explained the key elements to focus on while preparing a Will

A Will simply carries out your wishes after death. One has to give specific instructions about what has to be done with the movable and immovable properties one owns. A well-drafted, properly-executed Will ensures that your wishes are honoured. The courts spend much of their time resolving property disputes for want of a Will or in case of a poorly drafted Will. Despite knowing just how contentious these issues can be, it is common to postpone the making of a Will. At a Moneylife Foundation seminar on “How to write you own Will” advocate Bapoo Malcolm, a very well experienced lawyer in both civil and criminal matters, described to the audience the practical aspects of making a Will.

Explaining the simplicity of creating a Will, Mr Malcolm described that, “A Will is a simple document to be written in simple language. Preferably, avoid legalese. You simply have to give specific instructions about what has to be done with the movable and immovable properties you own and the property you might acquire in future. It would be best if it reads like a balance sheet. Just specify the property and the person.” A Will should be legible and clear to understand. “A Will does not need to be registered, for that matter, even a handwritten Will written on a simple piece of paper will suffice,” he added. A registered Will is also open to being challenged in a court of law, as the content of a Will has nothing to do with its registration. Mr Malcolm emphasised that no matter how many wills a person makes, it is the last Will, or that which is proved to be the last, is what is considered.

A Will needs to be clear and concise, leaving no room for interpretation. “Remember that a Will is basically, ‘you speaking from the grave’. Obviously, you cannot answer any further questions when the Will has to be interpreted,” said Mr Malcolm. “A Will would be interpreted according to the word of the law, which may not assign the same meaning as you intended.” Therefore, one should specify everything in the Will that would be subject to interpretation. For example, while mentioning names it is important to specify the relationship along with the date of birth of the person, as there could be common names. Also, if you wish to intentionally leave someone out of your Will, especially if it is a close family member, it is better to mention the name in the Will, if not, the person may contest the Will by saying you have forgotten their name, he explained.

One should not worry if one feels that one has left out someone, as a Will can always be updated. “One should not wait for the last moment and should prepare a simple Will. This can be updated any time. At any point of time you should have a valid Will,” explained Mr Malcolm.

Mr Malcolm spoke of the basic components of a Will as well as terms such as testator, executor, codicil, testamentary guardian and a detailed discussion on probate of a Will. He covered issues related to Wills, like registration, litigation possibilities, witnesses, executors, intestate problems. He also answered the queries of Moneylife Foundation members who raised their doubts.




4 years ago

I think it is better not to write a Will. Whether a person dies testate or intestate his or her heirs will quarrel after the death of their predecessor.

“For greed all nature is too little”

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