Ban exports from Reliance Refinery

There is a fuel shortage in the country - no diesel at the petrol bunks (they are living upto their name by not stocking diesel) and if at all they have diesel, there are serpentine queues (causing traffic jams on the roads) with 2 or 3 hours waiting to get a rationed amount (no tank full, please) and at times you are forced to buy only premium diesel. It is hurting the economy - cab drivers and auto drivers have to live with reduced incomes, trucks are off the road and even school buses are running out of diesel. There is loss of industrial production because there are 3 hour power cuts in some states and there is no diesel to spare for the industry because individual car owners seem to get precedence. Hotels are panicking because they are not getting enough diesel to run their generators.

The problem is partly because of dieselization of Indian Economy (as Dr Vijay Kelkar stated many years ago) by keeping the price of diesel low (ostensibly to keep bus fares and train fares loo) which resulted in perverse use of diesel by the even the ultra rich for SVUs and Mercedes Cars. Diesel is not only more polluting than petrol but also responsible for sulphur emissions that causes acid rain. Worldwide diesel and petrol are priced about the same but in India diesel is about 20 to 25% cheaper which makes it a compelling reason for car buyers to opt for diesel even though the price of diesel cars are much higher.

The diesel shortage is said to be because the PSU Oil Companies have stopped importing crude and products as they have run out of funds. Their financial position has deteriorated because fuel price increases have been put on hold for long by the government which was trying to keep the electorate (aam aadmi to kuch milana chahiyee) happy by holding the prices despite record high crude prices of over US$130 per barrel in the international market. While this is the case with PSU oil companies, the private sector giant, Reliance Petroluem has stopped all domestic sales (shut down all its petrol bunks which are said to be state-of-the-art with VSAT links and dining facilities for drivers) and is exporting all its production to maintain its profitability and keep the shareholders smiling.

Our government has banned export of rice (as a precautionary measure) when there was a food shortage in many countries, despite criticism that we are hoarding food while there were poor people starving in other less fortunate countries. India was not responsible for the global food crises - blame it on climate change or diversion of food crops for fuel by USA and European countries. My question is why doesn't the Indian Government ban export of petroleum products by Reliance Refinery? The country can pay Reliance import parity price (after all the millions of shareholders cannot lose if Reliance sells at a loss) and use the products in the domestic market. And yes, even the damned diesel not only for our fuel guzzling SUVs and Mercs but for the cabs and autos and the industries which are faced with power cuts. The delay in monsoon is going to make the load shedding worse. The time to act is NOW, ban the exports from Reliance refinery and use the products for the domestic market. It is for the National Economy, after all!!