Who gains when crude prices go up?

Oil marketing companies (OMCs) in red - A common statement in today's news. But why are they in Red?

Let us say international crude oil prices are hovering around US$ 110 per barrel. That translates to about Rs 4,950 per barrel. Each barrel contains about 158.76 litres. So, effectively crude oil costs Rs 31.2 per litre. Now, add the cost of refining it to petrol or diesel. According to an oil company official, the refining cost is about 52 paise per litre. Add about Rs 6 as capital costs for the refinery. Then there's the cost of transportation (Rs 6) and dealer's commission (Rs 1.05). So, adding all that, the price of petrol comes to about Rs 44.77 per litre. But how much are we actually paying for petrol? With the recent hike in petrol prices, we are paying almost Rs 65-70 per litre. Who is the culprit - government. Government (both centre and state) charge huge levies on petrol, diesel etc and gains a lot when the prices of international crude go up, because they tax these products with a percentage of basic price and not a fixed price per litre.

So, while the common man is feeling the pinch of hiked prices every time, the government has the last laugh, with their coffers filled from these levies!

PS: above numbers may not be accurate, but an idea of the various components that are added to the cost of petrol.

Leadership Deficit

I have seen the I.O.U.S.A videos on youtube.com. They are nice videos to explain "the economics of the US problems" to a common man. And the most striking point it made is the Leadership deficit, which is the larger problem than the Savings or Trade deficits of US.

So, I was rewinding the last few years in my mind and the leaders who presided the White House. Each one of them is just a politician and the actual person who heads Treasury is a former Wall Street honcho. So, there is a clear gap of leadership to steer the massive US economy safely. Comparing with only India may be a narrow argument, but has a logic to it. Our central banks were headed by economists who held their primary duty of economic stability, improving the standards our financial system and who have written hard rules, which only proved to save us when the whole world was sinking in 2008.

Why US employment scenario doesn’t seem to be optimistic?

Over the decades we have all seen a significant shift in the manufacturing activities of United States to China. This can be for various reasons like availability of cheaper labor, lowering of total cost of production and (may be) a deliberate shift of industries from US to reduce its carbon footprint. These changes are so large that it is not easy for a nation to bring back these manufacturing facilities back to US.

Now, after the recession, the US employment picture is so bleak and the unemployment rates are hovering around 9-10%. It suddenly cannot increase the employment opportunities of its citizens, one of the major reasons being that it cannot shift its manufacturing bases back to US. It can prove detrimental in two ways – 1) The amount of investment needed for this is very large and 2) This can increase the cost of production significantly and the sales will fall.

The United States, typically, is between the devil and the dead sea.

Physical Gold Vs Gold ETFs

Should I buy physical gold or invest in gold ETFs (Exchange-Traded Funds)?

Before the ETFs were introduced, we had very little choice. We could either buy jewellery or gold coins and biscuits. The good thing about owning physical gold is that you can hold it in your hand and feel assured about it. A digital contract note may not give you that pleasure. However, there are solid reasons that ETFs are a much better mode of investing in gold. One, it saves you from the dangers associated with owning physical gold. Your gold ETF cannot be robbed. Secondly, there is no scope for getting duped by a jeweler. Gold ETFs do guarantee the purity of the gold. Further, physical gold is taxable under the wealth tax law, whereas units of gold ETFs are not. Also, the ETFs give you a lot of flexibility since there are basic units starting with one gram. And lastly, such units can be easily exchanged for either cash or the underlying gold itself. And the prices they offer are pretty much in sync with the ruling market price of gold. Given all these reas ons, we believe it is wiser to invest in gold ETFs than in physical gold.

Source: Equitymaster

Won or Lost?

Well, finally the Ayodhya verdict has come out. One third to Hindus, another third to Muslims and remaining third to Nirmohi Akhara.
What sounds so childish about our great leaders and their stupid followers is that both the Hindu and Muslim leaders are combating each other for same entity – God. Huh!!
I don’t understand as why they can’t see beyond their narrow lanes of thought that at the end of day it is God who will be placed there, neither a liquor shop nor a discotheque (I can be killed for saying this).
Another strange confusion, probably, God is facing today – why has he created so many faces and names for himself. It should be paining him that one sect kill the other sect for him. So, he is on the winning side or the losing side at the same time. And it is the same pain I am going through seeing my brothers killing each other.

First Trisem Holidays !!

Time - 7.43 (may lappie says) Date - Sept 17 In Duronto Express (enroute Hyderabad)

Niiiice !! a cool and strong breeze blowing past my face and m liking it. The niiice feeling is compounded with this particular song from Godavari movie.

It is reminding me of my last crush (m not gonna reveal the identity dude !!). The lyrics of the song probably would have been truly inspired by this lady. So true !! It was a nice feeling being around with her for a good time. And I am badly missing her now. IIFT's express speed life haven't given me time to think about anyting other than assignments, deadlines and classes. And after three months of hectic life, thoughts about her are pouring in. Haven't had a chance to speak to her oflate. Looking forward to meet her again, if possible. Should be a nice feeling, similar to listening to this song.

(the song keeps playing in repeat mode in VLC Player)

Random Thoughts

PS: written on Aug 15, posted on Aug 22

It has been an Independence Day, in its fullest spirit for me today :)
Thanks to my Senior batch, we don't have any sessions, club meetings. I appreciate their respect to the country. It might be surprising to think as why this dumb ass is so excited for a single day. But that is life @ B-school (that too a residential program). Classes, assignments, club meetings, sessions, placements......... what not??

My day has been the laziest possible... woke up at 9:30, bfast at 10.30, followed by a morning show on my lappie.... a lonng bath, decent lunch @ hostel mess, matinee again on my lappie... and browsing+chatting for the remainder of the day. Wat else can I ask for?

The past 45 days in IIFT has been roller coaster sorts. Thanks to Yusuf sarai, I need to spend 1 hr more to commute to college and my brothers @ old hostel surely know the "marginal value" of this extra hr sleep. I still wonder whether my decision of joining all the possible clubs is a major cause of my "busy" lifestyle. But, I should pat my back for the decision, for it helped me to choose my majors so soon (its fin folks!!) I cannot stop appreciating the senior folks for their time and effort in running these clubs, coz I personally know how tough it can be, thanks to my Infy stint in handling clubs.

As you could(n't) grasp the flow, my thoughts are wandering from one extreme to another and I better pause 'em here for now.

Yeh Maaye Chesave :)

Lost in my nostalgic thoughts watching this movie ... and a deep feeling of remorse also filled me. But it was a very thoughtful decision at that time.

She was the most beautiful gal I have ever seen, literally. I think, and strongly believe too, that 99% Malayali gals are beautiful. My team mate, a few of my colleagues.... I have seen many of them, stunningly beautiful. And this gal attracted me the first moment I saw her. And I had to believe "Love at First Sight", which I thought would exist in movies only ;)

I followed her, albeit silently, to the food courts, to the coffee machines, to the hostel. Just for one more glance of her. And luck favored me when she was posted in same location as me. Slowly friendship blossomed and we were very good friends. I was ready to do anything for her on the earth, just to bring a smile on her face. Now too.

When I was watching this movie, the story instantly stuck with me. A Malayali. The heroine is beautiful as her, as matured as her, as sweet as her, simple "her". And I was mesmerized again. Her looks were addictive, the more you stare at her, the more you keep on staring. Exactly the same I felt 3 years before :)

I feel good, as always, to think about her, the first time I her, I saw a shine in her eyes, and fell Love at First Sight :)

Missing you ...

Without Her

Its different. Very much. Without her, life is very much different, both good and bad :smiles:

I wake up any time, because I needn't wake up early to serve as her alarm.

I need nt go the gym, because I dont have the urge to look good anymore.

I go to office anytime, because I needn't pick her up anymore.

I eat my breakfast anytime, because I neednt wait for her to join me.

I play anytime, because I neednt spare anytime for her anymore.

I work all the time, because I dont have any other better to do.

I have all the time in the world now, but just dont know what to do with it - without her :|

Retrospective

From the past two days, I ve been recollecting those memories of my final year, rather, my final days in school. It was time for the Slam books J Ummm, I see that you are also smiling like me and turning nostalgic.

The last few days, our classroom was bustling with the activity of filling the slam books. And guess, who are the busiest ;) Of course, you ve scored a perfect 10, all the gals. Who else!!! Thanks that we had only 6 gals, else we couldn’t have been left with any pages for filling the books, haha!!!

I remember dedicating my first page to my best pal, Ashok. And right away all the pages were reserved for the fair ones. I am no exception too J. Even though the guys were so idle and eager to fill in the books, who cares, hehe!! Once the gals fill in the books, it was the turn for the other sex. It is always good to recap those days and unknowingly I keep on smiling all the time.

Rarely, do I open the book now, unless I unexpectedly see it while dusting my bags or shelf. And right away I open it and thumb through all the pages, recollecting those good old days. I unconsciously lose time with those memories and turn very nostalgic.

Life has become routine now, even though not busy for me. I live in Bhubaneswar, which is not a busy city, rather not a too quite one. We live a reclusive life here, meeting and partying among ourselves, i.e., close pals and room mates. Nothing in this place bothers us, neither the politics nor the extremism. Wondering how many more months should I pass here, yeah it is not gonna be an year at least, pakka J