Valley consumes petrol worth Rs 3.5 cr daily

Petrol demand unmoved

BILAL HUSSAIN

With the rise in petrol prices by over Rs two per litre, demand for the commodity in the valley stayed unaffected. The Valleyiets shelve off Rs 3.5 crores daily on petrol and consume 5.70 lakhs litres of petrol per days, the petrol dealers here say.
The rise in prices of petrol scarcely affects the over all demand here rather it is showing an upward trend. “The demand for the petrol won’t go down easily as a result of hike in prices. Number of auto-mobiles is on rise in Kashmir which pushes the demand for the oil and hence unmoved requirement for it,” Dr. Khursheed A Butt, professor at Department of Business and Financial Studies (DBFS), University of Kashmir said.
The fundamental reason it doesn’t have any serious impact on the financial resources of the commoners here Dr. Butt while explaining said that on an average if a person utilizes two litres for his vehicle it would mean an additional impact on Rs 5 a day, which according to him is bearable. “Same calculations would make it Rs 150 monthly impact that too is not a serious brunt on the commoners here,” DR. Butt added.
Dr. Butt also sighted the reason of unaffected demand because Kashmiri’s are habitual of using their vehicles for transportation purposes which further drives the demand for petrol.
Spokesperson Kashmir Valley Petroleum Dealers Association, Bilal Bhat told Kashmir Times that in winters the demand for petrol and petroleum products goes down here however, it is unmoved by the soaring of prices.
Giving details Bhat said at present petrol is available at Rs 63.07 per litre in Kashmir. The oil companies on Jan 15, 2011 raised the petrol prices by around 4.5 per cent, sighting reasons of rising crude oil prices in the international market. The petrol goes costlier by Rs 2.84 per litre.
In the valley there are 127 retail outlet fuelling-stations which cater to the entire petrol demand of local population. “On an average the fuel-stations provide 5.70 lakhs litres of petrol per days and manages Rs 3.5 crores on daily basis,” Bhat claims.
Kashmir meets all its petrol and diesel needs by imports from outside. With the burgeoning increase in the number of vehicles, the import has witnessed tremendous rise over past few years.
Noted economist of the state, Prof Nissar Ali said that said, “While in fiscal year 1973-74 J&K imported 220 lakh litres of petrol, 544 lakh litres of diesel and 22.5 lakh litres of mobile oil, in 1990-91 the petrol and diesel imports increased to 581 lakh litres and 1168 lakh litres respectively.”
“The Rs 5 hike in one month is unfair. It is incumbent on companies to give public justification. What is the rationale for increase must be put out in public space,” a local Nisar Ahmad, said.