🌺Pls Understand....🌺

Why the Govt can't pass the benefit of drop in International Crude prices to the people??

Read carefully to understand pls.

1) What are oil bonds & who all issued these bonds?

Oil Bonds were issued by successive governments upto 2010.

during the days when the prices of Petrol / Diesel were regulated.

Instead of paying the Oil Marketing Companies (OMCs) for the subsidies extended on petrol/diesel & other oil products, the governments used to issue oil bonds as compensation to these companies,

which are like government securities.

These securities are usually long dated securities of 10-20 years.

2) For instance, look at the notification of the Oil Bonds issued during the UPA.

Oil Bonds were issued by all the previous governments till 2010,

when the petrol price was deregulated.

3) What is the worth of Oil Bonds pending?

The budget documents available in the public domain reveal the information of pending oil bonds and the amount of interest to be paid on these oil bonds.

As per annexure 6E of the receipt budget 2014-15, titled

‘Special Securities Issued To Oil Marketing Companies In Lieu Of Cash Subsidy’,

the total value of pending oil bonds by the end of 2013-14 was
₹ 1,34,423 crore.

This is when the NDA government took over.