The
gradual deregulation of POL products trade has opened new vistas for
investment. The fast changing market scenario demands from the
existing players to revamp their facilities. New entrants are fuelling
the competition. While the intense competition is expected to shrink
margins, the efforts will be to grab market share from competitors.
There are signs that the giants of yesterday are finding it difficult
to retain their market share. The Cover Story take into account the
existing infrastructure, investments being made by oil marketing
companies to upgrade their outlets. All the companies have upgraded
their important outlets but a lot more has to be done.
WHEAT
Official quarters are
expecting the wheat crop around 18.8 million this year. However the
exact size of the crop still remains to be anybody's guess due to
persistent drought conditions in the country. Latest data on
agriculture indicates lower than targeted growth in most of the major
crops during the first half of the fiscal year. Consequently, the
government revised downward GDP growth target from 4.5 per cent to 3.8
per cent due to prolonged drought situation in 2000-2001.
GAS
The
government has announced an increase in the prices of natural gas
ranging from 14.39 to 37.39 per cent for domestic, commercial and
industrial consumers. The power and transport sectors are the two
major consumers of the gas. As a result of increase, the cost of power
generation and transportation will go up. Ultimate sufferer would be
consumers as every increase in price generally passed on to the
consumers.
