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RE: IOC 2Q Profit Surges – After Huge Govt Subsidy

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Charles Randall

The only reason there wasn’t any exports of fuels from India to US was because the market was balanced and demand was down due to global economy. The entire justification for Reliance doubled capacity was to be an export market – when the economy prevented it India hastily refocused production into domestic markets (temporarily).
The two are completely related – you have government subsidized refineries getting to dump product into higher valued markets like the US by Refineries that arent really following WTO free market rules but trying to enjoy spread for higher cost it takes to abide by them.

Do not play that stupid “developing country” economy card – that only works with liberals who are more concerned with wealth redistribution than fair free market principals. If any contry is “developing” and hasnt risen to level to abide by WTO regulations (free currency, environmental regulation, private ownership, ect) then it should be focused at domestic markets not exports. 

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