@SLK; the problem is, refining and marketing companies like IOC, Indian Oil, BP, etc. find that they can make more money off refined (and imported) crude by exporting it. that way, you get forex, no tax, and hence more margins. currently, govt. charges a BOMB on imports per barrel, not to mention taxes, subsidies, pricing control, etc. how can the companies make up? by exports, of course.
the truth of the matter is that India wouldn't need to import fuel if regulations were justified. our country is self sufficient. but how will the babus eat if they stop importing, eh? that's the "system" for you. of course, my opinions are subjective, and since i am not the petrolem minister, i cannot fully comprehend or comment on the "internal" proceedings and their complications. but hey, i'm entitled to my views as a citizen, right...?
and guess what? the $71 per barrel is for light and sweet/brent crude; not the heavy or "unprocessed" crude that WE import....ain't THAT something? the crude WE import stand at about $50-52 per barrel...last time i checked....
most of the crude imported by us come in the "heavy" category, that takes a pain to refine or process. these are usually for large scale and industrial fuels. sweet crude being imported by us is for automotive and aviation, but after looking at the quality, i think they're using MORE of heavy crude and less of sweet....
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