Petrol Prices

Hiee friends… J

Great to see you after such a long time…my Internship experience in Mysore was amazing… J It was a wonderful journey..

But I missed writing blogs…

The day I came back…I was stunned because of…

Stature in petrol prices…

In the present scenario, India is subjected to face the massive petrol price hikes which have shaken off common man. Striking increase of Rs 6.28 per liter which amounts to an increase of about Rs 7.5 after including the taxes. The hike will be between Rs.7.54 and Rs.7.98 in the four metros and would be higher or lower in other.

The main reasons for hike in fuel prices are,

A) Global increase in prices of crude oil which inevitably increases prices in India.

B) Another reason is purchasing power (difference in exchange rates/currency rates), the value of rupee is downsized considerably in terms of dollar.

Currently 1 USD=Rs.56.23

USA supplies 45% of Indian Oil demands.

I’ll update another blog post on the differences in currency.

Earlier if we were paying Rs.50 or something, now we’ll have to pay Rs.56 which leads to hike in prices..

C) And if there’s any scope left, that is taken up by Government of India. As they don’t provide non-Government Oil Cos with any subsidies on petrol products as given to LPG, diesel and kerosene. So oil companies are bound to increase the petrol prices and some of them have even closed their outlets.

D) Last but not the least VAT (Value Added Tax) 25-30 % cost is added to the actual value.

·         Excise duty  : 14.35 rupees per liter

·         Customs duty : 7.5 percent

·         Sales tax or VAT: 20 percent.

Deregulation in oil prices-in India oil prices are regulated by government; no private company can sell it on their market prices. In this cases if certain amount of price is lost, then that has to be paid by Govt...But recently Govt. has stopped providing them with the subsidies, so companies can themselves decide the prices. So in this case companies have the power to decide the price themselves. Every fortnight, all the oil companies will meet and revise the prices based on the market situation. The gloomy truth is that, this will not be suitable for India because in India most of the people are poor and they cannot tolerate the high inflation. In the coming days, there is a proposal to deregulate the prices of Diesel and Cooking gas. If it happens, cooking gas price will be Rs.800 per cylinder.

When economy is recovering and in the growth path, the demand for crude oil price is more.

According to the recent news, the prices of petrol will be DECREASED by Rs.2 from this midnight…

Hope to see further deductions… J