Posted on: 30-10-06 04:56:24
The price break up % per litre of petrol and diesel in our country is (State & Central Govt. Taxes/Distributor Commission/Refinery Cost)
is 56/2/42 and 48/2/50 respectively.
Even though the current petroleum price has dropped from 77$ to less than 60$ per barrel the petrol price has not been rolled back from the high of Rs.53 per litre done a few months back.
Petroleum is called ‘black gold’. Each and every gram of is converted into one bye-product or other and sold at a fancy price and nothing is wasted Apart from the heavy taxes built in we have to pay the govt. controlled refineries nearly 50% price for every litre.
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In India, Petrol is sold at premium to fund the subsidies for kerosene, diesel, and LPG. Government policies would have made the oil companies bankrupt, which are saved in turn by government issued oil bonds.
http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/16/8390328/index.htm
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Unlike a price increase on alcohol or tobacco where only the user has to bear the burden, price increase on petrol or diesel affects the prices of all essential commodities, often disproportionately, to the detriment of the common man but to the benefit of business people who make a fast buck.
For example the price of petrol was around Rs.24.50 in 1996 has more than doubled and is selling around Rs.53. The price of petrol has got a lot to do with the standard of living which has gone down for the lower and middle class. Unlike Canada where it is sufficient to put 40 hours a week, the labour here even if they work 80 hours a week have to struggle for bare necessities like food, clothing and shelter. In addition they have no protection against sickness, retirement or against calamities.
In contrast, during the same 10 years the business and industrial community to whom our current Finance Minister literally belongs to, has gone from strength to strength. They have created only very small pockets of prosperity. The petrol prices are nothing but indirect taxation on the poor to make the rich, super rich community.
Please read: http://www.rediff.com/money/2006/oct/30rich.htm
Apart from all these, as far as I know kerosene, LPG, naptha, bitumen etc are all bye-products from the effluents of petroleum refining. How can the refineries punish us both in petrol as well as LPG. What about the unacceptable levels of taxes? Nothing is transparent regarding all these. None from the media will tell the real truth as they themselves are owned by big barons.
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Goverment of India controls the price. You are blaming the refineries!
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Those in Chennai pay about Rs 52 per litre of petrol. This translates to roughly $1.13, converting dollar at Rs 46. You may be curious to know what the world pays for petrol.
Believe it or not, Venezuela pays $0.12 per gallon. To put it in perspective, let us work on the units of measure. One gallon = 3.7854118 litres, Google informs; so $0.12 per gallon means $0.032 per litre. Or, less than Rs 1.50 per litre. In gallon terms, Chennai pays Rs 196.84 or $4.28.
Price per gallon is $0.38 in Nigeria; $0.65 in Egypt; $0.78 in Kuwait; and $0.91 in Saudi Arabia, going by data available on http://money.cnn.com, updated March 2005.
In Puerto Rico, it is $1.74, while the following countries lie in the $2-$3 band: Russia, Panama, Nicaragua, South Africa, Lebanon and Taiwan. Cuba, Brazil, Bulgaria and Estonia pay more than $3 but less than $4.
At $4.24, Japan is almost on par with what we pay. Between $4.50 and $5 are countries such as Spain, Switzerland, Ireland, Croatia, Luxembourg and Hungary.
Further up, on the fuel price ladder, in the $5-$6 range, are Portugal, France, Germany, the UK, Sweden, Belgium, Denmark and Italy. At the very top are the Netherlands ($6.48) and Norway ($6.27).
To Raj Canada
Don't blame the refineries themselves. In India these are Public Sector Undertakings coming under the Petroleum Ministry. Even if the Petroleum Ministry decides to sell at Rs.100 per litre, the current Finance Minister will be only too happy. He will start raising eye brows if the price is dropped by even 10 paise. ONGC and IOC (PSUs) has given over 6500 crores to the Centre as "dividend". The centre has raised the petrol prices 5 times during the last 1.5 years. Now when it has come down to as low as 55$ a barrel, it is turning a blind eye. The result is that the price of pulses and oil have shot up by 50%.
The FM is functioning in a coalition set up. He wants to "make hay when the sun shines" and as quickly as possible. This can be done only by catering to the whims and fancies of big barons like ambani, bajaj and others. Not to the lifeline requirements of the farmers of Vidharbha and their likes.
To Desert Fox
Thanks very much for your study of comparative prices. The figures speak for themselves. The "Activities" of petroleum refineries themselves is a big mystery to the common man India. Could someone in the know tell what this "refining" actually costs, what are the so called "effluents"? Are they thrown as garbage. It is highly unlikely the english news media will give this information lest they displease the businessmen mentioned above.
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One should do a similar comparison of world prices of kerosene, diesel and LPG to get complete picture, all of which are sold below cost in India. Somebody will have to bear the cost of subsidy too.
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