Petrol Price Hike And Solution

Assumptions say that the price of petrol will soon touch 100 INR. Controversies and debates are going on about this and the rise in price recently is very much higher for an average Indian to digest. Though the reasons said for this are the price hike of crude oil and dollar rupee exchange rate in the global market, people are not ready to believe this fully.

 

How is the petrol price determined? The cost of procuring, refining and marketing together with the excise duty and the other taxes make up the price. If the government is ready to give up the revenue from taxes, the prices might come down to certain extent. But 35% of the total revenue of the government comes from oil and if these are waived there is no other alternative to substitute this loss in short term.

 

A rise in diesel and kerosene will greatly affect the rural economy and the consumer market. So they are kept under control and the burden is added on petrol. The middle class becomes the worst sufferers in this case. Two wheelers make up 71% of the non-transport vehicles running on petrol.

 

As of 2011-12, 76% of the oil needs of India are met with imports. In 2020 this is expected to rise to 80%. And crude oil makes 80% to 90% of total imports of India. The excise tax on petrol was 26% plus 7.5 INR before 2008. In June 2008, it was revised to a flat rate of 13.35 INR per litre. The revenue generated is used for basic developmental programs.

 

 

Now how much does petrol cost actually? The cost of one barrel is $83 and this comes to Rs. 4565 per barrel. A barrel has 158.76 litres of petrol and so the cost of crude oil is 28.76 INR. The cost of refining one liter of petrol is less than a rupee and after adding the capital costs it would come around 35 INR. The dealer commission per liter of petrol is Rs.1.49 and that of diesel is Rs.0.91. So totally the price of petrol would not go beyond Rs. 37. As of June 2012 the price varies between Rs.75 to Rs. 78 depending upon the taxes of state government. Nearly Rs.40 is paid as taxes for one liter of petrol.

 

Price of petrol in various countries of the world as of May 2012 when one liter of petrol was sold at 72.90 INR in India

 

All prices converted to Indian rupees for easy interpretation.

 

India – Rs. 72.90

Australia – Rs. 78.60

Bahrain – Rs. 11.90

Canada – Rs. 79.70

China – Rs. 72.10

Dubai – Rs. 24.40

Doha – Rs. 14.20

Germany – Rs. 113.30

United Kingdom – Rs. 119.90

Italy – Rs. 118.60

Japan – Rs. 94.30

Pakistan – Rs. 59.00

Malaysia – Rs. 33.39

Russia – Rs. 50.20

Sri Lanka – Rs. 61.70

USA – Rs. 53.70

 

When no solution is given from the side of the government we are forced to find one by ourselves. Fast fuel shift and dieselization are happening around and the demands for diesel cars and hybrid vehicles are increasing rapidly. The energy efficiency vehicles have started to rule the market. The subsidies should be targeted in a better way. Only the lower income groups should be given the benefits. The unified Goods and Service Tax for petroleum products all over the nation has become the need of the hour. Hybrid vehicles have become the talk of the town.

 

 

To fight against these price hikes, Tata Motors has recently introduced the new car, Tata Megapixel. This operates on both battery and petrol. An inbuilt generator charges the battery and with one liter of petrol the battery could be charged to make it run for about 100 kilometers. This makes it unique of its kind as there is no need for a battery recharging station. This car is expected to hit market in a couple of years. People expect such innovate discoveries very eagerly to combat the petrol price hike.

Article Posted By : SumazlalView All Articles

I am Suhaina Mazhar working on India travel guide features. Writing is my passion, writing is my hobby and writing is my career. I want to write till the last moment of my life.

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petrol price hike , tata megapixel , petrol price in various countries

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