Why petrol price increases day by day
lakshay456162:
because people are wasting petrol by going nearby place in car and not walking so petrol rate is increased petrol come form saudi arabia and their too much petrol and value of Indian currency deacreased that why petrol rate increased
ohh
was i right
you write whole chapter
I am not having this much time
Answers
Answered by
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In January 2016, crude oil prices in the international market were only $28 per barrel. Thus oil was available at a cheap rate.
CRUDE OIL PRICES FROM 2012-2017
OPEC( Oil producing and exporting countries) which consists of 14 countries such as Iraq, Saudi Arabia, Kuwait, etc. These countries have major source of income from exporting oil to other countries. Price of crude oil being so low their revenue also dropped. So they decided to cut their crude oil production by 1.8 million barrels per day, thus forcing other countries to use their reserve oil. Out of the total crude oil production in the world 40% oil is produced by OPEC. OPEC sensing a drop in their revenue therefore wanted to increase the price of oil by reducing supply. They then went to Russia and asked them to cut their oil supply to increase demand of oil. Russia and some other countries agreed and thus the price of oil stabilized and then rose again.
World's demand of oil = 1.5 million barrel a day while Supply = 9 lakh barrel a day.
Now let us understand how this affects India :-
India imports around 82% of total oil required which is about 408000 barrels per day.
An increase of 1$ in oil price, increases India's cost by 8000 crore.
The price of a barrel of crude oil in the early 2017 was $52 per barrel which roughly is Rs 20/Litre, while now the price has rose to $70 per barrel which is roughly around Rs 35/Litre. Add Rs 10 Refinery cost and Rs 3 margin thus the government gets an litre of petrol for Rs 48(Approx). While they sell it for Rs 87/Litre (Mumbai). They implement 80% tax on Petrol which consists of Central excise duty (Rs 19.48/Litre) and State tax (Rs 16.86/Litre) and commission to petrol pump dealers.
TAX ON PETROL AND DIESEL
On 31st May 2012 BJP annpounced Bharat Band due torising prices of petrol and recently Congress announced Bharat Band due to the same reason. Both the government have not been able to solve this problem.
CRUDE OIL PRICES FROM 2012-2017
OPEC( Oil producing and exporting countries) which consists of 14 countries such as Iraq, Saudi Arabia, Kuwait, etc. These countries have major source of income from exporting oil to other countries. Price of crude oil being so low their revenue also dropped. So they decided to cut their crude oil production by 1.8 million barrels per day, thus forcing other countries to use their reserve oil. Out of the total crude oil production in the world 40% oil is produced by OPEC. OPEC sensing a drop in their revenue therefore wanted to increase the price of oil by reducing supply. They then went to Russia and asked them to cut their oil supply to increase demand of oil. Russia and some other countries agreed and thus the price of oil stabilized and then rose again.
World's demand of oil = 1.5 million barrel a day while Supply = 9 lakh barrel a day.
Now let us understand how this affects India :-
India imports around 82% of total oil required which is about 408000 barrels per day.
An increase of 1$ in oil price, increases India's cost by 8000 crore.
The price of a barrel of crude oil in the early 2017 was $52 per barrel which roughly is Rs 20/Litre, while now the price has rose to $70 per barrel which is roughly around Rs 35/Litre. Add Rs 10 Refinery cost and Rs 3 margin thus the government gets an litre of petrol for Rs 48(Approx). While they sell it for Rs 87/Litre (Mumbai). They implement 80% tax on Petrol which consists of Central excise duty (Rs 19.48/Litre) and State tax (Rs 16.86/Litre) and commission to petrol pump dealers.
TAX ON PETROL AND DIESEL
On 31st May 2012 BJP annpounced Bharat Band due torising prices of petrol and recently Congress announced Bharat Band due to the same reason. Both the government have not been able to solve this problem.
what qhom you are saying
you
same to back to you
only
ok sorry be my friend
ok I also dont need and dont care
Answered by
0
because it takes a long time to make a few litres of petrol
right
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