How the price of Petrol is HIGH though the INTERNATIONAL MARKET PRICE is low?
To understand this we need to go through simple mathematical understandings.Price of crude oil in International market is less than 30$
So 1 barrel = 159 ltr = ₹ 2728
1 ltr crude oil is = ₹ 17.15
Now the crude oil goes to the refinery where after refining the cost becomes ₹ 24.69 as basic cost.
Oil marketing companies purchase the refined oil from refineries and sell them to all the petrol pumps at ₹ 28.51 where the petrol pump raises the price to ₹ 30.76 adding its own profit of ₹ 2.
Now the current price of petrol is ₹ 64 per Ltr.
So total tax we pay per Liter is ₹ 34.23 where ₹ 21.48 is the Central Govt. Excise Duty and the State Vat is ₹ 12.75 .
So finally we pay almost 50% extra as tax .If the Govt will make the petrol tax free the price would be ₹ 30.76 .
Well before 2 yr when the crude oil price was 90$ the Excise tax was ₹ 9.48. But now the Excise tax has been increased to ₹ 12.75 .
After the falling of crude oil price the other countries price figures are decreased by
Britain 16.24 %
Well its not like Govt is taking money just by imposing lots of tax, these money are being used in the field of development , agriculture ,education, defense etc.