How the price of Petrol is HIGH though the INTERNATIONAL MARKET PRICE is low ?  img source  To understand this we need to go thro...

How the price of PETROL in India increases

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 

America 22.43%
Russia 30.34%
Australia  24.73%
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.


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