why the petrol prices are getting higher?
today we are going to analyze why the petrol prices are getting higher and higher in India. This topic is important from the perspective of tree limbs as well as from the perspective of Jesus means paper 3, so let’s begin with the topics of discussion. First of all, we will talk about why news then we will talk about the timeline of the rice.
the prices rise in prices for fuels we will also talk about the reasons the taxation system for fuels in India. We will talk about the impacts of it on the general populace. We will also talk about the oecd organisation for economic cooperation and development and we will compare the different economies.
why the petrol prices are getting higher
Basically, what are the prices of fuels in different economies of oecd and India? We will also talk about the challenges the way forward and in the last of the segment. I’m going to give you a main spaced question for answer Writing Practice in the midst of the segment. I’m going to ask your previous question as well for in which if you know the answer you can comment in the comment segment. So if we talk about why in use here
in observing since December.
last few month report of why the petrol prices are getting higher?
All right as you can see, this is an article from 9th of December 2020 and if we talk about right now, the prices are so high in Delhi that they are rupees eighty-nine Point later for patrol in Delhi, and if we talk about Mumbai, it’s approximately rupees 86 per liter. So if we talk about this what is actually wrong, we will analyze it. but before that let’s talk about the timeline. So if we talk about the Corona virus pandemic,
when did it actually hit India in terms of log down it hit India in the month of March 20 20 and after that so many restrictions were imposed when it comes to traveling and of course traveling not only domestically but also internationally, so there were so many impositions of different practices for social distancing the people
Nowhere to go and God is why the prices of Patrol the crude oil it crashed and it Christ to such a limit that it the prices for patrol and general oil. it wasn’t revised for our records 82 days, you know here it is given for a record 82 days now because of the imposition of
so many restrictions when it comes to traveling when / had nowhere to go nowhere in the sense their entire transition their entire traveling voice stopped and because of that the demand for patrol was not a lot so they were hit with a double whammy first of all where to go and because of where to go the demand fill and they couldn’t tap the benefit of the lower petrol prices right first is that and if you talk about the oil marketing companies since November
why the petrol prices are getting higher
Of the economy started to happen the petrol prices companies pricing companies. They increase the petrol and diesel prices since November 20, 20 20 and since then it has been a higher Trend and if we see if we talk about 2020 only in 18 days the petrol price had gone up to gonna buy rupees six point as to beg your pardon 2.65 per liter, and he’s already had also increased and if we talk about out today,
you can see the prices that are given now if we talk about why do consumers have to pay more because of decontrolled prices on fuels this is a lonely Street consumer will be at the negative end the he will he or she will receive the negative part of the increase or even decrease in the international prices of oil in the sense that oil was
initially regulated historically it was regulated. That means it came under deregulation of the government but in the year 2010 the government decided that they will not regulate the Petrol prices of. That means they will not set the retail prices for batoul. It would be done by the boiling point marketing companies and in the year 2014 the deregulation also it the dealer relation also got imposed on diesel.
why the petrol prices are getting higher
So if we talk about that since then the marketing companies the all marketing company started revising the prices of oil in in a fortnight. That means it 14 days, but after or on you can see on June 16 2017 the revision of prices are being done on a daily basis now because of to safeguard the consumers from any kind of fluctuation
stress on the oil for because of the oil prices this was done on a regular basis, but it could be seen as a stabilized practice first. Is that so because decontrolled pricing on fuel is happening the oil marketing companies in order to increase their profit margins. They have not actually let the consumers to get the benefits of the lower crude oil petrol prices first, is that and also
if we talk about the comparison isn’t that another other countries you can see see India’s chart in general. This has been a comparison between the months eight months of different years, January 20, 20 to 21. You can see the difference the change, of course, it has increased. Where does China USA Brazil and Yuki have not seen an increase up to that much now if we talk about China USA in Brazil on an average the citizens of these countries have been paying less if we come
why the petrol prices are getting higher
grunts January of this year if and compare it from the month of January of twenty twenty so you can see only in India the strength has been C now if we talk about the reasons first is we have already talked about the decontrolled pricing. So that’s that and then Global crude oil prices first, is that so if we talk about global crude oil prices the oil trains depends on a lot of things first is the global trend.
the international placing second is the freight charges third is the exchange rate between the Indian rupee and the u.s. Dollars. So all these factors actually affect the prices, but if we see the price rice is not that much so, why are Indians paying more because of post pandemic effects we can see this as well become other countries trying to get into a v-shape.
I got premium discussed about this this this is when the GDP has fell down it has crashed to a low level and again it is trying to recover. So this is a v-shaped recovery in a graph I can draw a Droid for you. You can see your GDP and this is time,. Okay, so GDP goes like this and then it will come down and then it will again recover.
why the petrol prices are getting higher
So that is that so if we talk about that the post Perfect. It is actually affecting the economy a lot. Sorry the oil prices are not in the sense again. You’re trying to get back on track the factories and the air travel restrictions. These all have been they have been and not imposed after the log down out up to that much of extent so that is why when the economy’s trying to get it back on track it will obviously try to demand more and more oil or more and more petrol and Diesel and that is what
cozy deep increase in demand, but the supply is not that much because many of the OPEC countries they are voluntarily not producing as much output as the demand needs to be met in order to control the pricing. There is a reason that OPEC countries are not doing so so second is that because Brent crude which was being traded at about $40 per barrel between June to October.
why the petrol prices are getting higher
in the year 2020 and attach started rising in November and it had gone past sixty dollars barrel. This is also another reason the control production. We have already discussed how the OPEC countries are not doing much. They are not producing that much of output and if we talk about OPEC it was it’s an intergovernmental organization. Hope it means organization of petroleum exporting countries. So it was formed in the year 1960.
And if we talk about where it was formed in Baghdad, and it’s headquartered at Vienna Austria, and if we talk about the founding members they are Iran Iraq vets at the Baghdad countries Saudi Arabia. And of course, Venezuela. All right and know in the comments segment, you have to tell me how many members of OPEC are there first is that and secondly is India a member of the oecd or not. All right, so if we get to the taxation system on fuel you can see this article and it says it’s from May 7 2020. It says that India now has the highest taxes on fuel in the world. So taxation system if we talk about for this is
Only a picture but here I have used in order to make you understand. What are all these taxes invited by the central government the state government. All right, so if we talk about the pricing the taxation structure for our petroleum, they are not under the purview of GST.
So the government has a lot to maneuver in order to get more and more revenue from any kind of commodity. The troll is the or crude oil is the most you can see lucrative object. So if we talk about that, you can see this is the base price. Okay the actual price then comes after the taxation it will increase of course if we talk about excise duty now, this is the wide by the central government.
Allin order to get Revenue Central Government after that many states because prices the prices of fuels depend on state to state they get deferred in if we talk about up’ the price of petrol and Diesel will be different from the price of Delhi and any other state so if we talk about that then comes wet now that is it is imposed by the state government then comes another thing.
why the petrol prices are getting higher
It’s called dealers commission. And of course if we talk about another charge, that is the freight charge so they don’t move so many taxes which leads to the increase of the actual actual price that a person needs to incur in order to get one liter of petrol. So as you can see if we talk about Delhi right now,.
The taxes are actually won 80% in addition. For patrol and for diesel It’s one forty one percent of the base price in addition to all this. All right if we move on and talk about the impacts first of all because of the hiking of the central excise duty and bad it has mocked away any kind of savings that a person had done throughout because of not consuming Patrol because of the lockdown they couldn’t cut the benefits in after the log down got over they had to
why the petrol prices are getting higher
double the price almost double the price not exactly but almost and then negative margins from all federal marketing companies. The dealers are saying the oil marketing companies are saying that they cannot revise the entire pricing in according to the global oil crash were Global oil price crash because it would leave them dry with no margin.
why the petrol prices are getting higher
So second is guidance and consumers with greater expenditure on on travel will definitely feel the pinch of the this entire hiking on the price because they have to travel more and because of the traveling they will need more and more patrollin diesel and that will cause them to be at a nose and if we talk about the industrial analysis, they say that because of the increase of the oil the crude oil if we talk about that this had been
why the petrol prices are getting higher
like the food inflation moving on the decline basically, so it has been compensated for but in the long run if you want to know in the long run definitely any increase in the crude oil prices petrol or diesel it will be a chain effect and after that because of the Commodities
being transported from one place to another per unit cost will also get increased because of the increase in the prices for diesel, of course, that will also happen and if we talk about the urban population the urban population will be much more affected but increasingly prices. of petrol and Diesel and between if
we talk about it wouldn’t population you can see that a week one so may need to do rylindia being hit as farmers are forced to rely more on diesel-powered irrigation moving on. Let’s talk about oecd. I asked your problems based question from here also and an intergovernmental economic organization. This is it was founded to stimulate economic progress in World Trade It was founded in the year nineteen sixty one.
And it is headquartered at Paris France. All right. Keep this in mind also a very high human development index all the countries were included in it is there and they are regarded as developed countries,
but India is not a member. so your question has been answered here only, but it comic pattern if you talk about the reports and indices by oecd government at a glance 2017 report international migration Outlook and oecd better life index. So if we talk about the challenges GST leaves very little space for the
why the petrol prices are getting higher
Going to maneuver for the taxation because if we talk about the Commodities available for taxation, there is much less Commodities available for taxation after the GST came into practice on patrol is the very the single most if you can could see if I dare say is the single most lucrative item for any kind of imposition for taxes. See if the prices are high for of crude oil in the international market the eventual negative impacts for the hike in price will pass on to the customers.
why the petrol prices are getting higher
It’s the consumers loyal marketing companies. Will of course try to increase their profit margins and even if the prices are low the government will try to that benefits from that situation of low price of international crude oil by getting and raking up its Revenue by putting more and more taxes on it eventually again,
the consumer will be on the losing side and the growth challenge of course affects want to talk about the post pandemic. Call me trying to get back on track will demand more and more and we cannot.
why the petrol prices are getting higher
go of this entire period because everybody wants to be a part of the group and lack of energy security infrastructure in the sense that there was no proper energy security infrastructure in terms of storage if India had proper physical infrastructure for storing crude oil when the prices were
low in your could tap the benefits of it because the government could have gotten the crude oil for a much lower price if it had gone the proper storage system night and over T dependence on fossil fuels India does have a lot of dependencies.
why the petrol prices are getting higher
Of I’m not only coal, but if we talk about energy demands petrol to adults and days in these are also the things on which the Indian government depends upon our lat and we need to of course which one to more other substitute which are less polluted in nature. and which could be easily easily
targeted when it comes to getting its energy demands meant less penetration of electric vehicles. Now, this is something the government is trying to do but the penetration is not a lot and if we talk about the way forward we need a pragmatic tax.
why the petrol prices are getting higher
change system we need to make a taxation system, which is not actually taxing on the customers when it comes to idealistic Lee benefits them in times of need, right and both should be balanced with accordance to time.
We need a more idealistic approach here when it comes to that growth should be there, but it should not be in such a manner that it will erase inequality,. Right? and of course energy security proper infrastructure should be developed in order some kind of pandemic again hits the three hits the entire world beg your pardon and I should be ready.
in order to meet its energy demand for the future in case of the prices of oil prices of crude oil crashes right proper infrastructure for storage in that time and investment and Innovation should be done in different substitute energy energy security not only in energy security but also other substitutes such as hydrocarbons and another another fuels only if we talk about the implementation of electronic vehicle scheme. We already have seen that government has undertaken many schemes, but
why the petrol prices are getting higher
Shouldn’t be and very rigorous mission mode on it. So if we talk about a mean space question kindly look examine the impacts of India’s huge dependence on Imports to meet the energy demands and also suggests measures to attain self-sufficiency in this regard. You have to write it down into 50 volts. So that’s it for today tomorrow. We shall meet again
why the petrol prices are getting higher
