Metal prices, including Gold and Silver are coordinated at the global level. With minor fluctuations, gold and silver cost almost the same in different countries.
But in case of black liquid gold - Petrol, the prices vary so much across nations, mainly due to the Government excise and tax rates and subsidies for fuel.
When the crude oil peaked to $150 per barrel in the United States in year 2008, the price of petrol per liter was increased to INR 50 in India.
But within months, when the price again dropped to $70-80 (by around 50%) per barrel in the US, it was decreased by only around 20% (to INR 40 per liter) in India.
And today, when the price of crude is still in the $90-100 range (per barrel) in the US, here in India we are being charged INR 63 per liter.
Unlike in India, crude oil is priced almost the same across several countries
(latest crude price data by US-EIA: Energy Information Administration):
World Crude Oil Prices
But in case of black liquid gold - Petrol, the prices vary so much across nations, mainly due to the Government excise and tax rates and subsidies for fuel.
When the crude oil peaked to $150 per barrel in the United States in year 2008, the price of petrol per liter was increased to INR 50 in India.
But within months, when the price again dropped to $70-80 (by around 50%) per barrel in the US, it was decreased by only around 20% (to INR 40 per liter) in India.
And today, when the price of crude is still in the $90-100 range (per barrel) in the US, here in India we are being charged INR 63 per liter.
Unlike in India, crude oil is priced almost the same across several countries
(latest crude price data by US-EIA: Energy Information Administration):
World Crude Oil Prices
From the above list, it is clearly visible that the price across the listed countries varies from $100-120. And in the United States, it is around $100 at the time of writing this article (Live Oil Price - US)
A US barrel consists of 159 Liters, therefore at the present price of INR 63, a US Barrel of petroleum in India costs INR 10,017 or approx. $222 (taking 1 USD = INR 45 ).
Therefore, today when we are paying Rs.63 per liter of petrol, in the US people are just paying around INR 28 per liter of petrol.
It clearly means that we Indians are paying more than double the price as compared to US and several other countries.
And as petroleum prices also contribute to the cost of almost all other commodities of a country (by adding to the transportation costs), today the cost of living for the common man (read non-politicians) is aiming the sky.
A US barrel consists of 159 Liters, therefore at the present price of INR 63, a US Barrel of petroleum in India costs INR 10,017 or approx. $222 (taking 1 USD = INR 45 ).
Therefore, today when we are paying Rs.63 per liter of petrol, in the US people are just paying around INR 28 per liter of petrol.
It clearly means that we Indians are paying more than double the price as compared to US and several other countries.
And as petroleum prices also contribute to the cost of almost all other commodities of a country (by adding to the transportation costs), today the cost of living for the common man (read non-politicians) is aiming the sky.
For free updates of this blog delivered to your e-mail, subscribe here
Subscribe to:
Post Comments (Atom)
0 comments for this post