FUEL CRISIS IN INDIA

In India, there are many problems one of them is the fuel crisis. Recently Indian Oil Corporation has increased the price of petroleum products. People are extremely angry on central as well as state government. People having only two questions

Why VAT and Excise duties are more on petroleum products although the crude oil prices decrease in the international market and why petroleum products do not come under GST..?.

It's not possible because Indian Oil Corporation getting high profit from VAT and Excise duties. If they reduce 1paisa Indian oil corporation has to take losses of crores of rupees.

Now I will show you a

Basic price breakdown structure price of petroleum products.

• For manufacturers aa petroleum products crude oil is required so around 80% crude oil import from Iraq and Saudi Arabia but in November 2017 Iraq overtakes Saudi Arabia. 

                       

• Cost of 1Barrel is 4962 ₹ and it consists of 159 lit crude oil. Now per lit cost me around 31.20 equalise to 32. 

• In 32 the cost of manufacturing also added and it would be 5 to 10 ₹ and afterwards the dealer profit margin around 10 to 20 ₹.

• In that also central government taxes 10 to 15₹ also this is not the end afterwards state government also come with their taxes known as VAT.

• Afterwards, dealer profit margin comes and he would take 1 to 3 ₹ per day.

• Finally, the cost goes beyond the marginal limit and cost would be about 70 to 80₹ although crude oil prices in international markets come down still at India patrol prices sometimes decreases by some paisa. 

As you can see in figure picture what was crude oil price in the international market during 2013-14 and 2018-19. Whereas in 2013 patrol price was around 71₹/lit now around 80₹/lit and during 2015 patrol price was 66₹/lit. This is how our government regulate patrol price regulate in India. 

The government want funds the and they found this is the easiest way of collecting fund. At present government running soo, many schemes and the strategy is collecting fund is raisinppetroll price.

In India who is government employees they don't want to pay any amount to travel anywhere just show an ID card at patrol pump they get gallons of fuel at free of cost as well as their children also get fuel at free of cost. Somehow because of such types of people India lacking in development. 

Nowadays in India farmers are afraid because they do not get enough price what actually they really want. They are crying because in farming for digging they use a tractor and in 1lit petrol they can dig only 5km land and they want gallons of fuel required to dig acres of land. If farmers not increasing the price or if they don't get enough price with a profit or don't get what actually they invest then their life becomes hell same thing happen actually right now.

Thank you

Nimesh Waghela