[FYI] Fuel Price Comparison In India With Other Countries

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[FYI] Fuel Price Comparison In India With Other Countries

This is a For Your Information post about the Fuel Price Comparison of different countries with India. Please find more details at the verification section of this article.


Post Information:

Below non-authentic posts have been circulating on social media

PETROL PRICES AROUND D WORLD

PakistanRs. 26.00
BangladeshRs. 22.00
CubaRs. 19.00
ItalyRs. 14.00
NepalRs. 34.00
BurmaRs. 30.00
AfghanistanRs. 36.00
Sri LankhaRs. 34.00
INDIARs. 73.00

What a great job by the GOVT. Of INDIA !!!!!!!


Verification:

The price of petrol in India is determined on the basis of below factors

  1. International crude oil cost
  2. Ocean freight, transport and insurance charges
  3. Refining cost paid to refineries
  4. Price paid to dealers and middle man
  5. Excise Duty paid to Govt.
  6. VAT state wise

Ref: Understanding Petrol Pricing in India | factly.in | FEBRUARY 3, 2016

The international crude oil, freight cost and refining cost are variables for input cost of oil in a country and taxes are cost decided by country’s Govt.

On external factors below is the brief

Globally oil prices are determined by supply, demand market sentiment toward the physical product, future contracts and cyclical trends in the commodities market.

Also the  crude oil is  extracted into  a lot of products for practical purposes. A barrel contains 42 gallons of Crude oil. Roughly as a ball park figure this can be the yield. 42 gallons per barrel makes about 19½ gallons of gasoline (petrol), 9 gallons of fuel  oil (diesel products), 4 gallons of jet fuel, and 11 gallons of other products, including  lubricants, kerosene, asphalt, and petrochemical feed-stocks . By referring the variety of output products we can understand that every country will have a different requirement from crude oil and they will focus on different kind of refining .

Ref : What Does One Barrel Of Crude Oil Make? | atlantagasprices.com

Third and a major point, crude oil is just not present everywhere, major reserves are with countries Venezuela, KSA, Canada, Iran, Iraq, Kuwait, UAE, Russia and few more. Strategic alignment and transportation cost from these countries also decides difference in import price to a subject country.

With all above information, it is clear that every country’s either import cost or production cost for refined oil is different from others, which again changes with time  and even at the various location points within the country where oil get refined or imported.

 Ref: Estimated reserves by country | Wikipedia

For internal factors:

Govt have their own set of expenses which they have to fund, oil is one area which is used as a tool to raise funds through taxes in India. These funds are then used in various development and defense based expenses and help in overall GDP growth.

The countries compared here are usually spending much less on their development programs as compared to India. Below are latest Real GDP growth numbers for the countries compared:

 Pakistan 4.7%, Bangladesh 5.5%, Cuba 1.3%, Italy .9%, Nepal 7.5%, Burma 5.5%, Afghanistan 3.9%, Sri Lanka 5.5%. India has a faster growth rate (7%) from all these nations where Nepal & Sri Lanka can have even better due to their small size.

Ref: List of countries by real GDP growth rate | Wikipedia

This difference in growth is where the extra money paid by Indian consumer is assisting the Govt. This is the same reason when even crude oil cost low down in global markets then Govt tries to overcome fiscal deficit of national budget by not transferring the cost to consumer. Also another major reason to keep the prices high is to check out flow of foreign currency Dollar. Govt as a policy wants people to consume less oil so that Govt.’s import bill will be low and thus in return less trade deficit and less outflow of Dollar which in turn checks the price of Rupee against Dollar.

The statistical answer of the question:

(As on the date of this post)

Ref: Gasoline prices, liter | globalpetrolprices.com

Country

Price mentioned
in Indian Rs. 
(In the Post)

Actual Current Global
price in $s
Price in Indian Rs.
Pakistan260.7145.80
Bangladesh221.0567.73
Cuba191.1574.18
Italy141.66107.07
Nepal340.9762.57
Burma300.5535.48
Afghanistan360.6541.93
Sri Lanka340.8454.18
India731.0869.66

Post Date: 15 June 2017

Post ID: #68333

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