why we are unable to control cost of petroleum prducts?

Question

answer this with 5 years details

Answer 1

Perhaps you are interested in knowing if we can control the Prices of Petroleum Products in India. In any case it always depends on the cost. Isn't it?
The prices can be brought down by a number of ways:
(1) Reduce the Excise duty on Petrol and Diesel
(2) Invest in more efficient refineries that can process heavier crude (like the Venezuela crude) which is 6 to 10% cheaper than the WTI or the Benchmark Brent. Reliance refinery is a shinning example of an efficient refinery, which buys the heaviest crude and sells the finished product all over Europe and the United States
(3) If we can make rupee appreciate against dollar, the cost of petroleum product will be a lot less. We import 60 million metric tons of crude oil and the payments are made in dollars. If 01 USD was not INR 45 and was INR 40, Petrol and Diesel could become a little cheaper. The answer lies in importing less and less of items other than crude oil and exporting more value-added items. Of course wooing the Indian Diaspora to send more Dollars home also adds up to our comfort level

Answer 2

Large chunk of revenue comes from various duties imposed on petroleum product.If we reduce it then price line will go down beyond the desired level and there will be chaos and due to reduction in duties there will not be enough fund available for development.This is a witches circle and our Govt had now been trapped into it for years.

Answer 3

The government is hoodwinking the people. It collects a great deal of money (from huge taxes on the petroleum products) from the people to prop up its coffers and subsidises its own political class, its inefficient and corrupt bureaucracy even as it tries to keep a pro-poor image to keep their positions and seats intact. The gullible people deeply impressed and lazy to think for themselves keep voting one or the other set of corrupt politicians time and again.

Answer 4

We can't because the prices are controlled by the oil cartels and associated organisations. This has been the same for ages past. Do your own research for the 5 years details. :)

Answer 5

INDIA produces 30% of her fuel consumed.Rest is to be imported.Crude oil is the commodity on which maximum gambling occurs in international commodity market.So we are helpless.If govt reduces the tax imposed upon ,it would be cheaper, then wherefrom the money comes for minister"s amusement?

Answer 6

Because of YOU and ME! If we keep on increasing our consumption , adding a second car and a third 2 wheeler to our garage the demand for petrolium products will always keep going up. Like housing prices. But since you and I donot buy houses everyday , but, petrol , we do , we feel the impact.

Like if you cut down fat/ oil consumption the cholesterol will not go up but will come down. Let us cut consumption and see what happens. Initially the prices will go up but it will start to come down fast. Are we ready for it?

Answer 7

Her Sarkar,

The same reason that drugs, pornography, fast cars and supermodels are so expensive:


Because they are addictive!


When we do without, the price will go down until we are re-hooked!

James in San Diego

p.s. This has been going on for far more than 5 years!

Answer 8

price of petroleum includes 60% in government duties.You decide who should do the cut in prices. the more we consume the more the officials gain,so why reduce?

Answer 9

Because you cannot control the world wide demand for oil and because you cannot control the world wide supply of oil.

Answer 10

yesterday also cos of the politicians...today also cos of the politicians...tommorrow also cos of the politicians we will never be able to do so.......pls take it for granted that petroleum products in India wud ever become cheap....