Global petrol price raised by 18%; India remains at only 4%

NewsBharati    15-Sep-2017
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New Delhi, September 15: After the rise in the price of petrol and diesel the central government on Friday issued some of the facts related to the crude oil and comparison of international market price with Indian market price.

 
From last 2-3 days, some political parties and other media were making an issue of price fluctuation of petrol and diesel saying that this is all time high price rise in the fuel price. By making it clear Petroleum Minister Dharmendra Pradhan has issued a fact showing that the all time highest selling price was Rs 76.06 in Delhi on 14th September 2013.

According to Global Petrol Prices, the petrol price in India on 12 September 2017 was Rs. 73.98 which showed a change of 0.9% in one week while 3.9% in three months. The Diesel price on the same date was Rs. 61.08 changing 2.2% in one week and 3.9% in three months.

On 14th September 2017, the petrol price per litre in India was Rs. 73.38 as compared to Japan’s Rs. 75.25, Chile’s Rs.78.16, Brazil’s Rs. 79.02, Singapore’s Rs. 96.63, UK’s Rs. 102.01.While Bangladesh’s rate was Rs. 69.40. The average value for India during that period of 05-Jun-2017 to 11-Sep-2017 was 70.22 Indian Rupee with a minimum of 67.25 Indian Rupee on 03-Jul-2017 and a maximum of 73.98 Indian Rupee on 11-Sep-2017. For comparison, the average price of gasoline (petrol) in the world for this period is 82.83 Indian Rupee.

India doesn’t have the large reserve of Crude oil due to which Price Fluctuation takes place. India doesn’t have any other option instead of importing its 82% of Crude oil from overseas. As said earlier petrol Price in India is much lower than Japan, Chile, Brazil, Singapore and UK. Petrol contributes 12% while Diesel contributes 39% of total petroleum products consumption in India.

During the past week, the European average Petrol price was 1.34 USD per litre marking a 1% increase. Petrol prices also went up by 0.6% in Asia, by 1.1% in South America and by 0.1% in Australia. In USA and Canada, the Petrol price increases exceeded 2%. In Africa, the regional average Petrol price remained unchanged compared to the previous week.

Petrol and Diesel’s Retail Selling Price (RSP) of India is linked to International Product Prices (Fob- Free on Board). Due to natural calamities in USA like Hurricane Harvey and Irma 13% of USA’s Refinery capacity has been shut down which was the reason for the price hike in international product prices. In International market FOB price of Petrol has increased from US$ 57.42/bbl in June to US$ 67.85/bbl on 8th September (18% increase in 3 months) while the diesel price has increased from US$ 57/bbl in June to US$ 63.32 on 8th September (20% increase in 3 months)

International Crude price has increased by 13% from 1st July to 13th September which is US$ 47.86 to US$ 53.06. On the other hand, many State governments have drastically increased the VAT on Petrol/ diesel like Kerala from 26% to 34% and 20% to 27% in Delhi. 42% of excise collections are transferred to state governments for infrastructure and welfare programmes.

India has to pay Asian Premium which is an additional Cess to the Organization of Petroleum Exporting Countries (Opec). For many years India and other Asian countries have paid a price of up to $6/barrel more than the US or European refiners to the West Asian producers. But from last few years, the premium has almost finished with the demands in Asia, led by China and India, expanding and refiners asserting themselves.

International petrol price has been raised by 18% in last three months, while in India there has been 4% increase and the Diesel price has been raised by 20% internationally but only 4% in India.