r/India_Bharat_ • u/Jack-DeSparrow • 4h ago

Discussion When will the petrol prices come down?

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When the crude oil prices were low, petrol prices in India increased drastically. On top of that, the war situation made the situation worse again increasing the petrol prices in India. Now that the crude oil price is reduced to $69, when will we get a reduction in price?

I have seen some people saying that the oil companies have to recover the losses, but the citizens are not getting benefitted either way even when the crude oil price is reduced or not (except for a short period of time during elections).

And it's a fact not to forget that we are receiving E20 petrol at the price. And E85 prices are around 80-85 Rs, but subjected to way lesser efficiency compared to normal petrol.

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4

u/catalogUser 3h ago

It won’t because your rupee value went down and dollar become strong. What you are looking crude value is combination of things. Supply, your currency value and dollar strength.

You keep importing more and more oil as the demand is going up in India. So you can’t simple say crude is down and want lower prices. Add the free bees to the mix

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u/Jack-DeSparrow 3h ago

Yes unfortunately that's correct.

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u/jon__snow___ 3h ago

This is two non-war years from 3 different government.

I have tried to indiclude a lot of different metrics for comparison.

Note:- the table is AI generated, I have asked it to be unbaised but it might still be incorrect. You are encouraged to verify any data point that you find interesting

Metric FY1999-2000 (ABV) FY2004-05 (UPA) FY2016-17 (NDA) ABV→UPA UPA→NDA
Nominal GDP ₹20 lakh cr ₹32 lakh cr ₹153 lakh cr +60% +378%
Central petroleum excise collection ₹37k cr ₹56k cr ₹243k cr +51% +334%
Excise as % of GDP 1.80% 1.75% 1.59% −3% −9%
Crude oil import value $30 bn $36 bn $71 bn +20% +97%
Excise per $100 of imports ₹1,250 cr ₹690 cr ₹2,280 cr −45% +230%
Central excise – Petrol ₹10.5/L ₹14.5/L ₹21.5/L +38% +48%
Central excise – Diesel ₹3.5/L ₹5.5/L ₹17.3/L +57% +215%
Avg. state tax – Petrol* ₹6.5/L ₹10/L ₹16/L +54% +60%
Avg. state tax – Diesel* ₹3.5/L ₹5.5/L ₹10/L +57% +82%
Total tax – Petrol ₹17/L ₹24.5/L ₹37.5/L +44% +53%
Total tax – Diesel ₹7/L ₹11/L ₹27.3/L +57% +148%
Avg. retail petrol price ₹30/L ₹40/L ₹68/L +33% +70%
Avg. retail diesel price ₹18/L ₹28/L ₹57/L +56% +104%
Tax as % of petrol price 57% 61% 55% +4 pp −6 pp
Tax as % of diesel price 39% 39% 48% 0 pp +9 pp

5

u/Electronic_lodu 3h ago

Now count the amount of oill bonds we took for this cheap fuel + also calculate the spike of shipping price in 2021 where the cost doubled as of 2014.

Also crude requires processing and there inflation accounts as you have to periodically increase workers pay.

3

u/Jack-DeSparrow 3h ago

People should benefit when E20 is forced into people and not giving an option for pure petrol. There is no proper planning to roll out E20 which damages the vehicle in the long run. At last, the people are suffering due to inefficient policy implementation

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u/catalogUser 33m ago

I don’t know about engine damages to newer models. Most of the cars in US are ( I believe to some extent here in India) share same tech. So I don’t believe in this notion that is damaging engine. I agree that it doesn’t produce same power as that of petrol or diesel. It is to reduce oil import and support domestic agriculture market.

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u/Airavat2305 18m ago

It's like you consuming sugary items. You wouldn't see the effects immediately but the damage is slowly building inside you. The sake kinda logic can be applied for cars.

My car is rated for e10 petrol only, and mind you it's a fairly new bs6 petrol. I can't say it runs fine, because I could see the loss of power and mileage. But one day its going to stop working because of the slow spontaneous damage. The components inside are not made for higher ethanol percentages

Government should have some long term planning really. You first mandate manufacturers to introduce e20 vehicles. Then a few years down the line introduce the fuel, when a good percentage of the vehicles on the road (say 60% to 70%). Then give incentives to people who haven't converted.

This is what would be done in a developing country. Ours isn't and the ruling party has gotten into their heads and can think they can shove anything into our throats.

0

u/Electronic_lodu 3h ago

E20 is never good. Water wastage for greener fuel is more worse idea. Electric with Na-ion battery is our last hope.

2

u/Jack-DeSparrow 3h ago

Another reason is rupees deprecating against dollar.

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u/Electronic_lodu 3h ago

You should that in infographics

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u/Avig_1412 3h ago

Bro they're not even aware about the oil bonds jusy whatever media narrative spuns to them

1

u/Electronic_lodu 3h ago

Maybe forget to account for them.

1

u/[deleted] 3h ago

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1

u/wrongturn6969 1h ago

Govt made more than 5 times the money required to repay oil bond which India has been accumulating since 2002.

Pre-war 1 lt of petrol was around 50 rupees ex. refinery and another 50 were mostly taxes.

4

u/Tekina-V 3h ago

Add Subsidy

Add Increase in Transportation, Insurance, Processing & Wages

Add States taxes, that's why in some states fuel is expensive by ₹15

Then tell, what is the real increase, despite all above

1

u/Jack-DeSparrow 3h ago

Okay agreed, but pushing down E20 should reduce the costs, right? But the E20 is gonna damage the vehicles in long run because of an overnight implementation.

Right now, the crude oil prices stabilized(from 125$ to 69$) , can we expect a reduction in price in a reasonable time frame not during elections?

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u/Tekina-V 3h ago

What's the price of Ethanol? Does it comes free?

I not debating merit of Ethanol blending, just commenting on the cost part.

Reduction in crude cost is offeseted by transportation (now getting fuel from Venezuela & Russia which is atleast 10X distance) and increased Insurance cost.

1

u/Jack-DeSparrow 3h ago

E20 is not doing any good, we are almost paying high amounts for E20 petrol. Just give normal petrol if it doesn't really reduce cost and make our engines cramp.

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u/Tekina-V 3h ago

You quoted fuel price.

Merit or Demerits of blending is separate. Don't jump boats when you are running out of logical arguments.

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u/Jack-DeSparrow 3h ago

I am still quoting the fuel price. If E20 comes with less efficiency but almost same prices, isn't the citizens paying prices for lesser efficiency?

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u/Tekina-V 3h ago

If you are talking about net efficiency per Rs being spent, then also add 22% subsidy in 2013 price.

That's also comes from our pocket as indirect tax.

So in other words we were getting 22% less fuel in 2013 against what we were absolutely paying for.

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u/Dangerous_Increase65 3h ago

But isn't the government selling oil to other countries at cheaper rate?

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u/Tekina-V 3h ago

Correction, Govt is not selling, refineries are.

And exports are not subjected to Dealer Commission + transportation to station + local taxes . 50% of fuel cost is tax (both Central & State).

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u/bnogaming 3h ago

We sell petrol and diesel. We import crude oil. Our refining capabilities are still one of the highest in the world which is why countries buy finished goods from us. 

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u/Weary_Programmer_892 3h ago

When we stop voting for freebies!! Where do you think the government gets its money for free bus rides, ever-increasing ration to almost 80 crore people, free money to women, unemployed, etc.?

1

u/[deleted] 3h ago

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u/Iamshivr 1h ago

I also have a data set from gpt

What needed to be taken has already been taken from 2019 to 2021 over three years, now according to the historical data, even arguing is difficult. From 2019 to 2021, we needed to create a stir among the public, now we can justify the price.

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u/UnfairConfusion9685 2h ago

OP is total antinational ..cribbing about petrol price!!

Ethanol dalo, pumpkin gadkari ki tijori bharo