Mukkutty

Congress government with the support of CPI(M)

Congress government without support of CPI(M)

Some thoughts about Petrol Price

Factors affecting crude oil price are the following:

1)Price of crude oil

2) Government Taxes

3) Refining cost

4) Transportation cost

First of all average price of crude oil nowadays is $90. i.e: Rs 4084.65.From a barrel of crude oil we can refine 72.58 ltr of petrol that means 45.56%. Since almost all products are high cost than petrol we can assume that 90% crude oil converted to petrol, from one barrel we can refine 143.26 ltr of petrol.

So the basic price of petrol will be Rs 28.51.

Now lets think about government taxes. here you need to think about the role of government to reduce the price of petrol although they announced deregulation. 43% of petrol price is its tax !.

Central government takes 56.1 % of basic price as tax.

In detail Excise duty is 49.6%

Customs duty 5%

Education tax 1.5% and Rs 2 /ltr as petrol cess for roads.

In Kerala sale tax of Petrol is 29.01 % and its diesel tax is the highest in country 24%

For refining and transportation costs 24.68 %

So anybody who wants to reduce the petrol price (and diesel) must ask to reduce the taxes of government.

I have no hope that central government will decrease the price unless reliance or some other giants asked. But here in Kerala we have some belief in LDF government and they should realize their responsibility. Now our state's sale tax is 29.01 % if it's reduced to 20% we can save Rs 2.59 /ltr.

So Mr. F.M. please act as a communist