New Delhi: The crude oil coming in India has become cheaper than bottled water because of the sharp decline in prices.
It is well-known that bottled water is being sold at Rs 15 - 20 in the country. The crude oil that reached India on January 7 cost Rs 12.6 per litre. According to this, crude oil is roughly 30 percent cheaper than packaged water. Despite this, what is the reason that petrol is being sold at Rs. 60 per litre? An investigation:
The truth about Crude Oil:-
- These days, crude oil is costing Rs. 12.58 per litre. According to last week's government data, the crude oil coming in India had reached USD 29.24.
- If one converts USD 29.24 according to the current Rs. 66.67 currency rate, per barrel cost comes out to be at Rs. 2001 for each barrel contains 159 litres of crude oil. According to this, the value of the crude oil coming in India is Rs. 12.58.
The truth about bottled water:-
- These days, bottled water is priced at Rs 15 to Rs 20 per litre. Whereas, companies like Kingfisher, Kinley and Bislery are selling water at Rs 18 per litre.
- The retail price of bottled water is Rs 20 At the same time, Indian Railways sells the same bottle at Rs. 15.
Following the Saudi-Iranian tension, it was anticipated that there would be price rise in the market, but now that has also turned around. Crude oil has been reduced to the ground. The price of this crude oil has fallen below the price of water.
If one looks at the government's raised production cost, then it is evident that the consumer is not benefitting from the fall in prices. The price, which was at USD 115 per barrel in June 2014, has fallen to USD 30.02 per barrel - the lowest in eleven years.
Since the time the Narendra Modi government has come to power, the production cost on petrol has increased seven times by Rs. 11.02 per litre and the diesel price by Rs. 9.97 per litre. Interestingly, on November 7, the production cost of petrol increased by Rs. 1.60 and diesel by 30 paise, whereas the prices were increased on December 16 by 30 paise and Rs. 1.17 respectively. Before this, the government had increased the prices from November 2014 to January 2015 by Rs. 7.75 per litre of petrol and Rs. 6.50 per litre of diesel.
It is noteworthy that the Indian Oil Corporation purchases oil from the refinery at Rs. 22.46 per litre and provides the same to the dealers at Rs. 25.50 per litre. The specific excise duty on this is Rs. 19.73, while the refinery cost of diesel is Rs. 18.69.
According to experts, because of the government's increased production cost, the common man is unable to gain from the same. If the government had not increased the production cost then the people would not have to buy petrol and diesel at double rate.