Oil is Now Half the Price of Bottled Water in India
The central bureau of excise and customs, which comes under the ministry of finance led by Arun Jaitley, increased the excise duty on both petrol as well as diesel. This after the price of the Indian basket of crude oil had fallen to $26.43 per barrel on January 14, 2016.
This is the eight increase in excise duty on customs and excise since November 2014. The first increase had happened on November 12, 2014. With the latest increase the excise duty on petrol stands at Rs 8.48 per litre. Between November 2014 and now, the excise duty on unbranded petrol has gone up by Rs 7.28 per litre or a whopping 607%.
With the latest increase the excise duty on unbranded diesel stands at Rs 9.83 per litre. Between November 2014 and now, the excise duty on unbranded diesel has gone up by Rs 8.37 per litre or a whopping 573%.
The government has clearly captured in a large chunk of the gain because of lower oil prices. As on January 16, 2016, the price of petrol in Mumbai stood at Rs 66.09 per litre. In November 2014, when the excise duty was raised for the first time, the price of petrol in Mumbai had stood at Rs 71.91 per litre. Hence, for the end consumer, the price of petrol in the city has fallen by 8.1%.
As on January 16, 2016, the price of diesel in Mumbai stood at Rs 51.25 per litre. In November 2014, the price of diesel in Mumbai was at Rs 61.04 per litre. Hence, for the end consumer, the price of diesel in the city has fallen by 16%.
How much has oil fallen by during the same period? As on November 11, 2014 , the price of the Indian basket of crude oil was at $79.11 per barrel. By January 14, the price had fallen to $26.43 per barrel or close to 67%.
In rupee terms the price of oil has fallen by close to 64%. But the price of petrol and diesel has fallen by only 8.1% and 16%. In fact, if we look at the price of oil in rupee terms, we can come to a very interesting conclusion.
As on January 14, 2016, the price of the Indian basket of crude oil was at Rs 1,773.19 per barrel. One oil barrel is basically 159 litres. This means that one litre of the Indian basket of crude oil costs around Rs 11.2 per litre. One litre of bottled water (or what we call Bisleri at the generic level) typically costs Rs 20 per litre. Given this, bottled water in India is now nearly twice as expensive as oil. Or to put it in another way, oil is now half the price of that of bottled water, but only for the government (not for common man).
source : EM
This is the eight increase in excise duty on customs and excise since November 2014. The first increase had happened on November 12, 2014. With the latest increase the excise duty on petrol stands at Rs 8.48 per litre. Between November 2014 and now, the excise duty on unbranded petrol has gone up by Rs 7.28 per litre or a whopping 607%.
With the latest increase the excise duty on unbranded diesel stands at Rs 9.83 per litre. Between November 2014 and now, the excise duty on unbranded diesel has gone up by Rs 8.37 per litre or a whopping 573%.
The government has clearly captured in a large chunk of the gain because of lower oil prices. As on January 16, 2016, the price of petrol in Mumbai stood at Rs 66.09 per litre. In November 2014, when the excise duty was raised for the first time, the price of petrol in Mumbai had stood at Rs 71.91 per litre. Hence, for the end consumer, the price of petrol in the city has fallen by 8.1%.
As on January 16, 2016, the price of diesel in Mumbai stood at Rs 51.25 per litre. In November 2014, the price of diesel in Mumbai was at Rs 61.04 per litre. Hence, for the end consumer, the price of diesel in the city has fallen by 16%.
How much has oil fallen by during the same period? As on November 11, 2014 , the price of the Indian basket of crude oil was at $79.11 per barrel. By January 14, the price had fallen to $26.43 per barrel or close to 67%.
In rupee terms the price of oil has fallen by close to 64%. But the price of petrol and diesel has fallen by only 8.1% and 16%. In fact, if we look at the price of oil in rupee terms, we can come to a very interesting conclusion.
As on January 14, 2016, the price of the Indian basket of crude oil was at Rs 1,773.19 per barrel. One oil barrel is basically 159 litres. This means that one litre of the Indian basket of crude oil costs around Rs 11.2 per litre. One litre of bottled water (or what we call Bisleri at the generic level) typically costs Rs 20 per litre. Given this, bottled water in India is now nearly twice as expensive as oil. Or to put it in another way, oil is now half the price of that of bottled water, but only for the government (not for common man).
source : EM
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