Clarke Posted May 25, 2012 Posted May 25, 2012 What's the opposition's take on this besides demanding the rollback ? Do they propose we let the deficit run wild ?
Desi Cartman Posted May 25, 2012 Posted May 25, 2012 The reality is that Govt does not control the international prices so the govt cant do anything except reducing the taxes .. and that too some of the taxes are imposed by state govt and not central govt + BJP doesnt even have a leader so BJP cant do shyt PS: I still h4te Congress
Tiger80 Posted May 25, 2012 Author Posted May 25, 2012 The reality is that Govt does not control the international prices so the govt cant do anything except reducing the taxes .. and that too some of the taxes are imposed by state govt and not central govt + BJP doesnt even have a leader so BJP cant do shyt PS: I still h4te Congress Crude oil price was above 100$ in Feb 2008 to to sept 2008 yet petrol was available at rupees 40, now it is 90$ barrel and price 75 rupees ,what kind of economics is this I don't understand http://www.nyse.tv/crude-oil-price-history.htm
Sachin=GOD Posted May 25, 2012 Posted May 25, 2012 Crude oil price was above 100$ in Feb 2008 to to sept 2008 yet petrol was available at rupees 40, now it is 90$ barrel and price 75 rupees ,what kind of economics is this I don't understand http://www.nyse.tv/crude-oil-price-history.htm India has got a huge deficit, the rupee is falling, there is policy paralysis, disinvestment targets have not been met for quite some time - so the Govt has to take some action.
Ram Posted May 25, 2012 Posted May 25, 2012 Crude oil price was above 100$ in Feb 2008 to to sept 2008 yet petrol was available at rupees 40, now it is 90$ barrel and price 75 rupees ,what kind of economics is this I don't understand http://www.nyse.tv/crude-oil-price-history.htm Remember, crude is traded in international markets in USD. So if your currency is valued higher relative to the dollar, you obviously pay a lower price for a barrel of oil. If the value of your currency falls vis-a-vis the dollar, you will have to pay more, irrespective of what the oil price was. So the price/barrel may remain the same (for eg $60/barrel), but if the rupee depreciates against the dollar, you obviously have to pay more rupees to get the same amount of oil.
Tiger80 Posted May 26, 2012 Author Posted May 26, 2012 Remember, crude is traded in international markets in USD. So if your currency is valued higher relative to the dollar, you obviously pay a lower price for a barrel of oil. If the value of your currency falls vis-a-vis the dollar, you will have to pay more, irrespective of what the oil price was. So the price/barrel may remain the same (for eg $60/barrel), but if the rupee depreciates against the dollar, you obviously have to pay more rupees to get the same amount of oil. I know if price of $ goes up then Petrol will become costlier but just look at Indian fuel price http://in.reuters.com/article/2011/05/14/india-fuel-idINL3E7GB2E420110514 When Crude was 140$ a barrel price was 50 rupees means 1.1 $ now that price mean 62 rupees. so now when crude is cheaper by 30% from that price the petrol price has gone to around 1.35$ a litre.If Indian companies will truly align the price of petrol with dollar or crude then people will have no problem to pay it .The problem is they hardly reduce price even when crude comes down or dollar goes cheaper
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