Friday, November 4, 2011

Petrol Prices : Indian Paradox



Based on the Telegraph costing chart,the price difference must be due to 'state taxing' difference.


Product SellingUnit Mumbai Delhi Chennai Kolkata
SPEED LITRE 75.93 71.25 75.44 76.87
SPEED 97 LITRE 85.00 80.00 84.00 85.00
DIESEL LITRE 50.75 45.82 49.22 48.80
Source: BPCL

To any student of economics , it is elementary that a produce is cheapest at the place of its origin or production. As it is processed or transported, it cost keep enhancing due to 'cost element'. Surprising , in India petrol products are made available in NCR New Delhi at lower level than rest of india. Mumbai, Chennai or Kolkata are ports with a refineries in close proximity and still such products are much costlier.


In Saudi Arabia ( a petrol producer) , petrol products are cheapest in the world , being 0.11 times India; in most others countries of the world including Pakistan 0.52, USA 0.53 , Canada 0.75 it is cheaper & in Italy 1.01, UK 1.14 and Turkey 1.35 , it is more expensive.

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