We have all been hearing that petrol prices have been raised by Rs 5 in order to save the economy, but see the following irony: Current Price/litre of petrol in Bangalore = Rs. 58.50 74 (US Petroleum Barrel conversion rate 158.987 litres) Price/barrel of petrol in Bangalore 58.50 * 158.987 = Rs. 9300. (assuming Rs40/dollar 9300/40 = $232) Price/barrel of petrol in Bangalore in dollars (USD) assuming Rs40/dollar = $232! Isn’t the world market rate of oil $130 per barrel? Keep in mind that India is self sufficient in processing crude oil and 90% of the processed petrol cost is that of crude oil. TO TOP ALL THIS, GOVERNMENT SAYS THAT THIS INCREASE IS NOMINAL TO AVOID ECONOMY FROM COLLAPSE! THE ACTUAL PRICE SHOULD BE RS.71/LITRE! YOU COULD DO SIMILAR CALCULATIONS FOR YOUR CITY TO FIND WHETHER GOVT IS SUBSIDISING CONSUMER OR CONSUMER SUBSIDIZING GOVT.
