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| *Ostroff, Fair and Company>>>India Taxes |
Why the petrol price hikes now a days? |
why recently the petrol price hikes OPEC makes sure that production of petrol increases in a controlled way such that there is always a scope for increase in the price of petroleum., (ever read any newspaper headings 'OPEC TO CUT PRODUCTION AS THE PRICES PER BARREL IS HEADING SOUTH' ?) and of course increased demand from Emerging markets are making a Party time for OPEC., Further in the Indian Context., we need to buy dollars to buy petroleum., and you all know that rupee will never be allowed to be appreciated against the Dollar., so cost of the Dollar is also effecting the prices of the petroleum . Driven by the futures' market and supply and demand. Lately Chinese demand for oil has been growing steeply as the nation modernizes. i m myself a middle class guy.But I support the hike. InIndia except for the salaried people nobody pays taxes. Petrol is predominantly used by rich people who dont pay their taxes. Now, if there is no hike, the oil comanies will have to suffer loses, this lose will be borne by the salaried people. On the other hand if there is hike, oil companies will remain profitable, they can reduce cost of refining in the long term with their profits. Their profits will lead to more exploration. Their profits will also promote developmental activities. As to the need of hike , oil was sold at 44$ per gallon few yrs back now it is 70$. There is a war in Iraq and we, in the U.S. must closely guard our oil and gas supplies. Do you realize that that over 30% of the WORLD'S Oil and Gas reserves are in the USA? Do yuo drive or bicycle? I can't ride a bike. I am disabled. to my way of thinking there are three reasons the most popular one being that the oil companies are very greedy the next reason is that the oil executives are very greedy the third reason is because as consumers we just sit on our hands and let it happen Hi There, This is a good question,actualy the oil companies makes the same profit margin offcourse the higher the price the higher is the cut.As for your Q. it is all about supply and demand...When the oil companies notice that the consumers dont mind paying for the gas at any price so why not putting it up? So the best way to reduce the price is to cut down the usage of gas in certain ways.How? If your car takes 20.0Gal to fill then put only 10.0Gal it will keep you going for 2-3 days depends...and when you ready for the next fill do the same....Now here is your choice that you have to decide aboout not minding stop to fill your car 2-3 times a week this way the price got to go down.You may ask whats the different between fill it up right away than 2-3 times a week?Yes there is, the oil companies has there own projection and study how much gas they would sell a day, if this estimation gose down then they have to consider to put down the price to reach the goal of sell they want,cause their oil Re-finery can not stop or reduce production so they have to cut the price down to increase the sell,also some facts about the gasoline, the product vapor at (-40 C) and this means they have to empty their tanks ASAP, also the gasoline will go bad if it stays long time in storage. Put it this way what would happen if Half of city of detroit for example decided not to fill gas for one week and they will use other means to travell like buses motorbikes car pooling etc? it will be a price drop like nothing else, here in North america we have our own oil market and we do have lots of oil more than any country in the world, but the oil companies they would find any execuse to hike the price,.Thank You. NG. Petrolium Teck Well Madhu Ji, you are not alone, even in New York we are suffering from these Gas (Petrol) Hikes, but can not really survive with using Cars right? |
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