[[Category:India|P]]

[[Category: Economy-Industry-Resources|P]]

[[File: petrol.jpg|Petrol price change: 2013-14, [http://epaperbeta.timesofindia.com//Gallery.aspx?id=01_12_2014_010_030_008&type=P&artUrl=Petrol-price-reduced-by-91-paise-diesel-by-01122014010030&eid=31808 ''The Times of India'']|frame|500px]]

[[File: Number of LPG connections as % of households, urban and rural as on November 1, 2015.jpg|Number of LPG connections as % of households, urban and rural as on November 1, 2015; <br/> Graphic courtesy:[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-AN-AVERAGE-FAMILY-IN-HIMACHAL-PRADESH-HAS-23032016008022 ''The Times of India''], March 23, 2016|frame|500px]]  

[[File: Registered vehicles per petrol retail outlet in India, state-wise.jpg|Registered vehicles per petrol retail outlet, state-wise; <br/> Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=STATOISTICS-A-petrol-pump-serves-22500-vehicles-in-16122016009017  ''The Times of India''],December 16, 2016|frame|500px]]

''' Over 13% diesel consumed by high-end cars, SUVs in India, study says '''  

[http://timesofindia.indiatimes.com/business/india-business/Over-13-diesel-consumed-by-high-end-cars-SUVs-in-India-study-says/articleshow/29510365.cms PTI] | Jan 28, 2014

Over 13 per cent of subsidized diesel in the country is consumed by high-end cars and SUVs, says a study commissioned by the oil ministry, showing that cheaper fuel is finding usage by unintended beneficiaries.

A study conducted by Nielsen for the ministry's Petroleum Planning and Analysis Cell (PPAC) found that private cars consumed 13.15 per cent of the 69.08 million tonne diesel consumed in the country in 2012-13.

Commercial vehicles used another 8.94 per cent and three-wheelers, a further 6.39 per cent.

Commercial vehicles such as trucks however constituted the largest user base of diesel at 28.25 per cent, the study said, adding that 70 per cent of the diesel was being used in the transport sector.

Agriculture tractors and pumps used 13 per cent of the diesel.

Industries and electricity generators consumed almost 9 per cent diesel, while mobile towers used 1.54 per cent.

The study found that 99.6 per cent of petrol is consumed in the transport sector alone.

"Of this, majority consumption of 61.42 per cent is accounted for by two-wheelers while cars use 34.33 per cent, followed by 3-wheelers at 2.34 per cent," an official statement said.

It was also revealed that in Odisha, Bihar and Rajasthan, petrol consumption by two-wheelers exceeds 70 per cent.

The consumption by three-wheelers is very low in states like Delhi, Haryana, Gujarat and Odisha, where consumers have shifted to CNG or diesel.

"While pricing of petrol was deregulated, diesel prices are still being regulated, with subsidy running at Rs 8.47 per litre currently," the statement said.

The total subsidy on diesel during 2012-13 was Rs 92,061 crore, constituting 57.2 per cent of the total fuel subsidy.

"The question as to where the Diesel is getting consumed is very relevant in this context," it said.

The statement added: "Based on sector-wise consumption pattern of diesel, it would mean that of the total under- recovery of Rs 92,061 crore on account of diesel during 2012- 13, about Rs 12,100 crore went to owners of private cars and utility vehicles, about Rs 8,200 crore to commercial cars and SUVs, about Rs 26,000 crore to trucks, about Rs 8,800 crore to buses, about Rs 12,000 crore to agriculture sector and about Rs 15,600 crore to other sectors."

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F04%2F06&entity=Ar02222&sk=C06852A1&mode=text  Sanjay Dutta, Energy meet cements India’s pole position, April 6, 2018: ''The Times of India'']

''Summit Of 72-Member Group Starts Next Week''

India is hosting the 16th ministerial round of International Energy Forum, a grouping of 72 member countries accounting for almost 90% of global supply and demand for oil and gas, in yet another proof of New Delhi’s pole position in the world energy market. The meet will kick off next week.

This will be the second time in less than a month after the International Solar Alliance summit in March when policymakers and corporate leaders from around the world will congregate in India’s capital for a platform for discussing future challenges and changes in the energy sector.

On the surface, ISA and IEF appear contradictory. But scratch and you will find they have a lot in common. ISA is about developing a global ecosystem for promoting solar power. This is as much about supplying affordable power to improve people’s lives as it is about mitigating climate change. Similarly, IEF’s meet will also look for a balance in the oil and gas industry – ensuring affordability, stability and sustainability of supplies while moving towards a low-emission future.

IEF allows India an opportunity to leverage its position as world’s fastestgrowing energy market and to cement its role as moderator between producer and consumer countries.

[[File: India's oil economy, Imports- domestic production ratio and sources, 2016.jpg| India's oil economy, Imports: domestic production ratio and sources, 2016 <br/> [https://timesofindia.indiatimes.com/india/How-deal-with-Russia-will-change-Indias-oil-economy/articleshow/54912368.cms  HOW DEAL WITH RUSSIA WILL CHANGE INDIA'S OIL ECONOMY Oct 18 2016 : ''The Times of India'']|frame|500px]]  

[https://timesofindia.indiatimes.com/india/How-deal-with-Russia-will-change-Indias-oil-economy/articleshow/54912368.cms HOW DEAL WITH RUSSIA WILL CHANGE INDIA'S OIL ECONOMY Oct 18 2016 : ''The Times of India'']

Till the early 1990s, India used to produce over 70% of the oil it consumed. Now the share of domestic production is nearing 20%. Not only have imports surged, most of the oil is imported from only one region.The deal with Russia will make India's import basket more diversfied, a key requirement for oil security

'''See graphic'''

''India's oil economy, Imports: domestic production ratio and sources, 2016''

==2018: ‘Oil has lower impact on economy than believed’==

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F22&entity=Ar01810&sk=FD180DEB&mode=text  May 22, 2018: ''The Times of India'']

Oil is now thought to be less of an independent driver of economic cycles than was previously believed, according to a report by SBI. The study estimates that $10 per barrel increase in oil price will increase the import bill by around $8 billion and decrease gross domestic product (GDP) by 16 basis points (1 percentage point = 100 basis points, or bps).

According to the report by SBI chief economic adviser Soumya Kanti Ghosh, diffusion of technology, user of alternative sources of energy and more importantly, abundance of skilled labour resulting in muted increase in real wages are keeping inflation in check. Ghosh points out that use of alternative source of energy has increased 1.4 times in the last four years in India.

In FY18, the oil import bill rose by $22 billion with crude oil prices rising from $53 to $70. “The current average oil price for FY19 is $73.6 per barrel. Considering the price of oil increases to $90 by March 2019, the average oil price for FY19 will be nearly $84. The worst case scenario is where we assume oil price to hit $90 in June 2018 and reaches $100 by March 2019,” said Ghosh.

He adds that such a scenario will reduce the GDP by 31 bps, increase inflation by 58 bps and the fiscal deficit by 40 bps, assuming a Rs-3 cut in excise duty.

==The impact of oil on India’s trade, 2017, 18==

[[File: The impact of oil on India’s trade- 2017, 2018.jpg|The impact of oil on India’s trade: 2017, 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F16&entity=Ar02501&sk=5C3A149B&mode=text  Sidhartha, Govt looks to boost dollar funding for exporters, June 16, 2018: ''The Times of India'']|frame|500px]]

''The impact of oil on India’s trade: 2017, 2018''

[[File: The Export and import of major petrochemicals from and to India, 2014-18..jpg|The Export and import of major petrochemicals from and to India, 2014-18. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F08%2F03&entity=Ar01107&sk=95B9DA44&mode=image  August 3, 2020: ''The Times of India'']|frame|500px]]

'' The Export and import of major petrochemicals from and to India, 2014-18. ''

=Imports=

==Crude oil ==

[[File: Total import of crude oil, 2015-16.jpg|Total import of crude oil, 2015-16; [http://epaperbeta.timesofindia.com/Gallery.aspx?id=24_05_2017_013_022_007&type=P&artUrl=Opec-hails-GST-demonetisation-moves-of-India-24052017013022&eid=31808 The Times of India], May 24, 2017|frame|500px]]

''Total import of crude oil, 2015-16''

[[File: India's oil import from Iran- (in million tonnes per annum), 2013-18, year-wise.jpg|India's oil import from Iran- (in million tonnes per annum), 2013-18, year-wise <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F06%2F29&entity=Ar01701&sk=B53B0D69&mode=text Sanjay Dutta, June 29, 2018: ''The Times of India'']|frame|500px]]

'' India's oil import from Iran- (in million tonnes per annum), 2013-18, year-wise ''

''' Nigeria says India now its largest crude importer '''  

[http://timesofindia.indiatimes.com/business/india-business/Nigeria-says-India-now-its-largest-crude-importer/articleshow/36831221.cms AFP ]| Jun 19, 2014

"The US, which had traditionally taken the bulk of Nigeria's crude, has in recent months drastically reduced its demand, which now stands at about 250,000 barrels per day," the Nigerian National Petroleum Corporation (NNPC) said in a statement.

The state-run NNPC said after India, China and Malaysia were also ahead of the United States, and that Nigeria, which is Africa's largest oil producer, would supply to customers around the world.

''OPEC’s share in India’s imports of crude oil, LPG and LNG, presumably as in 2018''

[[File: India’s import of petroleum products, 2016-20.jpg| India’s import of petroleum products, 2016-20. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F06%2F11&entity=Ar01326&sk=B1D4864C&mode=image  June 11, 2020: ''The Times of India'']|frame|500px]]

'''See graphic''':

'' India’s import of petroleum products, 2016-20. ''

[[Category:Economy-Industry-Resources|PPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

== 2018==

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F07%2F24&entity=Ar00108&sk=598F6C4A&mode=text  July 24, 2018: ''The Times of India'']

[[File: India’s 3 largest oil suppliers in 2018, till June.jpg|India’s 3 largest oil suppliers in 2018, till June <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F07%2F24&entity=Ar00108&sk=598F6C4A&mode=text  July 24, 2018: ''The Times of India'']|frame|500px]]

Iran displaced Saudi Arabia as India’s second-largest oil supplier in the first quarter of the current fiscal, regaining a position it lost seven years ago, as state-run refiners scrambled to take advantage of Tehran’s attractive financial terms before the US sanctions covering the oil industry come into force in November.

Oil minister Dharmendra Pradhan told Parliament that state-run refiners imported more oil from Iran in the April-June period than Saudi Arabia, which has now been relegated to third position. Iraq remains India’s top oil supplier. The development could deepen the dilemma for New Delhi as it faces the prospect of having to reduce — or completely stop — oil imports from Iran if it fails to get a waiver. But industry sources said there’s enough time to wind down Iranian oil flow and tap other sources — if the need arises — by the sanctions deadline.

Iraq, Saudi Arabia and Kuwait could fill the gap, though there will be some incremental increase in costs as they may not offer the sweeteners on freight and insurance that Iran offers.

Besides, the high degree of technical capability gives Indian refineries flexibility to process a variety of oil, precluding dependence on particular types of crude.

''' Iran was India’s second largest oil supplier after Saudi Arabia till 2010-11 '''

The diverse basket of India’s oil supplies also helps. The real challenge for India is balancing its age-old relations with Tehran and the financial/ strategic stake in the Chabahar port project, the outpost for New Delhi’s Af-Pak policy, and the imperative of avoiding confrontation with the US.

Iran was India’s secondlargest oil supplier after Saudi Arabia till 2010-11. But it dropped to seventh position after India gradually reduced import of Iranian oil to meet conditions of waiver granted by the US administration under President Barack Obama when it had imposed sanctions to curb Tehran’s nuclear prog ramme.

Imports were gradually ramped up after the sanctions were lifted following the July 2015 deal on Joint Comprehensive Plan of Action with Iran. State refiners, however, cut imports in 2017-18 by a quarter in retaliation of Tehran delaying the contract for Farzad-B gas field discovered by a consortium of Indian companies. But once again India’s oil trade with Iran may find itself back to square one. Unlike the sanctions by Obama’s presidency, Trump’s Washington so far appears totally unforgiving. The big two private refiners – Reliance Industries and Nayara led by Russia’s Rosneft – have stopped Iranian imports.

And the oil ministry has told the state refiners to look up alternative supplies in case India does not get a waiver.

[[Category:Economy-Industry-Resources|PPETROLEUM, DIESEL, KEROSENE, INDIA: I

[[Category:India|PPETROLEUM, DIESEL, KEROSENE, INDIA: I

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Kerosene-hardly-used-for-cooking-key-lighting-source-03082015012030 ''The Times of India''], Aug 03 2015

[[File: State and percentage of households using kerosene, rural and urban.jpg|State and percentage of households using kerosene, rural and urban; Graphic courtesy: [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Kerosene-hardly-used-for-cooking-key-lighting-source-03082015012030 ''The Times of India''], Aug 03 2015|frame|500px]]

''' `Kerosene hardly used for cooking, key lighting source' '''  

The latest survey released by the National Sample Survey Organization (NSSO) has revealed that in rural areas, subsidized kerosene was used in less than 1% of kitchens, which relied largely on firewood and chips as the primary source of energy for cooking during 2011-12. After firewood (67% share), cooking gas cylinders have emerged as the second most preferred kitchen fuel in rural areas, with a share of 15%. In urban areas, of course, they now fire over 68% of the stoves, while the share of kerosene is estimated at 5.7%, lower than firewood (14%).

The data points to what several economists have argued for years: there is reduced dependence on kerosene despite the government doling out subsidized fuel, which is suspected to be used in large quantities for adulteration or finds its way into the open market, where there is no subsidy .

Currently , the government pays Rs 18.51 as subsidy for every litre of kerosene sold through the public distribution system. The underrecovery on the sale of kitchen fuel by the oil marketing companies added up to Rs 24,800 crore during the last financial year, with the government taking over around Rs 5,000 crore of the burden and forcing the state-run companies to bear the additional burden.

Tamil Nadu had the highest use of LPG among rural households, with over a third using it for cooking, followed by Kerala and Punjab. The use of LPG was least in Chhattisgarh (1.5%) followed by Jharkhand (2.9%) and Odisha (3.9%).

When it comes to lighting, 73.5% of rural households in Bihar still use kerosene as primary source of energy for lighting, followed by Uttar Pradesh (58.5%) and Assam (36.8%).

Bihar also tops the chart when it comes to use of kerosene for lighting in urban areas with 17.2% of households still depending on kerosene.Followed by Bihar were Uttar Pradesh (10.8%), Assam (7.9%), Gujarat (5.2%) and West Bengal (5%).

The use of electricity was the highest in rural Andhra Pradesh, Punjab, Tamil Nadu and Kerala, where nearly all rural households used electricity to light their homes. In contrast, just 25.8% of rural Bihar and 40.4% of rural Uttar Pradesh households had electricity .

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=SWAMINOMICS-Time-to-end-the-worst-subsidy-of-06082017022012  Swaminathan S Aanlesaria Aiyar , SWAMINOMICS - Time to end the worst subsidy of all: kerosene , August 6, 2017: The Times of India]

Of India's many subsidies, the kerosene subsidy is the worst. Yet it has been such a sacred cow that no government has dared tackle it for decades. Different states levy different taxes, but in most cities subsidised kerosene retails at around Rs 23litre (it is just Rs 13.50 in Chennai, because of the state's additional subsidy). The open-market price of kerosene (used for commercial purposes) is far higher, around Rs 57litre.

The government has announced that the price of subsidised kerosene will be raised by 25 paise per fortnight until the subsidy goes. At this speed, the losses suffered by refiners could end in a little over a year.However, the retail price (including taxes) needs to be raised to equal the diesel price. That alone will end the adulteration of diesel with kerosene.

Studies show that up to 40% of subsidised kerosene is diverted from poor beneficiaries to the adulteration of diesel, which is more than twice as costly. Adulterated diesel produces massive pollution, much more than ordinary diesel, and the additional truck fumes sicken and kill poor people living on roadsides. The extra pollution hits cities where shopkeepers and industries use diesel gensets to overcome power shortages. Villages using diesel for tractors and pumps also suffer. Subsidising kerosene means subsidising disease and death for millions through pollution.

Besides, kerosene-adulterated diesel damages the engines it is used in. Trucks, gensets, tractors and diesel pumps wear out much faster than they should. The subsidy kills machines as well as humans. The major beneficiaries are crooked adulterators. That's why it is the worst subsidy.

Many left-wing critics have said on TV that the poor will not survive if kerosene becomes costly. Really?

In 2014, Delhi was declared kerosene-free -all sales, subsidised or not, were banned -with consumers having to shift to cooking gas. Chandigarh became kerosenefree in 2016. Did the poor in these cities cease to live?

Did they flee to areas where cheap kerosene was available? Not at all. Indeed, thousands kept migrating from kerosene-available to kerosene-free areas. Haryana has just become kerosene-free last April. All such areas have reduced pollution and hit adulterators, without causing mass distress.

What matters for the poor is not the price of this or that item but overall inflation. But consumer price inflation is now down to 1.54%, the lowest for decades. The gradual upward price drift of kerosene will impact the index only marginally. There will never be a better time to decontrol the price. The needy can be given a free solar lamp for lighting, or a direct cash transfer.

Subsidies are palliatives. Only rapid economic growth accompanied by rising wages can cure poverty.Subsidies are nevertheless warranted for the needy . But, as Swaminomics has argued for decades, the right approach is to give cash to the needy, instead of subsidising goods that may well be used by the rich or crooks.The subsidy on urea, for instance, goes mainly to richer farmers with large holdings, while some is smuggled into Bangladesh. Ultra-cheap urea discourages the use of green manure which is environment friendly. It also means farmers use an excess of urea and not enough potassic or phosphatic fertilisers (which are not subsidised), and this ruins soil quality. Just as subsidising kerosene benefits the wrong people and activities, so too does subsidising urea, or rural power, or almost anything else.

The risk is that new subsidies will take the place of the old. The farm loan waiver that started in UP has spread to other states, and looks certain to be announced in all states going to the polls in the next 18 months. UP, Rajasthan and other states are starting subsidised canteens along the lines of Tamil Nadu's “Amma Canteens“. Ending the kerosene subsidy is a step forward, but the battle for sensible government spending is nowhere near won.

= Oil storage, trading hub in India=

==2018: Abu Dhabi oil in Mangaluru’s underground storage facility==

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F22&entity=Ar01011&sk=22F9FCB1&mode=text  1st oil ship from UAE docks at Mangaluru, May 22, 2018: ''The Times of India'']

The first shipload of crude sent by ADNOC (Abu Dhabi National Oil Company) for storing in the Mangaluru underground storage facility arrived on Monday, marking India’s first step towards becoming a regional oil storage and trading hub.

Vessel ‘MT Inspiration’ carrying two million barrels of crude docked at the Mangaluru port after sailing for a week, the oil ministry said. ADNOC had in February signed a deal with Indian Strategic Petroleum Reserve Ltd to lease storage capacity for six million barrels of crude at the Mangaluru facility.

[https://www.thehindu.com/sci-tech/science/a-gel-to-selectively-remove-oil-or-water/article26556540.ece  R. Prasad, A gel to selectively remove oil or water, March 17, 2019: ''The Hindu'']

[[File: The chitosan — which is converted into a stable gel — allows the researchers to selectively remove the oil or water phase from an oil-water mixture by making the material either superhydrophobic or superoleophobic, respectively..jpg|The chitosan — which is converted into a stable gel — allows the researchers to selectively remove the oil or water phase from an oil-water mixture by making the material either superhydrophobic or superoleophobic, respectively. <br/> From: [https://www.thehindu.com/sci-tech/science/a-gel-to-selectively-remove-oil-or-water/article26556540.ece  R. Prasad, A gel to selectively remove oil or water, March 17, 2019: ''The Hindu'']|frame|500px]]

In a breakthrough, the researchers have also made it possible to switch the chitosan-based material’s property — from being extremely water-repelling to extremely oil-repelling and vice-versa — by treating it with certain chemicals. It is also possible to repeatedly switch from one property to another.

'''Fabrication'''

To prepare the water or oil repelling chitosan, a team led by Dr. Uttam Manna from the institute’s Department of Chemistry and Centre for Nanotechnology first converted the material into nanoparticles and then to a stable gel material by treating it with a chemical (5Acl). This gel was found to have chemically active residues (amines and acrylate), which when treated with a small amine resulted in optimisation of the two very different properties in the same material.

Says Nirban Jana from the institute’s Department of Chemistry and first author of a paper published in the journal Chemistry of Materials, “This is the first time that the liquid repellency property of the material is made switchable, from superhydrophobic to superoleophobic under water and back to superhydrophobic by treating the material at low pH and ethanol, respectively.”

The chitosan — which is converted into a stable gel — allows the researchers to selectively remove the oil or water phase from an oil-water mixture by making the material either superhydrophobic or superoleophobic, respectively. For example, if the oil spill (in water) is less, the material can be made water-repelling to remove or collect the oil. In case the spill is huge and the water phase relatively less, the material can be made extremely oil-repelling to collect or remove water.

'''Property switch'''

By treating the material with acid (pH 1) for about 15 minutes, the team (led by Dr. Uttam Manna from the institute’s Department of Chemistry) was able to completely switch the property of the material — from being extremely water-repelling to becoming extremely oil-repelling under water.

Similarly, by treating the biopolymer with ethanol for 10 minutes followed by air drying, the team was able to switch the property from being oil-repelling to becoming water-repelling.

Says Dr. Manna, “The water contact angle of the superhydrophobic biopolymer is over 152º and the oil contact angle under water is nearly 159º.” The higher the contact angle the greater is the liquid repellency of the material.

The researchers tested the ability of the biopolymer to separate oils — kerosene, motor oil, olive oil and even crude oil — of different densities from water. Says Dr. Manna, “Under water, we were able to completely remove even crude oil from the water phase. The selective separation efficiency for both oil and water phases was above 95% immaterial of the viscosity of the oil.”

The biopolymer’s superhydrophobic property remained intact under diverse chemical conditions such as extreme pH (pH 1 and pH 13), sea and river water for seven days, and high (100º C) and low (10º C) temperatures.

The material was found to retain both hydrophobicity and oleophobicity even when the top surface of the biopolymeric material was physically abraded using sand paper. Despite the abraded surface being cleaved through manual peeling using an adhesive, the liquid repellence property remained intact. No change in this was seen after the mechanically damaged material was subjected to even a continuous stream of sand grains. Exposure to UV light for a month too did not destroy this repellence property.

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F08%2F03&entity=Ar01107&sk=95B9DA44&mode=image  August 3, 2020: ''The Times of India'']

[[File: Output of major petrochemicals in India, 2015-19.jpg|Output of major petrochemicals in India, 2015-19 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F08%2F03&entity=Ar01107&sk=95B9DA44&mode=image August 3, 2020: ''The Times of India'']|frame|500px]]

'' Output of major petrochemicals in India, 2015-19 ''

[[Category:Economy-Industry-Resources|P

PETROLEUM, DIESEL, KEROSENE, INDIA: I]]

[[Category:India|P

PETROLEUM, DIESEL, KEROSENE, INDIA: I]]

India has recorded 45 per cent jump in the number of petrol pumps in the last six years, possibly the highest growth rate in the world, as public and private sector firms jostled to capture retailing sites.

With 60,799 outlets dispensing petrol and diesel at the end of October, India is behind only US and China in number of petrol pumps, data available from Petroleum Planning & Analysis Cell of the Oil Ministry.

In 2011, the country had 41,947 outlets, of which 2,983 or 7.1 per cent, were owned or operated by private retailers like Reliance Industries and Essar oil.

Private firms own 5,474, or 9 per cent of the total outlets, with Essar being the leader with 3,980 stations.

US and China have around one lakh petrol stations each.

Several countries around the globe have seen the number of petrol pumps drop as they moved towards Electric Vehicles (EVs) and alternate forms of energy but they have grown in India, which is the world's fastest growing oil consumer.

India had in 2015 overtaken Japan as the world's third- largest oil consuming country behind US and China. Fuel consumption grew by 9.5 per cent in the April-October period of the current fiscal.

Oil ministry data showed that 18,852 outlets were added between 2011 and 2017. Of the 60,799 petrol pumps in the country, 55,325 are owned by state-owned fuel retailers.

India Oil Corp (IOC) owns and operates 26,489 petrol stations, of which 7,232 are rural outlets. Hindustan Petroleum Corp Ltd (HPCL) is the second biggest fuel retailer with 14,675 outlets, 3,159 being rural sites.

Bharat Petroleum Corp Ltd (BPCL) owns 14,161 outlets, of which 2,548 are rural outlets.

In the private sector, Reliance Industries owns 1,400 outlets while Royal Dutch Shell has 90 stations.

Besides, there are 1,273 outlets dispensing CNG to automobiles, the most number of 423 being in Delhi, the data showed.

In the private sector, Essar, which was recently taken over by Russia's Rosneft, had been the most aggressive. It had 1,382 outlets in 2011 and now has 3,980, which it plans to take up to 5,600 by March 2019.

Reliance Industries is going slow on the fuel retailing business and hasn't added any new site recently. It has concentrated on reopening the pumps that were shut because it could not compete with subsidised price of fuel at PSU outlets.

With deregulation of petrol in June 2010 and diesel in 2014, private players have once again become active on fuel retailing expansion.

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']

[[File: Petroleum prices in India, 2011-18.jpg|Petroleum prices in India, 2011-18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

[[File: India vis-à-vis other big economies, oil consumption and prices.jpg|India vis-à-vis other big economies, oil consumption and prices <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

[[File: What is tax on petrol and diesel, India, January 2018.jpg|What is tax on petrol and diesel, India, January 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

[[File: Contribution of petroleum sector to centre and state, 2013-17, year-wise.jpg|Contribution of petroleum sector to centre and state, 2013-17, year-wise <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

[[File: India's import dependency for crude oil and domestic consumption, 2013-14, year-wise.jpg|India's import dependency for crude oil and domestic consumption, 2013-14, year-wise <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

[[File: India vis-à-vis other big economies, petrol prices, GDP per capita and prive of litre of petrol as % of daily per capita GDP.jpg|India vis-à-vis other big economies, petrol prices, GDP per capita and prive of litre of petrol as % of daily per capita GDP <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F01%2F29&entity=Ar01013&sk=03583A15&mode=text  Why level of petroleum tax is open to debate, January 29, 2018: ''The Times of India'']|frame|500px]]

'''See graphics''':

1. ''Petroleum prices in India, 2011-18''

2. ''India vis-à-vis other big economies, oil consumption and prices''

3. ''What is tax on petrol and diesel, India, January 2018''

5. ''India's import dependency for crude oil and domestic consumption, 2013-14, year-wise''

6. ''India vis-à-vis other big economies, petrol prices, GDP per capita and prive of litre of petrol as % of daily per capita GDP''

''How is petroleum priced in India?''

The government gotinvolved in regulating oil prices from 1948, and decided that international prices alone could not be the determinant as indigenous production and refining capacity was increasing. From the70s to the early 2000s, the oil prices committee recommended an administered pricing mechanism based on domestic cost of production. In 2010, petrol prices were deregulated, while diesel was freed up in 2014.

''How do global crude prices reflect in India?''

In 2012, 2013 and 2014 crude prices crossed unprecedented levels and impacted our petrol prices, at the time deregulated. Subsequently, the priceof theIndian basket of crude has fallen but fuel prices in the domestic market have gone up becauseof taxes. Incidentally, prices are not completely dependent on the international market.

''So, does the govt make no money from petroleum products?''

''Isn’t it fair to tax petroleum and use that money for welfare?''

In most advanced countries (barring the US) petroleum is a highly taxed commodity. But these countries have way higher incomes as compared to the average Indian and the cost doesn’t pinch as much as it does Indians. In this scenario, a high tax on petrol in a country at our income level remains a matter of debate.

===2011-18: impact of rupee’s value and taxes===

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F11&entity=Ar00300&sk=D0997BB7&mode=text September 11, 2018: ''The Times of India'']

[[File: 2011-18- The impact of the rupee’s value and taxes on the price of petroleum.jpg|2011-18- The impact of the rupee’s value and taxes on the price of petroleum <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F11&entity=Ar00300&sk=D0997BB7&mode=text September 11, 2018: ''The Times of India'']|frame|500px]]

''2011-18- The impact of the rupee’s value and taxes on the price of petroleum''

===Imports are low but pricing assumes imports: 2015-18===

[[File: Petrol and diesel- imports into and exports from India, 2015-18.jpg|i): Petrol and diesel: imports into and exports from India, 2015-18; <br/> ii) Fuel in India is priced as if it is imported; <br/> iii) Profits of India’s oil companies (Reliance, Indian Oil), 2015-18; and <br/> iv) Taxes earned by the government from the sales of Petrol and diesel: 2014/5- 18 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F20&entity=Ar00200&sk=3020E85C&mode=text  September 20, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''i): Petrol and diesel: imports into and exports from India, 2015-18; <br/> ii) Fuel in India is priced as if it is imported; <br/> iii) Profits of India’s oil companies (Reliance, Indian Oil), 2015-18; and <br/> iv) Taxes earned by the government from the sales of Petrol and diesel: 2014/5- 18''

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F14&entity=Ar02309&sk=16A57B0C&mode=text  Sanjay Dutta, ₹1.3L cr oil bond burden limits scope for tax cut, September 14, 2018: ''The Times of India'']

[[File: Oil bond liability, 2015-26.jpg|Oil bond liability, 2015-26 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F09%2F14&entity=Ar02309&sk=16A57B0C&mode=text  Sanjay Dutta, ₹1.3L cr oil bond burden limits scope for tax cut, September 14, 2018: ''The Times of India'']|frame|500px]]

The oil price spike during the global economic boom may be history but the Centre is still dealing with unpaid subsidy bills of over Rs 1.3 lakh crore dating back to a decade, leaving the Narendra Modi government little fiscal headroom to reduce tax on petrol and diesel.

The Atal Bihari Vajpayee government had ended subsidy on petrol and diesel in April 2002. But the UPA brought back the subsidy regime to keep pump prices artificially low under pressure from coalition partners, particularly the Left parties.

The subsidy regime was implemented through a three-way burden-sharing mechanism. Under this scheme, the government bore one-third of the under-recovery on fuels through subsidy and the remaining part was split among state-run oil refiners such as IndianOil and BPCL and upstream companies such as ONGC.

The UPA government finally freed up petrol pricing in June 2010 but continued the subsidy on diesel. As the subsidy bill continued to swell, it decided on a ‘graded’ increase to wipe out the gap between cost and market price.

ONGC and Oil India Ltd had for more than 13 years paid as much as 40% of the under-recoveries arising from fuel retailers selling petrol, diesel, domestic LPG and kerosene at a government-mandated price, which was way below cost.

A part of the subsidy liability was shifted for future by issuing oil bonds of over Rs 1.4 lakh crore, a part of which will mature in 2021 and continue through 2026. Of the total bonds, only three tranches adding up to Rs 11,500 crore have matured till 2015. Government sources said the bonds entail huge annual interest payout as the papers were issued at an average 8% interest rate.

==Changes in the prices of oil, petroleum, diesel, natural gas==

===2002-16===

''The difference between the prices of diesel and petrol, 2002-16 ''

[[File: The difference between the prices of diesel and petrol, 2002-16.jpg| The difference between the prices of diesel and petrol, 2002-16; Graphic courtesy: [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=STATOISTICS-DIFFERENCE-BETWEEN-DIESEL-AND-PETROL-PRICES-IS-26052016008057 ''The Times of India''], May 26, 2016|frame|500px]]

[[File: Percentage share of diesel vehicles in total sales, 2009-16.jpg| Percentage share of diesel vehicles in total sales, 2009-16; Graphic courtesy: [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=STATOISTICS-DIFFERENCE-BETWEEN-DIESEL-AND-PETROL-PRICES-IS-26052016008057 ''The Times of India''], May 26, 2016|frame|500px]]

[[File: ride.jpg| left|frame|Change in petrol, diesel, crude oil prices: 2006–2014; <br/> From: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=06_12_2014_011_011_004&type=P&artUrl=STATOISTICS-A-SMOOTHER-RIDE-06122014011011&eid=31808''The Times of India''] ]]

'''See graphic''':

''Change in petrol, diesel, crude oil prices: 2006–2014''

[[File: The per-litre retail price of petrol and diesel in Delhi, 2012-2020.jpg| The per-litre retail price of petrol and diesel in Delhi, 2012-2020 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F05%2F06&entity=Ar00112&sk=77BE9748&mode=text  May 6, 2020: ''The Times of India'']|frame|500px]]

Diesel price spiked by Rs 7.1 per litre in Delhi, marking the steepest-ever hike in the pump price of any automotive fuel in the country, as the AAP government nearly doubled VAT to 16.75% with a view to boosting revenue. Petrol too became dearer by Rs 1.7 per litre as VAT was increased to 30%.

''' At Rs 69.4 per litre, Delhi now has the costliest diesel in the country ''' and will see a large chunk of sales driving away to petrol pumps in neighbouring UP and Haryana where the fuel will be cheaper by more than Rs 6 per litre. Delhi is the latest state to jack up fuel taxes to shore up finances. Karnataka, Maharashtra, Assam, Bengal and Punjab have raised fuel taxes by Re 1 or so. But the quantum of increase in VAT on diesel is unprecedented. Diesel has never risen beyond Rs 1-2 per litre as it is the main fuel for transport and farming sectors and has a sharp bearing on cost of living.

Truckers’ association AIMTC described the hike as a “disaster” for the common man and the transport sector. “It will affect the operation of vehicles carrying essential supplies and will hit the common man dearly,” AIMTC president Kultaran Singh Atwal told TOI.

'' Despite hike, petrol cheaper in capital than rest of NCR''

'''Sisodia Justifies Increase, Says No Funds To Pay Staff Salaries '''

The latest hike shrank the gap between diesel and petrol prices to Rs 1.87 in Delhi, the narrowest-ever. This factor would serve as a disincentive for diesel cars in the country’s largest automobile market, give a leg-up to petrol cars and boost running economies of compressed natural gas-run vehicles.

But even after the hike, petrol will still be cheaper by a few paise in Delhi than suburbs such as Ghaziabad, Noida, Gurgaon and Faridabad in the neighbouring states.

Deputy chief minister Manish Sisodia, who is also in charge of the finance department, did not say how much the government expects from increases VAT on fuels and 70% special corona fee levied on liquor. “It all depends how much lockdown restrictions are lifted and vehicle movement begins.” He said.

On the issue of a large chunk of the fuel business moving to the neighbouring states of Haryana, Punjab and UP, Sisodia said they were also contemplating higher taxes. “Punjab has increased diesel and petrol rates by Rs 2 per litre and Haryana also increased by Rs 1 or 2 recently,” he added.

The change in pump prices in Delhi comes after 50 days. State-run fuel retailers have not revised pump prices ever since they cut rates by a few paise on March 15, a day after the Centre raised excise duty by Rs 3 per litre. The retailers absorbed the excise hike and did not pass it on to consumers. They are making up that amount and covering their inventory losses by holding the price line, even though crude has fallen 60% since January and refined products are available below crude cost at international benchmark markets.

The Delhi unit of BJP lashed out at the government, demanding that the price hike be immediately withdrawn. Delhi BJP chief Manoj Tiwari said: “Such a huge increase in the prices of petrol and diesel is like a thunder strike on the people of Delhi, it will also increase the price of many essential commodities.”

[[Category:Economy-Industry-Resources|PPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

===2013-16===

''Average November prices of Indian basket of crude oil, Value of India's import and consumption, 2013-16''

[[File: Average November prices of Indian basket of crude oil, Value of India's import and consumption, 2013-16.jpg|Average November prices of Indian basket of crude oil, Value of India's import and consumption, 2013-16; [http://epaperbeta.timesofindia.com//Article.aspx?eid=31808&articlexml=STATOISTICS-INDIAS-CRUDE-OIL-BILL-IS-DOWN-50-08122016010048 The Times of India], December 8, 2016|frame|500px]]

===2014-17===

'''See graphic''':

''i) The price of crude oil, 2014-17; <br/> ii) Retail prices of petroleum and diesel in Delhi, 2014-17; <br/> iii) Retail prices of petroleum and diesel in Bangladesh, Nepal, Pakistan and Sri Lanka in Sept 2017; <br/> iv) The component of taxes in Delhi''

[[File: The price of crude oil, 2014-17, Retail prices of petroleum and diesel in Delhi, 2014-17, Retail prices of petroleum and diesel in Bangladesh, Nepal, Pakistan and Sri Lanka in Sept 2017, The component of taxes in Delhi.jpg| i) The price of crude oil, 2014-17; <br/> ii) Retail prices of petroleum and diesel in Delhi, 2014-17; <br/> iii) Retail prices of petroleum and diesel in Bangladesh, Nepal, Pakistan and Sri Lanka in Sept 2017; <br/> iv) The component of taxes in Delhi<br/> From [http://epaperbeta.timesofindia.com/Gallery.aspx?id=14_09_2017_019_019_005&type=P&artUrl=Zomato-buys-logistics-co-Runnr-in-40m-all-14092017019019&eid=31808 The Times of India], September 14, 2017|frame|500px]]

[[File: prices of petrol and diesel in major cities.jpg|2015: the prices of petrol and diesel in the major cities of India, indicating where it is the most and where the least expensive|frame|500px]]

The basic price of petrol and the excise duty levied by the central government is uniform across the country. The final retail prices, however, vary from state to state depending on the state-level VAT, sales tax, local freight, delivery charges and so on. A comparison of 33 markets in different states shows that petrol is cheapest in Port Blair where it costs Rs 54.1 a litre, about 14 rupees cheaper than in Hyderabad where the rate is highest. Port Blair again has the cheapest diesel, with prices there 10 rupees lower than in Mumbai, which has the most expensive diesel in the country.

[[File: The retail price of petrol in India, compared with other countries, in 2016.jpg|The retail price of petrol in India, compared with other countries, in 2016; [http://epaperbeta.timesofindia.com/Gallery.aspx?id=07_05_2017_019_012_002&type=P&artUrl=INCREDIBLE-FACT-07052017019012&eid=31808 The Times of India], May 7, 2017 |frame|500px]]

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Indian-crude-price-dives-to-lowest-level-in-09012016025038 ''The Times of India'']Jan 09 2016

[[File: crude oil.jpg|Average price of crude oil in India: Nov 2001-Jan 15, ii) Imports (2013- Jan 16) in terms of value and quantity; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=Indian-crude-price-dives-to-lowest-level-in-09012016025038 ''The Times of India'']Jan 09 2016|frame|500px]]

The price of crude bought by Indian refiners slumped to its lowest level in nearly 12 years, renewing hopes of continued reduced pump prices for consumers. It has also created room for government to raise fuel taxes to prop up the central kitty . However, it could also spark fresh worries of inventory losses for oil company bosses.

The mix of crude that India buys, called the `Indian basket', slumped after the European benchmark Brent slipped to its lowest in 13 years on worries over a slowdown in China, the second biggest oil consumer, amid oversupply .

For India, which imports 80% of its crude requirement, the happy hour also carries a statutory warning over currency and export woes.

To put the savings in per spective, it would be enough to cover the Centre's school education, health, women and child development budgets, and pay for the rural jobs scheme. The government may also utilize this window to mop up additional resour ces by going for another round of excise hike on fuels. Signs of stability in global markets helped the domestic equities break a four-session losing streak but failed to stop the BSE sensex from logging its worst weekly performance since November 2011.

The benchmark BSE sensex rose by 82.5 points to recover from 19-month lows on Friday but on a weekly basis tumbled by 1,226.6 points or 4.7% on concerns over the health of Chinese economy and geopolitical tensions between Saudi Arabia and Iran.

===2018, May: retail prices highest since 2013===

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F21&entity=Ar01016&sk=9DBAE966&mode=text  Why Petrol Price Has Hit A Record High , May 21, 2018: ''The Times of India'']

[[File: Petroleum, diesel, kerosene prices in Indian cities- From June 2002- April 2018, Compared to neighbouring countries, Compared to major economies, The ‘components’ of the Petroleum and diesel prices.jpg|Petroleum, diesel, kerosene prices in Indian cities <br/> i) From June 2002- April 2018; <br/> ii) Compared to neighbouring countries; iii) Compared to major economies; <br/> iv) The ‘components’ of the Petroleum and diesel prices<br/> From:[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F21&entity=Ar01016&sk=9DBAE966&mode=text  Why Petrol Price Has Hit A Record High, May 21, 2018: ''The Times of India'']|frame|500px]]

''' Are present petrol and diesel prices highest ever? '''

In the last 16 years petrol, reached the highest price of Rs 76.06 per litre in Delhi on September 14, 2013. The next four highest prices were reached in May 2018. The present price of diesel, on the other hand, is the highest ever in this 16-year period.

''' What is the proportion of taxes as a component of the prices? '''

''' In which cities are these fuels the most and least expensive? '''  

Petrol is most expensive in Mumbai, while Hyderabad has the highest diesel price. It is interesting that in many cities the difference between petrol and diesel prices have narrowed significantly meaning there would be very little advantage for diesel vehicle owners.

''' Does India have the region’s highest petrol prices? '''

In advanced countries (except the US) petroleum is a highly taxed commodity. Average citizens of these countries, however have higher income as compared to average Indians and the cost doesn’t set them back as much as it does for us. For instance it will cost about 20% of the daily income of an average Indian to buy a litre of petrol.

===2019-20: difference between petrol and diesel prices shrunk to 71 paise===

[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F06%2F23&entity=Ar00113&sk=2C87EC95&mode=text  Sanjay Dutta, June 23, 2020: ''The Times of India'']

[[File: The difference between petrol and diesel prices. June 2019-2020.jpg|The difference between petrol and diesel prices. June 2019-2020 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2020%2F06%2F23&entity=Ar00113&sk=2C87EC95&mode=text  Sanjay Dutta, June 23, 2020: ''The Times of India'']|frame|500px]]

After the latest increase, petrol price rose to Rs 79.56 a litre and diesel to Rs 78.85, the highest in 21 months.

In Mumbai, petrol sold for Rs 86.36 a litre and diesel for Rs 77.24.

Government data show the gap was widest at Rs 30.25, or nearly 74%, on June 18, 2012 when petrol cost Rs 71.16 a litre and diesel Rs 40.91 in Delhi. In Mumbai, the gap was widest at Rs 31.17 on June 28, the same year when petrol sold at Rs 76.45 a litre and diesel Rs 45.28.

''' Tax on diesel was mostly kept low '''  

Diesel prices have traditionally trailed petrol by a wide margin because of the way it used to be taxed by the Centre and states. Tax on diesel was kept low as it is mainly used by transporters and farmers.

But since fuel-pricing was deregulated in October 2014, this difference has also narrowed. In Delhi, for example, taxes account for 64% of petrol price and 63% of diesel price. The variation in price gaps seen in the two metros is due to the difference in state levies, which magnifies the impact of central taxes and price revisions. Fuel taxes in Delhi were among the lowest in the country till April, while state levies in Mumbai were among the steepest.

This reversed after the Delhi government jacked up VAT on diesel to 30% from 16.75% on May 4, which keeps diesel prices higher than Mumbai. VAT on petrol was also raised to 30% from 27% but it is still lower than Mumbai.

Diesel has been catching up slowly ever since the daily price revision was introduced in June 2017.

[[Category:Economy-Industry-Resources|PPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

PETROLEUM, DIESEL, KEROSENE, INDIA: I]]

[[Category:Economy-Industry-Resources|PPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

[[Category:India|PPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

[[Category:Name|ALPHABETPETROLEUM, DIESEL, KEROSENE, INDIA: IPETROLEUM, DIESEL, KEROSENE, INDIA: I

PETROLEUM, DIESEL, KEROSENE, INDIA: I]]

==The component of central, state taxes, 2014-16==

[[File: States with highest sales tax, VAT rates on petrol and diesel.jpg|States with highest sales tax/VAT rates on petrol and diesel; [http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=States-keep-Centre-company-in-milking-fuel-consumers-21092017018019  States keep Centre company in milking fuel consumers, September 21, 2017: The Times of India]|frame|500px]]

[http://epaperbeta.timesofindia.com/Article.aspx?eid=31808&articlexml=States-keep-Centre-company-in-milking-fuel-consumers-21092017018019  States keep Centre company in milking fuel consumers, September 21, 2017: The Times of India]

'''See graphic: '''

''States with highest sales tax, VAT rates on petrol and diesel''

This is one of the reasons the Centre has remained steadfast against cutting excise duty even after petrol has become costlier by over Rs 7 per litre or so since July .Pump prices rose to their three-year highs in cities such as Mumbai because of high state taxes amplifying the impact of recent rise in international product prices.

VAT collection from fuels has risen more than 16% from Rs 1,42,848 crore in 2015-16 to Rs 1,66, 378 crore in 2016-17.During the same period, however, just excise mop up from fuels has risen over 35% from Rs 1,78,591 crore to Rs 2,42,691 crore, according to PPAC da ta. In addition, the Centre also collects royalty, cess and dividend from the oil industry .

No wonder consumers are seeing the Centre's move to raise excise on fuels as the fly in the ointment. The Centre had cumulatively hiked excise on petrol by Rs 11.77 per litre and on diesel Rs 13.47 a litre between November 2014 and January 2016 to soak up part of the benefit of tumbling global oil prices.

Jaitley tried to shift the focus on states by saying they charge a high amount of sales tax or VAT on fuel and the Centre needs money to spend on infrastructure and social sectors to keep the engine of growth ticking.

===…in 2013, Oct and 2018, May===

[[File: The component of central and state taxes in the prices of Petroleum and diesel in India in 2013, Oct and 2018, May.jpg|The component of central and state taxes in the prices of Petroleum and diesel in India in 2013, Oct and 2018, May <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F05%2F22&entity=Ar00718&sk=9F392025&mode=image  May 22, 2018: ''The Times of India'']|frame|500px]]

''The component of central and state taxes in the prices of Petroleum and diesel in India in 2013, Oct and 2018, May''

[[File: Petrol prices as a percentage of a day’s income, in India and other major countries, in 2017.jpg|Petrol prices as a percentage of a day’s income, in India and other major countries, in 2017 <br/> From [http://epaperbeta.timesofindia.com/Gallery.aspx?id=05_10_2017_011_032_003&type=P&artUrl=STATOISTICS-05102017011032&eid=31808 The Times of India], October 5, 2017|frame|500px]]

'''See graphic''', ''Petrol prices as a percentage of a day’s income, in India and other major countries, in 2017''

[[File: The prices of petrol and diesel in India, China and other major economies, in 1998 and 2018.jpg|The prices of petrol and diesel in India, China and other major economies, in 1998 and 2018 <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2018%2F07%2F04&entity=Ar01222&sk=E13F4CA6&mode=image  July 4, 2018: ''The Times of India'']|frame|500px]]

'''See graphic''':

''The prices of petrol and diesel in India, China and other major economies, in 1998 and 2018''

[https://timesofindia.indiatimes.com/business/india-business/why-india-is-hiding-oil-in-caves/articleshow/64775340.cms  June 28, 2018: ''The Times of India'']

'''HIGHLIGHTS'''

In its bid for long-term solution against global crude oil price volatility, India is looking towards caves that store oil

Called strategic petroleum reserves, these caves are aimed at providing buffer from external price and supply shocks

During the Gulf War in 1990, India was hit with a crisis so severe that the country was left with oil reserves adequate for just 3 days. Oil prices shot up alarmingly as a fall out of the war and triggered an inflationary spiral across the world and India could not escape the heat.  

As the government's coffers bled heavily in buying high-priced crude, India's forex reserves came down to $1.2 billion at the end of April 1991. To put this into perspective, in the week ended June 15, the country's foreign currency assets stood at $410.07 billion.

Even though the forex reserves are nowhere close to the dismal state it saw in 1991, volatility in global oil prices and its vagaries may be tracked as recently as to the spike in petrol and diesel prices a few weeks back that sent the government scampering for policy changes.  

In its bid for long-term solution, India is looking towards caves that store oil. Called strategic petroleum reserves (SPRs), these caves are aimed at providing buffer from external price and supply shocks.