Okay, so few people believe that the price of Petrol in India are not getting reduced in proportion with rapid fall in international, because value of Rupee has reduced than before. Though this de-valuation of Rupee has happened rapidly after Modi Sarakar took charge, but lets leave that for a moment. Lets look at this argument only in detail. . In Jan 2014, . Price of Crude oil : Around $110 / bbl Petrol price in India : 72.43 Rs/Ltr $1 = 61.5 . . In June 2014, . Price of Crude oil : Around $110 / bbl (Same as January, 2014) Petrol price in India : 71.51 Rs / Ltr $1 = Rs. 58.99 (value of rupee increased from Jan, 2014, which was ~ $1 = Rs. 61.5 ) . . In December 2014, . Price of Crude oil : Around $71.84 / bbl (Reduced by more than 1/3rd) Petrol price in India : 65-67(varying among states) Rs / Ltr $1 = Rs. 61.5 . . Do we see much difference in value of currency...... NO Do we see much difference in price of Crude oil ..... YES (Huge) Do we see much difference in price of Crude oil ..... NO (71.5 - 66 = Rs. 5.5) . NOTE : Value of Indian Rupee is at the same level, that it was in the beginning of the year 2014, there was a brief increase in the value of rupee, again due to decrease in price of oil, as it was saving quite a lot of Indias foreign currency reserve. . Now, many Modi supporters gave credit for this one to Modi as well, even if it started when Congress was in power, similarly they didnt have any role as well. (Though they will never say Modi is responsible for the decrease in value now) . So, please be clear about what is cause, and what is the effect. I hope it clears the point. . . Sources : International Crude Oil Prices : infomine/.../metal-prices/crude-oil/1-year/ . Petrol Prices in India : mypetrolprice/2/Petrol-price-in-Delhi . Value of rupee against Dollar : freecurrencyrates/exchange.../USD-INR/2014
Posted on: Wed, 03 Dec 2014 12:15:45 +0000
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