[Assam] Indian economy and world oil market - interesting facts

[Ram Dhar]

picked these facts from BBC report :
 
http://news.bbc.co.uk/2/hi/south_asia/7435256.stm
 
 
 
a.India imports 75% of its oil
b.India accounts for 3% of the global demand for oil. This is lower than China's 9% and the US's 25%, 
c.India's three state-run oil importing, refining and marketing companies have been losing money -
For every litre of petrol and diesel sold in retail, these companies lose around 22 rupees and 32 rupees respectively. 
d.And for every cylinder of cooking gas sold, the companies lose around 353 rupees ($8.40). 
 
e.The companies told the government that if they were not allowed to raise prices, they would lose a massive $50bn this fiscal year. 
To put this into perspective, the projected loss is 5% of India's gross domestic product (GDP), the total value of goods and services produced
 
 
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MMS is doing the right thing here by passing the cost to citizens ---
 ...now let the states lower some tax  on petrol and  give lil relief to consumers .....
 
India spends billions of dollars subsidising fuel for its citizens every year. That means petrol there is a lot cheaper than it should be. 
But that also means Indian oil firms have to buy oil on the international market at international prices - and then sell it at a subsidised rate to customers here....big loss for them.
 
 
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