Today diesel rate in tamilnadu
Today diesel rate
The comparison with another other countries you can see see india's chart in january this has been a comparison between the months same months of different years january 2020 to 21 you can see the difference the change of course it has increased
whereas china usa brazil and uk have not seen an increase up to that much now if we talk about china usa and brazil on an average the citizens of these countries have been paying less if we compare the month january of this year if and compare it from the month january of 2020 so you can see only in india this trend has been seen now if we talk about the reasons first is we have already talked about the uh de controlled pricing so that's that and then global crude oil prices first is that so if we talk about global crude oil prices the oil price depends on a lot of things first is the global trend the international pricing second is the freight charges third is the exchange rate between the indian rupee and the us dollars
so all these factors actually affect the prices but if we see the price rise is not that much so why are indians paying more because of post pandemic effects we can see this as well the com the country is trying to get into a v-shaped recovery we have discussed about this this this is when the gdp has fell down it has crashed to a low level and again it is trying to recover so this is a v-shaped recovery in a graph i can draw draw it for you you can see your gdp and this is time okay so gdp goes like this and then it will come down and then it will again recover so that is that so if we talk about that the post pandemic effect it is actually affecting the economy a lot uh sorry the oil prices a lot in the sense again we are trying to get back on track the factories and the uh air travel restrictions these all have been they have been and not imposed after the lockdown up to that much of extent so that is why when the economy is trying to get back on track it will obviously try to demand more and more oil or more and more petrol and diesel and that is what is causing the increase in demand but the supply is not that much because many of the opec countries they are voluntarily not producing as much output as the demand needs to be met in order to control the pricing there is a reason that opec countries are not doing so so second is that because brent crude which was being traded at about 40 dollars per barrel between june to october and the year 2020 and it had started rising in november and it had gone past 60 dollars per barrel this is also another reason the control production we have already discussed how the opec countries are not doing much they are not producing that much of output and if we talk about opec it was it's an intergovernmental organization opec means organization of petroleum exporting countries so it was formed in the year 1960 and if we talk about where it was formed in baghdad and it's headquartered at vienna austria and if we talk about the founding members they are iran iraq kuwait at the baghdad conference saudi arabia and of course venezuela all right and now in the common segment you have to tell me how many members of opec are there first is that and secondly is india a member of oecd or not all right so if we get to the taxation system modern fuel you can see this article and it says it's from may 7 2020 it says that india now has the highest taxes on fuel in the world so taxation system if we talk about for this is an old picture but here i have used it in order to make you understand what are all these taxes levied by the central government the state government all right so if we talk about the pricing the taxation structure for our petroleum they are not under the purview of gst so the government has a lot to maneuver in order to get more and more revenue from any kind of commodity petrol is the or crude oil is the most you can say lucrative object so if we talk about that you can see this is the base price okay the actual price then comes after this taxation it will increase of course if we talk about excise duty now this is levied by the central government all right in order to get revenue central government after that many states because pricing prices of fuels depend on state to state they get deferred in if we talk about up the price of petrol and diesel will be different from the price of delhi and uh any other state so if we talk about that then comes vat now that is it is imposed by the state government then comes another thing that is called dealers commission and of course if we talk about another charge that is the freight charge so there are so many taxes which leads to the increase of the actual actual price that a person needs to incur in order to get one liter of petrol so as you can see if we talk about delhi right now the taxes are actually 180 percent in addition for petrol and for diesel it's 141 of the base price in addition to all this all right if we move on and talk about the impacts first of all because of the hiking of the central excise duty and that it has mopped away any kind of savings that a person had done throughout because of not consuming patrol because of the lockdown they couldn't tap the benefits and after the lockdown got over they had to pay double the price almost double the price not exactly but almost and then negative margins from offer oil marketing companies the dealers are saying the oil marketing companies are saying that they cannot revise the entire pricing in accordance to the global oil crash global oil price crash because it would leave them dry with no margins so second is that and consumers with greater expenditure on travel will definitely feel the pinch of the this entire hiking of the price because they have to travel more and because of the traveling they will need more and more petrolene diesel and that will cause them to be at a loss and if we talk about the industrial analysis they say that because of the increase of the oil the crude oil if we talk about that this had been compensated by the food inflation being on the decline basically so it has been compensated for but in the long run if you want to know in the long run definitely any increase in the crude oil prices petrol or diesel it will be a chain effect and after that because of the commodities being transported from one place to another per unit cost will also get increased because of the increase in the prices for diesel of course that will also happen and if we talk about the urban populace the urban populace will be much more affected by the increase in the prices of petrol and diesel and but we if we talk about the rural population you can see that a weak monsoon may lead to rural india being hit as farmers are forced to rely more on diesel-powered irrigation moving on let's talk about oecd i asked you a prelims based question from here also and an intergovernmental economic organization this is it was founded to stimulate economic progress in world trade it was founded in the year 1961 and it is headquartered at paris france all right keep this in mind also a very high human development index all the countries who are included in it is there and they are regarded as developed countries but india is not a member so your question has been answered here only but a key economic pattern if we talk about the reports and indices by oecd government at a glance 2017 report international migration outlook and oecd better life index so if we talk about the challenges gst leaves very little space for the government to maneuver for the taxation because if we talk about the commodities available for taxation there is much less commodities available for taxation after the gst came into practice and
patrol is the very the single most if you can could say if i dare say is the singles most lucrative item for any kind of imposition for taxes see if the prices are high for of crude oil in the international market the eventual negative impacts for the hike in price will pass on to the customers the consumers the oil marketing companies will of course try to increase their profit margins and even if the prices are low the government will try to tap benefits from that situation of low price of international crude oil by getting and raking up its revenue by putting more and more taxes on it eventually again the consumer will be at the losing side and the growth challenge of course if we want to talk about the post-pandemic economy trying to get back on track will demand more and more and we cannot let go of this entire period because everybody wants to be a part of the growth and lack of energy security infrastructure in the sense that there was no proper energy security infrastructure in terms of storage if india had proper physical infrastructure for storing crude oil when the prices were low india could tap the benefits of it because the government could have gotten the crude oil for a much lower price if it had got the proper storage system right and overt dependence on fossil fuels india does have a lot of dependence of on not only coal but if we talk about energy demands patrol products and diesel these are also the things on which the indian government depends upon a lot and we need to of course switch on to more other substitute
which are less pollutive in nature and which could be easily easily targeted when it comes to getting its energy demands met less penetration of electric vehicles now this is something the government is trying to do but the penetration is not a lot and if we talk about the way forward we need a pragmatic taxation system we need to make a taxation system which is not actually taxing on the customers when it comes to idealistically benefit them in times of need right and growth should be balanced with accordance to time we need a more idealistic approach here when it comes to that growth should be there but it should not be in such a manner that it will raise inequality right and of course energy security proper infrastructure should be developed in order some kind of pandemic again hits the country it hits the entire world beg your pardon india should be ready in order to meet its energy demand for the future in case of the prices of oils prices of crude oil crashes right proper infrastructure for storage in that time and investment and innovation should be done in different substitute energy energy security not only in energy security but also other substitutes such as hydrocarbons and another another fuels all right if we talk about the implementation of electronic vehicle scheme we already have seen that government has undertaken many schemes but this should be in a very rigorous mission mode all right so if we talk about a main space question kindly look examine the impacts of india's huge dependence on imports to meet the energy demands and also suggest measures to attain self-sufficiency in this regard you have to write it down in 250 words so that's it for today tomorrow we shall meet again with another segment until then stay updated and
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