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Gas/Petrol Prices

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One wonders as to how the Americans make a profit and yet sell petrol (gas) at prices which are cheaper than in India.

 

Statstics give by the Energy department of U S Government (Please open the attachment to have a detailed look at the breakup) show 84 percent of the price consists of price of crude, Government taxes (11 per cent) and the balance 16 per cent covers profits for the Oil company, petrol pump, cost of refining and cost of ferrying crude to refineries and petrol from refinieries to the petrol pump.

 

What subsidy is our Governemnt talking of?

 

I guess that a substantial portion of the subsidy is pocketed by the Babus and Netas. Hence their interest in talking about subsidy all the time. It is like the food subsidy which does not reach the fair price shops. Even in the redland of India (WB), more than 90 per cent of the food grains meant for sale to the poorer section disappear as transportation losses. (Please series of reports by Indian Express which appeared a few months back on the state of PDS). UPA/BJP states fare no better.

 

Please give inputs on this burning topic!

 

Rajinder Sandhir

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