Resumo de Gas Prices

CRUDE OIL PRICES-and its impact on our country. Mind you, this is no idle threat. World reports indicate that the price of a one barrel of crude oil will be One-Hundred US $ at the end of the present decade. Gasoline is sold in USA To-day at 2$ a gallon, -ordinery quality, and premium gasoline costs 2.5 $ a gallon for sophisticated cars. The present rates are on the basis of crude price around 50 US $ a barrel. With the increase in the price of crude oil at one hundred dollars a barrel. there will be corresponding rise in retail gasoline prices to the extent of 4$ a gallon for ordinnery gasoline and 5$ for premium variety of gasoline for sophisticated cars, This is the world forecast of petroleum prices likely to be paid at the end of the year 2008. This means, within the last 2 years we will be paying double the rates of petroleum products. This is an almost certainty. We are heading towards that. Nothing can stop it. It is all planned. We will have to pay the price of one litre of petrol at Rs.100 a litre by the end of the year 2008.The trouble in the duty structure for customs duty, excise duty, state sales tax, and octoi tax, they are all having advalorem rates of duty at which customs-excise-state sales tax and the octroi duty are levied. Even the refinery charges, its commission is at l0% advalorem. The petrol dealers charge petrol commission at 5% advalorem. The Government will have to revert back to specific rates of duty say, Rs.1000/- per Metric Ton as import duty. One barrel of crude-oil contains 220 gallons of crude-oil which when converted into liters would be approoximately 650 litres that is Rs. 650/- for a barrel of crude oil. It will also bear a charge of Rs.50 a ton under the National Calamity fund. i.e. Rs.32.50 per one barrel of crude oil of 650 litres. At present there is an import duty of 5% adv.plus an additional duty of Rs.2. per metric Ton. on Motor spirit and HS diesel.This will have to be converted into a outright specific rate of duty. Now let us go to the structure of Central Excise duty that is being charged on the finished goods. i.e. after the imported crude oil is refined in the refinery and final products, petrol, motor spirit, high speed diesel, etc. that are produced as per requirements. Under the 2005 budget, central excise duty on petrol is reduced from 23% adv to 8%adv. plus a specific rate of duty of Rs.5/-per litre is introduced in the 2005 budget. The existing duty on diesel at 8%adv is restructured at 8%adv plus a specific rate of duty of Rs.1.25 per litre. An attempt has been made to introduce specific rate of duty plus advalorem rate of duty in prices of crude oil and finished products. Gradually Government shall have to revert to specific rates of duty so that the cascading effect could be avoided. Even then The Government will have a sizable steady income from petroleum products. World countries have already realised that days of running cars with petrol are going to be over within the next couple of years. IceLand has completely accepted hydrogen operated cars in IceLand. Battery operated cars are also used. All world countries have made their arrangements in the event such a calamity of non-availability of petrol would arise. Toyota car has put in market its new model with battery operated machinery in the car plus it can revert to petrol-use in the event the battery got run-down after about 300 miles on way. The driver can start then regular petrol supply and can reach the battery charging station for a replacement. There will be plenty and easily available many battery supply centres located on highways like existing gas-stations, or say near around the gas stations. We have made gas-cylinders as an alternate for petrol cars. There is a dual system so arranged in the car that when the gas in the cylinder get used-up, and the car sputters for short supply of fuel, the driver can conveniently switch over to the petrol supply. This contrivence is in very preliminery stage and itis reported that much innovation is required to be done in this direction. Necessity is the Mother of Invention. South America has increased ethenol percentages to bring down percentage consumption of petrol. Every country is engaged in doing something. Let us hope a way is found out. Earlier the better.

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