The reason that the price is higher in Bangalore is also due to infrastructure cess which is an additional burden for the worst possible infrastructure that is available. This has been collected for years now and its sad that we Bangaloreans are ignorant and keep quiet about it.
The news last I heard was only of proposals to raise it.
Petrol - 10Rs
Diesel - 5Rs
Gas Cylinder - 50Rs
I dont think they have decided to raise it that quickly.
This is a trick played by the Government. *They mentally prepare the people to face a greater shock*. Once prepared they rise it by relatively smaller amount to face less hatred from the public. Just a business trick thats it.
If we take the US prices as indicative of competitively sold oil then the cost comes to about Rs40/ltr. So when we pay Rs55/lt for petrol and Rs 35/lt for diesel (both cost the same actually in intl market) we are actually paying more than the international prevailing rates, so there is no bleeding hand here. The perception of loss is created just because the govt spends the more than half of the oil money it gets on public/govt expenditure.
US or Saudi prices cannot be taken as basis for oil prices. US virtually owns all of gulf oil (except Irans). It is also a big enough producer itself (and buys from Mexico as well). Plus they also have huge deposits of oil sands. Until now they have been drinking all the gulf oil and from Mexico. But now that crude costs upwards of 100 a barrel, they can go for large scale extraction from oil sands (which will cost around 30-40 a barrel so substantially cheaper). Source: Wiki
Unfortunately India has no known big oil deposits so we will have to depend on imports. It doesnt look good in future really as we will have to be totally dependent on nations like saudi or iran or other african nations for our energy requirements. why the hell do we have so many people in india :(
Not many people know that Crude is taxed so heavily in our country.. I would have had no problems if it were being used for nation building than on politico kid studying abroad and driving exotic cars.