Is our Government actually responsible for

HIGH FUEL PRICES??

Fuel price contribution in India

Paid to Refinery- 61%Excise Duty - 20%VAT - 17%Dealer Contribution - 2%

Causes of fuel price rise in India

MAIN CAUSES

Economic Reasons

Social Reasons

Political Reasons

Causes of fuel price rise in India- Economic ReasonsRapid growth of populationSupply and demand imbalancesBlack marketingTaxationDeficit financingIncrease in money supply

Causes of fuel price rise in India - Social ReasonsIncrease in number of vehicles.Use of vehicles even for short distances.Huge loss of fuel due to keeping engines on

at traffic.Poor R&D in automotive sector.

Causes of fuel price rise in India - Political Reasons Rejection of India’s call by

OPEC for regulating crude prices through a price band.

Unsolved present issue of payment with Iran, India’s second crude oil supplier.

Absence of reforms to regulate automotive sector.

Huge tax revenues from import of crude oil.

CURRENT EFFECT OF FUEL PRICE HIKEFrequent stock market crashHigh inflation rateRise in the prices of daily use

productsInstability in Indian economy

Future consequences

What we can do ?Start carpooling.Use public transport.Avoid using your car or motorbike for

travelling near by places.Switch to natural gas like CNG as fuel in cars.Buy those cars which gives good mileage.

What government can do ?Charge more tax on private vehicles.Increase the number of public transport.Promote biodiesel.Introduce efficient technologies to extract

fuel from non renewable resources.

So the conclusion is…that both government as well as we people as

an individual are equally responsible for high fuel prices; and by equal contribution we can sustain these fuels as well as our future generation.

GovernmentPeople

MADE BY : SUNAYANA PATI ECE-IV-B