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Economy

India has the highest petrol-price-to-income ratio in the world

Bloomberg has an interesting visualization of what oil costs in various countries, and India’s been among the top in terms of number of days wages it will take to buy a gallon of petrol.

image

Yes, diesel’s cheaper, and we’ve actually gone to LNG/LPG for vehicles; but those mechanisms need to get way more popular.

And if you thought the oil producing countries would have it cheap, think again. On top spot in terms of $ per gallon is Norway, which is – tra la – and oil producing country. (They have a LOT of taxes)

  • fubar says:

    I wouldn’t mind paying taxes in Norway as you get unemployment benefits, medical benefits, disability benefits not to mention civic cervices like water, power, sewage etc. In India we pay almost 50% and get nothing in return.

    • They didn’t start that way 🙂 They are of course a more controllable population. There is a lot to be improved in INdia – from sanitation to power to roads. But just 3% of our population pays taxes, and our tax to GDP ratio is 17% (Norway is 45%, Brazil 34%, US 27% etc). If more people would pay taxes, things will improve.

  • Tushar says:

    The figure would be substantially different if you take the average “day’s wages” of the 18 per 1000 car owners in India or even the daily wages of a two-wheeler owner.
    Sunita Narain of CSE says over 1 million cars were sold in India last year but only 30,000 buses. (SIAM lists passenger vehicle sales at 2.68 million)
    SIAM possibly clubs both as ‘passenger vehicles’ in their sales statistics and as ‘four wheelers’ in their installed capacity figures http://www.siamindia.com/scripts/installed-capacities.aspx

  • Srinath says:

    Sir
    It is a travesty that diesel is subsidised to a huge extent for personal transportation. Why can’t the government make it mandatory that passenger vehicles above a capacity of 10 passengers alone be manufactured with diesel engines. All passenger vehicles below that capacity has to be petrol engines.
    The car manufacturers must be pressured to improve the mileage of petrol cars compared to diesel cars. That itself is an important factor in people opting for diesel cars.
    Mass private and public alongwith goods vehicles must be charged a far lesser toll fee on our highways while passenger cars must be made to bear the brunt of the toll shortfall.