About 40 percentage of the worlds oil supply is governed by the Organization of Petrol Exporting Countries or OPEC.

Out of all the countries in the world, only 13 are a part of it. Since we Indians rank at number 23 in the list of oil producing countries and hence we are out of OPEC. All the 13 nations are the ones who control the price of fuel as also its supply and production all over the world. So due to this, the prices of fuel coming down in India is next to impossible and that is until India itself finds suitable reserves of oil deep down somewhere in the Arabian Ocean. However the price of diesel is subsidized here so that most of the buyers dont feel that they are giving in something more to buy the unclean fuel. As the price of petrol increases however more than one third of the cars being sold in India are diesel powered. However there are some car manufacturers who refuse to sell diesel cars in India and the last remaining one is Honda. Other manufacturers who dont have diesel motors in their lineup are atleast introducing in LPG or CNG variants of the same model. The Government of India pays out of the nose to diesel companies for continuing their fuel supply to the Indian vehicles. It is said that the government pays about Rs 4 per liter of diesel sold since the government wants diesel to continue with its subsidized agenda Compare this with fuel prices around the world. In Venezuela, its only Rs 1.05 for a liter of petrol while for diesel, its Rs 0.45 for a liter. However in Brazil, it is the highest with Rs 76 per liter of petrol and Rs 57 for a liter of black oil. UAE has very high oil reserves and even then, the price of petrol stands at Rs 21 per liter whereas Rs 36 is the rate of diesel. Seems like we have better times here in India as compared with them or maybe even worse. The situation doesnt look to change in the near future and by the end of 2015, we would be paying approximately Rs 100 per liter of petrol with diesel coming in at Rs 60 per liter. Move onto CNG or LPG is our recommendation and you can save yourselves some money as also contribute to a lower polluting atmosphere overall.

The problem is that we fail to ask how much petrol really costs. Lets try some simple arithmetic. International crude oil prices are hovering around US$ 112.5 per barrel. That translates to about Rs 5,085 per barrel. Each barrel contains about 158.76 litres. So, effectively crude oil costs Rs 32 per litre. Now, add the cost of refining it to petrol or diesel. According to an oil company official, the refining cost is about 52 paise per litre. Add about Rs 6 as capital costs for the refinery. Then theres the cost of transportation (Rs 6) and dealers commission (Rs 1.05). So, adding all that, the price of petrol comes to about Rs 45.6 per litre. But how much are we actually paying for petrol? Rs 68.3 in Mumbai, Rs 63.4 in New Delhi, Rs 71 in Bangalore! Why are we paying so much more and to whom? The answer is tax. Not many are aware about the huge quantum of central and state government taxes and duties levied on fuel prices. In some states the tax component is pretty close to 50%. To add to that, these taxes are levied as a percentage of the basic price of the fuel and arent fixed per litre. That means rising fuel prices only add more to the governments kitty. But all we hear about are the huge subsidies and the bleeding OMCs

http://www.scribd.com/doc/24563618/Crude-Oil-Price-and-Stock-Market-Movement http://www.scribd.com/doc/87571396/13/OPEC-Crude-Oil-Supply http://greatlakes.edu.in/gurgaon/pdf/Student_Papers/OPEC&its_Influence_on_the_Price_o f_Oil_Ajit_Basil.pdf