Gasoline and diesel usage and pricing
The usage and pricing of gasoline (or petrol) results from factors such as crude oil prices, processing and distribution costs, local demand, the strength of local currencies, local taxation, and the availability of local sources of gasoline (supply). Since fuels are traded worldwide, the trade prices are similar. The price paid by consumers largely reflects national pricing policy. Most countries impose taxes on gasoline (petrol), which causes air pollution and climate change; whereas a few, such as Venezuela, subsidize the cost.[1] Some country's taxes do not cover all the negative externalities, that is they do not make the polluter pay the full cost.[2][3][4] Western countries have among the highest usage rates per person. The largest consumer is the United States.[5]
Countries that formerly subsidised gasoline[edit]
Indonesia[edit]
With oil reaching over US$145 a barrel, Indonesia further increased prices in May 2008 to Rp 6,000 (approx. US$0.65) per litre, and diesel to Rp 5,500 (approx. US$0.60) per litre, while kerosene was raised to Rp 2,500 (approx. US$0.28), moves which caused widespread protests.[40]
Furthermore, in November 2014, the new government led by President Joko Widodo reallocated the government subsidy for gasoline and diesel into nation's infrastructure, education and health budget, hence raised the price of subsidized gasoline and diesel by Rp 2,000 each, so the price of gasoline and diesel became Rp 8,500 and Rp 7,500 respectively. This decision created inflation and protest throughout the archipelago.[41]
Protests[edit]
India[edit]
Wide protests on petrol price hikes have been frequent in the last decade. On 24 May 2012, the petrol price was hiked by ₹7.50, resulting prices in the range of ₹73–82 ($0.97–1.09) per liter all over the country.[58] Opposition had declared a bandh on 31 May 2012 across the country to protest against the price hike,[59] which evoked mixed response amid incidents of stone pelting, arson and road blockades in some parts of the country.[60][61]