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Inbalanced FOREX and

Petrol Pricing

Prepared By

Manoj Shinde Abhijit Shetye

Anand Daripkar Arun Singh

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Rupee Depreciation

Foreign Exchange Reserve: (RBI) March 2013: $294 Billion Sept 2013: $275 Billion

Rapid outflow of FII No inflow of FDI March 2013 : $1= 54.33 Today(9 oct, 2013): $1=61.89 Effects

Hike in Domestic Petrol Prices Hike in inflation

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FOREX Reserves

Source: RBI.org.in

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Rank Country FOREX Date

01  People's Republic of China 3,515,738 March 2013[2]

2  Japan 1,254,033 Jul 2013[2]

 Eurozone 781,536 Jul 2013[2]

3  Saudi Arabia 688,431 Jul 2013[3]

4   Switzerland 516,705 Jul 2013[2]

5  Russia 512,834 Jul 2013[2]

7  Brazil 367,002 Aug 2013[2]

8  Republic of Korea 329,709 Jul 2013[2]

9  Hong Kong 303,582 Jun 2013[2]

10  India 275,572 13 sept 2013[2]

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Indian Import (Rs Cr.)

Rank Country Apr-Mar 

2012 Apr-Mar 

2013 %Growth %Share

1 CHINA P RP 275,998.64 284,384.59 3.04 10.65

2 U ARAB EMTS 171,126.62 212,923.33 24.42 7.98

3 SAUDI ARAB 149,349.99 184,684.80 23.66 6.92

4 SWITZERLAND 155,126.43 174,511.85 12.50 6.54

5 U S A 117,293.31 137,238.59 17.00 5.14

6 IRAQ 90,651.51 104,596.36 15.38 3.92

7 KUWAIT 79,188.35 90,184.25 13.89 3.38

8 QATAR 61,895.48 85,457.78 38.07 3.20

9 INDONESIA 69,759.13 80,965.70 16.06 3.03

10 GERMANY 78,095.29 77,933.66 -0.21 2.92

  Total 2,345,463.23 2,669,161.95 13.80 100.00

Source: www.commerece.nic.in (ministry of commerce)

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Indian Export (Rs Cr)

Rank Country Apr-Mar  2012 Apr-Mar  2013 %Growth %Share

1 U ARAB EMTS 172,268.48 197,832.08 14.84 12.10

2 U S A 166,474.31 196,771.28 18.20 12.04

3 SINGAPORE 80,363.29 73,995.35 -7.92 4.53

4 CHINA P RP 87,669.37 73,772.71 -15.85 4.51

5 HONG KONG 61,877.23 66,898.17 8.11 4.09

6 NETHERLAND 43,913.77 57,380.34 30.67 3.51

7 SAUDI ARAB 27,208.20 53,244.76 95.69 3.26

TOTAL 1,465,959.38 1,634,318.83 11.48 100.00

Source: www.commerece.nic.in (ministry of commerce)

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Petrol and FOREX Import in Cr Rs

No.

Commodity

Apr- Mar 12

Apr- Mar 13

% Growth

%Share

1 Petroleum(Crude Oil)

743,074.88 ($120 Billion)

891,870.86 ($145 Billion)

20.02 33.41

2 Gold 269,900.71($ 44 Billion)

292,146.29 ($ 47 Billion)

8.24 10.95

3 Others ($ 216 Billion) ($ 238 Billion) 55.64%

TOTAL2,345,463.24

($ 380 Billion)

2,669,161.95 ($ 431 Billion) 13.80 100.00

Source: www.commerece.nic.in (ministry of commerce)

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Export of India

Rank Commodity Apr-Mar  2012 Apr-Mar  2013 %Growth %Share

1 PETROLEUM 267,914.83 ($ 43 Billion)

330,790.01 ($ 53 Billion)

23.47 20.24

2 GEMS & JEWELLARY 214,888.91 236,162.03 9.90 14.45

Total 1,465,959.39 1,634,318.83 11.48 100.00

Source: www.commerece.nic.in (ministry of commerce)

Import in Cr Rs

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Crude OIL

1 barrel = $110,(26 sept 2013), = 110*62= 6820rs

Highest =$118 (jan-feb,2013) Lowest= $98 (April, 2013) $147 on 11July 2008 and then $32 in

december 2008 Lowest $17(Jan 1999)

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Petrol Pricing In India 1 barrel = $110, (26 sept 2013), =

110*62= 6820rs 1 barrel contains 42 gallons of oil and 1

gallon= 3.79 liters. So 1 barrel = 159 liters of crude oil

So 1 liter of crude oil= 6820/159=42.89=43rs

Taxes: State Tax= Rs 20/lit Central Taxes

Custom Duty= 2.5%=Rs 1.22/lit Excise Duty= 30%= Rs 14.78/lit

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Petrol Prices in India

City International

Price

CentralTax

StateTax

Total

Mumbai Rs 43 Rs 18.8 Rs 21.3 Rs 83.1

Delhi Rs 43 Rs 20.2 Rs 16.7 Rs 79.9

Chennai Rs 43 Rs 19.1 Rs 20.8 Rs 82.9

Kolkata Rs 43 Rs 19 Rs 20.6 Rs 82.6

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Petrol Prices in India

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Gold

2nd largest commodity in import No 1 Importer in Globe 20 tonnes more than China (China is

major producer also) Gold investment in India= Rs 58,725 Cr

as of Sept 2012

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Pricing of Gold

Decided by group of bankers in London, twice a day

International price: Q4, FY12= $1674/ounce Q4, FY13= $ 632/ ounce Oct 9, 2013= $ 1305/ ounce

1 ounce = 28.35 gm So

28.35 gram=$1305*62=Rs 80000/- Tax 15 %, 28.35 gram=Rs 93,000/- 10 gram = Rs 32000 /-

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International Gold Prices

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Domestic Gold Prices

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Gold Import Gold Import:

2012-13= 8oo tonnes ($47 Billions, estimated was $ 36 Billion) 2013-14( estimated)= 725 tonnes Q2, FY 13 = 310 tonnes ($ 18.2 Billion)(10 yrs highest) Q3, FY 13= 135 tonnes ($ 8 Billion)

Gold Tax: Jan 2013=2% to 6% June5, 2013= 8% Aug, 2013= 10% Today = 15%

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Measures by Govt

Substitute for Petrol (Crude Oil): CNG is looked as best substitute for petrol.

Subsidy on petrol is lowered, however Diesel is still subsidized to keep prices constant and to control inflation.

Sport Bikes and luxurious cars are heavily taxed.(Excluding transport vehicles)

High tax on Gold (2% in Jan to 15% in Sept) Trying to keep gold prices constant Diverting gold investment into industrial

sector

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