Fuel comes cheap in india
Analysis of fuel duty rates in Europe shows that pressure is increasing to co-relate the fuel duties with the GDP of the respective countries. Both the wealthier nations and poorer ones still should consider raising taxes to relate better to their GDP. Ratio of per capita GDP and the fuel price show how much more or less the citizens are paying for fuels in relation to the per capita GDP. The lower the ratio, the higher the tax levels. The ratio in European countries range from 1.9 (Portugal) to 5.4 (Luxembourg) for petrol and 2.0 (United Kingdom) to 6.7 (Luxembourg) for diesel. But compared to this the ratio for India (calculated on Delhi GDP and fuel prices) is 11 for petrol and 22 for diesel. This shows that Indians are paying much less in relation to the GDP. This probably proves that further rise in diesel prices would not rock the Indian economy as our planning pundits would have us believe.