REASON BEHIND THE PETROL/DIESEL PRICE RISING IN INDIA: Fuels like petrol and diesel has become an indispensable part of or daily life and we can not even imagine a world without fuel. But the fuel prices are skyrocketing and that is going to affect everyone. When fuel prices increase rapidly the price of food products it affects food products it will make an impact on poor people because poor people spend more of their income on food and only a little on fuel
Reasons for petrol price hike in India is
Petrol price =tax (State+Central ) Cost price + cost price (marketing+refining + procuring) = (international crude price) International Crude Price = (Government policies, Demand, Supply, Financial Institutions, Geopolitics) Petrol Price in India totally depends on the Tax ( both State and Central) and international crude oil price. Crude oil price isn’t rising now the current price of crude oil is 46.90 us dollars.
Excise Duty on petroleum products is more than double under this government. It’s one of the reasons for rising petrol/ diesel price in India. Excise duty on petrol was Rs 9.48 per litre in April 2014, and now its 19.06.
Similarly, excise duty on diesel was Rs 3.65 in April 2014, now it’s 10.66. The cost of producing petrol is just Rs 23.77 per litre but its sells for Rs 63.00