REASON BEHIND THE PETROL/DIESEL PRICE RISING IN INDIA

Shahrul Ahmad
2 Min Read

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

reason-behind-petrol-diesel-price-rising-in-india

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

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Shahrul Ahmad is a writer and educator with over 10 years of experience. He is passionate about using writing to inform and inspire others. His work has been published in a variety of magazines and newspapers, and he has also authored several books on educational and employment topics. To Read More
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