Do we know the reason why prices of petrol and diesel have been rising across the country? Is it because of the failure of the central government or the state government?
India: the third most oil-consuming and importing country in the world. It imports 85 percent of the oil it consumes. In India, fuel prices are regulated by state-owned companies such as Bharat Petroleum, Hindustan Petroleum, and Indian oil.
PARAMETERS PETROL DIESEL
1st September Rs.96.76 Rs.89.66
30th September Rs.96.76 Rs.89.66
Highest rate in
September Rs.96.76 from Rs.89.66 from 1
1 to30 September to 30 September
The fuel prices in India have sharply gone up. This continuous rise is mainly due to the rise in global prices of crude oil.
Some factors that decide the fuel prices in India :
India imports Brent crude oil from organizations of the petroleum exporting countries(OPEC). Then this crude oil is processed by boiling and distilling to separate fuels and gases. The Central government decides the base price for these fuels. To determine the final prices of these fuels Central government excise duty, value-added taxes of the State government and dealer commission at the petrol pump are added in the respective state.
The prices of these fuels may vary from state to state because of differences in supply and demand. During the pandemic, the prices of crude oil were much less because many businesses were temporarily closed. Therefore, the energy demand declined.
According to the report by Reuters, it was found that there were 19.41 million tonnes of fuel demand which was the highest since 2019 in march 2022.
Rising fuel prices have led to a debate about whether the central or the state government should lower their taxes to keep the prices under control. In India Taxes make up retail fuel prices of approximately 50 percent and above.
Impacts of increase in diesel and petrol prices
- The changes in the prices of these fuels impact the cost of different goods and services. For instance, fruits and vegetables or any other essential which are transported across the country. When the price of diesel increases it directly impacts the cost of these goods and services as the transportation cost goes up. Over a while, it will impact your budget and cost of living.
- It also impacts the government as a rise in the prices of fuel will pressurise the government to import which will lead deficit to increase and eventually the value of the rupee will also decline. As a result, the prices of foreign travel and education go up.
Read More: DELHI GOVERNMENT’s GIFT TO WORKERS ON DIWALI BY RAISING MINIMUM WAGE
