Petrol and Diesel Price Saw Their Sharpest Rise Ever in Last 12 months

Recently their has been hike in fuel(petrol &diesel) price in india which has set a new record of all time a price close to century(Rupee 100) and Sharpest rise that india ever had.

fuel price

Dharmendra Pradhan(Union petroleum minister)in an interview on 21th Feb 2021 said that India had adviced the OPEC and OPEC Plus counties to not go for production cut as it is impacting the fuel price (petrol&diesel)in india.

In an Interview Finance Minister Nirmala Sitharaman said that sharp rise in fuel price(petrol&diesel)increase is a worrysome issue and their is no answer to it but only to reduce the fuel price.

Congress and other opposition parties have been protesting against the Centre for the rising fuel prices while the Centre has said it alone has little role behind the astronomical rise in the price. “It’s a very vexatious issue in which no answer except for reducing the price of fuel will satisfy anyone. I know I am trading on an area where whatever I may say to bring the reality into picture will only sound like I’m confusing, I’m avoiding the answer, I am shifting the blame…,” finance minister Nirmala Sitharaman said on 20th February 2021.

Assam and west Bengal are going to have polls in recent months.The state government of the respective states has cut fuel price by lowering the taxes that state government impose on fuels. The Assam government has reduced the prices of petrol and diesel by ₹5 per litre. The West Bengal government on Sunday announced a reduction of tax by ₹1 per litre on petrol and diesel.

The Reason Behind Fuel Price Increase:

1)Taxes

fuel price

Since,2020,the central government has raised excise duty on petrol by 13/litre and 16/litre on diesel.

Take Delhi for Example ,the base price of oil is Rs 32

The Central Government tax,Exercise duty,is Rs 33

The State Government tax,VAT,is Rs 20.

So,approximately 2/3rd of what you are paying Petrol and Diesel is going as taxes to the government.

2)Rise In Crude Oil Price

fuel price

As the world is recovering from the pandemic and hope of vaccine has increased the oil demand before the pre-Covid levels.

So,with the increase in the demand,the crude oil prices are also increasing to the pre-covid levels.

3)Limiting Supply

fuel price

The Group of oil-producing countries(OPEC) is intentionally keeping the supply of oil by reducing  the production so that the price can increase.

Like Saudi Arabia announced that it will be cutting its crude oil production by 1 million barrels per day to keep prices high throughout Feb and March.

So,approximately 2/3rd of what we are paying on Petrol and Diesel is going as Taxes on the government.

Here Are the list of some cities price list:

fuel price

Conclusion:

So thier it is..!!.

The Hike in the Fuel Price in india which is getting a hike of all time high.Therefore don’t miss to Read this article who is in which team.Thank you very much to give some precious time to my article.

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