Reality of petrol price rises in India

Now a days petrol in India reached to Rs100.Even when in Global market the price was substantially less than from India.

now the question arises why petrol prices are moving high in India.

who control the price of petrol and How they regulated?

Revenue breakup:

petrol Basic price Rs 30

excise duty (collected by center) Rs 32.98

VAT(By states) Rs 19.92

commission 3.69

It mean for Every 100 rs per liter we pay 63 rs to only center and states.

There are also some reason for rising petrol in india.

There are two main constituents of the prices of controlled petroleum products: The external factors — the dollar price of the product on world markets multiplied by the US$/R exchange rate. The internal factors — the rand-based retail and oil company marketing margins, transport costs and taxes and levies.

Look some more facts;

2014

basic price 47.12(66%)

center’s tax 10.39(14%)

commission 2(3%)

state tax 12(17%)

Retail price 71.42

2020

basic price 26.71(32%)

center’s tax 32.98(40%)

commission 3.65(4%)

state tax 19(23%)

Retail price 82.34.

Layer of taxes

Therefore, the biggest reason behind higher fuel prices in the country is the high rate of central and state taxes. Even when international crude oil prices plummeted in 2020 due to lower demand, Indians kept paying higher rates for petrol and diesel due to the various taxes levied.