Rising petrol price in India, Why petrol price is so high in India.??

Before 2014, fuel price hikes used to outrage the public. Today, nobody seems to care. The difference tells you a lot about what appears to be ‘public opinion'.

In the last one year alone much of this increase happened in petrol and diesel price. who really is the hardest hit. It is the common man. 

In this one year people have lost jobs and incomes, and inflation has soared. Fuel getting expensive just when people have less money in their pockets. Is really government is responsible for this?? Before getting to that point lets analyse the recent price of petrol per litre in neighboring countries. 

1. Afghanistan-47 Rs, 

2. Bhutan-49 Rs,

 3. Myanmar-87 Rs,

 4. Sri Lanka-60 Rs,

 5. China-75 Rs,

 6. Nepal-69 Rs,

(All in Indian rupees) 

So in comparison with this neighbors. Why petrol prices is high in India? 

This is because Near about 80% crude oil, India import from  middle east countries like Saudi Arabia, Iran,Iraq.  India also produces its own crude but in small quantities compared to imported crude oil. We import this is in the form of barrel and in international market the price of 1 barrel is near about 59$.

Lets see the following calculations, 

1 barrel= 59$= 4307 Rs 

1$=73 Rs

59$= 4307 Rs 

1 barrel=159 litres crude oil.

1 litre cost=27 Rs. 

So we get crude oil near about at 27 Rs. But we need to refine it to convert crude oil into Petrol or Diesel. And we need refinery cost near about 5-6 Rs. 

Refinery Cost= 5-6 Rs.

So up till here petrol cost is 33 Rs. 

The central gov hiked the central excise duty on petrol to Rs 32.98 per litre during the course of last year from Rs 19.98 per litre at the beginning of 2020, and increase the excise duty on diesel to Rs 31.83 per litre from 15.83.

Central Govt-32.98 Rs{Excise Duty}. 

So up till here petrol price is 65.98 Rs.

And to its excise duty of 32.98 per litre on this further VAT (value added tax) get added. It varies from state to state. Generally it is 30% so its near about 20 Rs.

So up till here petrol price is 85.98 Rs.

And at the last by adding commission of petrol pump dealer its now days near about 4 Rs, Petrol price reach at 90 Rs.

So up till here petrol price is 90 Rs.

But  why petrol prices varies from cities to cities. Because the value added tax on petrol varies from state to state which is why the petrol prices differ across different state and cities. 

What is your views on "Rising petrol price in India", Do let me know in comment section.

Thank You.