Why petrol price are skyrocketing only in India?
India is the 3rd highest consumer of crude of in the world. With the total consumption of 211.7 million tonnes of oil every year . The main reason for high petrol and diesel prices in India is due to high taxes on petrol and diesel which is probably highest in the world which is 260% on petrol and 256 percent on diesel. As in other countries roughly the fuel price is around 60 dollars per barrel and 28 rupees per liter which is really surprising. The 25% of the total government earnings were by petrol and diesel roughly. Which is around 5 lakh crores and the total income of government is around 20 lakh crores.
In every penny the government is earning consistent quart from petrol taxes. The base price of petrol is just 31.82 rupees 2/3 of excise duty and taxes . Excise duty stands at 32.90 rupees which is levied by the union ministry and vat is at 20.61 levied by the state government. Dealer commission stands at 3.68 rupees depending on location. This is the main reason for petrol price hike in out country.
The another reason is India importes around 85 % of total crude oil used in the country only 35 million tons is produced in India. Which is around 15% of total usage. Importing also causes the price hike. From 2019 India can't buy crude oil from Iran and Venezuela due to sanctions on the countries by the us government. Which are the most cheaply available crude oil for India.
Even though if government wants it can reduce the price and decrease the petrol price to 50 also buy the government won't do that because petrol and diesel taxes give 25 % of total government earnings. Roughly every Indian pay 60 rupees to the government on every liter of petrol purchase.
No comments