Petrol-Diesel prices in India have been stable for a long time. However, after the 2024 Lok Sabha elections, the Karnataka government has announced an increase in the price of petrol and diesel by Rs 3 and Rs 3.5 per liter respectively. Due to which fuel price increase has become the focus of discussion again. Currently, the average price of petrol-diesel in various states is Rs. Fuel prices vary from state to state mainly due to different tax rates. Currently, the biggest question is why the price of oil is 100 rupees per liter? Today his answer is in this report.
Crude oil price
Many people know that the price of petrol-diesel fluctuates depending on the price of crude oil in the international market. Currently, India has to import 85 percent of its fossil fuel needs from abroad. That's why even if the price of crude oil changes slightly in the world market, it has a direct impact on fuel oil.
Dollar and Indian currency exchange rates
The price of crude oil in the international market is settled in dollars. In India, petrol-diesel prices are fixed in terms of rupees equivalent to dollars. When the Indian currency depreciates against the dollar, imports of fossil fuels have to pay more per barrel. Due to which the price of petrol-diesel increases.
Central Govt Excise Duty
Apart from the above factors, the excise duty and other taxes levied by the central government on fossil fuels have caused the price of oil to skyrocket. Tax on fossil fuels is one of the main sources of revenue for the central government.
State Governments VAT
Besides the central government, the states also levy Value Added Tax or VAT on fossil fuels. The amount of VAT charged depends on excise duty and other factors. This VAT is levied at different rates by different state governments. That's why the difference in petrol-diesel prices is noticed especially in the state.
