Even if crude oil is cheap, why is petrol-diesel expensive?

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Even if crude oil is cheap, why is petrol-diesel expensive?


Crude oil prices in the world market have fallen below $94 per barrel in the past several months. As of yesterday this was $81.00 per barrel. This price reached 117 dollar. It is true that oil companies have suffered losses for some time now after increasing petrol-diesel prices to an extent but have not increased the prices.

However, it is also true that when oil prices skyrocketed all over the world, Russia continued to supply crude oil at reasonable prices. As a result, the share of petroleum products in total exports rose to a record 22% between April to September.

However, a major cause of the recession was the rise in petrol-diesel prices, Due to which the rent increased. Now is the time that the government also gives up its greed for revenue and the companies also do not keep the prices of petrol and diesel high in the name of last deficit.

In general, the government of all times has been citing the increase in the price of crude oil in the world market as the reason for the increase in petrol-diesel prices. However, people also know that if market prices fall, household prices should fall on average. If the price of crude oil increases even by one dollar, the price of petrol and diesel in India increases by 50 paisa each.

Hence, if today the world market price has fallen by an average of $24 per barrel, So petrol-diesel in India should be cheaper by at least Rs.12 to Rs.10. It is also true that if petrol retails at Rs.105 per litre, then the base price is only Rs.56.50. While there are other taxes, duties, commissions etc. If the excise duty increases by Rs.1, the government earns thousands of crores.


RGPCREATE,

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