In the national capital, petrol price has risen by Rs 8.50 during the past 17 days to Rs 79.76 per litre as of Monday,
While diesel has touched a record high of Rs 79.40, up by Rs 9.90
A RECORD INCREASE
This increase in rates since June 7 is the highest for any fortnight since fuel pricing was deregulated in April 2662.
According to the available pricing data, the maximum that rates have increased in any fortnight was Its 4-5 per litre.
WHAT IS LEADING TO THE RECENT RISE IN FUEL PRICES?
Petrol and diesel prices depend on key factors, the primary factor being the prices of global crude oil and production of crude oil.
because of the pandemic and lockdown in globally, the demand for crude oil had crashed instantly earlier this year, which led to a decrease in the global oil prices.
now the situation has improved considerably in the global oil market and oil prices are slowly rising back to pre-COVID-19 levels.
Apart from global crude oil prices, The rupee-dollar exchange rate The excise duty levied by the central government Value added tax (VAT) by state government
TAXES LEVIED ON PETROL AND DIESEL?
As much as Rs 50.69 per litre, in petrol price in Delhi is due to taxes – Rs 32.98 is the central excise duty and Rs 17.71 is local sales tax or VAT.
In diesel, out of the total tax incidence of Rs 49.43 per litre, Rs 31.83 is by way of central excise and Rs 17.60 is VAT.
The government of India on 14 th March 2020 increased excise duty on petrol and diesel by Rs 3 per litre each.
Again on 5th May 2020 by a record Rs 10 per litre of petrol and Rs 13 on diesel increased.
CURRENT GLOBAL OIL MARKET SITUATION?
The global oil market structure has changed over the couple of months this year.
With the easing of global nations lockdown and reopening of major world economies in Europe and the United States of America, the oil demand is slowly pick up.
The Organization of the Petroleum Exporting Countries (OPEC), Russia and allies – collectively known as OPEC+
Agreed to draw out a production cut of nearly 10 million barrels of crude oil a day through the end of July 2020.
SHOULD GOVERNMENT HAVE PASSED THE BENEFITS TO CONSUMER?
REVENUE TO THE GOVERNMENT?
Rs 13,000-14,000 crore annually increase in the account of central government by hike in excise duty .
This hike is expected to store Rs 1.6 lakh crore additional revenue to central government.
Why Petrol Diesel prices are on rise Why Petrol Diesel prices are on rise