Petrol and diesel prices continue to rise. Diesel prices rose 13 paise to a new high of Rs 80.53 per liter on Monday, i.e. after June 7, the price of diesel has increased by Rs 11.14 per liter. At the same time, the price of petrol has also increased by Rs 9.17. If compared to May 2014, where petrol has become 166 percent more expensive in 6 years, then crude oil has become 2.5 times cheaper. After this increase, the price of petrol in Delhi reached Rs 80.43 per liter and the price of diesel reached Rs 80.53 per liter. Let’s know what is behind the big prices of petrol and diesel?
On April 28, the price of crude oil in the Indian basket dropped to $ 16.19 per barrel. Speaking of April, its average price for the whole month was $ 19.9 per barrel. After this, the prices of crude oil started increasing and in May it averaged to $ 30.60. On June 25, crude oil reached $ 40.66 per barrel.
That is, in just two months, the price of crude oil increased twice, because the demand for crude increased after the lockdown was lifted. There was no increase in the rate of petrol and diesel till 6 June. But from June 7, petrol and diesel prices started coming under fire and in the last three weeks, the total price of diesel has increased by Rs 11.14 per liter. During this period, the price of petrol has increased by Rs 9.17 in total.
As on 1 April, the total excise duty on petrol was Rs 22.98 per liter. Presently the excise duty is 32.98 per liter. The total excise duty on diesel was Rs 18.83 per liter, which is now 31.83 per liter. The central government increased excise duty on petrol and diesel by 10 per liter and 13 per liter respectively to fill the empty coffers from the Corona epidemic and lockdown, while state governments also increased VAT. This did not benefit the common people of cheap crude oil.
Crude oil prices averaged $ 106.85 per barrel in May 2014. At that time petrol in Delhi was Rs 47.12 and diesel was Rs 44.98 per liter. At the same time, the excise duty of the central government was Rs 10.39 on petrol and Rs 4.50 per liter on diesel. As oil prices fell in the second half of 2014, the government increased taxes on fuel. After this, crude oil became cheaper and the government increased tax by using this formula.