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Why is the price of petrol diesel more in India, the truth behind the situation

Why is the price of petrol diesel more in India, the whole truth behind the situation?

The price of petrol diesel

The price of petrol diesel is sky-high, but why is the truth behind it, in today’s price of petrol is 83.74 and diesel price is 72.69.

Sometimes it is thought that the rate of petrol becomes increasing, and if it increases then why does it not decrease quickly.

First of all, we learn about how to make petrol diesel and how much does it cost to make it.

Petrol Diesel, We can not make it in India. We have to buy crude oil from outside, then we can make petrol diesel. 80% of the crude oil we import from outside. And this oil comes in the barrel.

price of petrol diesel

159 litres of crude oil in a barrel And the rate of one barrel running in today’s time is $ 86.73 (USD).

after refining this oil, petrol and diesel get. The dealer gets about 38 to 40 Rupees for refining 1 litre of petrol.

40 rupees of petrol diesel came to you coming to 83 rupees Why because of a lot of Taxes.

price of petrol diesel

So the first tax applies is our Central Government whose name is Excise duty which seems to be around Rs.19.48. Every litre pays As much as you will put petrol in your vehicle Every litre of 19 to 20 rupees is going to the central government. After that petrol became more and more.

After that, the margin of the dealer from 3 to 4 rupees per litre to the dealer from where you are filling petrol.

Now every state will go to petrol and every state has to earn money and put taxes as if living in Maharashtra, then here it is 25% VAT on petrol.

By doing so, the petrol of 40 rupees becomes 80 rupees.

Why is the price of petrol diesel more in India, the whole truth behind the situation?

But the problem has started now. Why in 2012 and 2013 crude oil, which was worth 118 $ barrel, now it only gets $ 80 a barrel, it happened that when crude oil was more than all excise duty, VAT was less tax-less.

When the crude oil prices were reduced, the Government began to increase their taxes. Then we got petrol at the same price.

Now when the price of crude oil is on the rise, then the Government is not reducing the taxes as it does not reduce the tax on anything when it is increasing.

So petrol diesel is becoming expensive.

The problem is that the price of crude oil has increased but the tax is not decreasing.

In 2014 – 2015, the central government has benefitted 99184 crores from the taxes.

But when the cost of crude oil fell in 2016- 2017, then the central government benefited 242691 crores from the Excise Duty Tax so it can now reduce the price of petrol.

But this is not going to be reduced because if the tax of petrol is reduced to one rupee then the government will lose 13000 crore rupees. Now the government has lost its power here.

That’s why the cost of petrol diesel in India is high.

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