Today, its a big question of Indian People for Indian Government that why Diesel and Petrol prices are continuously increasing while crude oil have been already decreased by 50% from 2014 to 2017 in Global Market.
Sources said, Diesel and Petrol are the back bone of Indian Government in terms of revenue and Also, States governments are generating lots of revenue.
Neither Central government Nor State government and Neither ruling party Nor opposite parties wants to discuss on it for public.
Here is an analysis of Diesel and Petrol prices since 2014 to 2017.
- Crude Oil Analysis– Most of Crude oil imports from 12 OPEC nations where large number of Indians living and working [Organization of the petroleum exporting countries –Algeria, Angola, Ecuador, Iran,Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia,United Arab Emirates and Venezuela]. Crude oil price was around $105 per barrel (Around 159 liters in a barrel) in 2014 and now in 2017 its around $50 per barrel but still there is no change in diesel price and petrol price.
It is a very easy math to understand that if crude oil prices will rise in global market then public will pay more money and if crude oil prices will fall down in global market then public should expect to pay less money but its not happening.
On May 26, 2014 the price of a barrel of crude oil in global market was around Rs 6, 330.65 and on September 11, 2017 its around Rs 3, 368.39 but still people are paying more money.
Raw Crude oil in Indian Currency in terms of mathematics on September 11, 2017 is Rs. 3368.39/159 = Rs. 21.18/Liter.
2. Diesel and Petrol Price Analysis – Most of the taxable articles moved under GST regime but still petroleum products are out of this category. Each states have different VAT rates on petroleum products across country.On 1st April-2014, excise duty on diesel was Rs. 3.56/liter and Rs. 9.48/liter on petrol and its got revised 11 times since 1st April-2014 to 1st August-2017.Daily Price Revision Analysis – Indian government announced on June 16, 2017 to revise diesel and petrol prices across country on daily basis which were revised on the 1st and 16th of every month. Its was a good initiative for public with a motive of bringing transparency in the pricing process but the pricing have been increasing in the range of 2 paise to 7 paise almost everyday. Daily price revision depends on these few factors – Average Crude Oil Price of the Indian Basket, Price calculation in dollar per barrel and Indian Rupees Price compare to dollars in that particular fortnight. Diesel and Price Analysis In India from crude oil to market retail price.
- State and Central Taxes Analysis – There are two types of taxes imposed on diesel and petrol after final distribution at petrol pumps and these are the Excise and VAT. Excise duty imposed by central government and VAT by state government. Central excise duty on diesel and petrol has increased by 380% and 120% in last 3 years (since 2014 to 2017) and VAT Tax imposed by state government have been also increased several times since 2014 to 2017. The highest VAT on diesel was 25% in April-2014 but its 31% in August-2017 and similarly, highest VAT on petrol was 33% in April-2014 but its 49% in August-2017. Dealer commission increased by 73%. Here is the graph which will make you more comfortable to understand the whole scenario Diesel and Price Analysis In India.
- Neighbors countries Price Analysis – We have collected Diesel and Petrol price in few neighbors of India and here is the summary of Diesel and Price Analysis In India for better understanding.