Fuel prices at its highest
After September 2018, petrol prices have broken its own record, with the diesel price at its all-time high. In 2018, diesel driven cars should not be considered less expensive as petrol and diesel don’t have a significant difference in prices.
Petrol and diesel prices in major Indian cities
The petrol prices in Mumbai is highest followed by Bhopal, Hyderabad, and Jalandhar. In Mumbai, petrol price is 84.40 Rs. While in Bhopal, Hyderabad, and Jalandhar it is 82.17, 81.11, 81.83 respectively. Hyderabad has the highest diesel price of Rs 73.76. The list of petrol and diesel prices is as follows:-
- New Delhi Rs 76.57 Rs 67.86
- Bangalore Rs 77.81 Rs 69.02
- Chennai Rs 79.47 Rs 63
- Chandigarh Rs 73.64 Rs 65.89
(Prices petrol, diesel respectively)
Price of crude oil and excise duty
Globally, the prices of crude oil have reached US$80/barrel, which is the highest since November 2014. Until February-April 2018, crude oil was playing around US$ 55.74/barrel. This price was as low as US$ 47.56 in 2016-17 while it was US$ 46.17 in 2015-16.
India is one of the biggest crude oil importer, with more than 80% of its oil is imported.
India’s petrol prices compared to other countries
Income of Indian citizens is not as much compared to other nation. Although fuel is highly taxed in other countries its prices don’t affect much due to their more earnings. Statistics say that in India, about 20% of the daily income is spent on buying fuel.
India has a top spot for prices of petrol versus % of daily per capita GDP. France has the petrol price of 1.82 Us $/ litre followed by UK, Germany (both have same prices) and Japan. While it costs only 0.70 Us $ in Russia for a litre of petrol. In India, it cost 1.16 US$ which a bit less than China where it is US$ 1.19/litre.
How much tax is levied on petrol?
In India, almost 50% of the retail petrol price is taxes and commission while it is over 40% for diesel. From November 2014 to January 2016 excise duty on petrol was hiked by Rs 11.77 per litre and on diesel, it was Rs 13.47 per litre.
Government plans to reduce fuel prices.
Union oil minister Dharmendra Pradhan has raised hopes when he said “The centre is sensitive towards the rising fuel prices. Various alternatives are explored; I hope something will work out soon.”
Also, Pradhan has kept urging states to bring petroleum under GST regime and to cut VAT.