Video explainer: how current fuel prices have been set (so high) in India
Why you're still paying so much for petrol and diesel though global prices have plummeted.
On Monday, despite a fall in petroleum prices globally, India saw only a marginal decrease in prices of petrol and diesel. A fall of US $4 per barrel should have translated to cuts of Rs 1.04 per litre in petrol and Rs 1.53 in diesel. Instead the prices were slashed by just 4 paise and 3 paise a litre respectively.
On February 1 in Delhi, petrol was available at Rs 59.95 per litre, versus Rs 59.99 earlier, and diesel, at Rs 44.68 a litre, compared to Rs 44.71 previously, according to Indian Oil Corp.
But why don't the prices in India move in tandem with global prices? Think government taxes. The video above explains it all.
The meagre decrease this time around is due to the raise in excise duty. There have already been two hikes in excise duty in November and December of 2015, and this was the third increase in 2016. This will get the government Rs 3,200 crore in additional revenue during the remainder of the current fiscal, Indian Express reported.
