Quixplained: Why are prices of petrol, diesel rising across India?

The retail price of regular petrol hit a three-figure mark for the first time across the country after it was hiked by 26 paise to Rs 100.13 a litre in Rajasthan’s Sri Ganganagar on Wednesday, while diesel got dearer by 27 paise to Rs 92.13, as per the data available on the Indian Oil Corporation’s website. This was the ninth-consecutive day when the prices of petrol and diesel saw a hike.

Fuel prices vary from state to state and taxes are levied on them by both central as well as the state governments. So, why are the prices of petrol and diesel rising in India? Take a look:

Crude oil prices have risen over by 50 per cent since October.

 

Crude oil prices collapsed in April 2020 due to falling demand in the coronavirus pandemic.

 

Both central and state government have hiked central excise duty and sales taxes to boost revenues. People with higher spends on travel are already feeling the pinch of higher fuel prices.

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