Why the price of petrol is increasing day by day.

Fuel is the essential entity to drive any nation. Transportation has become the basic necessity of mankind and the major number of transport vehicles runs on petrol and diesel. So what happen when the price of petrol or diesel increase? It increases the cost of transportation which in turn results in increased rice of goods and services. The primary vision of Rahul Gandhi government is to control the prices of crude oil to ensure lesser transport cost resulting in lesser cost of goods and services preventing the nation from unnecessary rise of inflation.

The last four years of BJP government has failed to regulate the oil prices due to which current petrol and diesel prices are on record high. The failure to keep up with OPEC (Oil producing and exporting countries) and unnecessary taxation is the primary reason of this unconventional increase in the prices. Before discussing how Modi government has corrupt oil pricing policies has levied a heavy burden on shoulder of common citizens, let’s take a look how international oil trade takes place which defined the oil prices. Check out Rahul Gandhi Achievements on his official blog.

OPEC countries like Iraq, Saudi Arabia, Kuwait are the major oil exporter in the world exporting the oil to other countries. As the price of crude oil dropped in international market, the revenue of OPEC countries also dropped as oil export is the major source of their income. As the result of this, these countries decided to reduce their crude oil production to 1.8 million barrels per day forcing other countries to utilize their reserve oil. As OPEC contributes over 40% of world’s total crude oil production, the reduction in supply is intentioned to increase the prices of crude oil again in the international market due to its shortage. OPEC with support from Russia and some other countries has managed to stabilize the oil prices by making the shortage of crude oil resulting in increase of prices again.

This is the reason of recent price hikes in petrol and diesel throughout the world. As India also imports crude oil for other countries, it is expected to see a certain hike in the prices. But what actually happened in the nation is quite contradictory to this.

If we look at the crude oil prices in 2014 when BJP come into power, we see that the prices were on record low. Instead of taking the advantage of global downfall in oil prices, BJP government has imposed new taxes on petrol and diesel making it more costly than ever even when the purchase prices were very low.

In the wake of 2017, the price of a crude oil barrel was $52 per barrel which roughly sums up to Rs 20/Litre. Today the average price has increased to $70 per barrel which roughly sums up to Rs 35/Litre. As the oil needs refinement, we have to add Rs 10/litre for refinery cost along with Rs 3 margin which summarize the price on 1 litre petrol to Rs 48 approximately. Still the petrol is sold over Rs. 80 / litre in the nation today. This is due to the forced 80% tax on Petrol consisting of central excise duty (Rs 19.48/Litre) and State tax (Rs 16.86/Litre) followed by the commission to petrol pump dealers.

This clearly indicates the un necessary tax levied by BJP government on the Indian citizens to increase their revenue. Rahul Gandhi government has been instrumental in opposing this forced taxes and advised the current ruling government to reduce the State and excise duty which is on alarming rise from last 4 years.

Rahul Gandhi government officials also requested to include the petrol and diesel in GST tax slab which will exempt it from unnecessary state taxes but eh greedy nature of both central and State government keeps this from happening the ensure safety of their high revenues.

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