India is currently experiencing high fuel prices despite a decline in international crude oil rates. While crude oil prices have been declining globally due to the ongoing Russia-Ukraine war, the prices of petrol and diesel in India have continued to rise, causing concern among consumers and experts alike.
The price of petrol and diesel in India is determined by various factors, including the cost of crude oil, refining costs, taxes, and dealer commissions. However, the major factor driving up fuel prices in India is the high taxes levied by the central government. In fact, the government taxes on petrol and diesel make up a significant portion of the final retail price.
Despite the decline in international crude oil prices, the government has not reduced the taxes on petrol and diesel in India. This has resulted in a situation where consumers are paying significantly higher prices for fuel, while oil marketing companies are recording record profits.
In recent months, the prices of petrol and diesel in India have hit all-time highs, causing concern among consumers who are already struggling with the economic impact post-pandemic and the impact of the Russia-Ukraine war. The rising fuel prices have also led to an increase in the cost of goods and services, further burdening consumers.
The Indian government has faced criticism from various quarters for its high taxes on petrol and diesel, with many experts calling for a reduction in taxes.
While the government’s stance on the matter is un-understandable, it is also important to consider the impact of high fuel prices on consumers and the economy as a whole. High fuel prices can lead to inflation, which can erode the purchasing power of consumers and ultimately impact the growth of the economy.
In conclusion, the high fuel prices in India despite the decline in international crude oil rates can be attributed to the high taxes levied by the central government. While the government has stated that it needs the revenue generated from these taxes, it is important to consider the impact of high fuel prices on consumers and the economy as a whole. This is high time the government must take steps to reduce taxes on petrol and diesel.
