The common man may get another setback amid rising inflation. Petrol-diesel may become more expensive in the coming days because the price of crude oil has reached a high level of 7 years. In the international market, the price of crude oil has crossed $ 87 per barrel. Earlier in January 2014, the price of crude oil had crossed $87.
On December 1, 2021, the price of crude oil was $ 68.87 per barrel, which has now reached above $ 86 per barrel. That is, within a month and a half, the prices of crude oil have increased by 26%.
Anuj Gupta, Vice President (Commodity & Currency), IIFL Securities says that in the coming time, the price of crude oil in the international market can go up to $ 90 per barrel. Due to this, the prices of petrol and diesel may increase by 2 to 3 rupees in the next one month.
Why is crude oil getting expensive?
The world is battling with the Corona crisis. Apart from this, there is an atmosphere of tension in the Middle East as well. A drone strike at an airport in the United Arab Emirates on Monday sparked a new crisis that is expected to hit oil production. Market experts say that these events will have an impact on the production and demand of crude oil, due to which its prices are bound to rise.
Relief from expensive petrol and diesel in elections
According to experts, the government may deny its role in setting the price of petrol and diesel, but in the past years, it has been seen that during the elections, the government does not increase the price of petrol and diesel to please the public. The trend of the last years is telling that in the election season, the public has got relief from the increased prices of petrol and diesel.
The government budget may deteriorate
According to estimates, if the price of crude oil increases by $10 a barrel, it increases the fiscal deficit by 10 basis points.
This also increases inflation, which will make it difficult for the RBI to keep the interest rates reasonable.
Due to the increase in export bills, the dollar reserve will decrease, which will weaken the rupee.
On November 3, the government had reduced the tax
On November 3, the central government had announced to reduce the excise duty on petrol and diesel. The very next day, the prices of petrol and diesel were reduced across the country and many states also reduced the tax on petrol and diesel. This brought relief to the common man. Since then the prices of petrol and diesel have not increased. Trends show that there has been no increase in the prices of petrol and diesel in the country for the last 75 days, while the prices of crude oil have increased during this period.
Still central and state governments are charging heavy tax on petrol
The base price of petrol is currently Rs 48 and that of diesel is close to Rs 49. The central government is charging an excise duty of Rs 27.90 on petrol and Rs 21.80 on diesel. After this, the state governments charge VAT and Cess on their own, after which their price becomes close to 2 times the base price.
How is the price of petrol and diesel determined?
Till June 2010, the government used to fix the price of petrol and it was changed every 15 days. After June 26, 2010, the government left it to the oil companies to decide the price of petrol. Similarly, till October 2014, the price of diesel was also fixed by the government, but from October 19, 2014, the government also handed over this work to the oil companies.
Oil companies determine the price of petrol and diesel daily keeping in mind the price of crude oil in the international market, exchange rate, tax, transportation cost of petrol and diesel, and many other things.
India imports 85% of its crude oil requirement
We procure more than 85% of our crude oil requirement from outside. We have to pay for it in dollars. In such a situation, due to the rise in the price of crude oil and the strengthening of the dollar, petrol and diesel start becoming expensive. Crude oil comes in barrels. One barrel, that is, 159 liters of crude oil.
Russia Warning: After Ukraine, Finland and Sweden are the target by Russia, NATO may again become a big reason for dispute
Now Finland and Sweden are also seen moving on the same path over which such a big war broke out between Ukraine and Russia. This is the reason why Moscow has given an open warning to both these
IPL 2024 Auction: From Mumbai Indians to Chennai-Kolkata, this is what all 10 teams looked like before the IPL auction.
The player auction for the 17th edition of the Indian Premier League (IPL) will take place on December 19. This is the first time that the auction is going to be held outside India. A total of 333
Attack on 2 Sikh youths in New York: Beaten with a stick, turban also removed; Second such incident within 10 days, the Sikh leader said – Hate crime increased in America
A video of an attack on two Sikh youths near Richmond Hill in New York has surfaced. According to the police, one person has been arrested in this case. The case is being investigated by registering a
Indian Students In China: Good news for Indian students, will be able to complete the remaining studies in China; Dragon announces visa issuance after two years
China on Monday announced plans to issue visas to hundreds of Indian students stranded due to COVID restrictions after more than two years. Apart from this, plans were also announced to issue visas
iPhone's camera has faded in front of this phone! 13 thousand discounts is being available in the deal
OnePlus 9 Pro 5G On Amazon: If you are looking for a good phone in the Holi deal, then OnePlus 9 Pro 5G is the best offer on Amazon. There is a discount of up to 13 thousand on this phone. Alexa, 5G
Coal India: Import will be done after seven years, after the opinion of the states, the central government took the decision
Coal India, the world's largest coal mining company, is going to import from abroad after seven years given the power crisis and shortage of coal in the country. The government has taken this decision
Positivity rate crosses 13% in 5 states: More than 16 thousand cases were found in the last 24 hours, and 41 died
In the last 24 hours, 16,866 new cases were reported in the country and 17,477 patients were cured. During this 41 patients died. With these new cases, the number of active cases of corona increased
Covid-19: What was feared happened, more than 10 thousand deaths occurred worldwide due to Corona in December, this is the main reason
Cases of coronavirus infection are being seen increasing rapidly globally, especially due to the new variant of Corona JN.1, there are reports of the situation worsening in many countries. Another
PM Modi: PM Modi on a Goa tour today, will gift schemes worth Rs 1330 crore, and will inaugurate India Energy Week
Prime Minister Narendra Modi will be on the Goa tour today. During his visit, PM Modi will gift schemes worth Rs 1330 crore in Goa. PM Modi will also inaugurate India Energy Week 2024 in Goa. Will
PAK vs NZ: New Zealand desperate to return to winning track against Pakistan, Kiwis' record bad against PAK
New Zealand, which is struggling with the problem of injured players, will take on Pakistan in its important World Cup match at the M Chinnaswamy Stadium here on Saturday with both the teams desperate
