This Maharashtra City Sells India’s Most Expensive Petrol – 3 Reasons Why Petrol Is On Fire!
Petrol prices are on fire in Indial and we try to find out the reason.
Price of petrol and diesel in India has right now breached the sensitive and psychologically important barrier of Rs 90 for a litre. One small town in Maharashtra has already witnessed this price, and soon, other cities will follow.
We will soon share the name of this town, and also share those three reasons why price of petrol is on fire these days.
Petrol Breaches Rs 90 / Litre Mark!
Parbhani is a small district around 180 kms from Aurangabad, and 450 kms from Mumbai.
Yesterday, petrol was being sold for Rs 90.11, which is India’s highest price of petrol compared to anywhere else. A day earlier, price of petrol was Rs 89.97.
Parbhani District Petrol Dealers Association (PDPDA) President Sanjay Deshmukh confirmed this development, as he also shared that the price of diesel has now increased to Rs 78.06 from Rs 77.92, within 24 hours.
The price of petrol have been rising since last two weeks, and now, Maharashtra is experiencing the highest price in the country due to several factors.
State’s most important festival: Ganeshotsav starts tomorrow, and the increased price of petrol – infact highest in the nation, may dampen the festive spirits.
Here are the price of petrol in other cities of Maharashtra:
Nanded (Petrol at Rs 89.93 per litre and diesel Rs 77.90)
Amravati (Petrol at Rs 89.93 and diesel at Rs 78.84)
Thane (Petrol at Rs 88.43 and diesel Rs 77.64)
Mumbai (Petrol at Rs 88.35 and diesel at Rs 77.56)
Why Petrol Prices Is On Fire: 3 Reasons!
20 years ago, if you had bought a litre of petrol, it would have costed you Rs 23.94, which has now reached Rs 90.11.
This is an increase of 238% since last 20 years, or 12% annual increase.
Why does this happen? Here are the three reasons:
Price of crude oil
Crude or raw oil which is bought from the International markets (mainly OPEC countries) directly affects the price of petrol sold in any country. Now, the global price of crude oil has no doubt decreased by 35% since 2011-12, but still, the price of crude oil is directly influencing the price of petrol/oil sold in retail.
Since last 7 years, the value of dollar has risen by 35%, which has resulted in higher petrol prices, as we buy crude oil in dollars. At the time of writing, the price of one dollar is Rs 72.80. This has resulted in increase of petrol prices by 40% in the same period.
And lastly, the tax. In India, taxes on petrol is ad valorem, which means higher the price of petrol, higher is the tax. Add state-wide VAT and excise duty, and the combined effect is expensive petrol. In case petrol and diesel comes under GST, then some things can change. But that, isn’t a possibility as of now.
How has rising petrol and diesel prices affected your monthly budget? Do let us know by commenting right here!