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  • Category: Miscellaneous

    Wonder why petrol prices are rising, when crude oil prices are down

    Strange though it may seem, over the few weeks, the petrol and diesel prices in our country have risen steeply. That too at a time when, world over the demand for oil is less due to shutdowns and the crude oil prices are falling to their historic lows. As on today it is around 42 USD a barrel for Brent Crude, a far cry from the 67 USD it was in December 2019. Recently our oil minister stated that the prices of fuel is rising in India because of the coronavirus. But wonder, with crude oil prices falling, why the petrol price in the country should rise. Thanks to measures to fight the virus, our movements are restricted and we don't use our cars and bikes as often. Otherwise, the impact would have been considerably more.

    Meanwhile, any explanation friends, why the prices are soaring?

    Thread a day challenge
  • #701745
    I think by going through the following two recent threads we can get a good idea about this
    1. Why petrol and disel prices are skyrocketing day after day?
    2. Why petrol and disel prices are skyrocketing day after day?

    drrao
    always confident

  • #701753
    This has been raking the mind of most people since long. However we have not go the correct answer fo that.In my response to a thread discussing fuel hike in Petrol and Diesel Prices and the reckless insensitivity of the govrnment, I had started my post as below:
    "The main issue with the present central government is not of a seasonal hike in price but of an irony and unexplained reason as to why fuel prices did not come down even when the price of base crude oil came down more than half i the international market. On the contrary, the price were hiked the moment there was a small increase." The status is still so.

    In an Ask Experts section question what would be thebenefits to the final consumer if there is daily change in petrol price I had concluded that "whatever be the situation and change in situation, hapless consumers will only have disadvantages . They will end up paying perennially more, where as the oil companies will enjoy with their profits."

    Even today I wonder why the Central Government is not coming with a categorical answer this way or that way to clear the doubts of people.

  • #701853
    Both the central and state governments are doing business with fuel. Fuel being a lucrative commodity, the earning potential is huge through taxes. When the demand had fallen drastically during the lockdown period, the government raised the excise duty on fuel to ensure that its earnings don't fall. Now when the prices are high, the government should take steps to roll back the excise duty. But then who is listening. The other day I filled petrol, it was some 83 plus a litre. Diesel was kind of 78 plus.

    Thanks, Dr Rao for providing the link to the earlier discussion on the petrol price hike. I can understand that the topic being a burning one has been discussed quite recently. Anyway, my main intention to post this thread was to focus on how COVID 19 is being blamed for the petrol price hike, whereas it is very clear that the government finds it comfortable to keep the prices high as it helps in building upon its depleted resources.

    Patience and perseverance pays


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