The global impact of the ongoing conflict between America and Iran is clearly visible. This conflict has had the biggest impact on the prices of CNG, LPG, petrol and diesel. Petrol prices in the country are increasing faster than the running cost of vehicles. The current situation is such that petrol prices have been increased for the third time in the last eight days. It is worth noting that petrol prices were increased by ₹3 per liter on May 15, by ₹90 paise on May 19 and by 87 paise on May 23. Currently, petrol prices have crossed ₹100 per liter in most states. However, petrol prices in Arunachal Pradesh and Andaman-Nicobar Islands are still below ₹100.
According to recent reports, the highest price of petrol has been recorded in Andhra Pradesh, where it has reached ₹117.88 per litre. In contrast, the lowest price was recorded at ₹97.70 per liter in Arunachal Pradesh and ₹88.66 per liter in Andaman and Nicobar Islands. Due to lower tax rates, people in these areas get discounted petrol prices compared to other states – reflecting the disparity in fuel prices across the country.
Why do prices change?
Actually, the main reason for the increase in petrol prices is the taxes imposed by the respective state governments. These taxes, in turn, impact logistics costs and dealer commissions. Given that the tax is effectively imposed in multiple phases, petrol prices are bound to rise. As a result, if this trend continues, petrol will become more expensive across the country.
Prices exceed ₹100 per liter in many states
According to a recent report, Andhra Pradesh is the state that has seen the highest increase in petrol prices. Moreover, petrol prices in states like Telangana, Kerala, Madhya Pradesh, West Bengal, Delhi, Uttar Pradesh, Uttarakhand, Gujarat and Maharashtra have already crossed the ₹100 per liter mark. It also highlights the disparity that exists in fuel prices across the country. According to experts, global crude oil prices have increased by more than 50 percent since late February. The reason for this increase is being said to be tension in West Asia and fear of interruption in supplies through the Strait of Hormuz.
