In the last 15 days, the prices of petrol and diesel have increased by Rs 9.2 in the country, due to which the burden of inflation is increasing continuously on the pocket of the common man. At the same time, due to the increase in the price of crude oil, there is still a possibility that the oil distribution companies will increase the prices further.
By how much can the price of petrol and diesel increase?Experts believe that if crude oil prices rise by $1 per barrel, oil distribution companies need to increase by at least 0.52 to 0.60 paise per liter to maintain their existing margins. Since November 4, the price of 1 barrel of crude oil has risen by $ 28.4 per barrel to $108.9 per barrel. Looking at the price of crude oil, there is a possibility of increase in the prices of petrol and diesel by Rs 5.5 to 7.8.
In fact, the oil distribution companies did not increase the prices of petrol and diesel from November 4 to March 21, while the prices of crude oil in the international market had increased by more than 30 percent. Due to this, the opposition political parties accused the government of not increasing the prices of petrol and diesel due to the assembly elections being held in five states.
Prashant Vashisht, Vice President and Co-Group Head, credit rating agency ICRA says that “As per the current tax ratio, an increase of $1 per barrel in crude oil, petrol diesel prices in retail will increase by 60 paise per liter. should increase”
Tax on petrol diesel: Excise duty was reduced by the central government to reduce the price of petrol and diesel. In November 2021, the government had given a relief of Rs 10 per liter on petrol and Rs 5 per liter on diesel. If the taxes of the central and state governments are combined, then a liter of petrol in Delhi attracts 43 percent tax and diesel 37 percent.
Reason for sudden rise in oil prices?: There was no increase in the price of petrol and diesel by the oil distribution companies for 137 days after November 4, but during this period there was a huge increase in the prices of crude oil in the international market. When the oil companies started transferring the burden to the customers along with raising the prices after March 22, due to which the prices of petrol and diesel have increased 13 times in the last 15 days.
(Author: Karunjit Singh)