On Wednesday, petrol and diesel prices rose for the eighth time in just nine days. Petrol and gasoline prices climbed by 80-80 paise on Wednesday. Following the by-election, the Centre raised the price of petrol by Rs.5 per litre on November 4, 2021. The relief provided by lowering the tax has now worn off. Because, in the last nine days, petrol prices have risen by Rs 5.60, making it a big financial strain for the people.
Saudi’s Crude oil price increase; major effect on India
Saudi Arabia, the world’s top oil supplier, is set to raise crude oil prices. Saudi Aramco, the country’s state-owned oil company, would raise the price of its core Arab light crude by $5 per barrel for Asian consumers. This would put the differential between the benchmark prices in Oman and Dubai at $9.95/barrel, the largest since 2000. Saudi Arabia provides India with 20% of its crude oil needs. So this can further increase problems for India.
As per Crisil Research, the price of petrol and diesel will have to be increased by 15 to 20 rupees to cover the loss of oil marketing businesses. As a result, the price of petrol and diesel may rise by another Rs 18 in the near future.
Who decides the oil prices in India?
Until June 2010, the government set the price of petrol, which was adjusted every 15 days. After June 26, 2010, the government delegated the decision to set the price of petrol to the oil firms. Similarly, up until October 2014, the government set the price of diesel. The new administration handed over this task to the oil firms on October 19, 2014. Currently, oil firms set the price of petrol and diesel on a daily basis, taking into account the price of crude oil on the worldwide market, the exchange rate, taxes, and the cost of transportation for petrol and diesel, among other factors.
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Hi there! I’m Akash. I was born and raised in Bengaluru, India. I am a freelance content writer and a blogger. I am currently a student studying at a prestigious law school in India. I am an avid reader and writer.