Petrol prices are not the same in big cities of the country.
Petrol prices are not the same in big cities of the country, but different rates are visible everywhere. While one liter of petrol is being available in Delhi in ₹ 94.77, it has reached ₹ 105.41 in Kolkata. Such a big difference is not just because the international prices of oil are different, but the tax and local fees incurred in the states decide it. This is the reason why petrol prices are seen separately in every city.
Kolkata also left Mumbai behind, Delhi is the most economical
According to recent data, petrol is being sold at Rs 109.04 per liter in Visakhapatnam in Andhra Pradesh. At the same time, the price in Hyderabad is above ₹ 107. In contrast, the capital Delhi has the cheapest rates, where petrol is getting ₹ 94.77 liters. Talking about diesel, diesel is ₹ 87.62 per liter in Delhi.
Real reason behind petrol prices
Petrol and diesel prices Determination of international crude oil does not depend on the prices. Every state in India imposes VAT, excise duty and local fee at its level, which increases prices inequality. Since May 2022, the central government and many states had cut tax, after which there was not much change in prices. However, due to different tax rates and fees system of the states, petrol prices remain different.
Apart from this, global crude oil prices and foreign exchange rates also affect the updates by oil companies at 6 am daily. Nevertheless, the effect of change in the global market due to local tax is sometimes seen late or partially.
Why petrol so expensive in India?
Petrol prices are quite different worldwide. For example, in Iran, petrol is available for only ₹ 2.4 per liter, while in Hong Kong it reaches ₹ 304. Petrol in America is also cheaper than India, there is around ₹ 80 per liter, which is about ₹ 21 less than our here. The biggest reason for petrol to be so expensive in India is the tax structure.
Here the central and state governments impose a lot of tax at the real cost of petrol, such as excise duty and VAT. Therefore, even if the oil becomes cheaper in the world, the common man does not get much benefit from it. Apart from this, petrol prices also increase due to the weakening of the rupee against the dollar. Also, the commission of the petrol dealer also keeps the prices up. Overall, this is the reason that petrol remains expensive in India.