Petrol Diesel prices rising

Petrol price already crossed ₹100 in Maharashtra, Rajasthan and Madhya Pradesh in India. Except for Andhra Pradesh, every state in India, petrol price crossed ₹90 where diesel price crossed ₹80 in every state in India. In four major metro city, petrol price crossed ₹95 already on 10th June 2021. Those who think that petrol and diesel price will go down in upcoming days they can maintain distance from this article. Otherwise, they can take heart medicine for their own health.

Petrol and diesel price control by five-factor. Now, need to see the factors.

Price of Crude –

In first crude oil price is the factor of petrol and diesel price rise. There are mainly three types of crude oil present in the world – WTI crude, Brent crude and Dubai crude. On 10th June 2021, WTI crude, Brent crude and Dubai crude prices are respectively $70, $72 and $70 which are more than double from the previous year. We see in the Indian crude index at $69, more than double from the previous year. US Federal Energy Information Administration told that crude price would be near $62. IMF and World Bank told the crude price would be near $59 and $56 respectively. World’s big investment firm Goldman Sachs told crude price will go near $80 in upcoming six months then it will go down. Those predictions are more than double the previous year price. So petrol and diesel price will not fall in upcoming days.

US Dollar Exchange Rate –

USD and Indian rupee exchange rate at ₹73 now and it increases ₹1 in one month. India buys crude oil in dollar but pays the price in the Indian rupee. From the big house, analyst predicts USD and Indian rupee exchange rate is going up by ₹3 to ₹76 in upcoming six months. So petrol and diesel prices rising in upcoming months. There is no sign in USD and Indian rupee to fall down in upcoming days.

Cost of Refining –

In this factor, India can manage this. India’s refinery capacity is near 250 million tonnes per year in the present scenario, but it needs to be double in the upcoming ten years. cost of the refinery of crude ₹15/litre in India. If India increases their refinery capacity that will help to decrease the cost of the refinery. Also, India can export more refinery product that will help India to maintain USD and Indian rupee exchange rate.

Government Tax –

In ₹100 of petrol price, Government tax is ₹60 which is 150% of petrol price. These ₹60 tax is collected from state and central government both in a certain ratio. But these tax is more and these are unnatural. On 4th June, the RBI governor told crude oil tax will be lower otherwise it can increase wholesale inflation. Some government official told that crude oil needs to be in the GST slab. But now the maximum rate of GST is 28% which is much lower than crude oil tax. So in near future petrol and diesel prices will rising rather than those are fall. If every government want to choose GST in petrol and diesel price then it will fall to a reasonable price.

Public Demand –

The second wave of COVID19 number is coming down and it is under control in the upcoming days. So every state government will open the economy of their state. This will increase the demand for crude oil and it will happen to see that petrol and diesel prices rising in upcoming days.

From those factor we can tell, petrol Which is known as ‘Black Gold’, it can be like as gold in upcoming days.

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