This is why petrol and diesel prices are on a rise in India!

This is why petrol and diesel prices are on a rise in India!
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The prices of petrol and diesel are consistently rising in India. The cause for this rise may be shifted from one reason to another.

The global crude oil prices have risen by more than 50 per cent to over 63.3 dollars per barrel since October 2020.

Since oil price decontrol is a one-way street in India hence consumer is the only one who bears the burden.

Pandemic-hit fuel prices

In April 2020 fuel prices had collapsed after the coronavirus pandemic. Demand fell then. But now as the world economies recover and reduce travel restrictions, global demand is on a rise again.

Besides, Brent crude also started rising in November last year.

Reason for rise in petrol and diesel prices in India

In the wake of the Covid-19 pandemic and resultant falling demand for petrol and diesel, OPEC had decided to cut production.

Now India is urging the OPEC (Organisation of Petroleum Exporting Countries) and OPEC plus countries to not go for a production cut as it is impacting the fuel price in India.

According to Union petroleum minister Dharmendra Pradhan there are two main reasons for rise in petrol and diesel prices in India.

-Reduction in international market fuel production, and

– Manufacturing countries are producing less fuel to gain more profit.

However, not only this, states too have increased VAT on fuel. The issue of rise in fuel prices is a big one that affects common man.

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