Petrol prices in India are a tale of much woe. The petrol prices the world over might drop or even plummet but they stay unchanged in India. In fact, at times when the price all over the world drops, the price in India increases! Just recently, the government hiked the excise duty on petrol and diesel prices in India last week but then, earlier this week the petrol prices dropped. So if the excise duty was increased, how can the prices actually drop? Have you ever wondered how exactly is your petrol priced? Who prices it? What is the original price it comes in or the “wholesale” price and how does it get its final retail price? Also, how and why is the petrol priced differently in each state? Is that fair?
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There are a whole lot of questions we have regarding our fuel in the country and the host of taxes and duties levied havn’t exactly simplified matters for us. But then, let’s take a look at things in the perfect order from which they begin and we can finally understand the confusion that is petrol prices. Also, being aware of the process and the exact taxes, you can then be sure that you are not cheated at petrol pumps or at fuel refillers in the land. India imports its oil from the Middle East. This oil is the base for petrol and is not the finished product. And it is not just a litre or two that is brought. There are barrels and barrels of crude oil purchased. How many litres make a barrel? Watch the video to know the answer!
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So then, what happens after the barrels are purchased? And also, what price are these barrels purchased at? Is the price of the barrels the same for all nations? Or does that too vary? Is there any tax on this oil? Well, the questions are too many and the answers too less. The video will explain the entire process to you in detail. You’ll know just where your money is going the next time you buy petrol!