"Today when the oil price is around $80 per barrel, petrol price has reached a high of ₹76.57 per litre in Delhi and this has led one to wonder why petrol prices in India are shooting up when worldwide prices have fallen (by $52/b, 2008 versus 2018)", Dr. Shenoy, a consumer activist and contributor to various journals and newspapers on petroleum and energy issues, said. The US (19.53 mbd) and China (12.02 mbd) are the top two.
In Mumbai, petrol price reached Rs 78.57 in May 2012 and again reached its peak at Rs 83.62 in September 2013. The top three are Germany, South Korea and Japan, based on May 21 worldwide product pricing data available with Globalpetrolprices.com.
Analysts believe that the less production of oil in the OPEC (Organisation of the Petroleum Exporting Countries) and hike in crude oil price in the global market are some of the factors affecting the fuel price. Followed by Russian Federation, the US, Brazil, Canada and China. This is nearly identical to price trends under the current NDA government now when petrol prices have already crossed all-time high levels and have shot up to Rs 85.93 in Mumbai and may rise further till September the in absence of any duty cut by the Centre and the states.
Now in Kolkata, the price was raised by 14 paisa to Rs 80.61 per litre as against Rs 80.47 per litre of previous day.
States too would be asked to cut sales tax or VAT to show a visible impact on retail prices.
A litre of diesel also increased from an average of 119.35p to 127.69p over the same period.
The government continues to increase oil prices on both occasions when crude prices go up as well as go down, appropriating the amount of differences that accrue due to fall in crude prices. He said the Centre is now looking at "short and long-term solutions".
"It will be good if fuel prices are brought under GST".
"While other fuel retailers don't buy as frequently they will often match super- market price rises which means they increase as the supermarkets do".
The union minister said the central government had in October past year reduced the excise on fuel by Rs. 2 per litre keeping in view the interest of the poor people.