Petrol Diesel Prices: Crude Oil Prices Increased Internationally

Petrol Price Hike News

People’s budget has been shaken due to the rising prices of petrol and diesel in the country. Petrol prices have crossed Rs 100 in many states. However, petrol and diesel prices have remained stable in the country for the last two weeks.

They have neither increased nor fallen in price, but internationally, crude oil prices have seen an increase for the past two weeks. In such a situation, the question arises whether there is no change in petrol and diesel prices due to elections in five states?

Petrol Diesel Prices

As the international crude oil prices were increasing in February, fuel prices were on fire. Oil companies said that due to the increase in global crude oil prices, petrol and diesel prices are rising. Due to this, the petrol and diesel prices had come to their highest level in the country.

In many places, petrol prices had crossed 100 rupees. However, there has been no change in the price of petrol and diesel since February 27. In contrast, between 27 February and 13 February, there has been an increase in crude oil price internationally.

At the same time, some people say that petrol and diesel prices have remained stable given elections in five states in the country. Election dates were announced on 26 February in West Bengal, Tamil Nadu, Assam, Kerala and Puducherry. After this, there was a change in the price of fuel on 27 February, and till now the prices of petrol and diesel have not increased or decreased since the 27th.

Although the government has said many times before that, it is not in their hands to fix petrol and diesel prices in the country. Since February 27, international crude oil has increased by $ 6-7 per barrel in such a situation. Still, since the announcement of election dates in the country, it did not have any effect, and the prices of petrol and diesel have become stable.

What is the mathematics of change in prices?

In such a situation, it becomes essential to understand the arithmetic changes in the prices of diesel. Utkarsh Sinha, managing director of Bexley Advisors, says that it is vital to note that there is no direct correlation between crude oil price and the amount to be paid at petrol pumps. Crude prices contribute about one-third of the price per litre at the pump; the remainder is divided between the cost of crude oil refining and the government’s excise duty.

He said that India takes a paternalistic approach to pricing fuel at the pump, meaning that it helps offset costs through subsidies in bad times. At the same time, when crude oil is cheap, it prepares for the shortfall. This is a system that has helped Indians in avoiding sharp changes in prices.

He said that if there is a 10 per cent change in the prices of fuel, then its issue reaches the Parliament in India. This is due mainly to the deliberate approach adopted by the government to maintain long-term stability in prices.