How central and state taxes are adding to the pain at the pump
Petrol prices climbed to ₹89.54 per litre in Delhi on February 17, according to data from the Indian Oil website. Petrol prices were ₹83.71 per litre on January 1 and ₹81.06 per litre on November 19, 2020. The current rise in petrol and diesel prices has been driven by a rise in crude oil prices.
According to data from the ministry of petroleum, the price of India’s Crude Oil Basket (COB) increased from an average of $40.7 per barrel in October 2020 to $62.64 per barrel on February 16, 2021. That’s an increase of 54%.
To be sure, fuel prices have been lower in India even when the price of India’s COB was higher than what it is today. But the current high price is also because the central government has significantly increased the tax on petrol and diesel.
