Somewhere cheap, somewhere expensive, why are the prices of petrol and diesel changing in different places? Know the reason

Petrol prices are not the same in major cities of the country, but different rates are being seen everywhere. One liter of petrol in Delhi is available for Rs 94.77, while in Kolkata it has reached Rs 105.41. This major difference is not only due to international oil prices, but also due to state taxes and local charges. This is the reason why petrol prices are different in different cities.

Kolkata leaves Mumbai behind, Delhi is the most economical

According to the latest data, petrol is being sold at Rs 109.04 per liter in Visakhapatnam in Andhra Pradesh. Its price in Hyderabad is above Rs 107. At the same time, the cheapest price is in the capital Delhi, where petrol is getting Rs 94.77 per liter. Diesel in Delhi is Rs 87.62 per liter. The price of petrol in Gujarat is Rs 94.65 per liter.

Real reason behind petrol prices

Petrol and diesel prices are not fixed only by international crude oil prices. Every state in India imposes its VAT, excise and local fee, which increases prices inequality. Since May 2022, the central government and many states have cut taxes, after which the prices have not changed much. However, petrol prices continue to fluctuate due to different tax rates and duty systems in the states.

Additionally, global crude oil prices and foreign exchange rates also affect the daily price updates by oil companies at 6 am. However, due to local taxes, changes in the global market are sometimes partially or delayed.

Why is petrol so expensive in India?

There is a huge difference in petrol prices worldwide. For example, petrol in Iran only gets ₹ 2.4 per liter, while in Hong Kong it reaches ₹ 304. Petrol is also cheaper than India in America; There its price is about ₹ 80 per liter, which is about ₹ 21 less than India. Tax structure is the biggest reason for petrol being so expensive in India.

Here, the central and state governments levy heavy taxes like excise and VAT at the actual price of petrol. Therefore, even if the oil becomes cheaper globally, the common man does not benefit much. In addition, the price of petrol also increases due to the weakness of the rupee against the dollar. Apart from this, the commission of petrol dealers also keeps the price high. Overall, this is the reason why petrol remains expensive in India.