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Why do you think the price of petrol and diesel is increasing?
Elevated tax levels are also playing a major role in the current record high prices in India. The rising crude oil prices, and the higher taxation impact, have contributed to the prices of petrol and diesel regularly setting new record highs across the country in 2021.
Why oil price is increasing?
Various countries in Asia, like China (largest exporter of coal) and India have warned of late about dwindling reserves. This supply-demand imbalance alongside increased demand expectation given the impending winter has led to a surge in prices.
How does the demand for diesel fuel affect prices?
Because diesel fuel is a major transportation fuel, the demand for diesel fuel generally follows economic trends. International demand for distillate fuel affects U.S. diesel fuel prices. Because heating oil and diesel fuel are practically the same fuels, changes in demand for one fuel may affect prices for the other fuel.
Why did petrol and diesel prices go up for the Seventh day?
Petrol and diesel prices went up for the seventh straight day on Saturday after oil PSUs began revision of the rates after an 82-day hiatus on Sunday. The price of both was hiked by around 60 paise per litre on Saturday, with the price per litre of petrol being around Rs 78.47 in Chennai, Rs 77.41 in Hyderabad and Rs 76.98 in Bengaluru.
Why are transportation fuel prices so volatile?
Prices of transportation fuels in the United States are generally more volatile than prices of other commodities. The U.S. vehicle fleet is almost completely dependent on petroleum. If petroleum supply declines unexpectedly, as a result of refinery problems or lagging imports, diesel inventories (stocks) may decline rapidly.
What is the gap between cost and sale price of petrol?
According to IANS, the gap between cost and sale price of petrol and diesel for Oil Marketing Companies has reached around Rs 5-6 per litre. If this has to be covered over a period of time, given there is no further increase in global prices, auto fuel prices may be increased by 40-60 paise per day for a couple of weeks to cover the losses.