|Title||FUEL PRICE Detail|
Pertol Price & Diesel Price
In today’s world most people preferred to have their own vehicle instead of using public transport. This makes petrol and diesel one of most important commodity in India. During the current period we are observing a record growth in fuel prices. Petrol price in Kolkata as on 01/11/2018 is ₹81.25/ Ltr. Which is though ₹0.18 down from 31/10/2018, still highly expensive for common people. Diesel price in Kolkata as on 01/11/2018 is ₹75.63/ Ltr which is also significantly high.
Reasons behind the rise in Fuel prices in India
Following factors determine the fuel prices:
- Cost of crude oil in the Global market.
- Different duties and taxes imposed by the government. There are excise duty, customs duty, and a Cess levied on petrol and diesel. Though it has been kept outside the purview of Goods and Services Tax (GST) till now.
- Dealer’s commission is also included in the fuel prices before selling it in the retail market.
- Value of the dollar in the International market
Fuel prices are majorly affected by all the above factors in India. There are some private and public sector companies like ONGC, Reliance Industries etc. are working on to satisfy a demand for Crude oil in India. But our country mostly depends on exports to fulfil the domestic requirements of fuel. Hence, fuel price is sensitive to the fuel prices on the international market.
Besides the Global market taxes and duties imposed by the Government plays a significant role in rising fuel prices. These taxes on petrol and diesel are a vital source of revenue for both the Centre as well as state governments. Earlier we have noticed a significant reduction in taxes and duties when global crude prices increased. But currently, Government is hoping that US Shale Gas boom, as well as the historic summit between the US and North Korea, can positively impact the Crude oil price in the Global market.
How Fuel price will impact you?
- The biggest impact we have already discussed at the beginning of this article. Rising diesel and petrol prices will increase our travel cost irrespective of the mode of transport we use. Obviously, you will be highly affected if you use private transport. But public transport users can also feel the heat within a period of time.
- Increase in fuel price means the cost of transporting goods goes up across the country.
- This, in turn, increases the price of essential commodities like fruit, vegetables, etc.
- Another significant impact is Inflation. This may influence the RBI to increase the interest rate. So if you are thinking about taking any type of loan, then this may not be a suitable time for you. However, you can get more interest from your savings, though.
- Indian economy depends significantly on Agriculture. These hike in fuel prices is going to affect the Agricultural industry as well. Due to increased transportation cost, input cost to agriculture will also rise. This will hit the agricultural industry hard.
- Small changes in fuel prices do not affect the stock market. But if this situation continues any further, the stock market will get affected too in near future.