Sahaj SabharwalToday, the world is suffering from many unexpected problems. These problems include coronavirus pandemic, poverty, violence in many subjects and rise in prices of almost every item.These problems got a boost after the coronavirus pandemic. Providing essential items to everyone according to their needs have been one of the major problem. Almost every country is having such issues, that too due to the unexpected COVID-19 pandemic.Presently, farmer protests, violence, rise in prices, COVID19 vaccination for all on time, rape issues and political games are topics which are trending in India.In India, too the prices are touching its brim. The rise in costs in food, commodities, jewellery, fuel, automobiles etc have become a greater problem. To provide everything for everyone with less issues is the need of hour.The petrol and diesel prices have been increasing day by day. Retail price of automobile fuels have reached heights across the country. Petrol and diesel are taxed heavily in India and that’s why the consumer benefits have been decreased.Low class families are getting benefits by Government, high class families already have enough salaries to spend freely and according to their needs.For middle class families, the problems are like hell. No benefits, almost nothing for the middle class. Only low class are under the eyes of Government but middle class are just ignored every time. Middle class are also like the low class but just a bit heigher than low class and so less than upper class.This class is in the middle so no-one remember to provide special highlights to them. Pressure over middle class to do everything on their own without any benefits or schemes from anyone, under huge loss.Diesel and petrol prices have hit high records across the country with petrol touching Rs 89 per litre in Delhi and diesel reaching a new high of Rs 86.30 per litre in Mumbai. Petrol prices are revised by the oil marketing companies like Indian Oil, Bharat Petroleum, Hindustan Petroleum etc. based on the international prices. So, when international crude oil prices gain, petrol prices in India increases and so on. If crude oil prices in the international markets drops, we see a downfall in daily petrol prices in India.Factors affecting Petrol Prices in IndiaThe difference in the prices of crude oil in the international market directly influences the price of crude oil (raw form of oil) in the domestic market and It is one of the most important factor responsible for an increase in petrol prices in Indian market. Increase in international demand as well as low production rate and any political unrest in the crude oil producing countries of world severely affects petrol price.Increase in Demand – Economic growth in India and other developing countries has also led to the increase in demand for petrol and other essential fuels in India. The number of people who own private vehicles has gone up in the recent past which has contributed to increase in demand for petrol in India this has resulted in the rise in petrol prices in India.Logistics – Logistics is one of the significant factors in pricing retail fuel. Petrol and diesel transported to longer distances to cities or regions farther from depots will be priced higher than places nearer to the oil companies storage area. The reason behind the change in the prices of petrol in different cities across India.This difference may be huge between cities that are far from each other. The fear linked to the rise of petrol prices in India might be never ending.Mismatch of demand and provided quantity – Oil refinery companies in India face problem to meet the demands of the market due to the high cost of input price of crude oil thus resulting in low supply and high demand for petrol in the country. An increase in supply results in a decrease in price of the petrol and vice versa.Oil refining and marketing companies maintains crude oil inventory up to six weeks, which also influences the price of petrol and petroleum products.Rate of Taxes – The prices of petrol and other petroleum products varies according to the local Government policies which impose taxes on fuels. As and when the Government of India raises tax rates on fuels then oil companies in India also increase price of the petrol to recover the loss and maintain marginal profits in the oil business in India.Rupee – Dollar Exchange Rates – The rupee-dollar exchange rate is also one of the major factors which influences the price of petrol in India. Indian oil companies pay to oil imported from other countries in terms of dollars, but their costs are regarding rupee. So, when the price of the crude oil is in fall but the rupee is also weaker against the dollar then it will reduce the profits to the oil refiners. So, when the rupee strengthens against the dollar and the price of the crude oil faces down fall, then most of the oil companies tend to gain a lot.Apart from this, the continued commitment of the producers to supply, amidst muted fuel demand has helped the fuel prices to scale up. The Organisation of the Petroleum Exporting Countries (OPEC) and its member partner have their support for deeper oil supply cuts throughout 2021. The move was made to help bring down swollen global crude stockpiles are increasing despite feeble oil demand.Meanwhile, the demand in China for crude oil is helping to support the oil markets as shown by the industrial track.
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