Why petrol price increasing in India?

Main reason behind petrol price hike, the Union minister of petroleum and natural gas Dharmendra Pradhan explanis…”There has been a jump in crude oil prices in the international market.One of the main reasons behind the rise in fuel prices in india is that we have to import 80% of the oil we consume”.The bonds, he says, is what the current government has to repay along with its interest, leading to and increase in petrol rates.

He had earlier said that it is up to the GST(Goods and Service Tax) Council to decide whether the fuel should be brought under the Goods and Services Tax, which, many believe, would substantially bring down the prices.

Currently, the central and state taxes make up for 60% of the retail selling price of petrol and over 54% of diesel. Centre levies โ‚น32.90 per litre of excise duty on petrol and 31.80 a litre on diesel.In view of this, Prime Minister Narendra Modi-led government is under increasing pressure to cut high taxes on fuel.

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