Sky-rocketing petrol prices: Don’t blame it on crude alone
Ever since petrol prices hit a record high of Rs 76.61 per litre on May 21, allegations and blame game are flying thick and fast. BJP’s IT cell chief Amit Malviya who took to the Twitter to compare petrol prices during the UPA and NDA regimes. However, the real culprit behind soaring petrol prices is not higher crude prices but taxes. Here’s what some number crunching shows.
WHO IS TO BLAME FOR SOARING PETROL PRICES?
CRUDE OIL PRICES PEAKED IN 2013, BUT HAVE DROPPED SINCE THEN
A look at crude prices over the years reveals that crude prices soared between 2011 and 2013, crossing $100 a barrel, but that’s not the case any more.
IN INDIA FUEL PRICES ARE HIGH BECAUSE OF TAXES
In India too petrol prices soared in September 2013 crossing Rs 76 a litre. However, at that time, the cost of crude was much higher than what it is today. Taxes on the other hand were lower. Since then, central tax on petrol has doubled while that on diesel has increased more than three-fold.
FUEL TAX: INDIA VS. OTHER ECONOMIES
Other countries too pay high taxes on fuel, but the reason high prices pinch Indians more is because our average income is lower.