Continuously increasing petrol and diesel prices are starting to cause a heavy burden on the pockets of the common men. In the last 8 days, fuel prices have risen to historic highs. Petrol price has crossed the 90 Rupees per Litre mark across the country while the diesel prices are over 80 Rupees per Litre. Increasing 20 times so far in 2021 the fuel prices are on the record levels. The blazing question in the minds of the citizens is ‘What is causing this surge?’
The forthcoming production cutbacks by the OPEC (Oil Producing and Exporting Countries) and the predictions of higher demands have pushed up the crude oil prices. Also, high state and central taxes are equally contributing in propelling up the prices. Increase in the global prices of crude oil has a direct impact on India as 80 percent of our crude oil requirements are imported. A part of the increase is also due to the rise in demand after emerging from lockdown.
Justifying the increase in taxes the government is saying the loss of revenue during the lockdown needs to be compensated. If experts are to be believed, the recent lockdowns due to the new coronavirus strain may lower the demand across the globe and in turn reducing the prices giving common men a slight relief.