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New DelhiOne hour ago
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With the havoc of the corona epidemic subsiding, now the havoc of inflation has started increasing. In many states of the country, the price of petrol has crossed Rs 100 per liter. It is expected to increase further in the coming days. Petrol and diesel prices are increasing due to the cost of crude oil. Crude oil has crossed $70 per barrel.
Growing crude oil demand
Anuj Gupta, Vice President (Commodity & Currency), IIFL Securities says that the US economy has almost opened up. With this, life is becoming normal in European countries too. This is increasing the demand for petroleum products. Crude oil prices rose sharply yesterday and hit a two-year high.
Petrol-diesel may become costlier by Rs 2 in the coming days
Anuj Gupta says that by the end of this month, the price of crude oil can cross $ 73 per barrel. Due to this, the price of petrol and diesel can increase by up to Rs 2 per liter in the coming days.
Why is crude oil getting expensive?
The demand for crude oil has increased due to the opening of lockdown in many countries. Apart from this, the ban imposed on Iran for exporting crude oil does not seem to be lifted. Due to this also the price of crude oil is increasing continuously. India stopped importing oil from Iran from mid-2019 following the sanctions imposed by the then Trump administration on Iran.
Crude oil in last 1 year
|Period||Crude oil price (dollar/barrel)|
|2 June 2020||40|
|2 October 2020||39|
|2 February 2021||57|
|2 June 2021||70|
Petrol became costlier by Rs 23.23 and diesel by Rs 15.99 in 1 year
In the last 1 year, if we talk about petrol-diesel, then on June 2, 2020, petrol was at 71.26 and diesel at 69.39, which is now at Rs 94.49 and Rs 85.38 per liter. That is, in the last 1 year itself, petrol has become costlier by Rs 23.23 and diesel by Rs 15.99.
Wholesale inflation rising due to the cost of petrol and diesel
In the last month i.e. April, the indicator of wholesale inflation rate i.e. Wholesale Price Index (WPI) has been 10.49%. Whereas in March it was 7.39%. According to the latest data from the Ministry of Commerce, WPI has increased by 3.1% in a month. The ministry’s statement said that the wholesale prices of commodities are increasing due to expensive crude petroleum and mineral oils i.e. petrol and diesel.
Petrol diesel prices may come down if brought under GST
If you start getting petrol and diesel at half the price, then your happiness will not be there. This can be possible, if petrol and diesel are brought under the purview of GST. However, the government is not in a mood to do so. Because if this happens, then it will reduce the tax revenue of the government. If GST was applicable on petrol and diesel at this time, then petrol would be selling at Rs 81 and diesel at Rs 74 per liter.
Price of petrol and diesel according to crude oil when brought under GST
|Crude oil ($/barrel)||Petrol (Rs/Litre)||Diesel (Rs/Litre)|