How petroleum tax is always point of debate?
If we look at India’s daily consumption of crude oil is 4.5 million barrels (1 barrel =159 litres), which is third largest in the world. Only US and China consume more than us. We are heavily dependent on imports for about 80% of our whole oil consumption.
What is the petroleum priced structure in India?
The GOI got joined in managing oil prices from 1948, and settled that International prices only could not be the barometer as local production & refining capacity was raising. From the year 1970 to the early 2000 the oil prices committee approved pricing tool based on domestic cost of production. In the year 2010 petroleum prices were deregulated while diesel was Freed up in 2014.
How does International crude prices impact in India?
In the year of 2012-2014 crude oil prices moved up unparalleled level and impacted our petrol prices, at the time decontrolled. Later, the price of Indian basket of crude has decreases but fuel prices in the domestic market have surging because of taxes. Accidentally, price are not completely dependent on global market.