How does a petrol of Rs 25 reach Rs 81 when it reaches you?


Petrol and diesel are items whose prices are constantly rising. Even if it’s less, the burden on our pockets isn’t less. It is often said that the worth of petroleum within the international market is falling but the worth of petrol-diesel isn’t falling in our country. What is the reason for this? And how do petrol and diesel prices go up 3 times together with your reach? How do governments benefit from this? Let’s understand …

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First let’s mention how petrol and diesel reach you?

India imports 85% more petrol than it needs, i.e. buys from other countries.

sourceDivya Bhaskar news

It then involves oil companies, like Indian Oil, Hindustan Petroleum. From here they create their profit and deliver to the petrol pump.

The owner of the petrol pump adds his own commission after arriving at the petrol pump. 

The government costs 1 liter of petrol for 25 rupees, but when it reaches us, it costs quite 80 rupees

source: Divya Bhaskar news

It happens that the govt buys petroleum from abroad. This crude oil the government buys in barrels. One barrel is about 159 liters. On November 16 this year, the worth of 1 liter of petrol in Delhi was Rs 81.06. According to the Indian Oil Corporation, the bottom price of 1 liter of petrol was Rs 25.37. then the owner of the petrol pump kept a commission of Rs 3.64 and after levying the second tax, the price reached Rs 81.6 paise.

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