Petrol Price in Iran: ₹2.5 per Litre
Reports indicate that the average price of Octane 95 petrol in India is ₹101 per litre. In comparison, the price is ₹79.4 per litre in America, ₹80.4 per litre in Pakistan, ₹94.5 per litre in China, and ₹85 per litre in Bangladesh. These figures comparing petrol prices in India with other countries are widely shared on social media. According to TOI infographics, the price of petrol in Bhutan is ₹58.8 per litre, while in Libya and Iran, the price is less than ₹2.5 per litre.
Debate on Petrol Prices Erupts on Social Media
The high petrol prices in India have once again sparked a debate on social media. One social media user wrote, “How much of its oil consumption does America import? How much oil does America produce? How much does India produce? That’s your answer.” Another commented, “Forget America. Bhutan, which gets petrol from us, sells it at ₹58 per litre. Why?”Reasons Behind High Petrol Prices
The high petrol prices in India are attributed to taxes. The government levies substantial taxes on petrol, including central excise duty, state VAT, and dealer commission. On average, ₹36 in taxes are levied on petrol in India. The central government collects ₹19.90 as excise duty, and state governments collect approximately ₹15.39 as VAT. The average dealer commission is ₹3.77. This contributes to the increased petrol prices. Furthermore, India employs dynamic fuel pricing, resulting in daily fluctuations in petrol prices. Government control is limited. The aim is to directly benefit the public if global crude oil prices fall, but the government levies taxes on the base price. This prevents significant price changes. Currency exchange also impacts prices. If the dollar strengthens against the rupee, importing crude oil becomes more expensive.
America imports 40% of its crude oil needs, while producing the remaining 60% domestically. Iran and Libya also produce large quantities of oil, hence their lower prices.
