So, why petrol and diesel prices reached their 3-year high levels? The answer is not the daily price revision that was brought into force from June 16 which resulted in gradual price level hike . Also, as for other goods and services, GST has not bring about a shift in this remarkable price increase as petroleum products are kept outside the purview of GST.
So what has pushed the prices of petrol and diesel higher and that too at peak levels of three years?
On Tuesday, petrol price peaked in Mumbai and Kolkata to its highest price of Rs. 79.48 per litre and Rs 61.38 per litre respectively in three years time. While at other metros, the prices were at the levels of eight-monthhigh.
So at a time when crude prices have gone down substantially and are now uptrending, consumers are still at a disadvantage
The sole factor is the number of tax levies that include excise duty, VAT in addition to other charges and their increasing quantum over time that constitute fuel price cost payable by the end consumer.
Also, now the question is customers seem to be at the dead end as the menace is only likely to heighten with an increase in crude oil Indian basket that is only expanding in price and has witnessed a surge of 15% or $7 since the daily revision in fuel price has come into force.