Topnewspro.com The “Petrol Price Hike News: Latest News and Updates on Petrol Price Hike” news has been added by Shekhar.
Nowadays hike in the price of petrol is a common problem in the Indian economy as the petrol price is rising up day by day. The retail selling price of petrol depends on the average price of crude oil. The crude oil basket of each country is calculated on every fortnight and the average price of crude oil is been decided by depending on that crude oil basket calculation. The retail selling price of Petrol is a mixed amount which includes basic average crude oil price, excise duty, central tax and state tax and the dealer’s commission which includes maintenance and delivery charges and also the refining charges.
Petrol Price Hike News
Saudi Arabia, The producer of Mineral petroleum has decided to cut off the production. And as a result the average price of crude oil rises high and also the high rate of Excise duty on transportation of Petrol is the main reason for the price hike.
Petrol is a daily use commodity in our daily life, so the demand of petrol rises up day by day but the supply of petrol is the same. So the demand exceeds than supply and this process ends up by raising the petrol price.
The tax rate also puts an effect on petrol price, now the tax at the rate of 20% is charged on petroleum both on basic product price and duty.
As petrol prices are decided on Dollar per barrel so the slight change of national currency with dollar also affects the petrol price.
The earlier government was paying subsidies on the price of petrol but now they have added excise duty on the retail sales price of petrol for mopping up additional resources for social schemes.
The escalation of a trade war between U.S and China puts the negative impact in the market from last 3 days and as a result the average price of crude oil rises. The U.S president and the Chinese president are all set for a meeting. This meeting will decide the result of this ongoing trade war.
Investors are worried about the market price of Oil ahead of the U.S sanctions on Iran. Right now the lesser availability of crude oil in the global level has left those countries in worry who import oil. But The U.S sanction will give them a clue about the import and storing availability and the future of the oil market.
High petrol price is already affecting the common people and it also affects the growth rate of the global economy. So the U.S responded to match up the demand of petrol against the lesser availability by producing more petrol.
So on a long-term basis, it will put an effect on the global market of petrol and in a parallel way it will cut off the petrol prices.
The U.S sanction over Iran will come into effect within seven days and as an output, it will increase the supply of Petrol in the global market.