Consecutive hikes in petrol and diesel prices are pinching the pockets of the common man in India. Blaming it on previous governments, Prime Minister Narendra Modi has highlighted the country's dependence on energy import as a major reason for the current spike in fuel prices.
At present, the share of imports in the country's overall crude requirement comes to 89 percent while it is pegged at around 53 percent for gas. This always makes India vulnerable to volatility in the international crude market.
There are two major reasons for the current hike in fuel prices -- rise in international crude prices and higher central and State taxes.
During the pandemic, the central government has raised the excise duty on petrol to Rs 32.98 a litre from 19.98 rupees a litre. Similarly, there was an increase on diesel, where excise duty was hiked to Rs 31.83 a litre from Rs 15.83 a litre.
Several State governments too had increased the value added tax on fuel.
