We Indians spent more than 76 percent of our average income for the fuel and the average price of petrol in India is very high at Rs. 77.35 per litre
Crude Oil prices are going up around the world as recent political issues and reduction in production are the main reasons for increasing prices. The oil energy source is considerably going down over the years as the required amount of crude oil is very high in most of the countries. Usually most of the crude oil comes from Gulf countries and exported to different parts of the world.
Indian Oil Corporation which is the largest oil company in India is buying crude oil from Iran and they are the largest buyer of crude from the country itself. The recent political issues of Iran are affecting IOC as they won’t be allowed to buy crude oil from them if America and Trump continue their political war with them.
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According to Bloomberg, India is one of the countries with very high fuel prices. In India, energy poverty is very high as the low wages and limited infrastructure are the reasons for it. We Indians spent more than 76 percent of our average income for the fuel. The average price of petrol in India is very high at Rs. 77.35 per litre.
The average daily income of Indians is Rs. 384.71 and it takes 20.11 percent of day wages to afford a litre of petrol. The average driver uses 22.55 litres a year and eats up 1.24 percent of the typical salary. This rate is very high as tax on petrol and diesel is very high in India as they make up for most of the amount.
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Petrol and Diesel is one of the most consumed things in India and this is why government is charging heavy tax on them to increase the cash flow which can be used for other things like developing infrastructure, roads etc. We are expecting the prices to come down soon as the government is planning to include petrol and diesel under GST.
But this will significantly drop the income source of government which is why they are delaying it. The government is also pushing alternative fuels like electric cars as they want to reduce consumption. By 2030, the government is expected to end the sales of combustion engines and it is one of the most aggressive targets in the world.