Why is petrol so expensive in India

As a biker we have lot of expense to cater.

  1. Insurance
  2. Tyre
  3. Service

But nothing impact our riding budget more than the cost of petrol.

2014 election was fought on corruption and price rise. The PM in almost every speech spoke about how expensive the cost of petrol were and how it was a burden to common men. He even spoke that his first priority were to fix the cost of petrol when elected and once elected he did just like he promised but only in reverse.

PM tweet during in 2012.

The cost of petrol depends on three major factor.

  1. Cost of petrol internationally
  2. Dollar-rupees rate
  3. Tax

Apart from this 3 factors, we have transportation, refinery and company profit which remain constant unlike the top three factor.

Comparison of Petrol cost year by year based on international crude price oil.

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The current international crude cost is all time low. It went as low as $37 at one point of time compared to above $100 during the previous government. The current government has still fail to reduce the petrol price, failed to control the dollar price and have increased the tax on oil by more than 100%.

Here is a calculation of how oil brought for Rs 31 is sold to us for 80 and above.


There is a debate to bring petrol/diesel under GST which will reduce the price of petrol by half. Petrol would be selling around 45-50 compared to current 80-85. Hope the government does this and reduce the burden on common man.


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