The cost of petrol for your car is more than per litre cost of Aviation Turbine Fuel (ATF) that is used in aeroplanes. In Delhi, the price of petrol is Rs 59.95 per litre, and the ATF costs only Rs 35.13 per litre. While there are state variations, the major reason for this anomaly of over Rs 24 in prices is because petrol is burdened with higher Central Excise duties.
The price of Indian crude basket has come down by 73% since Shri Modi became Prime Minister, but the price of petrol has come down by just 17%. Why is the middle class being deprived of the benefits of low international crude prices?
More recently, while oil prices in India fell from $50.2 per barrel at the start of February 2015 to $30.3 currently, the government absorbed most of this benefit by hiking excise duties on petrol five times in that period.
To put things in perspective, the last time international crude reached $30 per barrel, in 2002, the price of petrol in Delhi was Rs. 29 per litre. Why is the Government pocketing the near 78% profit from Diesel prices and near 83% profit from Petrol prices?