Petrol Price Surge: Top 5 Things You Need To Know
Electronic payment terminals sit on a stool as employees operate fuel pumps at an Indian Oil Corp. gas station in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Petrol Price Surge: Top 5 Things You Need To Know

First, it was Madhya Pradesh. Then, Rajasthan. And now, again Madhya Pradesh—the cost of unleaded petrol has crossed the Rs 100 per litre mark.

This after government-owned oil retailers increased prices for the tenth day in a row.

Petrol has turned Rs 20.29 a litre costlier since mid-March 2020 after the government raised taxes by a record margin to mop up gains arising from fall in international oil prices. Diesel rate has gone up by Rs 17.98.

Here are five things you need to know about the surge in fuel prices in India:

1. Big Freeze In Texas Is Becoming a Global Oil Market Crisis

What began as a power issue for a handful of U.S. states is rippling into a shock for the world’s oil market. More than 4 million barrels a day of output—almost 40% of the nation’s crude production—is now offline.

2. Brent Oil Near $65 With U.S. Crisis Now A Global Supply Shock

The supply shock is aiding an already frothy global oil market and is starting to alter energy flows. Adding to the upward momentum, the American Petroleum Institute reported an almost 6 million-barrel drop in U.S. crude stockpiles before official government data due later on Thursday.

3. Petrol Crosses Rs 100 A Litre In Madhya Pradesh, Rajasthan

Petrol price was hiked by 34 paise per litre and diesel by 32 paise, according to a notification by state-owned fuel retailers.

4. Petrol Has Crossed Rs 100 A Litre—More Than Half Of What You Pay Is Taxes

Taxes didn’t come down when the crude started rising. Now they account for more than half of the price at the pump. And levies are much higher than the base price of fuel.

5. India Asks OPEC To Ease Output Cuts

India, the world's third-biggest oil consumer, on Wednesday urged Saudi Arabia and other global oil producers to ease production cuts.

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