Petrol price was hiked by 29 paise per litre and diesel by 34 paise a litre, according to a price notification by state-owned fuel retailers. The increase propelled rates in Delhi to climb to an all-time high of Rs 92.34 a litre for petrol and Rs 82.95 per litre for diesel

Impact of International Market:
• The domestic demands for crude oil 84% imports in India
• Saudi Arabia cut down the daily output to one million from 8.125 million barrel

Layer of Taxes
• VAT and Excise duty constitute almost 63% of the price of petrol
• In Centre and state governments will collect tax to overcome from Covid-19 pandemic situation and work on various development investments to generate more job opportunities
Thus, central and state tax contributes two-third of the petrol price
• dealer commissions contribute only Rs 2.51 a litre on diesel and Rs 3.68 a litre on petrol.

Social Reason:
• As the two wheelers and passenger cars accounted 80.8% and 12.9% market share in FY20 which indicates the increase in demand in auto market
• Less adoption of new technology such as Electric vehicle, CNG Gas automobile industry
• The demand of crude oil rises as the population of country increase with low supply of crude oil

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