With petrol prices crossing the Rs 100-mark in several cities in Maharashtra, Madhya Pradesh and Rajasthan, the question of why fuel prices are rising has resurfaced. A major reason is a rise in international crude prices, Brent crude price increased by 133 per cent from an average of $29.38 a barrel in May 2020 to $68.34 a barrel in May 2021. Another trigger is the higher central and state taxes, which is around 60 percent of the price of petrol and 54 percent of diesel. Post-Covid, the Centre had raised the excise duty on petrol by 65 per cent to Rs 32.98 per litre from Rs 19.98 and diesel by 101 per cent to Rs 31.83 per litre from Rs 15.83.
