Global Crude Oil Prices Down — But Not a Rupee Relief for Indian Consumers

[Dr Sundar]

Respected Sirs ,

Please see the graph.

Over the last two years , it is confirmed that global crude oil prices have declined by nearly 50%, falling from around USD 120 per barrel in 2022 to nearly USD 60 today.

Have consumers in india  seen even a ₹1 reduction at the fuel pump? The answer is clearly No.

Instead, both the Centre and the States have quietly increased taxes, continued to extract high fuel prices, and diverted the additional revenues towards freebies, vote-bank schemes, and political advantages to stay in power.

When global crude prices fall, fuel prices in India remain unchanges but .

when crude prices rise, fuel prices are increased immediately overnight in the name of “global markets"

Is this pattern any  to do with robust economics 

but much to do with burdening ordinary citizens to bolster government revenues that too to the power lingering  .

 For a country where fuel costs directly affect the price of food, transport, healthcare, and daily essentials, this approach raises serious concerns of fairness and accountability.

It is deeply unfortunate that citizens are left to bear this imbalance without transparency or relief.

Oh Bhagavan,!


Save Indians living in india 

"KNOW THYSELF .

SELF KNOWLEDGE IS REAL KNOWLEDGE.

ALL OTHER KNOWLEDGE IS IGNORANCE AND THEY ARE NO  KNOWLEDGE  "   

~~~ Bhagavan Ramana

     

[Inder Mohan Bhalla]

Thanks for all the important information 

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[Rajaram Krishnamurthy]

In India, petrol and diesel prices often rise or remain high despite falling global crude oil prices due to heavy central excise duties and state VAT, which comprise 50-60% of the final price. Governments maintain high taxes to boost revenue, while weak rupee exchange rates and inventory costs for Oil Marketing Companies (OMCs) offset international price dips.

Reasons for High Fuel Prices Despite Lower Crude Oil:

High Taxes (Central & State): Taxes constitute over 50–55% of the petrol price. Even when global oil prices decrease, these taxes are not reduced, preventing the benefit from reaching consumers.

Revenue Generation: The government utilizes fuel taxes to generate revenue to cover fiscal deficits and fund expenditures, often increasing excise duties even when international prices drop.

Weakening Rupee: The Indian Rupee's decline against the US Dollar increases the cost of importing crude oil, negating gains from lower international prices.

OMC Profit Recovery: Oil Marketing Companies (OMCs) sometimes use periods of lower international prices to recover previous losses or boost profits, rather than passing on the full reduction to consumers.

Fuel Outside GST: Petrol and diesel are not covered under the Goods and Services Tax (GST), allowing for high, non-uniform taxes across different states.

Although fuel prices are technically market-determined, they are effectively managed by taxes and OMCs to maintain a stable, high revenue stream.

   This development has a strongly positive impact on the Indian economy by reducing inflationary pressures, improving the trade balance through a lower import bill, and boosting corporate profits in the energy sector. Consumers may eventually benefit from lower fuel prices, though this is subject to government policy and election cycles. The government could also see increased revenue if excise duties are maintained.

    Petroleum consumption in India has generally increased, rising from 166 million metric tonnes (MMT) in 2014-15 to 234 MMT in 2023-24 (P), showing a steady, long-term growth trend, except for a, sharp dip during the COVID-19 pandemic. In FY2024-25, demand continues to grow, with total petroleum product consumption expected to reach 250.3 MMT.

Key details regarding India's petroleum consumption include:

Growth Trend: Consumption has seen a Compound Annual Growth Rate (CAGR) of 3.93% over the last 10 years.

Key Drivers: High Speed Diesel (HSD) constitutes the largest share (approx. 38%–45%), followed by Petrol (16%) and LPG (13%).

Recent Data: In September 2025, consumption rose by 3.9% year-on-year to 18.63 MMT.

Sector Performance: Diesel demand grew by 3%–4.34% and petrol demand grew by 6.9%–8% in recent reports, driven by industrial and economic activity.

Exceptions: While overall consumption is rising, certain periods or specific products like ATF (Aviation Turbine Fuel) have experienced minor, temporary declines.

Despite efforts to promote electric vehicles and renewable energy, India remains the world's third-largest oil importer, and its demand for petroleum products is projected to maintain an upward trajectory due to economic growth.

     IT MAY APPEAR A STRANE ECONOMICS BUT REVENUE YIELD BY PERFORCE ALL CONSUMERS PAY BUT DO JOT PAY TAXES. THUS, IT IS NECESSAY DEVIL. Delhi smoke is created by people.

K RAJARAM IRS 4126

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