Oil prices globally have been declining in recent times. Although here in India, we have received price reduction in diesel and petrol rates, industry experts say that only a fraction of these benefits are being passed on to the end user.
Brent crude has dropped by 40% since June 2014, but fuel prices have been revised by only 8%-17%. Which means we are paying a comparatively higher price for fuel here in India. Only 11% price correction for petrol and 8% price correction for diesel has been effective till date.
On Sunday, prices of petrol and diesel were reduced by 91 paise and 84 paise respectively.
It is being suspected that oil companies are keeping a heavy margin on fuel or the government is using this price benefit to reduce the fiscal burden. Currently, over Rs. 1.5 / litre is being over-recovered on petrol and diesel.
Industry experts suggest that an independent regulator should be appointed to monitor fuel price, and ensure fair and quick price corrections.
Source – ET Auto