Many point to the fact that Indians have paid about this amount for petrol previously as well. However, it is worth pointing out that previously when petrol was very expensive in India, this is because the prices of crude oil were very high globally. Indian companies were finding it expensive and difficult to source crude at the time. Crude oil prices fell by over 50% between May 2014 and September 2017. However, petrol and diesel prices did not fall at the same rate during this period.
In June 2014, crude oil was a $109 per barrel. The prices fell by 74% to a low of $28.1 per barrel in January 2016. In spite of this, petrol prices for you and me fell only by about 20%. The steep rise in excise levied by the central government petrol is one reason for this. Plus, we pay VAT or sales tax which is levied by state governments; the rates of which have also risen over the past few years.
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