Fuel prices in Rewa

Petrol and diesel price in India is now at record-high levels. This is responsible for an economic slowdown in the country. Petrol price in Rewa including other cities is quite high. In India, the daily average wage of people is roughly ₹450. Fuel is an essential commodity and the steep rise in price is causing severe damage to the poor and middle-class people of the country. People are blaming the state and Central Government for this massive hike in petrol price in Rewa. There are other geo-political factors as well causing fuel prices to go up.

Petrol price in Rewa

Today petrol price in Rewa Madhya Pradesh is ₹108.87. People must check petrol rates in other parts of Madhya Pradesh when setting out for long journeys. Petrol prices are inclusive of the state taxes and excise duty charged by the government. The repeated revisions to fuel rates in India are having a massive impact on the domestic market. The government is primarily considering the dependence on energy imports for the current fuel prices in the country

Diesel price in Rewa

As of today, the diesel price in Rewa is ₹94.06. The prices continue to remain steady for the last few days. India is largely dependent on diesel and the recent price hike is affecting fleet operators. The automotive and logistics sector is among the worst hit in the country due to the rising fuel price. As all types of goods travel across the country on trucks, trains, and ships. The effect of rising fuel prices is evident in the cost of food and other goods.

Understanding components of fuel price in India

Before learning about the reasons for the price hike. One must have a clear idea of what goes into the pricing of fuel. Previously fuel prices were only revised on the first and 16th of the month. But now the state-owned oil marketing corporations set the price of diesel and petrol. It is referred to as the dynamic pricing model that improves the transparency of the process. However, in India, the prices continue to have an upward trend keeping in line with the international market. Since a large portion of global fuel consumption comes from imports international prices is getting reflected in domestic fuel prices.

Procurement and distribution of oil in India

There are 23 oil refineries is in the country that imports oil from outside. Primarily countries like United Arab Emirates, Iraq, and Saudi Arabia supply oil to India. These refineries pay for the cost of crude oil freight charges, import charges custom duty, and more.

The oil goes through a processing stage in the refinery. The result is various forms of petroleum products that reach the vendors. Companies that deliver the end product to the vendor are oil marketing corporations. The price of oil at this stage is the actual fuel price. Next, come the excise duty of the center and value-added tax from the state. Vendors add their commission before the fuel reaches the end consumer.

The rising price of oil in the domestic market

Currently, fuel prices are rising consistently in the domestic market. It is due to the global demand and supply shortage. Oil-producing economies are trying to increase the price of crude oil by reducing production. Also, there was high demand for oil after the removal of long-term restrictions. The low production and high demand act as a catalyst for high fuel prices. Another reason for the high price of oil in the country is excise duty and VAT. The government is charging more taxes to generate more revenue from fuel. It will help pick up the slow economy.

Fuel is a reliable revenue source for the government

Adding more tax on fuel is one of the most reliable means of income for the government. Moreover, it happens to be one of the few commodities that were in demand during the lockdown. Excise duty on petrol was doubled by the center. The states were quick to follow and increased VAT on petrol and diesel.

The hike in fuel prices is currently in a loop. There was high fuel demand during the pandemic while production was low. To compensate for the losses the government had to increase taxes resulting in an overall high price. The government should take immediate measures to control the rising fuel price. Without the right steps, it will become a major threat to the economic stability and lifestyle of common people. According to experts if the current fuel rates prevail in the country it will result in inflation.

Conclusion

People who use public transport are also suffering from high fuel prices. As a consequence, the expense of traveling in Rewa is very high. People are having a difficult time managing monthly expenses within a set budget. Therefore it is important to keep an eye on the daily prices of diesel and petrol in Rewa. With the help of the Park+ app and the Park+ website, users can check the daily fluctuations and plan their budgets accordingly.