Data | Rising crude oil prices further burdens Indian consumers

The Centre has raked in nearly Rs.16 lakh crore through excise duty on petroleum products between FY15 and FY21

In India, have risen to a near three-year high. Subsequently, the retail , which were already high due to heavy tax rates, became higher in India. Notably, in recent times, whenever crude prices have been on the rise, the burden has been passed on to Indian consumers. However, when crude prices dropped, the was increased in proportion and consumers continued to pay more. In contrast, the State's share of taxes has not moved much. The Centre has raked in nearly ₹16 lakh crore through excise duty on petroleum products between FY15 and FY21. And now that fuel consumption is resuming to pre-pandemic levels, consumers may have pay more.

The chart depicts the crude price - Indian basket (left axis) and the retail petrol price in Delhi (right axis). Since late-2014, crude prices have crashed on multiple occasions. But this has rarely translated into a reduction in retail petrol prices. However, a rise in crude price has always been accompanied by a parallel increase in retail price.