DNA Explainer: How affect global markets affect India’s gas prices?

India mostly meets its oil requirements by importing gas from diverse worldwide locations. About 80% of our oil requirement is imported. Subsequently, oil prices in India are majorly influenced by changes in global prices and global occasions.The tag of crude oil being imported to India has elevated from $64.4 per barrel in April 2021 to $112.87 per barrel in March 2022, main to a whopping 78 p.c amplify in the prices in the span of 300 and sixty five days.Extra, the crude oil prices in India contain elevated by 33 p.c from January 2022 to April 2022. Nonetheless, the gas prices in India are lower than those of diverse worldwide locations which affect now no longer obtain their oil themselves.When in contrast with worldwide locations that are extra reckoning on petrol imports, oil prices in India are the lowest after Turkey. Meanwhile in contrast to worldwide locations that are extra reckoning on diesel imports, oil prices in India are the lowest after Japan.

Comparability with neighbouring worldwide locations

The petrol and diesel prices in Pakistan and Sri Lanka are lower than that in India. Nonetheless, these low gas prices are as a result of appeasement insurance policies of the respective govt which is ready to now no longer be critical for their people in the extinguish.

Comparision with BRICS, ASEAN worldwide locations

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Steps taken by the Modi-led BJP govt to manipulate global prices

• On November 3, 2021, the central govt reduced the excise accountability on petrol by Rs 5 and on diesel by Rs 10.
• The income left by the central govt due to deduction is ready Rs 8,700 crore per thirty days and Rs 1 lakh crore yearly.
• After this decision by the central govt, several narrate governments reduced their VAT on petrol and diesel. States that reduced VAT charges on a mean cut it by Rs 5 per liter for diesel and Rs 6 per liter for petrol.
• Between November 2021 and March 2022, states that cut their VAT on gas lost a whole of Rs 15,969 crore in income. Out of this, Rs 11,398 crore used to be lost by manner of income by the BJP dominated states themselves.
• A whole of seven states made up our minds now no longer to cut the VAT on gas prices below their jurisdiction. These states had been – Maharashtra, West Bengal, Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Jharkhand.