Crude / Petrol & Diesel Prices 2020: In the year 2020, there is no relief to the common man from the inflation of petrol and diesel.
Petrol & Diesel Prices 2020: Even though there has been a fall in the prices of crude in the year 2020, there is no relief to the common man from the inflation of petrol and diesel. Throughout this year, prices have either increased or prices have remained almost constant. Sometimes there was a slight price cut.
But overall, where crude became cheaper by about 16 percent in the whole year, the price of petrol and diesel has increased by Rs 10 per liter from the January low. Let us tell you that even after the lockdown in March, where the crude had dropped below $ 20, petrol and diesel were not cut even in that period.
How expensive is petrol diesel this year
Talking about this year, in January, the lowest petrol in Delhi was Rs 73.33 per liter and diesel was Rs 66.34 per liter. At the same time, today i.e. on December 29, 2020, petrol is being sold in Delhi at Rs 83.71 per liter, while the price of diesel is Rs 73.87 per liter. That is, petrol has become expensive by about Rs 10, then diesel has also become expensive at about 7 rupees. On December 31, the price of petrol and diesel was Rs 75.14 per liter and Rs 67.96 per liter.
When the lockdown took place in March, the high of petrol and diesel was Rs 71.75 per liter and Rs 64.34 per liter in that month. While the low was Rs 69.63 per liter and Rs 62.33 per liter. Talking about June, the high of petrol and diesel has been increased to Rs 80.47 per liter and Rs 80.53 per liter. That is, diesel started selling expensive than petrol. At the same time, both of them took Rs 71.26 per liter and Rs 69.39 per liter in June.
Crude fall by 16 percent this year
Talking about Brent crude, it has fallen by around 16 percent compared to January this year. Crude reached $ 67 per barrel on 31 December 2019. Its price reached $ 69 in January. At the same time, on December 29, 2020, crude is trading around $ 51 per barrel. In the months of March and April, due to the lockdown due to Coronavirus, there was a huge decline in crude. Brent crude prices slipped below $ 20 a barrel in April. However, there was a recovery in the following months.
Now crude is becoming expensive
S&P Global Plots has said in an analysis that the demand for crude in the international market will increase in the year 2021. Recently, due to Coronavirus, the demand for oil, especially from transportation, was stalled, which is now increasing slowly. According to the report, there will be a strong demand for oil by the first half of 2021. It can grow to 6 million barrels per day in 2021.
Ajay Kedia, director of Kedia Commodity, says that in the first quarter of 2021, crude may touch $ 58 per barrel. With the improvement in the economy, now the sentiments are getting better with the expectation of the Covid 19 vaccine. Industrial activity will pick up in the coming days. OPEC countries have extended the crude production cut by 3 months.
Petrol, diesel will be more expensive
There is pressure on the country’s economy right now. The current account deficit may go above the target after a long wide relief package. In such a situation, the chances of reduction in excise duty to reduce the rising prices of petrol and diesel are less. In such a situation, the prices of petrol and diesel may increase further in the coming days.
Compared to the last 5 years, the excise duty on petrol in 2014 was just Rs 9.48 per liter, which has increased to Rs 32.9 per liter by 2020. At the same time, the excise duty on diesel was only Rs 3.56 per liter in 2014, now it has been Rs 31.83 per liter.
How much does the government earn on every liter?
It can be understood that the base price of petrol in Delhi is around 26 rupees per liter. The cost of transportation on this is 0.36 rupees. The excise duty on this is Rs 32.98 per liter. At the same time, VAT (with dealer’s commission) is Rs 18.94. Dealer’s commission is around Rs 3.70. In this way, petrol customers of 26 rupees have to pay around 83 rupees. In this, the Central and State Governments get around 57 rupees for every 1 liter.
(Note: For the rates of petrol and diesel, information has also been taken from the website of Indian Oil and Bank Bazaar.)