Do you know the reason for the rise and fall of fuel oil prices in your country?

Mainly I am going to talk about petrol and diesel prices in a particular country

because of the COVID-19 pandemic and lockdowns in various parts of the world, the demand for crude oil had crashed sharply earlier this year which led to a fall in the global oil prices but now many countries lifting lockdown and also the price of crude oil inching back to pre COVID level.

But what about fuel oil like petrol, diesel, etc?
In some countries price changes due to supply and demand (market-determined). In some other countries, price is fixed by the government or authorized institution and some other countries have price ceilings in which retailers are free to determine selling price but not allowed to exceed the ceiling.

Prices of petrol and diesel depending on some key factors in which the primary factor is the global crude oil prices because both petrol and diesel are produced from crude oil.

Another factor is the money exchange rate
If I talk about my home country our currency is rupee we pay in terms of dollars to buy crude oil if the value of rupee decreases against the dollar that means we are paying more so it affects the prices of petrol and diesel.

And the most important reason is the excise tax and value-added tax levied by the government. in India tax levied by the government is 69% which means India has the highest taxes on fuel in the world.

are you aware of your oil market policies, tax?
do you know what is fixed price, Price ceiling, and Market-determined fuel prices?
I think these things really affect your pocket.

if have any questions or suggestions please write down below