If you thought that Trump’s war on Iran was not going to affect the Indian economy, then sadly you are wrong.

Trump took a decision on Friday which has increased the traveling expense, causing India to lose forex, eroded your stock investments, may prolong economic slowdown and helped the Pakistani military.

US President Donald Trump last week ordered a drone attack to kill Iranian Quds Force chief Qassem Soleimani. The attack has in more than one way affected the Indian economy.

The price that was paid for crude oil is nothing as compared to now.

How are fuel prices decided?

  1. The oil marketing companies or OMCs import crude oil from counties like UAE to refineries to make diesel, petrol, kerosene e.t.c.The cost and freight are the initial costs incurred on this step. Taxes are also added. The Indian government also adds customs duty.
  2. After that, they send the products to the companies that sell them. In India, 90% of the share of oil marketing is owned by Indian oil corporation Ltd (IOCL), Bharat petroleum corporation ltd (BPCL) and Hindustan petroleum corporation ltd (HPCL).
  3. So the total desired price is the result of all the Cost & Freight charges, Import charges, Refinery Transfer Price, Inland Freight, OMC’s Marketing costs, and Profit margin.
  4. In addition, the Central Government of India adds Excise Duty on the Depot Price and the State Governments add State VAT on the same. Further, the dealers also add their commission which is calculated on the basis of per liter. So, after adding all the costs and taxes, we get the Retail Price that a consumer pays for buying a liter of petrol or diesel.

source: Trade Brains

Petrol prices have been on the rise since the 26th of December and diesel prices are increasing since November 29.

Want to know about the anti-dumping duty imposed by the Indian Govt. on radial tyres?Check out our blog on that too: click here

Is India ready for electric vehicles? 

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