Much heat is being generated over the prices of petrol and diesel, primarily because central and state taxes account for about 60 per cent of the retail price. Even in inflation-adjusted terms, fuel prices have never been higher. When the second Opec-driven oil shock sent international oil prices past $30 per barrel (equivalent in today’s currency to about $100) in 1980, India’s petrol price was raised to Rs 5.10 per litre (today’s equivalent would be about Rs 80). It was no different in 2014; international oil prices had crossed $100, but India’s petrol price was a little over Rs 70.
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