New Delhi: Petrol and Diesel prices are falling rapidly due to fall in world’s demand and increase in Shale gas production. Oil prices fall so much that it costs less than a liter of water. It is only due to the taxes levied by Government which makes it costlier.
According to news published in Zee News, cost of oil is $29.24 per barrel or Rs. 1955.86 on Friday and 1 barrel consist of 158 liters. Thus the cost of crude oil in India works out to Rs. 12.30 per liter which is less than the cost of 1 liter of water which is Rs. 20.
It is this excise duty which is helps reduce fiscal deficit of the government. Due to falling oil prices, Govt. is able to minimize trade deficit. From Indian perspective, fall in oil prices is beneficial for economy.