Centre Debunks Petrol Price Myths, Lists Six Determining Factors

The Indian government said that the price of petrol at the pump is not only decided by how much oil costs in the world.

They listed six things that affect the price: the price of oil abroad, the value of the Indian rupee, how much it costs to move the fuel, taxes, how much ethanol is mixed in, and the cost of making the petrol.

Ethanol is a plant‑based liquid that is added to petrol to help the country use less imported oil.

The government said that adding 20% ethanol (called E20) does not make petrol more expensive.

They also said that the state companies that sell petrol are selling it for about ₹85.8 a litre.

Because of this, the companies are losing money – about ₹11 a litre – and have lost a total of ₹21,300 crore from March to June.

The government posted this message while oil prices were falling after the U.S. President talked about stopping a big attack on Iran.

The price of oil in the world, called Brent, dropped 7.3% after those comments.

The government wants people to know that many things, not just oil prices, decide how much petrol costs.