Taxes on petrol and diesel are again in the spotlight after some states have recently announced a VAT or value added tax hike on these fuel.
April was one of the most turbulent months in the history of oil trading, when US futures briefly crashed into negative territory.
International oil benchmark Brent has fallen around 60% this year as coronavirus has crushed demand. In India, the price of petrol and diesel you pay at the pump is dependent on international product prices and other market conditions.
Petrol and diesel do not come under the purview of goods and services tax (GST). Other factors include excise duty, VAT, BS VI premium, marketing cost and margins, dealers commission etc.