Oil is used at every stage of the supply chain – as a raw material (crude oil), in manufacturing and production (paraffin, petroleum & LPG) to transport (petrol and diesel). This is why a fluctuation in oil prices affects almost all of your personal expenses, whether its the price of fruits, vegetables and food grains or constructing essential infrastructure.
The price oil is on the basis of where the oil comes from, the global demand for it and the cost of refining it.
However, international pricing of oil is different from how it’s priced domestically. The Indian Government levies taxes to keep oil prices stable and avoid a financial tailspin in the country’s economy.
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