One of the key reasons for high domestic fuel rates in India is production curbs by the oil cartel. OPEC+, which includes Russia, on April 12 last year announced an unprecedented 9.7 million barrel per day cut in oil output, a 10th of the global output, from May 1, 2020. The move was to check the free fall in oil rates after global fuel demand slumped due to the Covid outbreak. Exorbitant taxes are the other reason for high fuel rates in India. Through 2020, as global crude prices crashed below $20 a barrel, the central government had raised excise duty on fuel to shore up its finances.

Source: Hindustan Times July 18, 2021 18:36 UTC