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Crude oil price is decreasing in the international market. But in India, the price of petrol and diesel is gradually increasing. Why?

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migrated from politics.stackexchange.com Jun 8 '16 at 14:39

This question came from our site for people interested in governments, policies, and political processes.

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    $\begingroup$ Hi. Welcome to Politics! This seems more like an economics question than a political question. $\endgroup$ – Brythan Jun 3 '16 at 12:19
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    $\begingroup$ Not necessarily. A similar thing occurred in Iran because of sanctions. Alternatively, domestic regulations could be responsible. Given the extent oil is a politicized commodity, I'm willing to bet the answer has at least a partly political answer. Political economy is still political. $\endgroup$ – The Pompitous of Love Jun 3 '16 at 14:19
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    $\begingroup$ Globally, the oil price has gone up by about 70% since January. The first sentence, and premise of the question, is false. $\endgroup$ – EnergyNumbers Jun 8 '16 at 15:42
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To repeat EnergyNumbers's comment as an answer to this question, the following chart from the St Louis Federal Reserve shows the increase in the crude oil price in US Dollars in the first half of 2016.

Other factors also affect local diesel and gasoline prices and timings, but this increase will have contributed to the local change.

enter image description here

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