Factor that affect the price of petrol and diesel...
Every country has its own currency. Similarly, Rupee is also the currency of India. You must have often heard the news of weakening or strengthening of the rupee, but what does it gain or lose? If you do not know, then here we will answer these questions of yours in very easy language?
Reasons for weakening or strengthening of rupee
The value of rupee completely depends on its demand and supply. Imports and exports also have an effect on this. Every country has reserves of currency of other countries from which they trade with each other. In common parlance, it is called foreign exchange reserves. From time to time the reserve bank of india continues to release its figures. The increase or decrease in the currency of that country is seen only due to the increase or decrease of foreign currency. The US dollar has the importance of a global currency. That is, most of the exported goods are paid in US dollars. This is the reason why the value of rupee against the dollar shows how strong or weak the indian currency is.
The connection of falling on the prices of petrol and diesel of Rs.
India imports 80 percent of its petroleum products from other countries as per its requirement. Now if the rupee depreciates, the import of petroleum products will become expensive. Because of this, oil companies increase the price of petrol and diesel.
Impact on the price of petrol and diesel, according to one figure, due to the increase of one rupee in the dollar, the oil companies have to bear the burden of 8 thousand crore rupees, due to which the price of petrol and diesel has to be forced to increase.
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