Petrol and diesel are extracted from crude oil,y the rate of the petrol is higher than diesel?
Answer:
In India fuel rates are controlled by the Govt. The lesser rate of diesel is because of rate control mechanism adopted by the govt. (Lower taxes. more subsidy). This is done to check inflation as high diesel costs will drive up transportation costs and hence result in increase in commodity prices.
In many other countries petrol and diesel prices are similar.
Petrol is got in less quantities than diesel when extracted from crude oil. and petrol is much lighter liquid and it is most abundabtly used almost evry where.
I think this is why it is costly than diesel.
The retail price is also a function of the cost of refining.
To produce petrol crude must be refined more than deisel, if you've ever noticed that deisel has a much more oily feel when it gets on your hands.
Also because of the many other uses of petrol (heating oil. heavy equipment, etc) there is a bit of a cost savings in the production.
its coz of the more refined state than diesel.
because they rate it according to the sales rate + comission rates + tax rates . do you know that in US the fuel rates are much more cheaper than here .
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