India charges the highest fuel tax at around 260 percent of the base Petrol price and 256 percent for diesel.
The retail prices of petrol and diesel in India are linked to global market prices. In India, petrol and diesel prices are calculated based on the average of the last 15 days of benchmarked Arab-Gulf fuel prices. The pricing method involves 80 percent of the import price and 20 percent of the export price of the fuel. This means that diesel and petrol prices are indirectly connected to crude oil, and the increase in crude oil prices leads to a rise in petrol and diesel price.
The current high price of petrol and diesel can be attributed to high taxes and an increase in the price of crude oil.