1. Introduction – Importance of Petrol and Diesel
1. Introduction – Importance of Petrol and Diesel Petrol and diesel are essential fuels in modern society. They power vehicles, machines, and transportation systems. These fuels support industries, agriculture, and logistics. Millions of people depend on petrol and diesel daily. The price seen at petrol pumps is not the actual base cost of fuel. 2. Definition of the Real Price of Petrol and Diesel The real price is the total cost involved in producing and delivering fuel. It includes crude oil price, refining cost, transportation cost, taxes, and dealer margin. Many economic and political factors influence the final fuel price. Therefore, the pump price is a combination of multiple cost components. 3. Source of Petrol and Diesel – Crude Oil Petrol and diesel are derived from crude oil. Crude oil is a natural fossil fuel found underground. It is extracted through drilling operations. After extraction, crude oil is transported to refin...