Oil price is crucial factor for an Economy. The oil price in India has hiked near about Rs100 in case of Petrol. The Indian consumers have to pay more price relatively to other Asian countries due to the imposition of different kind of taxes like CENVAT, Excise Duty, State VAT, Custom Duty etc. The GOI collects huge amount of tax revenue from oil incidence of which is on the shoulders of the consumers. Due to the hike in oil prices the prices of other related products also increase. Hike in oil price is a macro economic phenomenon. There is no recent literature regarding the recent hike in oil prices in India. This paper is Descriptive and Analytical in nature. It uses secondary sources of data. Potential remedies to get rid of such price hike is incorporated in this paper. Implementation of GST might reduce the price of oil in accordance with the ongoing four tier of taxation system of GST.