Analyze the case and answer the following questions.

The latest increase that follows the unrelenting hike in international oil prices has pushed across the country to the highest-ever levels. While petrol is above Rs 100-a- mark in all major cities, diesel has crossed that level in more than a dozen states .

The total increase in petrol price since May 5, 2020 decision of the government to raise excise duty to record levels now totals Rs 35.98 per litre. Diesel rates have during this period gone up by Rs 26 58 litre.

The government had raised excise duty on petrol and diesel to up gains that would have otherwise accrued to consumers from international oil prices crashing to as low as USD 19 per barrel While international prices have since recovered to USD 85, excise duty has remained at Rs 32.9 per litse on petrol and Rs 31.8 on diesel.

oil minister Hardeep Singh Pun on Friday equated derand for cutting excise duty to 'axing one's own feesaying such levies funded government schemes to provide free COVID-19 vaccines, meals and cooking gas to millions amid the pandemic

1. Why petrol and disel price are increasing continuosly in India?

2. In the circular flow, what is the role of govtand excise duties, considering the case ?