Fuel Prices Today: The daily rates, regardless of whether they have been modified or remain the same, are officially disclosed at 6 am on the respective day. However, these variations exist among different states, mostly due to factors such as Value Added Tax (VAT), freight charges, local taxes, and other related criteria.
The pricing of petrol in India follows a dynamic fuel pricing structure, resulting in periodical revisions. The implementation of dynamic pricing enables the efficient transmission of even minor fluctuations in global oil prices to both gasoline consumers and dealers.
Factors Affecting Fuel Prices Today
The ultimate price of petrol is determined by the inclusion of payments to refineries, excise duty, dealer commission, and Value-Added Tax (VAT). Upon incorporating these factors, the retail selling price of petrol experiences an approximate twofold increase. The price of petrol is influenced by various factors, including the exchange rate between the Rupee and the US dollar, the cost of crude oil, worldwide market trends, and the demand for gasoline, among other variables. When there is an increase in international crude oil prices, the fuel costs in India also experience an upward movement.
The dynamic fuel price technique, often known as daily revision of petrol prices, has been used in India from June 2017. The prices of petrol and diesel undergo daily revisions at 06:00 am. Previously, pricing underwent revision on a biweekly basis.
How to check petrol and diesel price in your city through SMS?
It is important to note that state governments levy Value Added Tax (VAT) on fuel costs based on their individual policies, resulting in varying pricing of petrol and diesel across different states. One can obtain daily updates on the prices of fuel and diesel in their own city by SMS. In this context, the provision of Retail Selling Price (RSP) to the clientele of Indian Oil (IOCL) is being discussed. The code must be written and transmitted to the designated recipient at phone number 9224992249.
Fuel Prices Today in Major Cities
Factors Influencing the Petrol Price in India
The Petroleum Planning and Analysis Cell (PPAC) has identified several significant elements that influence the fluctuations in petrol prices in India.
Crude oil refers to the raw, unprocessed form of oil that serves as the primary source for the extraction of petrol and diesel. The international prices of crude oil have a direct impact on the cost of petrol and diesel in India. The determination of crude oil prices is contingent upon various factors including international supply and demand dynamics, projections of future reserves, and the state of foreign relations, among other considerations.
The COVID-19 lockdowns have resulted in a significant decrease in the demand for petrol. The global output levels have experienced a proportional decline across numerous countries. Nevertheless, there was a significant surge in demand subsequent to the relaxation of lockdown measures and the resumption of individuals’ pre-pandemic routines. Nevertheless, the rapid expansion in supply was hindered, resulting in an imbalance between demand and supply, hence contributing to a global escalation in oil prices.
The taxation policies implemented by the Central and State governments play a significant role in determining the price of petrol or diesel in India. The fluctuation of tax rates has a direct impact on the price volatility of petrol.
The exchange rate between the rupee and the dollar has a direct impact on the price of petrol. The dependence on imported oil in India, accounting for around 80% of total consumption, establishes a strong correlation between the price of petrol and the value of the rupee. When there is a depreciation in the value of the rupee relative to the dollar, there is a corresponding increase in the pricing of petrol.