Fuel Prices Today: The daily rates, whether new or unchanged, are announced at 6 a.m. each day. These vary in several states due to factors such as value-added tax (VAT), freight charges, and local taxes, among others.
According to India’s dynamic fuel pricing system, petrol prices are revised frequently. This dynamic pricing ensures that even minute-by-minute fluctuations in global oil prices are communicated to petroleum consumers and dealers.
Factors Influencing Fuel Prices Today
The ultimate price of petrol is determined by adding refinery payments, excise tax, dealer commission and Value-Added Tax or VAT. After incorporating these costs, the retail price of petrol nearly doubles. Several factors, including the Rupee-to-U.S.-dollar exchange rate, the price of crude oil, global signals, and fuel demand, influence the price of petrol. When international crude oil prices rise, the price of petroleum in India increases.
The daily revision of diesel prices in India since June 2017 is known as the dynamic fuel price method. Every day at 6:00 a.m., petrol and diesel prices are adjusted. Prior to this, prices were adjusted every two weeks.
How to verify the price of petrol and diesel in your city via SMS?
Let us explain that because state administrations impose their own VAT on fuel prices, petrol and diesel prices vary from state to state. You can also learn the daily price of petrol and petroleum in your city via SMS. For this reason, RSP to Indian Oil (IOCL) customers. You must transmit the code to the number 9224992249.
Fuel Prices Today in Major Cities
Factors Influencing the Petrol Price in India
The Petroleum Planning and Analysis Cell (PPAC) has also enumerated a number of significant elements that influence the revisions of fuel prices in India:
Crude oil is the unrefined oil that is refined into petrol and diesel. The international price of crude oil has a direct impact on the prices of petrol and diesel in India. The price of crude oil is determined by international supply and demand, prospective reserves, foreign relations, and other factors.
During the protracted COVID-19 lockdowns, the demand for petrol had dropped drastically. Consequently, global production had decreased proportionally in many nations. Once lockdowns were lifted and people resumed their pre-covid lives, however, demand increased dramatically. However, the supply could not be increased so rapidly, resulting in a demand-supply imbalance that caused global oil prices to rise.
The taxes levied by the Central and State administrations in India are one of the most significant determinants of the price of petrol and diesel in India. These fluctuating tax rates directly cause the price of fuels to increase or decrease.
The exchange rate between the rupee and the dollar has a direct impact on the price of fuels. Since approximately 80% of the oil used in India is imported, the value of the rupee has a significant impact on the price of fuels. When the value of the rupee declines against the dollar, fuel prices also increase.