Fuel Prices Today: At six in the morning on each day, the rates—new or unchanged—are declared. However, these differ from one state to the next due to factors like Value Added Tax (VAT), freight costs, local taxes, etc.
Factors Affecting Fuel Prices Today in India
India uses a dynamic fuel pricing mechanism that results in frequent revisions to the price of petrol. This dynamic pricing makes sure that fuel consumers and dealers can be informed of even minute changes in the price of oil around the world.
Refinery payments, excise taxes, dealer commissions and value-added taxes, sometimes known as VAT, are added together to determine the final price of petrol. The retail selling price of petrol roughly doubles after they are included. The cost of crude oil, global cues, demand for fuel, and the rupee to US dollar exchange rate are just a few of the variables that affect the price of petrol. Fuel costs rise in India as crude oil prices rise globally.
The dynamic fuel price mechanism, which was implemented in India as of June 2017, involves daily revisions to the price of petrol. Every day at 6:00 am, the prices for petrol and diesel are updated. Prior to this, pricing changes occurred every two weeks.
How to use SMS to look up the price of gas and diesel in your city?
Let me explain that since each state’s government imposes its own VAT on gasoline prices, the cost of petrol and diesel varies from state to state. Through an SMS, you can also receive daily updates on the cost of gas and diesel in your city. RSP to Indian Oil (IOCL) customers as a result The code must be written down and texted to the number 9224992249.
Fuel Prices Today in Major Cities
- Delhi: 97.2
- Kolkata: 106.03
- Mumbai: 106.31
- Chennai: 102.63
- Hyderabad: 109.66
India’s Petrol Price Determinants
The Petroleum Planning and Analysis Cell (PPAC) has also provided a list of a few significant variables that influence changes in the price of petrol in India:
Crude oil is the raw material used to make fuel and diesel. The cost of fuel and diesel in India is directly impacted by global crude oil prices. The cost of crude oil is determined by factors including global supply and demand, future reserves, international relations, etc.
During the prolonged COVID-19 lockdowns, there was a significant decrease in the demand for petrol. As a result, productivity had declined proportionately in several nations around the world. However, once lockdowns subsided and people resumed living their normal lives before the COVID, demand sharply soared. A demand-supply imbalance resulted from the inability of the supply to rise as quickly as demand, driving increasing oil prices globally.
The taxes imposed by the Central and State governments are one of the most important variables affecting the cost of fuel or diesel in India. These tax rates are always fluctuating, which directly affects how much petrol costs.
The exchange rate of the rupee to the dollar has a direct impact on petrol costs as well. Since almost 80% of the oil consumed in India is imported, the value of the rupee also has a significant impact on the cost of petrol. The price of petrol increases together with the depreciation of the rupee against the dollar.