Fuel Prices Today: At six in the morning, the rates are released, whether they have changed or not. However, these differ from one state to the next because of factors like local taxes, freight costs, value added tax (VAT), etc.
India’s dynamic fuel pricing mechanism is the foundation for the frequent revisions of petrol prices. Fuel consumers and dealers will be able to receive information about even the smallest change in the price of oil globally, thanks to dynamic pricing.
Factors Influencing Fuel Prices Today
Value-Added Tax, or VAT, dealer commission, excise fee, and payment to the refineries are added to determine the final petrol pricing. The retail selling price of petrol roughly doubles after they are included. The price of petrol is determined by a number of factors, including the demand for fuel, global cues, the cost of crude oil, and the exchange rate between the rupee and the US dollar. Fuel costs in India rise in tandem with global gains in the price of crude oil.
As of June 2017, petrol prices in India are updated daily, and this is called the dynamic fuel price mechanism. Every day at 6:00 am, the rates for petrol and diesel are updated. Prices were changed every two weeks prior to this.
How to use an SMS to check the price of gas and diesel in your city?
Let us inform you that each state levies its own value-added tax (VAT) on fuel costs, which is why petrol and diesel prices vary 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’s clients for this (IOCL) The code must be written down and sent to the number 9224992249.
Fuel Prices Today
Factors Affecting Petrol Prices
The following significant variables have also been mentioned by the Petroleum Planning and Analysis Cell (PPAC) as having an impact on changes in fuel prices in India:
The raw material used to make petrol and diesel is called crude oil. The cost of fuel and diesel in India is directly impacted by global crude oil prices. Future reserves, foreign relations, global supply and demand, and other factors all have a role in determining crude oil prices.
During the prolonged COVID-19 lockdowns, there was a significant decrease in the demand for petrol. Thus, global productivity had declined proportionately in numerous nations. But as lockdowns lifted and individuals went back to their pre-covid lives, demand skyrocketed. But because the supply could not be expanded as quickly, there was an imbalance between supply and demand, which raised oil prices globally.
The central and state government levies of taxes are among the most significant determinants of petrol and diesel prices in India. The constant fluctuation of these tax rates directly affects how much petrol costs.
The rupee’s value in relation to the dollar has a direct impact on petrol prices as well. Given that almost 80% of the oil consumed in India is imported, the value of the rupee has a significant impact on petrol prices as well. Petrol prices rise in tandem with the rupee’s decline in value relative to the US dollar.