Fuel Prices Today: The rates for each day, whether new or unchanged, are announced at 6 am on the day. These, however, differ from state to state; this is due to criteria such as Value Added Tax (VAT), freight charges, local taxes, etc.
Petrol prices in India are based on dynamic fuel pricing system and hence revised on a regular basis. This dynamic pricing ensures that even a minute’s variation in global oil prices can be transmitted to fuel 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 adding these, the retail selling price of petrol gets nearly doubled. 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 gain, petroleum price in India moves higher.
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. Before this, prices were revised every fortnight.
How to check petrol and diesel price in your city through SMS?
Let us tell you that state administrations impose VAT on fuel prices as per their own, hence the prices of petrol and diesel are different in different states. 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 have to write the code and transmit it to number 9224992249.
Fuel Prices Today
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 prices of crude oil internationally directly affect the prices of unleaded and diesel in India. The price of crude oil is determined by international supply and demand, prospective reserves, foreign relations, and other factors.
The demand for petrol had gone down significantly during the extended COVID-19 lockdowns. So, production around the world had been decreased proportionally in many countries. Once lockdowns were lifted and people resumed their pre-covid lives, however, demand increased dramatically. However, the supply could not be increased so promptly, leading to a demand-supply imbalance, causing prices of oil to increase worldwide.
One of the most influential factors when it comes to the price of petrol or diesel in India is the taxes that are levied by the Central and State administrations. These fluctuating tax rates directly cause the price of fuels to increase or decrease.
The price of the rupee to the greenback also directly affects the price of petrol. Since around 80% of all oil used in India is imported, the price of the rupee also significantly affects the price of petrol. When the value of the rupee depreciates against the dollar, the prices of fuels also go up.