Currently, petrol is priced at Rs 94.72 per litre in Delhi. In Mumbai, Chennai, and Kolkata, the prices are higher, at Rs 104.21, Rs 100.85, and Rs 103.94 per litre, respectively.
India imports nearly 80% of its oil requirements. Because of this, domestic petrol prices depend heavily on international crude oil rates, specifically the Indian basket of crude oil. Several other factors also affect petrol and diesel prices in India. These include the central excise duty, value-added tax (VAT) imposed by state governments, dealer and refinery margins, and transportation costs. It is important to note that petrol and diesel are not currently covered under the Goods and Services Tax (GST).
The value of the Indian rupee also influences fuel prices. When the rupee weakens against the dollar, the cost of imported crude oil rises, which pushes up domestic fuel prices.
Petrol and diesel prices in India are revised every day based on the average international crude prices from the previous 15 days. State-owned fuel retailers such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) follow this pricing policy and adjust fuel rates daily to reflect changes in cost.
Diesel plays a crucial role in the transportation of goods across India. Therefore, any change in diesel prices directly impacts inflation and the overall cost of living.
