In the daily ritual that occurs every morning at 6 am, oil marketing companies (OMCs) in India disclose the fresh rates for petrol and diesel, keeping consumers abreast of the constant fluctuations in global crude oil prices and foreign exchange rates. This transparent process ensures that citizens remain well-informed about the daily dynamics of fuel costs, which are influenced by factors such as freight charges, value-added tax (VAT), and local taxes.
As of February 9, 2024, here are the petrol and diesel prices in key Indian cities:
Mumbai:
Petrol: ₹ 106.31 per litre
Diesel: ₹ 94.27 per litre
Delhi:
Petrol: ₹ 96.72 per litre
Diesel: ₹ 89.62 per litre
Fuel prices in India have maintained stability since May 2022, following a reduction in fuel taxes by both the central government and various states. The adjustment of fuel retail prices daily at 6 am by OMCs is based on the global price of crude oil, a practice overseen by the government through mechanisms such as excise tax, base pricing, and price caps.
| CITY | PETROL PRICE (₹/LITRE) | DIESEL PRICE (₹/LITRE) |
| Chennai | 102.63 | 94.24 |
| Kolkata | 106.03 | 92.76 |
| Noida | 96.79 | 89.96 |
| Lucknow | 96.57 | 89.76 |
| Bengaluru | 101.94 | 87.89 |
| Hyderabad | 109.66 | 97.82 |
| Jaipur | 108.48 | 93.72 |
| Trivandrum | 109.73 | 98.53 |
| Bhubaneswar | 103.19 | 94.75 |
Several factors contribute to the determination of petrol and diesel prices in India:
Crude Oil Price:
The primary raw material for petrol and diesel production, fluctuations in crude oil prices directly impact the final cost of these fuels.
Exchange Rate:
As a significant importer of crude oil, India’s petrol and diesel prices are influenced by the exchange rate between the Indian rupee and the US dollar.
Tax Structure:
Both central and state governments impose various taxes on petrol and diesel, and these taxes may vary across states, exerting a notable influence on the ultimate prices.
Refining Costs:
The expenses incurred in refining crude oil into petrol and diesel contribute to the final price. Factors such as the type of crude oil used and refinery efficiency can affect refining costs.
Demand Dynamics:
The demand for petrol and diesel plays a pivotal role in determining their prices. Increased demand can lead to higher prices, reflecting the market forces at play.
While the quest for stability in fuel prices continues, consumers are urged to stay vigilant about the daily price adjustments, ensuring that they remain informed about the economic dynamics shaping the cost of their daily commute.
