- On November 15, OMCs kept the diesel and petrol fuel prices unchanged. The price of petrol in Delhi, Mumbai, Chennai, and Kolkata remains above Rs 100 per litre.
- On Monday, Oil Marketing Companies kept the price of gasoline and diesel steady for the 12th day in a row. The most recent fall in fuel prices occurred during Diwali when the federal and state governments opted to lower taxes. Petrol is currently priced at Rs 103.97 a litre in the national capital, while diesel is priced at Rs 86.67 per litre. Rates were lowered as the federal government slashed fuel excise duty and state governments dropped VAT. Fuel prices are revised daily by Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL), and Hindustan Petroleum Corporation Ltd (HPCL) in accordance with worldwide benchmark prices and foreign exchange rates.
- The price of petrol in Mumbai is still the highest among metro cities, at Rs 109.98 per litre. Diesel costs Rs 94.14 per litre in the country's financial centre. The pricing difference between Delhi and Mumbai is due to differing local VAT taxes in each city. Freight expenses, local taxes, and VAT are all factored into the price of gasoline and diesel. In Delhi, Rajasthan, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Jammu and Kashmir, Odisha, Tamil Nadu, and several towns in Bihar and Punjab, the price of petrol remains above Rs 100 per litre.
Price of Crude Oil
On Monday, the price of crude oil fell due to increased supply forecasts. Brent crude futures were trading at $81.59 a barrel, according to Reuters. WTI futures in the United States were trading at $80.21 a barrel.
Petrol fuel prices city wise
Factors affecting petrol rate
1. The price of crude oil
The increase in raw petroleum costs in the global market is a key factor in the rise in petrol prices in India's domestic market.
2. Demand Increase
Petrol prices have risen in India as a result of the country's and other emerging Asian countries' improving economies.
3. Misalignment of Supply and Demand
Due to a lack of supply and production from refinery hubs, Indian oil companies are unable to meet the demand for petroleum. If there is a discrepancy between supply and demand, gasoline prices will fluctuate.
The Indian government sets the tax structure for petrol and petroleum products. When the tax rate in India rises, oil corporations will raise fuel prices to recuperate their losses. Petrol prices will rise if the state government raises the VAT on gasoline. Petrol prices will fall if state government levies are reduced.
How is the petrol rate calculated
- In India, the price of petrol is rapidly rising, necessitating an understanding of how the price is calculated.
- Petrol is one of the few goods in India that is exempt from the Goods and Services Tax (GST). In India, the retail selling price of petrol is determined by the following factors: crude oil, OMC margin, transportation costs, freight costs, central government taxes, state government taxes, excise duty, and other taxes.
- Crude oil: India is a major crude oil importer and a major factor in the retail price of gasoline. Because crude oil is required for the production of gasoline, Indian oil companies pay additional fees, in addition to freight and insurance, to obtain the oil from overseas crude oil companies. For instance, if a barrel of crude oil costs Rs. 4200 (equivalent to 159 litres), crude oil costs Rs. 26.42 per litre.
- Oil marketing companies (OMCs) are companies that refine crude oil into gasoline and then sell it to dealers. These businesses sell gasoline to dealers after deducting their profit margin, which includes transportation, operational, and refinery processing costs, among other things.
- The value-added tax (VAT) on gasoline varies by state, which is why gas prices vary so much between states and cities.
- The excise duty on gasoline is the same in every country. The Indian government currently charges Rs.21.48 per litre in excise duty on petrol.
Frequently asked questions
When do oil companies change the price of gasoline and diesel?
Oil marketing corporations, such as state-run Indian Oil, examine the rates of gasoline and diesel on a daily basis, with any changes taking effect at 6 a.m.
What variables influence the price of gasoline and diesel?
- Oil firms adjust gasoline and diesel prices on a daily basis depending on the average price of benchmark fuel in the worldwide market over the previous 15 days, as well as foreign exchange rates.
- Brent crude oil, the most widely used worldwide benchmark, has increased by 36% this year to almost $70 per barrel. Retail fuel costs have risen as a result of this.
Why do gas prices range from one state to the next?
The impact of municipal taxes such as VAT and freight costs on fuel prices varies from state to state. Rajasthan has the country's highest value-added tax on gasoline, followed by Madhya Pradesh and Maharashtra.
Where in India are the most expensive fuel prices?
In the Sri Ganganagar district of Rajasthan, where petrol costs Rs 105.52 per litre and diesel costs Rs 98.32 per litre, rates are the highest in the country.
How much tax do you have to pay on gasoline and diesel?
Let's look at an example to help you understand.
- Assume that the base price of petrol in Delhi is Rs 34.19 per litre on any given day. The tariff is Rs 34.55 per litre after freight of Rs 0.36 per litre is included. This is the price charged to dealers, which does not include excise duty or value-added tax (VAT).
- A litre of petrol costs Rs 71.21 after excise duty and dealer charge of Rs 32.89 per litre and Rs 3.77 per litre, respectively. VAT of Rs 21.36 per litre is applied on top of that. This includes dealer commissions, which are subject to VAT. After accounting for these factors, the ultimate selling price is Rs 92.57 per litre.