Every day at 6 a.m., oil marketing companies (OMCs) in India announce the prices of gasoline and diesel. This daily update is consistent, despite the volatility of these commodities. The adjustment of fuel prices is closely linked to global crude oil prices and fluctuations in foreign exchange rates, ensuring that consumers are informed about the latest fuel costs.
Current Petrol and Diesel Prices
As of August 11, 2024, here are the city-wise petrol and diesel prices across major Indian cities:
Petrol Diesel Price Today In India (Check city-wise rate table below)
Check city-wise petrol and diesel prices on August 11
| City | Petrol Price (Rs/litre) | Diesel Price (Rs/litre) |
| Delhi | 94.72 | 87.62 |
| Mumbai | 103.44 | 89.97 |
| Chennai | 100.85 | 92.44 |
| Kolkata | 103.94 | 90.76 |
| Noida | 94.66 | 87.76 |
| Lucknow | 94.65 | 87.76 |
| Bengaluru | 102.86 | 88.94 |
| Hyderabad | 107.41 | 95.65 |
| Jaipur | 104.88 | 90.36 |
| Trivandrum | 107.62 | 96.43 |
| Bhubaneswar | 101.06 | 92.91 |
Stability of Fuel Prices
In India, fuel prices have remained relatively stable since May 2022. This stability follows a reduction in fuel taxes by the central government and several states. Fuel retail prices are adjusted daily by OMCs based on the global price of crude oil, and the government maintains oversight through excise tax, base pricing, and price caps.
Key Factors Affecting Fuel Prices
Several factors contribute to the fluctuating prices of petrol and diesel in India:
Crude Oil Prices
Crude oil is the primary raw material for petrol and diesel production. Therefore, changes in global crude oil prices directly impact the cost of these fuels. The international market prices of crude oil can be volatile, affecting fuel prices in India.
Exchange Rate
India imports a significant portion of its crude oil, making the exchange rate between the Indian rupee and the US dollar a crucial factor. A weaker rupee relative to the dollar can increase the cost of importing crude oil, which in turn raises fuel prices.
Taxes
Both central and state governments impose taxes on petrol and diesel. These taxes vary across states, influencing the final retail price of fuel. The central government levies excise duties, while state governments impose VAT and other local taxes.
Refining Costs
The refining process, which transforms crude oil into petrol and diesel, incurs various costs. These expenses can fluctuate based on factors such as the type of crude oil used and the efficiency of the refining process. Any changes in refining costs can affect the final price of fuel.
Demand and Supply
The demand for petrol and diesel also impacts their prices. Increased demand can drive up fuel prices, while decreased demand may lead to lower prices. Seasonal variations, economic conditions, and changes in consumer behaviour all play a role in influencing fuel demand.
Conclusion
Understanding the factors that affect petrol and diesel prices helps consumers better grasp the dynamics behind fuel cost fluctuations. While daily price adjustments reflect changes in global crude oil prices and foreign exchange rates, local taxes and refining costs also play significant roles. By staying informed, consumers can better navigate the complexities of fuel pricing and its impact on their daily expenses.
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