Fuel rates are revised at 06:00 A.M every day. From June 2017, fuel prices in India are revised daily, and this is called the dynamic fuel price method.
Currently, petrol is retailing at Rs - a litre in Delhi, and diesel is priced at Rs -. In Mumbai, Chennai and Kolkata petrol costs Rs -, Rs - and Rs - respectively. On the other hand, diesel is retailing at Rs -, Rs - and Rs - in Mumbai, Chennai and Kolkata respectively.
India imports about 80% of its oil needs and so domestic pump rates are dependent on international prices, as denominated by Indian basket of crude oil. The other factors on which domestic petrol and diesel prices depend on include central excise duty, VAT or value added tax levied by state governments, dealer and refining margins and transportation cost. As of now, petrol and diesel don’t come under the purview of GST.
The value of the rupee also has a bearing on domestic fuel prices. A weak rupee increases the landed cost of dollar-denominated crude oil.
Petrol and diesel prices in India are reviewed daily in line with the benchmark international rate of the preceding 15 days. So state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) are supposed to review petrol and diesel prices daily in line with the cost.
Diesel is one of the primary sources of energy for transportation of goods in India. Any change in diesel prices has a direct impact on inflation.
