How are Fuel Prices Calculated in India?

As the global recovery gains strength, the surge in prices has led to record high prices of petrol and diesel in India. Rising crude oil costs, combined with increased taxation, have contributed to gasoline and diesel prices consistently breaking new records across the country in 2021. Oil Marketing Companies set prices for petrol and diesel depending on international product prices, currency exchange rates, tax structures, inland freight, and other cost factors.

Petrol Price in India

According to India's dynamic fuel pricing policy, the price of petrol is changed every morning at 6 a.m. As a result, checking the per litre petrol price in India daily is critical. Fortunately, because state-owned oil marketing corporations (OMCs) handle over 90% of retail fuel stations in India, they make the most up-to-date petrol price list in India available through both online and offline media.

While almost everything in the country is subject to GST, petrol prices are an exception. The current structure of petrol prices is excise duty + VAT. The VAT is collected by the state government, whereas the federal government collects the excise duty.

Haryana's petrol prices

Like every other state, Petrol Price in Haryana are updated daily.

 

On(22.10.2021)	On(21.10.2021)	On(20.10.2021)
Rs.102.5	Rs.102.5	Rs.101.83

On(22.10.2021)	On(21.10.2021)	On(20.10.2021)
Rs.102.5	Rs.102.5	Rs.101.83

Petrol Price in Punjab

Because of the dynamic fuel pricing system, the petrol price in Punjab is modified daily based on current global crude oil prices and currency conversion rates.

Factors Affecting Petrol Prices

• To begin with, crude oil prices fluctuate based on demand, global supply, and political reasons.
• The currency exchange rate between the Indian rupee and the US dollar is also dynamic. As a result, the price of oil fluctuates continuously.
• The expenses for oil refining and transportation are added by the oil marketing companies (OMCs).
• The dealer’s commission, the central excise duty, and value-added tax (VAT) levied by the state also get added to the petrol which directly affects its final price.

The Bottom Line:

Fuel costs in India are at an all-time high, with rates in almost all state capitals above Rs 100. While international crude oil prices influence the cost of fuel in India, it is only one factor driving up petrol and diesel costs. India ranks third in terms of oil consumption behind the United States and China, owing to substantial fuel imports. In the coming days, the country will gradually shift to using renewable resources such as wind, solar, biomass, hydroelectric power, and so on to attain energy sufficiency, as it wants to replace the usage of petroleum products.