Petrol Price in India Today

Some of the factors that affect the prices of petrol in India are mentioned below: 

1. Crude Oil Prices in the Global Markets 
2. Demand 
3. Seasonal Changes 
4. Value of the Rupee against the Dollar 

Why is the Price of Petrol in India Different from Diesel Prices? 

Some of the reasons why petrol prices are different from diesel prices are production costs and transportation. Taxes on diesel are lesser when compared to petrol. Therefore, petrol is costlier than diesel.  

The distribution and production costs are also different between petrol and diesel. The crude oil prices in the global markets play a role in determining petrol and diesel prices as well. 

Petrol is an essential commodity in our day-to-day life. We use it mainly for the purpose of transportation. The price, which is charged at petrol pumps, is the retail price of petrol for consumers.

Have you ever questioned yourself that how petrol rates in India are computed? Which are the influencers of the cost of petrol? Whether or not petrol has been covered under the regime of GST? These are very important questions from the stance of petrol users someone like you. Let's get into the discussion. 

Daily Revision of Petrol and Petrol Price in India (Dynamic Fuel Pricing)

Oil Marketing Companies (OMCs) that are state-owned such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum revise petrol prices every day. Petrol and diesel rates are revised at 06:00 a.m. every day. Several factors such as the value of the rupee against the dollar, crude oil prices, and local taxes determine petrol prices in the country

Dynamic Fuel Pricing is used to determine petrol rates in India. The system is in practice across 58,000 petrol bunks in India. The system brings transparency and addresses complexities involved in the previous fortnightly-based revision. It lets fuel users pay market-determined prices despite the impact.

There are two categories of petrol bunks:

• Automated, which automatically modify rates with no human intervention and
• Non-automated, which manually revise. Only 20% out of 58,000 petrol bunks are automated and the rest are non-automated. The revised rates shall be displayed at bunks for the public.

How to Check Petrol Prices in India every day? 

State-owned oil marketing entities account for at least 90% of retail fuel stations in India. Renowned oil brands such as Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil have strategically designed a few initiatives that help consumers spot the latest rates. 

How You Can Track Petrol Prices Regularly?

Mobile app:  You can also download Bankbazaar App and check the prices instantly on your smartphone. 

Impact of GST on Petrol and Fuel Prices in India

In July 2017, the Goods and Services Tax (GST) was implemented in India. GST is not applicable on petrol and diesel. Therefore, no GST will be levied in case you purchase petrol. However, VAT is levied on the fuel.

Breakup of Petrol Prices in India 

Petrol prices in India are determined by the crude oil prices in the global markets and the value of the rupee against the dollar. Given in the table below is an example of how petrol prices are calculated in India: 

Petrol Price Assumptions in India

1. Crude Oil Price: Rs.40 for a litre 
2. Buffer: Rs.10 for a litre 
3. Processing Cost levied by OMCs: Rs.7.50 for a litre 
4. Dealer Commission and Central Government Taxes: Rs.20 for a litre 
5. Commission (Pump Dealers): Rs.4 for a litre 
6. VAT (19.4%): Rs.15.81 for a litre 
7. Total Petrol Cost: Rs.100.31 for a litre 

Factors Affecting the Prices of Petrol in India

Some of the factors that determine petrol prices in India are mentioned below: 

1. Value of the rupee against the dollar. 
2. Local taxes. 
3. Demand for fuel. 
4. Central excise duty. 
5. Commission for dealers. 
6. Dealers price. 
7. Crude oil cost.