The Daily Price Check: Petrol and Diesel Rates for September 2
The prices of petrol and diesel are revealed daily at 6 am, regardless of whether they have undergone changes or remained constant. However, these prices vary across states due to factors like value-added tax (VAT), freight charges, and local taxes.
|City||Petrol Price (Rs/litre)||Diesel Price (Rs/litre)|
In India, petrol and diesel prices are decided on the basis of several factors such as freight charges, value-added tax (VAT) and local taxes. This leads to the rates being different from state to state. The fuel rates remain unchanged since May 2022, when the central government and several states had cut fuel taxes.
Oil Marketing Companies (OMCs) change fuel retail prices every day at 6 am in accordance with the price of crude oil throughout the world. Through excise tax, base pricing, and price caps, government controls fuel prices.
Factors Affecting Petrol And Diesel Prices In India
Understanding why petrol and diesel prices fluctuate can help you plan your expenses better. Here are the key factors influencing these price changes:
- Crude oil price: Crude oil is the main raw material used to produce petrol and diesel, so its price has a direct impact on the final cost of these fuels.
- Exchange rate between the Indian rupee and the US dollar: India imports most of its crude oil, so the exchange rate between the Indian rupee and the US dollar also affects the price of petrol and diesel.
- Tax: The central and state governments levy a number of taxes on petrol and diesel. These taxes can vary from state to state, and they can have a significant impact on the final price of petrol and diesel.
- The cost of refining: The cost of refining crude oil into petrol and diesel also affects the final price of these fuels. The refining process can be expensive, and the cost of refining can vary depending on a number of factors, such as the type of crude oil used and the efficiency of the refinery.
- The demand for petrol and diesel: The demand for petrol and diesel can also affect their prices. If demand for these fuels increases, it can lead to higher prices.
These factors interact in complex ways, making petrol and diesel prices sensitive to global events, economic changes, and government policies. Staying informed about these influences can help you make informed decisions about your fuel expenses.