IMAGE: UNSPLASH / PTI
Petrol and diesel prices across the country increased for the third consecutive day in a row on Thursday, October 7, 2021, reaching new all-time highs. In the national capital, petrol prices climbed by 30 paise, while diesel prices jumped by 35 paise. Petrol now costs Rs 103.24 per litre in Delhi, while diesel costs Rs 91.77, following the recent price hike.
According to data on the Indian Oil Corporation's website, petrol costs Rs 109.25 in Mumbai, while diesel costs Rs 99.55. The cost of vehicle fuel varies by state, depending on local taxes (VAT) and freight costs. OMCs, employ the daily revision of petrol and diesel rates based on the average price of benchmark fuel in the global market over the previous 15 days, as well as foreign exchange rates.
Petrol and diesel prices are adjusted by oil marketing companies (OMCs) such as Bharat Petroleum, Indian Oil, and Hindustan Petroleum. The new rate takes effect every day at 6 a.m. Fuel prices vary between states and locales due to a variety of value-added taxes, local and freight charges that vary depending on location.
India imports over 80% of its petrol and diesel. Brent crude oil has a big influence on this. The price of a barrel of crude oil changes on a daily basis. Fuel prices in India are modified daily in reaction to changes in global crude oil prices. Import prices rise in lockstep with global crude oil prices. This is, however, simply one aspect that contributes to the high retail prices. The rest is made up entirely of taxes.
The prices of fuel are set by oil marketing companies. Because oil companies are no longer regulated by the government, it is up to them to adjust pricing in line with global rates. Governments, on the other hand, collect a significant tax on the retail price of petrol and diesel paid by customers at the pump. Fuel costs are assessed daily by state-run oil refineries such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum, taking into account crude oil prices in international markets as well as rupee-dollar exchange rates.