Fuel Rates Today: After remaining unchanged for a day, fuel prices witnessed a surge on Thursday, January 9. (Photo Credit: File Photo)
Fuel Rates Today: After remaining unchanged for a day, fuel prices witnessed a surge on Thursday, January 9. Global oil prices jumped after the US killed a top Iranian general, fanning fresh fears of conflict in the crude-rich Middle East. According to the Indian Oil website, the petrol rates are Rs 75.81 per litre in Delhi, Rs 81.40 per litre in Mumbai, Rs 78.39 per litre in Kolkata, and Rs 78.77 per litre in Chennai, respectively. On the other hand, the diesel prices in Delhi, Mumbai, Kolkata, and Chennai remained at Rs 68.94, Rs 72.29, Rs 71.31, and Rs 72.85 per litre, respectively.
In Noida, petrol is retailing at Rs 76.88 a litre, while diesel price is Rs 69.22 a litre. The price of petrol in Gurugram is Rs 75.08 a litre while diesel was selling at Rs 67.79 a litre.
Why Petrol, Diesel Prices Change Every Day?
The fuel prices are in India are revised daily. Petrol and diesel prices are revised every day at 06:00 am to sync it with the variation in global oil prices. Oil marketing companies (OMC) review the global fuel prices and decide petrol and diesel daily. Indian Oil, Bharat Petroleum and Hindustan Petroleum release the new rates at 6 am every morning. Generally, when international crude oil prices gain, prices in India move higher. Other factors also impact the price of fuel like rupee to US dollar exchange rate, cost of crude oil, global cues, demand for fuel, and so on.
Why Fuel Prices Differ In Every City?
The price of fuel includes excise duty, value-added tax (VAT), and dealer commission. As VAT varies from state to state, the price of fuel is different in every city.
India is 84 per cent dependant on imports to meet its oil needs and any spike in global prices has a direct bearing on its economy. Not just imports but even domestic crude oil—which forms the raw material for making petrol, diesel and other petroleum products—is priced according to international benchmarks.
Middle East accounts for more than two-thirds of the country’s oil imports, with Iraq and Saudi Arabia being the top suppliers. Even though the import basket has been sought to be diversified with oil being contracted from nations such as the US, pricing in all the regions is governed by international benchmarks and rates went up everywhere following last week strikes.
Officials said there is no immediate threat of any supply disruption to India and the only impact would be felt in prices.