Petrol and diesel prices witnessed a dip on Saturday (February 29). (Photo Credit: File Photo)
Petrol and diesel prices witnessed a dip on Saturday (February 29). According to the Indian Oil website, petrol rates are at Rs 71.89 per litre in Delhi, Rs 77.56 per litre in Mumbai, Rs 74.53 per litre in Kolkata, and Rs 74.68 per litre in Chennai, respectively. On the other hand, the diesel prices in Delhi, Mumbai, Kolkata, and Chennai remained at Rs 64.51, Rs 67.60, Rs 66.83, and Rs 68.12 per litre, respectively.
In Noida, petrol is retailing at Rs 73.82 a litre, while diesel price is Rs 64.85 a litre. The price of petrol in Gurugram is Rs 72.00 a litre while diesel was selling at Rs 63.96 a litre.
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.
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.
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.