Crude oil prices in the international market continue to fall, leading to stability in petrol and diesel prices across India. Fuel prices directly impact the daily lives of people, influencing transportation costs and goods prices. Let’s dive deeper into the new petrol price in India, diesel rates, and how these prices are determined.
Crude Oil Prices in the International Market
Crude oil prices are one of the biggest factors affecting fuel prices. Currently, Brent crude oil is priced at $82.50 per barrel, and WTI crude oil is at $76.20 per barrel. Compared to last month, these rates have dropped significantly. Lower crude oil prices are good news for India, which imports the majority of its oil. However, changes in the international market don’t immediately reflect in local fuel prices due to taxes, transportation costs, and other factors.
New Petrol Price in India – City-Wise Rates
Fuel prices vary from state to state in India because of different tax structures imposed by the central and state governments. Here are today’s petrol and diesel prices in major cities:
- Delhi: Petrol ₹96.72 | Diesel ₹89.62
- Mumbai: Petrol ₹106.31 | Diesel ₹94.27
- Kolkata: Petrol ₹106.03 | Diesel ₹92.76
- Chennai: Petrol ₹102.63 | Diesel ₹94.24
In smaller cities and rural areas, the prices may differ slightly due to transportation costs and local levies.
Why Do Fuel Prices Vary Across States?
The variation in petrol and diesel prices across states is mainly due to state taxes such as Value Added Tax (VAT) and central excise duties. For example, metropolitan cities like Mumbai and Kolkata have higher fuel prices because of higher state taxes, while cities in states with lower tax rates, like Haryana, offer cheaper fuel.
How Are Petrol and Diesel Prices Determined in India?
The price of petrol and diesel in India is determined by multiple factors:
- Crude Oil Prices: The cost of crude oil in the international market is the primary factor.
- Exchange Rate: Since crude oil is traded in US dollars, fluctuations in the Indian rupee against the dollar also play a role.
- Central Excise Duty: The central government imposes a fixed excise duty on petrol and diesel.
- State VAT: Each state charges its own Value Added Tax, which differs from state to state.
- Dealer Commission: Fuel station dealers earn a fixed commission per liter of petrol and diesel.
The Indian Oil Corporation (IOCL), along with other oil companies like Bharat Petroleum and Hindustan Petroleum, updates fuel prices daily based on these factors.
Impact of Falling Crude Oil Prices on India
India is one of the largest importers of crude oil in the world. When crude oil prices fall, it reduces the country’s import bill, which can have a positive impact on the economy. Lower crude prices also give the government room to reduce taxes on fuel, though this depends on the current economic situation. For consumers, stable or lower fuel prices mean savings on transportation costs and reduced inflation.
Why Fuel Prices Don’t Always Decrease Quickly
Even when crude oil prices fall internationally, the reduction in petrol and diesel prices isn’t immediate in India. This delay happens due to:
- Existing Inventory: Oil companies adjust prices after selling their existing stock, which might have been purchased at higher rates.
- Taxes and Duties: A significant portion of fuel prices goes to taxes, which remain unchanged unless the government decides otherwise.
- Other Costs: Refining, transportation, and distribution costs also influence the final price.
Tips to Save on Fuel Costs
With fuel prices fluctuating, here are some tips to reduce your fuel expenses:
- Drive Efficiently: Avoid sudden acceleration and excessive idling to save fuel.
- Maintain Your Vehicle: Regular servicing and proper tire pressure can improve fuel efficiency.
- Use Public Transport: Whenever possible, opt for public transport or carpooling.
- Plan Your Trips: Combine errands into a single trip to save time and fuel.
Future Trends in Fuel Prices
With crude oil prices falling, there is hope for some relief in fuel prices in India. However, geopolitical tensions, changes in global demand, and supply chain disruptions can still impact prices. Additionally, the government may use this opportunity to increase taxes to boost revenue, which could offset the benefits of lower crude oil prices.
The new petrol price in India reflects the stability in the international crude oil market. While prices are currently steady in most cities, any significant changes in global crude oil prices or government policies could impact fuel rates. It’s always a good idea to stay updated on daily fuel price changes, especially if you frequently travel.
To check the latest fuel prices in your city, you can visit the official website of Indian Oil Corporation or contact your nearest fuel station.
