Every morning at 6 am, oil marketing companies (OMCs) in India disclose the daily rates for petrol and diesel. These prices are adjusted based on fluctuations in global crude oil prices and foreign exchange rates. This practice ensures that consumers are kept informed about the daily changes in fuel costs.
As of February 9, 2024, the petrol price in Mumbai stood at Rs 106.31 per litre, surpassing the Rs 100 mark. Similarly, the price of diesel in Mumbai was Rs 94.27 per litre. In Delhi, the cost of diesel was recorded at Rs 89.62 per litre.
Fuel prices in India have remained stable since May 2022, following a reduction in fuel taxes by both the central government and several states. This stability has provided some relief to consumers amid fluctuations in global oil markets.
Factors Influencing Prices
Several factors influence the pricing of petrol and diesel in India:
1. Crude Oil Price: The price of crude oil, as the primary raw material for petrol and diesel production, directly impacts the final cost of these fuels. Fluctuations in global crude oil prices can lead to adjustments in fuel prices in the domestic market.
2. Exchange Rate Dynamics: India’s status as a major importer of crude oil means that the exchange rate between the Indian rupee and the US dollar also plays a significant role in determining petrol and diesel prices. Changes in this exchange rate can influence the import costs of crude oil, subsequently affecting domestic fuel prices.
The Indian government oversees fuel prices through mechanisms such as excise taxes, base pricing, and price caps. These measures help in stabilizing fuel prices and mitigating the impact of external factors on consumers