Every morning at 6 am, Indian Oil Marketing Companies (OMCs) release daily rates of petrol and diesel. These prices are adjusted based on fluctuations in global crude oil prices and exchange rates. This practice ensures that consumers stay informed about daily changes in fuel costs.
Rates per city:
On February 9, 2024, petrol price in Mumbai stood at Rs 106.31 per litre, crossing the Rs 100 mark. Similarly, the diesel price 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 that influence prices
Several factors influence the price of petrol and diesel in India:
1. Price of crude oil: The price of crude oil, as the main raw material for the production of gasoline and diesel, directly impacts the final cost of these fuels. Fluctuations in global crude oil prices may cause adjustments in fuel prices in the domestic market.
2. Exchange rate dynamics: India’s status as a major crude oil importer means that the exchange rate between the Indian rupee and the US dollar also plays an important role in determining petrol and diesel prices. Changes in this exchange rate can influence crude oil import costs, subsequently affecting domestic fuel prices.
The Indian government monitors fuel prices through mechanisms such as excise taxes, base prices and price caps. These measures help stabilize fuel prices and mitigate the impact of external factors on consumers.