Petrol Price in India Today – Jul 27 2021

Diesel prices in India are now being revised daily starting from June 15, 2017. Previously, diesel prices used to change every two weeks. Day-by-day revision of diesel prices is an excellent measure to take for different reasons. The first and most important thing about the change in diesel price is that it helps you effectively understand the fluctuations in diesel price in India every day.

When the Diesel price is modified or changed every two weeks, there will be a big difference in the price, which puts a big burden on the customer.

Today’s Diesel Price in Indian Metro Cities & State Capitals

City

Rate/Litre

Bangalore

86.21 ₹/L

Chennai

86.31 ₹/L

Delhi

81.32 ₹/L

Hyderabad

88.69 ₹/L

Mumbai

88.44 ₹/L

Bhopal

89.60 ₹/L

Bhubaneswar

88.63 ₹/L

Chandigarh

81.02 ₹/L

Dehradun

81.97 ₹/L

Jaipur

89.82 ₹/L

Lucknow

81.70 ₹/L

Panaji

85.70 ₹/L

Patna

86.57 ₹/L

Raipur

88.08 ₹/L

Ranchi

85.97 ₹/L

Shimla

80.76 ₹/L

Srinagar

84.84 ₹/L

Trivandrum

87.38 ₹/L

Kolkata

84.20 ₹/L

Petrol Prices in Major Cities

CITY PETROL PRICE TODAY
New Delhi ₹ 90.19
Kolkata ₹ 91.41
Mumbai ₹ 96.62
Chennai ₹ 92.25
Gurgaon ₹ 87.53
Noida ₹ 88.11
Bangalore ₹ 93.21
Bhubaneswar ₹ 90.25
Chandigarh ₹ 86.17
Hyderabad ₹ 93.10

State-wise Prices

STATE PETROL PRICE
Andhra Pradesh 87.24 ₹/L
Assam 87.24 ₹/L
Bihar 92.91 ₹/L
Chhattisgarh 89.06 ₹/L
Delhi 90.58 ₹/L
Gujarat 87.67 ₹/L
Haryana 88.67 ₹/L
Himachal Pradesh 88.55 ₹/L
Jammu And Kashmir 92.11 ₹/L
Jharkhand 88.06 ₹/L
Karnataka 93.22 ₹/L
Kerala 91.05 ₹/L
Madhya Pradesh 98.64 ₹/L
Maharashtra 97.30 ₹/L
Odisha 91.30 ₹/L
Punjab 89.64 ₹/L
Rajasthan 97.10 ₹/L
Tamil Nadu 93.07 ₹/L
Telangana 94.18 ₹/L
Uttar Pradesh 88.78 ₹/L
Uttarakhand 89.44 ₹/L
West Bengal 91.78 ₹/L

Daily Diesel Prices Revision in India

For a variety of factors, the Daily Gas Prices Revision is a safer proposition. The first and foremost is that it helps you quickly absorb a few countries’ shifts in India’s daily diesel prices. There is a wide variation in prices as diesel prices are revised or changed every fortnight, which puts considerable additional pressure on the customer. Diesel prices in India are revised by the oil marketing companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum based on international prices.

So as international crude oil prices are gaining, India’s diesel prices are going higher. If crude oil prices drop in international markets, there is a decline in India’s regular or current oil prices. In any case, we provide the regular fuel prices to our readers to plan their diesel filling requirements accordingly.

Factors affecting Todays Diesel Price in India

Crude Oil Cost The shift in crude oil price on the international market directly impacts the domestic market price of crude oil; this is one of the most significant factors responsible for increasing diesel prices on the domestic Indian market. An increase in global demand, low production rate, and any political instability in the world’s crude oil-producing countries severely affect the oil rates.

Increased demand – The rise in demand for diesel and other critical fuels in India has also resulted from India’s economic growth and other developing countries. In the recent past, the number of individuals who own private vehicles has risen, which has led to India’s increased demand for diesel; this has resulted in India’s spike in diesel prices.

Supply & Demand Mismatch – India’s Oil refinery companies face meeting market demands due to the high cost of crude oil input prices, resulting in less supply and more demand for diesel. An increase in production contributes to a reduction in the price of fuel and vice versa. Oil refining and distribution firms manage inventories of crude oil for up to six weeks, influencing diesel and petroleum products’ price.

Tax Rates – diesel and other petroleum products prices differ according to local government policies enforcing fuel taxes. The oil firms in India also increase oil price to recover losses and sustain marginal profits in India’s oil companies. When the government of India increases tax rates on fuels.

Rupee to Dollar Exchange Rate – The currency exchange rate is also a major factor influencing diesel price in India. Indian oil companies pay for the oil imported from other countries in terms of dollars, but their expenses are rupees. So, when the price of crude oil is in the fall, but the rupee is also weak against the dollar, it will reduce the oil refiners’ gains. When the rupee strengthens against the dollar and the price of crude oil is in the fall, the oil companies tend to gain.

Logistics – One of the important reasons for pricing retail fuel is logistics. Diesel and diesel transported over longer distances to cities or regions further from depots would be priced higher than those closer to the oil companies’ storage area. The reason behind the change in diesel prices in various cities across India. This difference may be enormous between towns that are far from each other. For example, the diesel price in Chennai is Rs.66.84 per litre on January 24, 2018, and the same diesel price is Rs. 66.04 per litre in Kolkata.

Various Taxes That Impact Diesel Prices in India

There seems to be no end to the fear associated with the rising price of petrol in India. Do we blame these steep price hikes on crude oil? Or, is something different about the root cause? The response lies in the fact that while crude oil remains cheaper, it is actually the taxes imposed by the state and central governments responsible for the ever-increasing petrol prices.

It would be straightforward to link the tax factor with a sharp increase in petrol prices if research were to be followed. A successive increase in excise duties has been observed since May 2014. Data shows a 54 per cent increase in the excise tax on petrol as of November 2014.

Despite the government cutting the excise duty on petrol according to the 2018 Budget, when the price of petrol is taken into account, there seems to be no downward curve. This is due to Rs. 8 per litre being imposed as Road Cess.

The daily price revision for petrol started this year on 16 June. It has been noted that there has been a gradual price hike. Since petrol does not come under GST, it varies in price across states. However, it was found that when considering the cost & freight rates along with the excise duty, dealer commission, relevant VAT, etc., the taxes on petrol amounted to more than its actuation.

While crude oil has now become much cheaper relative to what it was back in 2014, the combined taxes imposed by the state and central government have caused the price of petrol to rise to what it was in 2014, the highest to date. Despite the government’s promises to roll back taxes, we are yet to see any positive efforts on this front.

Deregulation of Diesel Prices in India:

Diesel prices in India were deregulated in October 2014, enabling them to be directly related to foreign market rates. The government-controlled diesel prices before deregulation. The deregulation helps the market to decide fuel prices without the need for government interference. This means that any increases in global crude oil prices would directly affect retail diesel prices.

To close the difference between global and domestic market rates, deregulation allows the government to spend less on subsidies. It also encourages healthy competition among oil companies, which benefits end users by benefiting from lower prices and better service.

How are Diesel Prices Today in India calculated?

Petrol prices are a result of many factors. These include the Indian crude basket average, to which a host of taxes, including value-added tax, central excise, etc., are added.

We have an excise duty imposed by the government now, which is a whopping Rs 21 per litre. We can get some respite from very high retail petrol and diesel rates if this is reduced.

The proportion of value-added tax varies from state to state. The value-added tax is very high in cities such as Mumbai and New Delhi, which has resulted in an exceptionally high price for both petrol and diesel.

In India, the oil marketing firms decide retail prices, taking all these things into account. So, the Indian Oil Marketing Firm decides the retail price of petrol in India today,

E.g., at 6 am, it releases the price of petrol every day, wherein it is revised at the country’s petrol pumps. Petrol pumps like Shell in the private sector often decide their own costs, although they appear to be higher than the Indian Oil Company, BPCL and HPCL.

Various Components That Add up to Diesel Price in India

Even though diesel is commonly used worldwide, few consumers know that diesel purchased in crude form costs less than half as much as diesel purchased at a gas station.

Indian oil manufacturing companies (OMCs) pay a nominal price per litre when importing crude oil (raw material for petrol/diesel) from other countries. It is often that it is less. What adds up then makes it three times the original price. More than a few components make it heavier for Indian pockets, adding up to the actual fuel price.

The components contributing to the diesel retail sale price include—

  • Cost of crude oil + cost and freight (C&F) charges
  • Refinery transfer price (RTP)
  • The price charged to dealers.
  • Central and state taxes
  • Dealer commission + other charges
  1. Crude oil cost + cost and freight (C&F) fees

India is the world’s third-largest user of crude. The country’s fuel consumption rose to 194.2 million tonnes (Mt) in 2016-17, according to the Petroleum Planning and Analysis Cell (PPAC). Diesel consumption accounts for 74.6Mt of the total, which makes it the most consumed fuel.

Despite being one of the world’s biggest oil users, India produces 25% of its own oil consumption. As a result, the nation has been increasingly relying on imports of crude oil that meet almost 76% of its requirements. Saudi Arabia, the United Arab Emirates, Nigeria, Iraq, Iran, Kuwait, Angola, Malaysia, and Indonesia and the United States supply the crude bulk. The purchasing of crude oil from other countries, which normally sell the oil in barrels for US dollars, starts the diesel journey. Indian OMCs charge crude oil price plus the cost and freight charges to international oil firms, which form the oil base rate.

  1. Price of Refinery Move (RTP)

For further refining to extract petrol and diesel, the purchased crude oil is then sent to the refineries. For every litre of petrol/diesel processed, the OMCs pay a certain fee to refineries. The charge is called the Refinery Transfer Fee (RTP).

  1. The price paid to distributors

The OMC then sells the refined diesel to local dealers, typically fuel station operators, after deducting a profit margin. The dealers then become the owners of petrol.

  1. Taxation of the centre and state

The dealer then applies two separate taxes: the Central Excise Duty levied by the federal government and the state-imposed Value Added Tax (VAT). VAT differs from state to state, even though the excise duty remains fixed throughout India. The variance in the price of fuel from state to state is primarily due to this factor.

  1. The fee of dealers + other charges

The final move is to incorporate the dealer’s commission and the air ambience fees to get the diesel’s actual retail sale price. The difference in diesel price from a fuel station to station is mostly due to shifts in the dealer’s commission and other transport charges.

Price Break up of Diesel

The data is as of 24 Sep 2017 in Delhi at IOCL retail pump outlet.

Components of Diesel Price Break-up

Unit

 

Cost & Freight (C&F) Price

$/bbl

68.92

Average Exchange Rate

Rs/$

64.09

Trade Parity Landed Cost Based on Daily Pricing Methodology (Price paid OMCs to refineries)

Rs/Lt

28.16

Marketing Cost, Margin, Freight and Other Charges

Rs/Lt

2.06

Price Charged to Dealers

Rs/Lt

30.22

Excise Duty

Rs/Lt

17.33

Dealer Commission

Rs/Lt

2.5

VAT applicable for Delhi @ 16.75% + Rs. 0.25/Lt pollution cess

Rs/Lt

8.67

Retail Selling Price at Delhi

Rs/Lt

58.72

 

Let’s put everything in numbers:

On 24 Sep 2017, diesel’s price in the international market was $68.92 per barrel (one barrel=159 litre).

The average exchange rate on the day is Rs.64.09 per dollar, which brings the cost price of one-litre diesel to Rs. 27.78. As per the daily pricing methodology, the OMCs pay Rs. 28.16 per litre to refineries.

After adding their profit margin, marketing cost, freight and other charges, OMCs sell it to dealers for Rs. 30.22 per litre.

The fuel station dealers then add excise duty of Rs. 17.33 per litre, commission of Rs. 2.50 per litre, VAT and pollution cess of Rs. 8.67 per litre and sell it to the customers at Rs. 58.72.

Where and how to check Diesel prices in India today?

You can check diesel prices in India in many ways. The most popular way is to send an SMS. For example, if you are at an HPCL pump, you can send an SMS to HPPRICE DEALER CODE and send it to 9222201122. 

For Indian Oil Corporation or IOC, send SMS to Type: RSP DEALER CODE and send it to 9224992249. 

You can also go online and check several websites that provide you with daily rates of fuel. Remember that Indian Oil, the country’s largest retailer, revises fuel prices every day at 6 AM. So, you can check the live petrol price every day after this time. 

It is also important to note that the bulk of the fuel is supplied by the government-owned oil refining companies, including Indian Oil, Bharat Petroleum and HPCL. There are other private retailers like Shell, which also retail fuel at a slightly higher price. 

Oil Imports in India

When it comes to oil and gas, India primarily relies on imports. To satisfy domestic requirements, the nation imports close to 82.8 per cent of crude oil and 45.3 per cent of natural gas. For the fiscal year 2017-2018, the country’s net foreign exchange stood at $63.305 billion because of crude oil imports. Around 35.2 million tons of petrol and its associated products were produced by the nation from indigenous crude oil production. In contrast, the consumption of petroleum and its substitute products stood at 204.9 million tons.

Due to the heavy import of fuel, India occupies the third position when it comes to oil consumption after the U.S. and China.

The country’s insufficient petroleum reserves have forced India to rely on imports. In the coming days, the country is increasingly turning to use its renewable resources, such as wind, solar, biomass, hydroelectric power, and so on, to achieve energy sufficiency. It aims to replace the use of petroleum products that contribute significantly to air pollution.

FAQ’s on Diesel Price in India

What was the highest Diesel price in India?

The highest Diesel price in India was ₹ 94.76 per litre recorded in Agartala on 27 February 2021.

When was the highest Diesel price in India?

At ₹ 94.76 per litre, India’s highest Diesel price was recorded in Agartala on 27 February 2021.

What was the lowest Diesel price in India?

The lowest Diesel price in India was ₹ 17.99 per litre recorded in Delhi on 04 June 2002.

What was the highest Diesel price in India in the last 5 years?

Agartala recorded India’s highest diesel price in the last 5 years, with ₹ 94.76 per litre on 27 February 2021.

What was the highest Diesel price in India in the last 10 years?

Ganganagar recorded the highest Diesel price in India in the last 10 years with ₹ 86.15 per litre on 26 July 2020.

What was the highest Diesel price in India in 2020?

The highest Diesel price in India in 2020 was ₹ 77.05 per litre was recorded in Malkangiri on 31 December 2019.

What was the lowest Diesel price in India in 2020?

The lowest Diesel price in India in 2020 was ₹ 36.39 per litre was recorded in Pimpri on 27 September 2020.

What was the highest Diesel price in India in 2021?

The highest Diesel price in India in 2021 was ₹ 94.76 per litre was recorded in Agartala on 27 February 2021.

What was the lowest Diesel price in India in 2021?

The lowest Diesel price in India in 2021 was ₹ 53.89 per litre was recorded in Karaikal on 26 January 2021.

 

Menu