ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » India News

Petrol, diesel at new heights; these 6 factors impact India's fuel prices

Fuel prices in India are continuing to rise, so much so, that they have reached levels that have never been witnessed before. This is the outcome of boiling crude oil prices. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Petrol, diesel at new heights; these 6 factors impact India's fuel prices
Representational Image: Photo: Pixabay

Today, a litre of petrol has been priced at Rs 80.73 in New Delhi, at Rs 88.12 in Mumbai, at Rs 83.61 in Kolkata and at Rs 83.91 in Chennai. Meanwhile, a litre of diesel is being valued at Rs 72.82 in New Delhi, at Rs 77.32 in Mumbai, at Rs 75.68 in Kolkata and at Rs 76.98 in Chennai. Fuel prices in India are continuing to rise, so much so, that they have reached levels that have never been witnessed before. This is the outcome of boiling crude oil prices.   

According to GoodReturns.com report, here's a list of six factors that impact petrol and diesel prices.

Cost of Crude Oil 

Any change in international crude oil price has a direct influences on the price of crude oil in the domestic market. This is the most important factor responsible for any rise in petrol prices in India. 

Increase in international demand, low production rate and any political unrest in the crude oil producing countries of the world severely affects petrol price.

Increased Demand 

Economic growth in India and other developing countries has also led to the increase in demand for oil and other essential fuels in India. 

The number of people who own private vehicles has gone up in the recent past which has contributed to the increase in demand for petrol in India; this has resulted in the hike in petrol prices in India.

Mismatch of Supply & Demand 

In order to meet the demands of the market, Oil refinery companies in India face problem as the cost of input price of crude oil is high thus resulting in less supply and more demand for petrol in the country. 

An increase in supply results in a decrease in the price of the petrol and vice versa. 

Oil refining and marketing companies maintain crude oil inventory up to six weeks, which also influences the price of the petrol and petroleum products.

Tax Rates 

The prices of petroleum products varies according to the local government policies which impose taxes on fuels. 

As and when the government of India raises tax rates on fuels the oil companies in India also increases the price of the petrol to recover losses and maintain marginal profits in the oil business in India.

Rupee to Dollar Exchange Rate 

The rupee-dollar exchange rate is also one of the major factors which influence the price of petrol in India.

Indian oil companies pay to the oil imported from other countries in terms of dollars, but their expenses are in rupees. So, when rupee rate plunges, you have to pay more for the USD.

Logistics 

Logistics is one of the significant factors in pricing retail fuel. Petrol and diesel transported to longer distances to cities or regions farther from depots will be priced higher than the places nearer to the oil companies storage area. 

The reason behind the change in the prices of petrol in different cities across India.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Petrol Price in IndiaCrude OilBrent Crudeoil pricesMarketsDiesel price in India
Written By: ZeeBiz WebTeam
Updated: Mon, Sep 10, 2018
07:57 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Petrol, diesel continues to boil; this is why govt needs to cut excise duty Petrol, diesel continues to boil; this is why govt needs to cut excise duty
OMCs keep petrol price unchanged today; This is what you pay in Delhi, Mumbai, Kolkata, Chennai OMCs keep petrol price unchanged today; This is what you pay in Delhi, Mumbai, Kolkata, Chennai
Mumbai fuel prices: Petrol cut by over Rs 3 per litre, diesel by Rs 2.26 per litre in 1 month Mumbai fuel prices: Petrol cut by over Rs 3 per litre, diesel by Rs 2.26 per litre in 1 month
Petrol price cut for 6th day in row; You may soon pay under Rs 83 in Mumbai Petrol price cut for 6th day in row; You may soon pay under Rs 83 in Mumbai
Petrol price cut for 5th day in row; Mumbai sees most relief as rates drop; check other cities too Petrol price cut for 5th day in row; Mumbai sees most relief as rates drop; check other cities too

LATEST NEWS

Aadhaar-PAN link new deadline 2023: These people are exempted from the process

Opening Bell: Sensex, Nifty start with mild gains; ICICI Bank, RIL, HDFC Bank top movers

5 planets rare alignment: When and where to watch the arc tonight in India - Check date and time

Ramadan dua for sehri iftar 2023: Dua to recite for sehri, iftar its meaning and all you need to know

Alibaba to split into 6 business units; plans to have separate IPOs

UAN Registration: How to activate your UAN? Check documents and other details

Avatar: The Way of Water OTT release date confirmed: James Cameron's directorial to release on these platforms

ITR e-Verification: Received an e-verification notice? Here's what you can do next

Nothing Ear (2) goes on sale: Check price, discount and other details

Zoom partners with OpenAI to bring AI-driven features to platform

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV