Fuel rates are revised at 06:00 a.m every day. From June 2017, fuel prices in India are revised daily, and this is called the dynamic fuel price method. This makes sure that even a minute’s variation in global oil prices can be transmitted to fuel users and dealers. The Indian government has permitted oil marketing companies to determine the retail price of fuel based on currency exchange rate and fluctuations in international oil prices. Before this fuel prices were revised every fortnight. There are various factors that impact the price of fuel. These include rupee to US dollar exchange rate, cost of crude oil, global cues, demand for fuel, and so on. When international crude oil prices gain, prices in India move higher. Price of fuel includes excise duty, value added tax (VAT), and dealer commission. VAT varies from state to state. After adding excise duty, dealer commission and VAT, the retail selling price of petrol gets nearly doubled.
The price of a litre of petrol has reached Rs 77.83 in Mumbai and Rs 72.21 in Delhi on September 17, according to a price notification issued by Hindustan Petroleum (HP). There was a slight increase in the fuel prices compared to September 16 when it was priced at Rs 77.71 per litre and Rs 72.03 per litre in respective cities, as per Indian Oil Corporation (IOCL).
The price of diesel was Rs 68.76 a litre in the Mumbai while it was sold at a price of Rs 65.61 in the national capital on the day, HP notified. The prices were increased from Rs 68.62 and Rs 65.43 respectively, mentioned IOCL.
In Chennai, the price of petrol was Rs 74.97 per litre and of diesel was Rs 69.29 per litre.