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. Logistics - Logistics is one of the significant factors in pricing retail fuel. On the other hand, when the rupee strengthens against the dollar and the price of the crude oil is in the fall, then the oil companies tend to gain. So, when the price of the crude oil is in the fall but the rupee is also weak against the dollar then it will reduce the gains to the oil refiners. Indian oil companies pay to the oil imported from other countries in terms of dollars, but their expenses are regarding rupee. 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. 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. Tax Rates – The prices of petrol and other petroleum products varies according to the local government policies which impose taxes on fuels. Oil refining and marketing companies maintain crude oil inventory up to six weeks, which also influences the price of the petrol and petroleum products. An increase in supply results in a decrease in the price of the petrol and vice versa. Mismatch of Supply & Demand – Oil refinery companies in India face problem to meet the demands of the market due to the high cost of input price of crude oil thus resulting in less supply and more demand for petrol in the country. 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.
Increased Demand – Economic growth in India and other developing countries has also led to the increase in demand for the petrol and other essential fuels 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.
Factors affecting Todays Petrol Price In IndiaĬost of Crude Oil – The change in the price of crude oil in the international market directly influences the price of crude oil in the domestic market this is one of the most important factors responsible for an increase in petrol prices in Indian domestic market. In any case, we are providing our readers with the daily petrol prices, so they can plan their requirements of filling petrol accordingly. On the other hand, if crude oil prices in the international markets drop, we see a fall in daily or today's petrol prices in India. So, when international crude oil prices gain, petrol prices in India move higher and so on.
In India, petrol prices are revised by the oil marketing companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum based on the international prices. When petrol prices are revised or changed every fortnight there is a big variation in prices, which puts great additional pressure on the consumer. The first and the foremost is that it allows you to easily absorb the changes in daily petrol prices in India by a few paise.