India oil marketing companies (OMC) in India will always announce the prices of diesel/petrol at 6 am, but they do not matter if the price has gone up or down. This method, in turn, brings the consumers up to speed daily with the latest fuel rates.
OMCs set rates based on changes in the crude oil price at the world level and the foreign currency rate.
The pricing of petrol and diesel in India is also affected by other factors involved in transportation, such as freight charges, value-added tax (VAT) and local taxes, which thus make a significant contribution in inflating the rates market-wise.
For instance, in Mumbai, diesel prices have risen to 104.21 per litre, surpassing the Rs. 100 mark, whereas diesel is Rs. 92.15 per litre. In Delhi, the per-litre cost of Petrol will come to Rs.94.72, while the price of diesel is Rs.87.62 per litre.
The government manages the price of fuel through measures that include maintenance excise tax, base pricing, and price capping. Last night, the country broke down petrol and diesel by rupee 2 per litre at all retail outlets.
Besides these, factors like the price of crude oil, exchange rate variations between the Indian rupee and the US dollar, refining costs, and government taxes also play a vital role in calculating the final bill of petrol and diesel. The continuation of requesting gasoline and diesel can also contribute to the price alteration.
