Petrol Costs Just Rs 56.33 In Delhi Then Why You End Up Paying More Than Rs 100/Litre?

Prices of petrol in Delhi have already crossed the Rs 100/litre mark and continues to hover between Rs 105.41/Litre and Rs 105.41/Litre for the last 10 days period. Prices of petrol are revised everyday since June 2017 under the Dynamic Fuel Price Method. The prices of both the fuels petrol and diesel are changed everyday at 6 in the morning. Earlier, the prices were revised every fortnight.

Several factors play key role in determining petrol and diesel prices that may include the Rupee to US Dollar exchange rate, global cues, fuel demand, and crude oil cost, etc. When there is a surge in the international crude oil prices it directly impacts the prices in India. In other words, higher the international crude oil prices, higher the fuel prices in India.

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According to a research report, petrol prices in India are less than prices in nations such as Germany, Hong Kong, and UK. However, fuel prices are more in India when compared with countries like USA, China, Japan, and Brazil.

Rising global crude oil prices lead to higher prices of fuel in India and the robust US Dollar also adds to the cost of crude oil. Meanwhile, petrol and diesel prices in India are the same as the prices in Australia, South Korea, and Turkey.

According to data available, the base price of petrol as on May 16, 2022 is Rs 56.33 then why are you shelling out Rs 105.41 to purchase 1 litre of petrol. It is because there are several costs that are added and consequently the final price of the fuel surges high. The various elements that are added to the cost of petrol include excise duty, dealer commission, and VAT. After adding all these elements, the selling price of petrol get almost doubled.

Meanwhile, the VAT of state to state differs and this is reason why fuel prices of different states are not same.