Introduction to Fuel Price in India Today

Do you know the government of India has recently introduced Dynamic Fuel Pricing system to determine the cost of petrol and diesel? Do you know the pricing mechanism of petrol in India? Are you curious to know what factors determine the fuel Price in India? You are on the right page.

Fuel Price in India
Fuel Price in India

It is important to understand the nature and scope of the oil and natural gas industry, who are the prime players of the industry, and who are the industry stakeholders before answering these questions. Let’s take a quick glimpse at these points.

Indian is one of the world’s biggest oil consumers. Among all industry lines, oil and natural gas (ONG) industry has a significant impact on the growth of the country’s economy and Gross Domestic Product (GDP). It accounts for at least 15% of GDP. The industry operates in three segments: 1) upstream, 2) downstream, 3) midstream. The upstream segment covers all activities related to exploration and production. The midstream segment deals with stowage and transportation of natural gas and crude oil. The downstream segment deals with fabrication and refining of petroleum products, storage, transportation and marketing of commodities like natural gas and crude oil.

Trend of Fuel Price in India for January 2021 (rates per litre) :

Parameters Petrol (Rates/litre) Diesel (Rates/litre)
1st January Rs.83.71 Rs.73.88
31st January Rs.86.34 Rs.76.52
Highest Rate in January Rs.86.34 Rs.76.52
Lowest Rate in January Rs.83.71 Rs.73.88
Overall Performance Incline Incline
Percentage Change 3.14% 3.57%

Monthly Fuel Price Trend in India for January 2021:

  • At the start of the month, a litre of petrol and diesel was retailed for Rs.83.71 and Rs.73.88 respectively in India. The rates didn’t see any change when the opening price was compared to the price charged on the final day of the previous week.
  • The rates of fuel increased in the country over the month. Petrol and diesel recorded its highest price for the month on 27th January with a litre costing Rs.86.34 and Rs.76.52 respectively.
  • Petrol and diesel closed the month of January at Rs.86.34 and Rs.76.52 per litre after the rates didn’t see any change since 28th January. The overall performance of both the fuels witnessed an inclining trend with the percentage change standing at 3.14% and 3.57%.

Trend of Fuel Price in India for December 2020 (rates per litre):

Parameters Petrol (Rates/litre) Diesel (Rates/litre)
1st December Rs.82.34 Rs.72.42
31st Decemberr Rs.83.71 Rs.73.88
Highest Rate in December Rs.83.71 Rs.73.88
Lowest Rate in December Rs.73.32 Rs.72.42
Overall Performance Incline Incline
Percentage Change 1.66% 2.01%

Monthly Fuel Price Trend in India for December 2020:

  • Petrol and diesel opened the month of December at Rs.82.34 and Rs.72.42 per litre in India. When compared to the closing price of the previous month, both the fuels didn’t see any change in the rates.
  • Over the month, the price of the both the fuels remained stagnant for the most part. Petrol and diesel recorded its the highest price for the month on 7th and 9th December with a litre costing Rs.83.71 and Rs.73.88. The lowest price was recorded on 5th and 1st December when the fuels were retailed for Rs.73.32 and Rs.72.42 respectively.
  • In India, petrol and diesel closed the month at Rs.83.71 and Rs.73.88 respectively. The rates witnessed an inclining trend with the percentage change standing at 1.66% and 2.01%.

Trend of Fuel Price in India for November 2020 (rates per litre):

Parameters Petrol (Rates/litre) Diesel (Rates/litre)
1st November Rs.81.06 Rs.70.46
30th November Rs.82.34 Rs.72.42
Highest Rate in November Rs.82.34 Rs.72.42
Lowest Rate in November Rs.81.06 Rs.70.46
Overall Performance Incline Incline
Percentage Change 1.57% 2.78%

Monthly Fuel Price Trend in India for November 2020:

  • In the month of November, petrol and diesel prices in India opened at the rate of Rs.81.06 per litre and Rs.70.46 per litre, respectively.
  • Over the month, the price of the both the fuels fluctuated in India. Petrol recorded its highest price for the month wherein it stood at the rate of Rs.82.34 per litre. Diesel held its highest price point at the beginning of the month wherein it was being traded at the rate of Rs.72.42 per litre. The lowest recorded price of petrol was Rs.81.06 per litre while that of diesel was Rs.70.46 per litre.
  • The overall performance of both the fuel witnessed an inclining trend during the month wherein the incline in the performance of petrol was 1.57% and that of diesel was 2.78%.
  • Trend of Fuel Price in India for October 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st October Rs.81.06 Rs.70.63
    31st October Rs.81.06 Rs.70.46
    Highest Rate in October Rs.81.12 Rs.70.63
    Lowest Rate in October Rs.81.06 Rs.70.46
    Overall Performance Stable Decline
    Percentage Change 0% -0.24%

    Monthly Fuel Price Trend in India for October 2020:

    • In the month of October, petrol and diesel prices in India opened at the rate of Rs.81.06 per litre and Rs.70.63 per litre, respectively. The price of both petrol and diesel was unchanged when compared to the previous closing rate.
    • Over the month, the price of the both the fuels fluctuated to some extent in India. While petrol displayed a steady trend, diesel portrayed a declining trend. Petrol recorded its highest price for the month at different points in time wherein it stood at the rate of Rs.81.12 per litre. Diesel held its highest price point at the beginning of the month wherein it was being traded at the rate of Rs.70.63 per litre. The lowest recorded price of petrol was Rs.81.06 per litre while that of diesel was Rs.70.46 per litre.
    • The overall performance of diesel witnessed a declining trend in India with the percentage change being -0.24%. Petrol, on the other hand, witnessed a stable performance for the month.

    Trend of Fuel Price in India for September 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st September Rs.82.14 Rs.73.62
    30th September Rs.81.06 Rs.70.63
    Highest Rate in September Rs.82.14 Rs.73.62
    Lowest Rate in September Rs.81.06 Rs.70.63
    Overall Performance Decline Decline
    Percentage Change -1.31% -4.06%

    Monthly Fuel Price Trend in India for September 2020:

    • In the month of September, petrol and diesel prices in India opened at the rate of Rs.82.14 per litre and Rs.73.62 per litre, respectively. The price of petrol was up by 5 paise when compared to the closing price of the previous month. However, the price of diesel was unchanged.
    • Over the month, the price of the both the fuels fluctuated in the city and portrayed a declining trend. Petrol recorded its highest price for the month from 1st September to 3rd September wherein it stood at the rate of Rs.82.14 per litre. Diesel held its highest price point on 1st and 2nd September at Rs.73.62 per litre. The lowest recorded price of petrol was Rs.81.06 per litre while that of diesel was Rs.70.63 per litre.
    • The overall performance of both the fuel witnessed a declining trend in India with the percentage change being -1.31% for petrol and -4.06% for diesel.

    Trend of Fuel Price in India for August 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st August Rs.80.43 Rs.73.56
    31st August Rs.82.09 Rs.73.62
    Highest Rate in August Rs.82.09 on 31 August Rs.Rs.73.62 on 10, 11, 15, 16, 22, 23, 26, 28, 29, 30, and 31 August
    Lowest Rate in August Rs.80.43 from 1 – 9 August and 12, 13, and 14 August Rs.73.56 from 1 – 9 August, 12 – 14 August, 17 – 21 August, 24, 25, and 27 August
    Overall Performance Incline Incline
    Percentage Change 2.06% 0.08%

    Monthly Fuel Price Trend in India for August 2020:

    • The price of petrol and diesel in India at the start of the month was Rs.80.43 and Rs.73.56 per litre respectively. There was no change in the price of the fuels when compared to the closing price of the previous month.
    • Petrol price in India recorded its highest price for the month on 31st August while diesel was cheapest on multiple days of the month with a litre costing Rs.80.43. Diesel price in the country didn’t see much fluctuations over the month and hovered around Rs.73.56 and Rs.73.62 per litre, the lowest and highest price for the month.
    • The overall performance of petrol and diesel witnessed an inclining trend in the country with the percentage change being 2.06% and 0.08% respectively.

    Trend of Fuel Price in India for July 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st July Rs.80.43 Rs.80.53
    31st July Rs.80.43 Rs.73.56
    Highest Rate in July Rs.80.47 on 4 July Rs.82.00 on 26 July
    Lowest Rate in July Rs.80.43 Rs.73.56 on 31 July
    Overall Performance Stable Decline
    Percentage Change N/A -8.66%

    Monthly Fuel Price Trend in India for July 2020:

    • The price of petrol and diesel at the start of the month was Rs.80.43 and Rs.80.53 per litre respectively in India. When compared to the closing price of the previous month, the rates of both the fuel didn’t see any change.
    • Petrol price in India recorded its highest and lowest price for the month on 4th and 1st of July while diesel did so on 26th and 31st of July.
    • Over the month, the performance of petrol was stable while that of diesel witnessed a declining trend. The percentage change recorded in the rates was -8.66%.

    Trend of Fuel Price in India for June 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st June Rs.71.26 Rs.69.39
    30th June Rs.80.43 Rs.80.53
    Highest Rate in June Rs.80.47 on June 29 Rs.80.53 on June 29 and 30
    Lowest Rate in June Rs.71.26 from June 1 - 4 Rs.69.39 on June 1 – 4
    Overall Performance Incline Incline
    Percentage Change 12.86% 16.05%

    Monthly Fuel Price Trend in India for June 2020:

    • In the national capital, a litre of petrol and diesel was priced Rs.71.26 and Rs.69.39 respectively at the start of the month. The opening price of both the fuels was the lowest for the month of June. Compared to the closing price of the precious month, the rates didn’t see any change.
    • The rates of both petrol and diesel witnessed an inclining trend over the month as state-run Oil Marketing Companies (OMCs) restarted the daily revision of rates from June 7. Petrol and diesel recorded its highest price for the month on 29th June with a litre costing Rs.80.47 and Rs.80.53 respectively.
    • Petrol closed the month at Rs.80.43 while diesel closed at Rs.80.53. The percentage change recorded in the rates of both the fuel were 12.86% and 16.05% respectively.

    Trend of Fuel Price in India for May 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st May Rs.69.59 Rs.62.29
    30th May Rs.71.26 Rs.69.39
    Highest Rate in May Rs.71.26 Rs.69.39
    Lowest Rate in May Rs.69.59 Rs.62.29
    Overall Performance Incline Incline
    Percentage Change 2.39% 11.39%

    Monthly Fuel Price Trend in India for May 2020:

    • A litre of petrol and diesel was retailed for Rs.69.59 and Rs.62.29 respectively on the 1st of May. The price charged on the opening day was the lowest for the month. When compared to the closing price of the previous month, there was no change in the rates.
    • The rates of both petrol and diesel increased on 5th of May after staying constant for the first four days of the month. The increase in the rates saw petrol and diesel being retailed for Rs.71.26 and Rs.69.39 respectively. These were the highest recorded price of petrol and diesel for the month of May in the country.
    • Following that, there was no change in the rates and closed the month at the same price. The overall performance of both petrol and diesel witnessed an inclining trend with the percentage change being 2.39% and 11.39% respectively.

    Trend of Fuel Price in India for April 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st April Rs.69.63 Rs.62.33
    30th April Rs.69.59 Rs..62.29
    Highest Rate in April Rs.69.63 Rs.62.33
    Lowest Rate in April Rs.69.59 Rs.62.29
    Overall Performance Decline Decline
    Percentage Change -0.05% -0.06%

    Monthly Fuel Price Trend in India for April 2020:

    • In India, petrol and diesel opened the month of April at Rs.69.63 and Rs.62.33 per litre respectively. Compared to the closing price of the previous month, the rates didn’t see any change.
    • Both the fuel witnessed a declining trend over the month with the percentage change being -0.05% and -0.06% respectively.
    • The rates of both petrol and diesel declined by 0.04 paise on 7th and 6th April as crude oil prices slipped in the international market. The drop in the prices meant petrol was retailed for Rs.69.59 per litre while a litre of diesel cost Rs.62.29 in the country. The rates remained unchanged for the rest of the month and closed at the same price even though international oil prices continued to fluctuate.

    Trend of Fuel Price in India for March 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st March Rs.71.75 Rs.64.34
    31st March Rs.69.63 Rs.62.33
    Highest Rate in March Rs.71.75 Rs.64.34
    Lowest Rate in March Rs.69.63 Rs.62.33
    Overall Performance Decline Decline
    Percentage Change -2.95% -3.12%

    Monthly Fuel Price Trend in India for March 2020:

    • Petrol and diesel opened the month of March at Rs.71.75 and Rs.64.34 per litre respectively in the country. The rates of every litre were down by 14 and 18 paise when compared to the closing price of the previous month. Over the month, both the fuels witnessed a declining trend due to weak demand.
    • With the number of coronavirus cases increasing and the demand taking a hit, the rates dropped in the country and recorded the lowest price for the month on the 16th of March. A litre of petrol and diesel was retailed for Rs.69.63 and Rs.64.34 respectively on the mentioned date.
    • In India, the rates didn’t see any change following that as lockdowns were imposed by different state governments before the central government announced a 21-day lockdown starting 25 March to order to control the spread of coronavirus. Petrol and diesel closed the month of March at the same price and witnessed a percentage change of -2.95% and -3.12% respectively.

    Trend of Fuel Price in India for February 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st February Rs.73.19 Rs.66.23
    29th February Rs.71.89 Rs.64.52
    Highest Rate in February Rs.73.19 Rs.66.23
    Lowest Rate in February Rs.71.89 Rs.64.52
    Overall Performance Decline Decline
    Percentage Change -1.77% -2.58%

    Monthly Fuel Price Trend in India for February 2020:

    • In India, petrol and diesel price opened the month of February at Rs.73.19 and Rs.66.23 per litre respectively. When compared to the previous month’s closing price, the rates of both petrol and diesel declined. The drop recorded was 13 and 11 paise respectively.
    • Petrol and diesel recorded its highest price for the month on the 1st of February. The rates dropped following that as international crude oil prices slipped given the increasing number of coronavirus cases across the world.
    • The rates of both petrol and diesel closed the month of February at Rs.71.89 and Rs.64.52 per litre respectively. Both witnessed a declining trend over the month in the country with the overall performance being -1.77% for petrol and -2.58% for diesel.

    Trend of Fuel Price in India for January 2020 (rates per litre):

    Parameters Petrol (Rates/litre) Diesel (Rates/litre)
    1st January Rs.75.18 Rs.68
    31st January Rs.73.33 Rs.66.34
    Highest Rate in January Rs.76.07 Rs.69.23
    Lowest Rate in January Rs.73.33 Rs.66.34
    Overall Performance Decline Decline
    Percentage Change -2.46% -2.44%

    Monthly Fuel Price Trend in India for January 2020:

    • In India, petrol and diesel price opened the month of January at Rs.75.18 and Rs.68 per litre respectively. While there was no change in the prices when compared to the previous month’s closing price, the rates of both the fuels slipped over the month and witnessed a declining trend.
    • Petrol and diesel recorded its highest price for the month on 11 January as global oil prices shot up due to the ongoing tensions between Washington and Tehran. A litre of petrol and diesel was retailed for Rs.76.07 and Rs.69.23 respectively on the mentioned date.
    • With declining global crude oil prices due to the outbreak of coronavirus and easing tensions in the Middle East, the rates fell in the third week of the month.
    • The rates of both the fuel continued to fall in the country with a global health emergency being declared by the World Health Organisation (WHO) due to the increasing number of coronavirus cases and deaths. Petrol and diesel closed the opening month of 2020 at Rs.73.33 and Rs.66.34 per litre respectively with the percentage change being -2.46% and -2.44%.

    Factors Impacting Petrol Prices

    1. Cost of Raw Petroleum

    The Increment in raw petroleum costs in the worldwide market is one critical figure in charge of increment in petrol prices in Indian household market.

    2. Increase in Demand

    Petrol prices in India have elevated in response to healthy economics of the country and other emerging Asian countries.

    3. Misalignment between Demand and Supply

    Indian oil organizations confront issue to reach the petroleum demand with deficiency of supply and production from refinery centers. Petrol prices shall vary in case there is a misalignment between supply and demand.

    4. Tax

    The tax structure for petrol and petroleum products is governed by the Indian government. Oil companies in India will hike fuel prices to recoup losses when there is a jump in tax rate. When the state government increases the VAT on petrol, petrol rates shall increase. If the state government taxes are reduced, petrol rates shall decrease.

    Factors Determining Petrol Price at Bunks

    1. Seasonal Variations

    North American petroleum segment has two as opposed to four seasons: the summer season and the winter season. Extracting fuel will vary in view of the season. By and large, refiners take the benefit of the shift in seasons for maintenance that leads to sluggish fabrication activities. As a result, petro prices at bunks shall be augmented.

    2. Weather Conditions

    A sea tempest in the Gulf of Mexico that pulverizes oil amenities has prompt outcomes. Less oil shall be extricated if penetrating apparatuses are pulverized. In addition to this, if transportation or refineries are interrupted, there shall be less polished gasoline accessible. In this way, petrol rates are impacted.

    3. Increase in Demand

    The price of a particular product tends to increase when it is in deficit supply but has more demand. For oil, this is valid across the globe, especially in developing economies like India and China. As a general rule, the higher demand for petrol, the higher shall be petrol prices. The lesser the demand for petrol, the lesser shall be petrol prices.

    4. Global Reserves and Production Conditions

    The projection with respect to the conditions of polished gasoline surpluses and oil seldom incite dread of a conceivable product shortfall. As polished gasoline and oil are traded on the stock exchange, the slenderest concern leads to raised prices. Simply the dread of not having the desired level of oil results in increased price.

    5. Restricted Refining Capabilities

    In the course of recent decades, a few refineries in North America have shut because of high running expenses. Any misalignment between refineries and oil fabrication can cause a hike in the price structure of polished gasoline.

    6. Debasement of the US Dollar

    Refined gasoline and raw petroleum are traded in US dollars. At the point when the US dollar devalues, makers tweak their prices to evade losses.

    Dynamic Fuel Pricing or Daily Revision of Fuel Pricing

    Indian oil marketing companies used to revise diesel and petrol prices on a fortnightly basis, which means on the first and sixteenth of each month. The retail selling price of diesel and petrol shall be revised on a daily basis in dynamic fuel pricing. The scheme has been brought into action on 16th June 2017. It is in place in five cities of the country, including Udaipur, Visakhapatnam, Chandigarh, Jamshedpur, Puducherry since 1st May, 2017.

    Dynamic Fuel Pricing is also called daily revision of Diesel Prices and petrol prices. The move assures that the advantage of even a minute variation in global oil prices may be transmitted to fuel users and dealers. Fuel users shall be mapped to market rates. Revising Diesel Price and petrol prices on a daily basis fosters transparency, encourages the automation drive of dealers, and boosts appropriate stock management practices.

    Impact of Dynamic Fuel Pricing in India

    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. OMCs are owned by states. Hence, they are not permitted to hike fuel prices during the election time since it harms consumers. The government instead permits them to price more even if global oil prices are falling. Revising fuel prices on a daily basis leaves no impact to consumers as global oil prices shall not change much on a daily basis. Fuel prices in India are largely affected if there is a major global event affecting crude oil price.

    Countrywide Petrol Price Comparison

    India has restricted petroleum surpluses. The country’s oil consumption is mounting at a decent rate as per recent statistics. Other largest oil consumers are Japan, South Korea, Russia, Mexico, Germany, Canada, China. Despite currencies, the factors influencing petrol pricing are more or less the same, but the percentage of allocation will vary from one nation to another.

    India is an agricultural-oriented nation and seeks to harness the economy through higher diesel subsidies. Due to which, diesel is priced lower than petrol. This may not be the case with some other economies. Moreover, every country has different importing patterns that will influence Petrol Price. A country with a lower import rate has a lower price charged for both diesel and petrol.

    Oil marketing corporations have revised the additional tax remitted towards several state taxes. This has prompted costs of oil-based commodities expanding in states, for example, West Bengal, Gujarat, Karnataka, Maharashtra,Mumbai, Assam. The Irrecoverable Taxes Compensation Scheme of 2002 was needed to be audited to mirror the costs in states where irreversible duties had seen a decay.

    INR/USD Exchange Rate

    The INR/USD is one of the highly volatile currency pairs traded in the Forex market. The INR is the domestic currency of India whereas the USD is the currency of the US. The USD is considered as the base currency in overseas markets. The INR can be symolised as Rs or IRs whereas the American dollar can be symbolised as $. The Indian currency is clustered into 100 paise. Conversely, the USD is clustered into 100 cents. The exchange rate of INR/USD plays an important role in overseas transactions, including import and export of crude oil. Crude oil should be paid in dollars since it is not a domestic commodity.

    An exchange rate is a rate at which the currency of one country is converted into the currency of another currency. It might change on a daily basis with the steadily changing market conditions. Similarly, the INR/USD exchange rate is influenced by many factors. The common influencers include the rate of interest, the rate of inflation, the current account of India and the USA, the terms of trades, speculation, recession, the political stability of India and the USA, etc.

    Prediction of USD

    Prediction of USD/INR 2019

    Month Open Close Low High
    January 69.08 69.20 68.16 70.24
    February 69.20 69.45 68.41 70.49
    March 69.45 68.83 67.80 69.86
    April 68.83 66.93 65.93 68.83
    May 66.93 66.14 65.15 67.13
    June 66.14 65.70 64.71 66.69
    July 65.70 65.08 64.10 66.06
    August 65.08 66.95 65.08 67.95
    September 66.95 67.08 66.07 68.09
    October 67.08 66.66 65.66 67.66
    November 66.66 66.96 65.99 67.99
    December 66.99 66.13 65.14 67.12
    Prediction of USD

    Crude Oil

    Crude oil, also called black gold, is a naturally available raw petroleum derivative made out of hydrocarbon stores in natural underground repositories. It can fluctuate in color to several shades of yellow and black based on its hydrocarbon blend and stays fluid at a temperature and climatic weight. Crude oil, also called raw petroleum, can be turned into usable petroleum derivatives like diesel, gasoline, several categories of petrochemicals.

    Transacting in raw petroleum has continuously been immaculate on a global scale though it is delivered by a few corporations. Intermediaries supply up to 80% of worldwide raw petroleum in extensive carriers and a major portion of remaining via underground pipelines. The Middle East retains a bigger margin of surpluses followed by Europe, North America, Eurasia. It is extremely important for business partners such as exporters, subject matter experts (SMEs), intermediaries, manufacturers to wisely handle the element of risk involved while dealing in crude oil.

    Crude oil market influencers

    • Universal geopolitics
    • Weather reports
    • Refinery consumption ratio
    • OPEC surge
    • Speculation in selling and buying
    • Consumption and demand pattern for oil in emerging economies

    Crude Oil Primary Categories

    A few people self-assertively consider oil to be a solitary, indistinctly identical material with no exceptional separation, but this is really not the situation by any means! Undeniably, it has many categories and goes in thickness and constancy, from unstable variability, light heaviness and thin to a greater degree of thickness. There is an enormous degree of shading additionally. Petroleum sector uses references to topographical localities keeping in mind the end goal to unmistakably group raw petroleum. It can be accredited to the fact that oil from various topographical areas shall normally have its own attributes. These oils fluctuate significantly from each other with regards to their consistency, unpredictability, poisonous quality.

    1.Light distills consist petroleum ether, jet fuel, petroleum spirit, kerosene, petroleum naphtha, gasoline, heavy virgin naphtha, light virgin naphtha. These can vanish in a day or two and are highly explosive in nature.

    2.Middle distills consist light crude marine gas oils, most domestic fuels, diesel fuel oils, grade 1 and 2. This category is reasonably unpredictable and adequately dangerous.

    3.Medium oil constitutes a major proportion of raw petroleum available nowadays.

    4.Heavy fuel oils consist heavy marine fuels, intermediate, overwhelming unrefined oils, grade 3, 4, 5 and 6 fuel oils. This group can moderately vanish and, however, harmfulness is exceedingly expanded.

    Three Important Crude Oil Categories often seen in News

    1.West Texas Intermediate (WTI) is a premier quality unrefined oil and highly treasured.

    2.Brent Blend is a composition of various oil from 15 turfs across the Ninian systems and Scottish Brent cited in the North Sea.

    3.Organization of Petroleum-Exporting Countries (OPEC Basket) is a composition of seven categories of unrefined oil from the Mexican Isthmus, Venezuela, Nigeria, Algeria, Saudi Arabia.

    Crude Oil Price Determinants

    The biggest factor involved in the retail price of gasoline is the cost of unrefined oil that shall vary seasonably and across all parts of the nation. Both demand and supply side factors determine the price of crude oil. Economic growth at a global level significantly impacts demand pattern. Oil prices are responsive to interruptions in the national and transnational surge of unrefined oil.

    The Organisation of the Petroleum Exporting Countries (OPEC) sets a higher fabrication level on its participants to impact oil prices sometimes. The price of gasoline comprises taxes imposed by both state and central governments, refining expenses and profits, selling and distribution expenses. Refining expenses and profits will vary seasonably. The cost price of other elements like ethanol is also included in gasoline prices. Augmented demand in the summer for gasoline leads to higher prices.

    Gasoline:

    On the basis of octane levels, gasoline is marketed in three categories that include premium, regular, midgrade. A fuel’s octane level alludes to its confrontation to ignition. A higher level octane is said to have less inclined to pre-start and explosion. Premier category of gasoline is more expensive than other grades. Fuel with a higher level of octane is priced more by refineries. The retail price of gasoline involves three important elements, which are taxes, cost of unrefined oil, refining expenses, selling and distribution expenses. All these elements are included in retail prices in addition to the losses and profits of distributors, refiners, sellers, retail store proprietors.

    Refined Petroleum Product Categories

    Refined petroleum products are extracted from crude oil via processes like proportional purification and catalytic cracking. The physical and chemical features of these products will vary according to the categories of crude oil and successive refining processes.

    1.Gasoline is a lightweight petroleum product that surges easily and feasts immediately. It may vanish fully under moderate situations within a few hours.

    2.Kerosene is also a lightweight petroleum product that surges easily, feasts instantly, and vanishes quickly.

    3.No.2 fuel oil, a lightweight petroleum product, surges easily and feasts instantly.

    4.No.4 fuel oil, a medium-weight petroleum product, surges easily and feats instantly.

    5.No.5 fuel oil is a medium-weight to heavyweight petroleum product with reasonable flash point and a low instability.

    6.No.6 fuel oil is a heavyweight petroleum product that is complicated to pump and necessitates preheating for consumption.

    7.Compressed Natural Gas (CNG) may be utilised in lieu of petrol.

    8.Liquefied Petroleum Gas (LPG) is a composition of butane and propone.

    Technology Breakthrough in Oil and Gas

    Over the last decade, oil and natural gas industry has experienced tremendous technology breakthrough in projecting, scouting, and fabricating oil and gas. Technology, which is in use nowadays, covers everything from supercomputers to nanotechnology. Seismic imaging enables drillers to reach gas and oil caught miles undersea and underground. A few technologies that can completely streamline the business of oil and gas are the digital oilfield, 4D seismic technology, the new normal. The digital outfield is a platform that tracks, assesses, and manages all the information sourcing from all across the oilfield. The new normal is used to identify the quantum of natural gas and oil. Petroleum geophysicists and geologists use 4D seismic technology to plot and analyse latent hydrocarbon surpluses. Oil production companies have begun investing to gain the best from these technologies.

    Global Oil Projections

    A recent study on global oil prices has revealed that there is a considerable amount of uncertainty. The range in which global oil prices either increase or decrease shall be reasonably thicker. There has been a stable, consistent rise from the stance of Indian petrol rates.

    Price variations in petrol and diesel affect a majority of Indian population and are vastly debated. Both petrol and diesel are considered strategic commodities that play a significant role in the overall socio-economic growth of a nation. These commodities should be optimally utilised to address uncertainties related to supply that in turn impacts the functioning of any economy.

    *Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.

    FAQs on Fuel Price in India

    1. Who is in control in regulating the pump prices in India?

      Petrol and diesel prices have been deregulated by Indian Government in June 2010 and Oct 2014, respectively.

    2. What factors affect fuel prices?

      The cost of buying finished product in the country which is cheaper than importing product, state-wise Government excise duty and tax rates, fuel subsidies initiated by the Government and currency fluctuations, all play important role in the rise or decline of fuel prices.

    3. What impact does US exchange rate has on fuel prices in India?

      The crude oil market across the globe is traded in US dollars. So, any fluctuations in the US exchange rate is bound to have an effect on fuel prices in India.

    4. What are the major components that constitute fuel prices in India?

      Central government excise duty and taxes, state government taxes, operating and product costs are some of the major elements that constitute fuel prices in India.

News About Fuel Price In India

  • Union Budget 2021 – Government proposes farm cess on petrol, diesel

    Finance Minister Nirmala Sitharaman in her budget speech proposed farm cess of Rs.2.50 per litre on petrol and Rs.4 per litre on diesel. She added that there would not be any additional burden on the consumer overall as a reduction of basic customs duty has also been proposed on these items.

    Consequently, unbranded petrol and diesel will attract basic excise duty of Rs 1.40 and Rs 1.80 per litre respectively while the Special Additional Excise Duty (SAED) on unbranded petrol and diesel shall be Rs.11 and Rs.8 per litre.

    01 February 2021

  • Diesel price increase to Rs.75.13 in the national capital

    Diesel price in the national capital was increased by 25 paise on Monday. The hike seen in the rates was same to that of petrol. Following the increase in the price of diesel, a litre of diesel was retailed for Rs.75.13 in Delhi, the national capital. In Mumbai, diesel rate touched a record high after the price climbed to Rs.81.87 while in Kolkata and Chennai consumers were charged Rs.78.72 and Rs.80.43 respectively for a litre.

    In India, oil companies revise the price of fuel as per the dynamic pricing scheme which was adopted in June 2017. As per the mechanism, the rates are dependent on international oil rates and the rupee – US dollar exchange rate. It must be noted here that on Friday Brent crude futures were down by 1.51 percent and was trading at $55.57 per barrel while the value of rupee stood at 73.07 against the US dollar.

    18 January 2021

  • Petrol rates remain unchanged on Sunday

    State-run Oil Marketing Companies (OMCs) kept the rates of petrol unchanged on Sunday. This was the second consecutive day when the price of the fuel saw no change. A litre of petrol was retailed for Rs.84.20 in Delhi, the national capital while in Mumbai consumers were required to shell out Rs.90.83 for a litre. The price charged in the national capital was the lowest among all the metropolitan cities while in Mumbai, the price was the highest. In Kolkata and Chennai OMCs charged Rs.85.68 and Rs.86.97 respectively for a litre.

    In the international market, the futures of Brent crude and US West Texas Intermediate (WTI) crude climbed by $1.61 and $1.41 respectively and settled at $55.99 and $52.24 per barrel. The increase in the rates was seen following Saudi Arabia’s pledge to cut output and strong gains in major equity markets.

    It must be noted here that fuel rates in India are revised daily and is dependent on international oil rates and the rupee – US dollar exchange rate.

    10 January 2021

  • Fuel rates remain unchanged for 10th day in row

    Prices of petrol and diesel on Thursday remained unchanged for the 10th consecutive day. The prices of petrol and diesel had risen for six consecutive days. However, no changes were made to the prices by the oil marketing companies on Thursday.

    Price of petrol in Delhi rose by Rs.2.65 per litre during these 17 days, while diesel prices grew by Rs.3.40 per litre.

    18 December 2020

  • Increase in diesel and petrol prices for the second consecutive day

    The prices of diesel and petrol were increased by oil marketing companies for the second consecutive day after a gap of 2 days. In metros, the hike was approximately 20 paise, making it the 11th hike in the past two weeks. In Delhi, the price of petrol was increased from Rs.82.49 per litre to Rs.82.66 per litre while the price of diesel was hiked to Rs.72.84 from Rs.72.65 per litre. In Mumbai, the revised petrol and diesel rates were Rs.89.33 per litre and Rs.79.42 per litre respectively. This is effective from 29 November from 6 am.

    4 December 2020

  • Diesel prices unchanged across the metros on 5 October 2020

    OMCs that are controlled by the state government did not make any changes to the prices of diesel across all the metros in India on 5 October 2020. The price of diesel in the national capital remained the same when compared to 4 October and is at Rs.70.46 for a litre. OMCs revise diesel prices across all the metros on a daily basis. The prices of diesel in Kolkata, Chennai, and Mumbai are at Rs.73.99, Rs.75.95, and Rs.76.86 for a litre, respectively. Most of the diesel stations in the country are accounted for by the state-run companies. Diesel prices depend on several factors such as the value of the rupee against the dollar, the crude oil prices in the international markets, and the excise duty.

    5 October 2020

  • Demands for petrol finally gets back to pre-Covid level

    As India's petrol sales have increased for the very first time after the lockdown. The sales for petrol between the dates, 1 September and 15 September had increased by 2.2% year-on-year. The sales had been high by 7% more than the previous month.

    The sales for diesel have been very low and the demand has been falling by 6%. However, the demand had been 19.3% higher more than August 2020.

    The petrol sales had risen to 9,65,000 tonnes within the first half of September. This has been compared to 9,45,000 tonnes during the very same period which was one year ago and also, 9,00,000 tonnes during 1 August to 15 August. The demand for diesel, which is a very common consumed fuel in India had fallen to 2.13 million tonnes from 2.25 million tonnes in September 2019.

    20 September 2020

  • Plea against increase of petrol, diesel prices dismissed by SC

    On Tuesday, Supreme Court (SC) dismissed a public interest litigation (PIL) seeking deregulation of petrol and diesel prices. The petition which was filed by a Kerala-based advocate had stated that Oil Marketing Companies (OMCs), which were directly under the operational control of the central government were increasing fuel rates in the country on a daily basis even though international oil prices have been at an all-time low since the month of April. The petitioner had highlighted that the current price of crude oil was hovering at around Rs.38 per barrel and the total cost of manufacturing and selling of both the fuels was around Rs 30 per litre. It must be noted here that the price charged for a litre of petrol and diesel was over Rs.80 in the country, which is over 150 percent of the manufacturing cost.

    The petitioner's lawyer chose not to pursue the case after Justice Rohinton Nariman asked whether he seriously wanted to argue on the topic. The lawyer accepted that the matter fell under the ambit of the government’s policy decision.

    8 September 2020

  • Demand for fuel in India may take up to 9 months to hit normal levels

    According to the Director of Finance of Indian Oil Corp, the demand for fuel in India may take up to 9 months to recover to normal levels. Since April, fuel sales have fallen by around 45.80% due to the coronavirus outbreak and the subsequent lockdown. However, lockdown restrictions have been eased in several parts of the country since the beginning of May. After seeing a recovery in May, fuel sales have again dropped in the month of June. The hopes of recovery have been obliterated due to an increase in the number of coronavirus cases. The latest lockdown restrictions are affecting the economy and there are no signs that the infection will reduce.

    5 August 2020

  • Diesel prices unchanged by state-run OMCs across the metros

    Oil marketing companies that are managed by the state did not make any changes to the prices of diesel across the metros in India on 30 July 2020. Diesel prices vary from state-to-state due to VAT. In Delhi, the prices of diesel continue to be more than the prices of petrol. From 7 June 2020, OMCs began revising the prices of diesel on a daily basis. Before that, no revision of prices had taken place for 82 days in a row. The updated prices of diesel in Chennai, Mumbai, Kolkata, and Delhi are Rs.78.86, Rs.80.11, Rs.77.04, and Rs.81.94 for a litre, respectively. Since India imports 83% of its crude requirements are imported, the value of the rupee against the dollar and the crude oil prices in the international markets determine the prices of diesel in the country.

    30 July 2020

Petrol Price In Metro Cities
Diesel Price In Metro Cities
Petrol Price In States
Diesel Price In States

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