India Petrol Prices Hinge on International Crude Oil Rates and Rupee Value
Currently, petrol is retailing at Rs 102.12 per litre in Delhi, while it costs Rs 103.54, Rs 107.74, and Rs 113.51 per litre in Mumbai, Chennai, and Kolkata respectively.
The prices are dynamic and change daily based on the benchmark international rate of the preceding 15 days. The review is conducted by state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL).
India imports about 80% of its oil needs, making domestic pump rates dependent on international prices as denominated by the Indian basket of crude oil. Other factors affecting petrol prices include central excise duty, VAT or value-added tax levied by state governments, dealer and refining margins, and transportation costs.
A weak rupee increases the landed cost of dollar-denominated crude oil, further impacting fuel prices.