Petrol Prices Influenced by Multiple Factors, Not Just Crude Oil Rates

The Indian government has clarified that petrol prices are influenced by multiple factors beyond crude oil rates.

In response to recent oil price fluctuations, the Ministry of Petroleum attributed higher retail prices to state governments due to Value Added Tax (VAT).

Retail fuel prices are determined by several factors, including international crude oil prices, exchange rates, freight and logistics costs, central and state taxes, ethanol procurement costs, and refining and operational expenses.