Petrol And Diesel Prices Remain Unchanged On March 6

Petrol and diesel prices remained the same across the major cities in India on March 6, as per the data provided by the Indian Oil Corporation, while the crude oil markets are going through a volatile period.

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The price of petrol remained the same in Delhi, at ₹94.77 per litre, and the price of diesel remained the same, at ₹87.67 per litre. In Mumbai, the price of petrol remained the same, at ₹103.49 per litre, and the price of diesel remained the same, at ₹90.03 per litre.

Retail fuel rates vary across cities due to differences in value-added tax (VAT), transportation charges and local levies imposed by state governments.

Prices of Fuels in Major Indian Cities

The price of petrol in Mumbai was at ₹103.49 per litre, while the price of diesel was at ₹90.03 per litre as of March 6, according to IOC figures.

In Kolkata, the price of petrol remained steady at ₹103.94 per litre, while the price of diesel remained steady at ₹90.76 per litre. In other major cities such as Bengaluru and Hyderabad, the price of petrol remained above ₹100 per litre.

In Patna, petrol prices remained above the ₹100 mark, while diesel prices continued to remain below ₹100 per litre in several cities, according to IOC.

Fuel prices across India have largely remained unchanged for an extended period, even as international crude oil prices have fluctuated.

Domestic Fuel Prices Stable Since 2022

Fuel prices in India have been relatively unchanged since May 2022, when the Centre and several state governments reduced the excise duty and VAT on petrol and diesel, respectively.

According to notifications issued by the Centre at the time, the decision to reduce the tax rates on petrol and diesel was taken with the aim of reducing inflationary pressure resulting from rising crude oil prices globally.

Despite the volatility of crude oil prices in the global market, domestic fuel prices have been relatively stable in the last few years.

The recent movements in oil prices are driven by geopolitical events in West Asia, with market participants closely monitoring events related to possible supply disruptions via the Strait of Hormuz, an important oil chokepoint for global oil supply.

Factors That Influence Petrol And Diesel Prices

Fuel prices in India are regulated under a dynamic price mechanism followed by oil marketing companies such as Indian Oil Corporation, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd, among others.

The major factor influencing the prices of petrol and diesel is the price of crude oil in the global market, as it is the major raw material used for the production of such fuels.

The rupee–U.S. dollar exchange rate also plays an important role because India imports a large portion of its crude oil requirements. A weaker rupee can raise the cost of crude oil imports.

Taxes imposed by the central and state governments form a substantial part of retail fuel prices. Differences in transportation costs and the local balance of supply and demand also affect the prices of petrol and diesel in various Indian cities.