The prices of petrol and diesel have been revised across several major cities in India, reflecting fluctuations in global crude oil prices and domestic taxation policies. The latest revision, announced today, has led to varied price changes in different states, affecting consumers, businesses, and the overall economy.

Latest Fuel Price Changes

As per the latest update from oil marketing companies (OMCs), petrol and diesel prices have been adjusted based on international crude oil rates, currency exchange fluctuations, and local state taxes. While some cities have witnessed a marginal hike in fuel costs, others have seen slight relief.

In Delhi, petrol prices have increased by ₹0.50 per liter, bringing the new price to ₹97.20, while diesel rates have risen by ₹0.40 per liter, now costing ₹90.50. Mumbai, which traditionally has one of the highest fuel prices in the country, saw petrol reaching ₹106.80 per liter and diesel at ₹94.20 per liter. Similar revisions have been observed in Chennai, Bengaluru, and Kolkata, with varying degrees of change.

Factors Affecting Fuel Prices

The primary reason behind the latest fuel price revision is the rise in global crude oil prices. International oil prices have been volatile due to geopolitical tensions, supply chain disruptions, and production cuts by major oil-producing nations. Additionally, fluctuations in the Indian rupee against the US dollar have impacted import costs, influencing domestic fuel rates.

Another key factor affecting fuel prices is state-imposed taxes. Since fuel prices in India are not under the Goods and Services Tax (GST), state governments levy their own Value Added Tax (VAT), leading to price differences across states. For instance, states like Maharashtra and Tamil Nadu have higher VAT rates, resulting in costlier fuel compared to states like Uttar Pradesh and Haryana.

Impact on Consumers and Businesses

The revision in fuel prices has a direct impact on transportation costs, inflation, and overall economic activity. Higher fuel prices lead to increased costs for logistics, public transport, and essential goods, affecting both consumers and businesses. Industries reliant on transportation, such as e-commerce, agriculture, and manufacturing, may face higher operational expenses, which could be passed on to consumers.

Conclusion

Fuel price fluctuations continue to be a significant concern for Indian consumers, with external factors like global crude oil rates playing a crucial role. The government is under pressure to manage fuel prices while balancing economic growth and inflation control. Citizens and businesses will need to adapt to these changes as fuel remains a critical component of daily life.