Petrol & Diesel Prices in India — How It Works
Petrol and diesel prices in India are revised daily at 6:00 AM by oil marketing companies (Indian Oil, Bharat Petroleum, Hindustan Petroleum). Prices vary between cities due to state VAT, local body tax, and dealer commission. Mumbai has the highest fuel prices due to Maharashtra's high state VAT, while Delhi remains relatively cheaper.
Why Are Fuel Prices Different in Each City?
- Central Excise Duty — ₹19.90/L on petrol, ₹15.80/L on diesel
- State VAT — Varies from 15% to 40% across states
- Dealer Commission — ₹3.68/L for petrol, ₹2.53/L for diesel
- Crude oil price — International benchmark affects base cost