Fuel prices remained flat for the 18th consecutive day across all metropolitan cities on Sunday after state retailers raised petrol and diesel prices by ₹10 per liter since price reviews restarted the March 22, after a hiatus of four months earlier.
Here are the gasoline and diesel price updates as of April 24, 2022:
In Delhi, a liter of petrol retails at Rs 105.41 and diesel costs Rs 96.67. In Mumbai, petrol is priced at Rs 120.51 per liter and diesel costs Rs 104.77. In Chennai, petrol is sold at Rs 110.85 per liter and diesel costs Rs 100.94. Petrol is priced at Rs 115.12 in Chennai, and diesel is priced at Rs 99.83.
Since price reviews restarted on March 22, after being suspended for nearly four months, state-owned retailers have raised petrol and diesel prices by Rs 10 per litre, respectively, an increase of 14 times. The last rate hike was on April 6, when petrol and diesel prices were increased by 80 paise.
Fuel tariffs were last increased by 80 paise per liter on April 6, the 14th increase since the restart on March 22 to overhaul prices – driving up petrol and diesel prices by ₹10 per liter , respectively.
The Russian-Ukrainian war and subsequent sanctions against Moscow by Western countries and its allies have disrupted energy supply chains. This led to a spike in global crude prices. Indeed, the London-traded international benchmark, Brent, hit multi-year highs shortly after Russia’s invasion of Ukraine and remained above $100 a barrel, exception of some brief dips below this level.
The price of India’s crude oil basket has risen 8.5% in the past few days – between April 11 and April 21 – with an average cost of around $103 a barrel, suggesting likely upward pressure on stocks. domestic fuel prices.
Indeed, if the upward trend in global crude and the price of the Indian oil basket continues, retailers would be forced to raise prices at the pump.
State retailers set fuel prices daily based on the dynamic fuel price methodology. The price revisions method, or the dynamic fuel price methodology, takes into account several factors such as international crude prices, the exchange rate of the rupee against the dollar, actual and expected demand and trade flows. in world crude oil markets.
In addition, Central Tax or Excise Duty, Value Added Tax (VAT) – which varies from state to state, and Retailer’s Commission are included to derive the retail price of fuel.
More than 57% of the retail price of fuel per liter is spent on taxes, duties, levy and dealer markups. These costs therefore included determining the final retail price of fuel at gas pumps.
States decide that Value Added Tax (VAT) varies from state to state, and Mumbai tops the list of metros for the highest fuel prices.