Increasing gasoline and diesel prices can eat into your money by increasing your monthly budget for not only fuel but also vital commodities and other items
Since May 4, fuel prices have risen 24 times, including eight times in June alone. Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Ladakh, and Karnataka are among the seven states and union territories where petrol prices have surpassed Rs 100 per litre. While Mumbai became the first metro in the country to sell petrol at Rs 100 on May 29, Bhopal became the first state capital to do so on May 12. Petrol costs Rs 102.88 in Mumbai and Rs 104.91 in Bhopal as of June 17.
Smaller cities have higher gasoline prices. Cities in Rajasthan, such as Hanumangarh and Ganganagar, have reached new highs of Rs 106 and Rs 107, respectively. In Madhya Pradesh, petrol costs Rs 106 in places including Umaria, Sidhi, Shivpuri, Sheopur, Satna, Panna, Khandwa, Dindori, Chhatarpur, Burhanpur, Balaghat, Badwani, and Alirajpur, and Rs 107 in Anuppur, Rewa, and Shahdol.
In 2010, the government set the price of gasoline, which was updated every two weeks. Diesel prices were deregulated in 2014, and since 2017, they have been adjusted on a daily basis. According to a March 8 Lok Sabha response, the public sector Oil Marketing Companies have been basing their pricing decisions on international product prices, exchange rates, tax structure, inland freight, and other cost variables since then.
Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited are some of the state-owned businesses that set retail petrol and diesel rates in the country. There are four key elements that drive price increases:
The dealer receives crude oil, freight, and processing fees.
The government imposes an excise duty.
The gas station receives a commission from the dealer.
The state government imposes a value-added tax.
Every day at 6 a.m., the price of petrol and diesel is changed, and the price of crude oil on the worldwide market has a direct impact on gasoline costs in India. Import costs rise in lockstep with international pricing.