In India, petrol prices are revised by the oil marketing companies like Indian oil, Bharat Petroleum and Hindustan Petroleum based on the international prices. So, when international crude oil prices gain, petrol prices in India move higher and so on. On the other hand, if crude prices in the international markets drop, we see a fall in daily petrol prices in India. The fuel is one of the costliest, when compared to neighboring countries like Pakistan, Bangladesh and Sri Lanka. It may be recalled that petrol and diesel prices were earlier subsidized by the government, but, the same were aligned to market prices.
However, the government has over the years added to excise duty on petrol, which has made it horribly expensive for consumers. The rates of fuel are revised everyday at 6 am in the morning. The change in domestic fuel prices varies from state to state and it also depends upon international crude prices and the value of rupee. Domestic petrol prices were hiked by around 10-11 paise per litre on Monday, while diesel rates were kept unchanged. Today, with effect from 6 am, the price of petrol was revised to Rs. 71.77/litre and Rs. 77.38/litre in Mumbai, from Rs.71.67/litre and 77.28/litre the previous day, according to the notifications from Indian Oil.
The price of diesel stood at Rs. 66.64/litre in Delhi and 69.83/litre in Mumbai – same as the previous day, according to Indian Oil Corporation. Currently, the prices of petrol and diesel in the country are reviewed by state-run oil marketing companies such as Indian Oil Corporation on a daily basis. Any revisions are effected at the fuel pumps at 6 am. The domestic fuel prices vary from state to state, and are determined broadly by the global crude oil and rupee-dollar forex rates. Oil Marketing Companies, which have not fiddled with the prices much in the past months amid ongoing polls, are likely to pass the burden to the consumers.