Why Petrol and Diesel Prices Change Frequently
Petrol and diesel prices change frequently due to a combination of global and domestic factors. One of the primary reasons is the fluctuation in international crude oil prices, as India imports a large portion of its crude oil requirements. Any rise or fall in global oil prices directly impacts fuel costs in the country.
Another key factor is currency exchange rates. Since crude oil is traded in US dollars, changes in the value of the Indian rupee against the dollar influence fuel prices. A weaker rupee increases import costs, leading to higher petrol and diesel prices.
Government taxes also play a significant role. Central and state taxes, including excise duty and VAT, form a major portion of fuel prices. Any revision in tax rates can result in immediate price changes. Additionally, market demand, refining costs, transportation expenses, and dealer commissions contribute to daily price variations.
Due to these factors, petrol and diesel prices are revised regularly to reflect current market conditions, ensuring alignment with global trends and domestic economic factors.
