Petrol and Diesel Prices Steady in Major Indian Cities
On September 2, petrol and diesel prices remained steady across key metropolitan cities in India, with no major changes reported. In Mumbai, petrol was priced at ₹111.21 per litre, and diesel at ₹97.83 per litre, both matching the previous day's rates. Delhi saw petrol at ₹102.12 per litre and diesel at ₹95.20 per litre, reflecting relatively lower fuel costs compared to other metros.
Chennai's petrol was ₹107.77 per litre and diesel ₹99.55 per litre, both slightly down from the previous day. Kolkata's diesel stood at ₹99.82 per litre, while Bengaluru recorded petrol at ₹111.68 per litre and diesel at ₹99.56 per litre. Hyderabad saw the highest metro rates, with petrol at ₹115.69 per litre and diesel at ₹103.82 per litre.
Why Fuel Prices Vary Across Cities
Retail fuel prices in India vary across states and cities due to the incidence of local value-added tax (VAT), freight charges, and taxes levied by both central and state governments, which make up a substantial portion of the final price. Transportation costs and prevailing demand-supply conditions also factor into the retail price consumers see at the pump.
The rupee-dollar exchange rate is a key variable in determining retail fuel prices, given that India relies heavily on imported crude. A weaker rupee raises the cost of procuring crude, which can feed directly into higher retail fuel prices.
Government Revises Export Levies
The central government notified revised Special Additional Excise Duty (SAED) rates effective September 1, raising the windfall levy on outbound shipments of petrol and diesel while marginally trimming duties on jet fuel. The SAED on diesel exports, including the road and infrastructure cess, increased by ₹1 to ₹25 per litre, up from ₹24 per litre. The petrol export duty was reintroduced at ₹1.50 per litre, up from zero. The export levy on aviation turbine fuel (ATF) was cut by ₹0.50 per litre, bringing the duty down to ₹19 per litre from ₹19.50 per litre.
The government maintained the status quo on duty structures for fuel sold domestically, and domestic consumer prices remain unaffected by the export levy revisions.
CNG Price Hike and Autorickshaw Strike Threat
Indraprastha Gas Ltd confirmed that the price of CNG in Delhi and adjoining cities was increased by ₹3.89 per kg, effective from August 29. Following the price hike, Delhi's transport bodies demanded an immediate increase in autorickshaw fares, warning of a strike on September 9 if their demand was not met.
Global Oil Benchmarks Rally on US-Iran Strikes
International oil benchmarks advanced nearly 1% in early Asian trade on Wednesday, after the United States launched airstrikes against targets in Iran overnight. Brent crude futures gained 87 cents, or 0.92%, to trade at $95.52 a barrel, while WTI crude climbed 80 cents, or 0.89%, to $91.02 a barrel. The previous session marked the steepest single-day climb for both benchmarks since late July.
Despite the global rally, domestic fuel prices remained unaffected, as reported by market sources.