Petrol Price in Delhi

The Petrol prices in New Delhi over a period of time has been unstable due to the fluctuating fuel prices in the international market. The prices of petrol are revised on a regular basis every day starting at 6 am in the morning and hence it is important for everyone to check the current price of the fuel before heading for the fuel station for filling up the petrol. One stands to lose more if they are heading for a long distance travel. The recent decline in the value of rupee against the dollar has led to the drastic increase in the prices of the fuel in the state of Delhi.

There have been significant rise in crude oil consumption in India and the country now imports around 85% of the country's need from international markets. Being the third largest oil importer in the world, crude oil prices globally have significant impact on diesel and petrol prices in Delhi along with other parts of India.

Petrol Consumption In Delhi

Petrol is mostly consumed by the large number of passenger cars with petrol engines present on the streets of Delhi, which have strong consumer demand throughout the year. India is the largest two-wheeler market in the world, where this year Delhi was ranking top in the list of cities with highest increase vehicle sales in 2023. The high sales were recorded for with each day around 1,800 vehicles sold in the city, the petrol rates in Delhi are expected to stay at a higher range this year.

The easy availability of loans from banks and financial institutions have facilitated for surging vehicle sales in Delhi, again which has a noticeable impact on fuel consumption and petrol prices in Delhi today. Hence, Out of the total vehicle sales in Delhi, around 4 lakhs were two-wheelers and this facilitates that petrol prices in the upcoming tenure would stay stable pertaining to the demand for refuelling of the two-wheelers increases ahead. In the month of December 2023, total consumption was 2.6% higher than the previous year and 6.2% increase from the previous month. The high usage in vehicles as well as farm equipment during strong winters would ensure petrol rates in Delhi are stable.

Factors Impacting Delhi Petrol Rates Today

Delhi tops the list for car sales in the metro cities with registration increased more than 50k than previous year. Apart from the large chunk of population consuming the fuel, there are many sectors that gets impacted.

Thus the prices are derived by the government based on regulations and tax charges, which are one of the major factors affecting Delhi petrol rates today.

When the central government decides to procure higher revenues for the year from fuel tax collection, then nationally there are changes made in both petrol and diesel prices, having similar trend for Delhi petrol rates as well. On the other hand when there is election season approaching for Delhi state assembly, ruling government parties in India adopt the methodology of reducing petrol prices in Delhi along with other neighbouring regions, which can provide a breather for locals and support the vote-bank at the same time.

International aspects also play a major role in determining petrol prices in Delhi today since India imports more than 80% of its oil supply from foreign countries. When there are geopolitical tensions within major economic powers or conflicts in some of the crude oil exporting countries, a supply disruption is caused on the global markets. This in-turn impact the national fuel prices in India and also petrol rates in Delhi. In contrast, if there are trade agreements signed by India with strategic trading partners, the supply for crude oil might increase for domestic market. The removal of certain taxes and custom charges by the central government can result in decreasing rates for fuel in the country and likewise, petrol prices in Delhi today would also have a breather for locals.

Petrol Price in New Delhi

New Delhi, the national capital of India is the most popular city in the country. It also holds the tag of the union territory of India. It has a population base of around 18.6 million as per the 2016 census. It is one of the fifth most populous city in the globe and the largest city in India.

The increase in the population has led to the increase in the number of vehicles used for transportation purpose and with this the usage of petrol in the national capital has heightened. According to a report, the number of vehicles used in the city of Delhi has surged up to 69.32 lakh in 2010-2011 from 64.51 lakh in 2009-2010.

During 1981, the city had only 5.62 lakh vehicles commuting on the road. It is roughly estimated that more than 3,000 vehicles are added to city roads on an everyday basis bringing more congestion to the traffic snarls.

The petrol prices in New Delhi stands lowest when compared with other metropolitan cities.

Tax Rate On Petrol Prices in Delhi

VAT which stands for Value Added Tax is added to the petrol price by respective state governments before arriving at the selling price. A VAT of 30% from 27% is levied on the petrol price in Delhi and the residents of Delhi pay the lowest price to buy a litre of petrol as compared with the residents of other metropolitan cities across the country.

Delhi Oil Prices Updated Daily

In the first few days of the price update, the fares for petrol in Delhi are subject to changes in a few paise. This is of immense benefit to the public because they can handle the same effortlessly. On the other side, it may be hard to subsume the enormous burden of stating Rs 2 – 3 which would come after a change of regular rates for a fortnight.

We are delivering the petrol prices which are updated ate morning 6 a.m on a daily basis. It is recommended to you to keep an eye on daily updated petrol prices, before moving for your work. So if you are willing to fill the tank full of your vehicle, go through our website on a daily basis and keep yourself updated with daily petrol prices of Delhi.

Why Delhi Oil Prices Updated Daily?

In Delhi, Petrol prices are calculated in numerous ways, including International Crude Prices and currency movement against the US Dollar.

For Instance, when the US Dollar increases against the rupee, the cost of crude oil becomes more costly. On the other side, both petrol and diesel rates become expensive if the rupee rises against the dollar.

Today's petrol prices of Delhi, therefore, rely on the flow of currencies and also on foreign crude prices.

Apart from the above factors the current petrol prices in Delhi may reflect the dealer margin to the retail petrol margins.

Oil Exploration and Production Companies

An exploration & production (E&P) company is in a specific sector responsible for producing crude oil. This sector includes a variety of both private sector companies such as Reliance Industries, Cairn India Ltd, and public sector partners such as Oil India, Oil and Natural Gas Corporation (ONGC). Oil Marketing Companies (OMCs) then purchase the crude oil, that further manages oil from its crude phase until the time it is delivered in its refined state to the dealers. Thereby, the OMCs are responsible for refining crude oil into petrol and supplying the refined oil to the distributors. This sector consists both private and public firms. Although, the three PSUs- Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL) and Hindustan Private Corporate Limited (HPCL) control around 95 percent of this workforce, while the remaining market is covered by the two leading private sectors such as Reliance Industries and Essar.

What is the current VAT rate on Petrol in Delhi?

The government of Delhi has nearly doubled the diesel levy to 30 percent and the new VAT rate on petrol is also about 30 per cent. Official data stated earlier, VAT on petrol in Delhi was 27 percent and 16.75 percent on diesel that received an extra Rs 250 per kilolitre of charges for air ambience.As international oil prices plunged sharply due to the pandemic of COVID-19.

and insufficient storage capacity, revenues from states with ad valorem duties on fuels have currently been severely impacted. Due to a sharp fall in international oil prices, fuel prices for petrol and diesel were not increased amid hikes in the central taxes. In various states pump prices for petrol and diesel are different due to the variations in sales tax or VAT rates as well as other regional levies. 

Surge in Petrol Prices in Delhi

The surge in petrol prices in Delhi has cast a significant shadow over local businesses and transportation, affecting the daily operations and overall financial health of enterprises across the capital. This escalation not only burdens the pockets of the common man but also poses a substantial challenge to the sustainability of various sectors, including logistics, delivery services, and commuting services.

Impact on Local Businesses

Local businesses, particularly those reliant on delivery and logistics, are feeling the pressure as the cost of petrol climbs. The increase in operational expenses is leading to a rise in the prices of goods and services, which in turn affects consumer demand. For small businesses operating on thin margins, this situation is especially dire, as it threatens their very survival. Many have had to reassess their budget allocations, cut down on deliveries, or even increase the prices of their products to cope with the rising fuel costs.

Transportation Woes

The transportation sector, vital for the movement of both people and goods, is facing its own set of challenges due to the petrol price hike. Taxi and auto-rickshaw drivers, who depend on daily earnings, find themselves in a tough spot, having to choose between raising fares—which risks losing customers—or absorbing the costs, which cuts into their income. This dilemma has led to a decrease in the number of operational vehicles on the road, further complicating the city's commuting landscape.

Commuters, on the other hand, are also bearing the brunt of these increases.

The cost of everyday travel has risen, pushing more people towards public transportation, which is becoming increasingly overcrowded. Additionally, the surge in petrol prices has encouraged a subset of the population to consider alternative modes of transportation, such as cycling or electric vehicles, although these remain inaccessible to many due to their upfront costs.

Looking Ahead

As Delhi grapples with the effects of rising petrol prices, the outlook for local businesses and transportation remains uncertain. The situation calls for innovative solutions and possible interventions by the government to alleviate the burden on both enterprises and the general public. Possible measures could include subsidies for small businesses, incentives for the adoption of alternative transportation methods, or even a revision of the fuel pricing policy. In the meantime, businesses and individuals alike are finding ways to adapt, seeking more fuel-efficient methods of operation and transport to navigate through these challenging times.

The ongoing scenario underscores the delicate balance between fuel pricing and economic stability, highlighting the need for comprehensive strategies to address the repercussions of such financial fluctuations. As stakeholders across various sectors continue to monitor the situation, the collective hope is for a resolution that supports the economic well-being of all parties involved.

How To Check The Latest Petrol Price In Delhi?

In order to avoid any unnecessary misunderstanding or fraud, petrol consumers in the National Capital Territory (NCT) of Delhi should be aware of the daily price trend before going to refill their vehicles. There are a number of ways, including online and offline, to find the price of petrol in Delhi.

You may track petrol prices using a web-based approach from the comfort of your home, regardless of where in Delhi you are; using an offline method, you must go to the nearest petrol station or dealer. To keep track of the latest and most recent petrol prices, Delhi residents can use internet access to visit websites run by the Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), or Hindustan Petroleum (HPCL).

You can check the petrol price on a distinct portion of the websites for each of these PSU oil firms, often known as OMCs.

As an illustration, HPCL allows you to go to the OMC's official website and select the petrol and diesel prices available under the 'Quick Links' section of the homepage.

To determine the price of petrol in Delhi, customers can also download the app of a reputable oil firm, such as Indian Oil, Bharat Petroleum, or Hindustan Petroleum. Users of Android smartphones may get these apps for free from the Google Play Store, while iPhone users can get them via the App Store.

Impact of government policies on petrol prices in Delhi

The government policies in India play a significant role in shaping petrol prices, particularly in Delhi. The recent increase in excise duty has led to a noticeable rise in fuel costs for consumers. This hike impacts daily commuters and businesses relying on transportation.

In Delhi, petrol prices reached Rs 96.72 per litre in August 2023. This marks a significant jump from Rs 90.40 per litre recorded in August 2022. The steep increase can be attributed to various government decisions, including changes in taxation and subsidies.

Several factors influence the retail price of petrol. These include crude oil prices, exchange rates, and government taxes. The excise duty on petrol was raised by Rs 2 per litre in July 2023, contributing to higher prices at the pump.

The impact of these policies is far-reaching. Higher petrol prices affect transportation costs, leading to increased prices for goods and services. This situation creates a ripple effect throughout the economy, impacting inflation and consumer spending.

Economists suggest that the government should consider reviewing its tax policies to balance revenue generation with economic growth. Lowering taxes could help ease the burden on consumers and stimulate economic activity.

The dynamic nature of global oil prices adds another layer of complexity. Exchange rates and international market trends also play crucial roles in determining local petrol prices. As a result, predicting long-term trends remains challenging.

Analysts emphasise the importance of a comprehensive strategy. This approach should address both short-term fluctuations and long-term stability in fuel prices. By doing so, the government can better manage the economic impact on citizens and businesses.

In summary, government policies have a direct impact on petrol prices in Delhi. Recent tax hikes have led to increased costs for consumers. Economists and analysts recommend a balanced approach to taxation to support economic growth and manage inflationary pressures.