India imports most of its crude oil, making the rupee-dollar exchange rate an important factor. Any fall in the value of the rupee increases the cost of imports, thereby increasing fuel prices. Taxes: Central and state governments levy excise duty and value added tax (VAT) on petrol and diesel. These taxes vary by state, causing prices to vary across the country. Transportation costs, state-specific fees, and local municipal taxes contribute to regional variations in fuel prices. Refining Cost: The process of refining crude oil into usable fuel adds to the overall cost. Refining costs depend on factors such as the quality of crude oil and the efficiency of refineries. Fuel demand: Increasing demand for petrol and diesel, especially during peak season, may push up prices. Daily updates on petrol and diesel prices provide consumers with important insight into the fuel cost landscape influenced by both global and local factors.
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