Petrol, Diesel Prices August 12: Did Fuel Costs Rise In Delhi, Mumbai, Chennai And Bengaluru? Rates Cross Rs 100 In Major Cities

There has been a hike in petrol rates in Himachal Pradesh following the introduction of a widows’ and orphans’ cess by the government led by Sukhwinder Singh Sukhu. This cess came into effect from midnight and has hiked petrol rates by 60 paise per litre. High-speed diesel will also attract this cess. With the surge in petrol and Diesel Prices, rates in Himachal Pradesh will reach Rs 102.50 per litre.

However, fuel prices vary widely across India. State taxes, crude oil prices and other costs play a major role in deciding the final price paid by consumers.

Petrol Prices Today Across Major Cities

Petrol prices remained above the Rs 100-per-litre mark in several major cities on August 12. Hyderabad recorded the highest rate among the cities listed below, while Delhi continued to have a comparatively lower petrol price.

The difference in prices is largely linked to state-level taxes and other local charges. This is why consumers in different states pay different amounts even when fuel is sourced from the same crude oil market.

Diesel Prices Today: Delhi, Mumbai, Hyderabad And More

Diesel prices also showed a significant variation across major cities. Hyderabad had the highest diesel price among the cities listed, while Delhi recorded the lowest.

The Himachal Pradesh cess could further increase the state’s fuel burden. The move comes at a time when international crude prices are also rising.

Brent Crude Nears $90 Amid Strait Of Hormuz Uncertainty

Oil prices around the world have gone up significantly this week. The price of Brent crude futures has recently gone up to $89.47 a barrel, an increase of 0.57%, and is inching towards $90 a barrel.

The price of Brent had increased by 1.36% to trade at $88.91 a barrel on Tuesday. The West Texas Intermediate futures, which are US oil, had increased by 1.3% to trade at $83.20 a barrel.

Over the past week, oil prices have jumped more than 6% amid uncertainty regarding the opening of the Strait of Hormuz.

Mohsen Rezaei, an official from Iran, said that the Strait of Hormuz will remain closed unless Washington agrees to Tehran’s conditions. He has reportedly asked the US to release Iranian funds frozen abroad.

Why Global Oil Prices Matter For India

India imports more than 85% of its crude oil requirements. A sustained increase in crude prices can therefore raise the country’s import bill.

It can also add pressure on inflation and increase the possibility of changes in domestic fuel prices.

The global market is also watching the possibility of a fresh US-Iran agreement. Pakistan Defence Minister Khawaja Asif told Bloomberg News that “things are shaping up again in favour of a peace arrangement or a deal”.

What Determines Petrol And Diesel Prices In India?

It is certainly an important factor, but it is not the only one that determines the rate of petrol and diesel prices in India. In addition to that, there are also central and state government taxes, as well as the cost of refining and transportation involved. It should be noted that currency exchange rate fluctuations also play a role because global crude prices are set in US dollars.

Consequently, the difference between petrol and diesel prices can be substantial from state to state. The latest Himachal Pradesh cess tax is another example of such influence.

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