New Delhi
Delhi
6:00 AM Active
Petrol
₹94.72/L
Diesel
₹87.62/L
CNG
₹75.09/Kg
Understanding Daily Fuel Price Revisions in India
In June 2017, the Government of India and the Ministry of Petroleum and Natural Gas introduced the Dynamic Fuel Pricing Mechanism. Prior to this reform, fuel pump rates were revised fortnightly on the 1st and 16th of each month. Under dynamic pricing, state-owned Oil Marketing Companies (OMCs) — including Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — revise retail fuel prices daily at 6:00 AM Indian Standard Time (IST).
This transparent daily adjustment ensures that fluctuations in international crude oil prices (predominantly the Indian Basket of crude oil) and rupee-dollar currency exchange rates are directly reflected at the retail fuel pump in real time.
How is the Retail Selling Price (RSP) of Petrol & Diesel Calculated?
The price you pay at the petrol pump is not just the cost of raw petroleum. It is an aggregation of international crude costs, freight, refinery processing margins, central taxes, dealer commissions, and state-specific Value Added Tax (VAT).
Retail Selling Price (RSP) Formula:
RSP = Base Price (Crude Cost + Ocean Freight + Refining Margin)
+ Central Excise Duty (Levied by Central Government)
+ Dealer Commission (Paid to petrol pump owners)
+ State Value Added Tax / VAT / Cess (Levied by State Government)
RSP = Base Price (Crude Cost + Ocean Freight + Refining Margin)
+ Central Excise Duty (Levied by Central Government)
+ Dealer Commission (Paid to petrol pump owners)
+ State Value Added Tax / VAT / Cess (Levied by State Government)
1. Base Price & International Crude Benchmarks
India imports over 85% of its crude oil requirements. The base price is determined by the cost of the Indian crude basket (a blend of Oman, Dubai, and Brent crude), transportation insurance, ocean freight to Indian ports, and refining margins charged by refineries such as Jamnagar, Panipat, and Kochi.
2. Central Excise Duty
The Central Government levies a specific excise duty on every litre of petrol and diesel sold in India. This duty is uniform throughout all states and generates vital revenue for national infrastructure, highway development, and welfare schemes.
3. Dealer Commission
Oil Marketing Companies pay a standardized dealer commission to petrol pump franchisees for operational expenses, staff salaries, storage, evaporation losses, and electricity. Dealer commission generally ranges from ₹3.00 to ₹4.20 per litre of petrol and ₹2.00 to ₹2.90 per litre of diesel.
4. State Value Added Tax (VAT)
Because petroleum products are currently outside the scope of the Goods and Services Tax (GST) regime, each State Government exercises autonomous authority to impose its own VAT or local sales tax. For instance, states like Maharashtra, Telangana, and Andhra Pradesh levy higher VAT percentages, whereas Andaman & Nicobar Islands, Delhi, and Chandigarh maintain lower tax structures, creating regional price variations.
How to Check Live Petrol & Diesel Price via SMS and Mobile
If you want to verify pump prices before refuelling, you can use the official SMS query codes provided by Indian oil companies:
- Indian Oil (IOCL): Send SMS
RSP <Dealer Code>to 9224992249 - Bharat Petroleum (BPCL): Send SMS
RSP <Dealer Code>to 9223112222 - Hindustan Petroleum (HPCL): Send SMS
HPPRICE <Dealer Code>to 9222201122
Petrol vs Diesel vs CNG: Which Fuel is Most Cost-Effective?
When choosing a new vehicle or deciding on a daily commute mode, fuel economics play a decisive role. While petrol engines provide smooth city driving and lower initial vehicle purchase costs, diesel offers superior torque and highway efficiency. Meanwhile, Compressed Natural Gas (CNG) is the greenest and most economical alternative, slashing operational expenses by over 50% compared to conventional liquid fuels.