Petrol is one of the most expensive commodities in India in comparison to most other countries but it is not the India many countries which is suffering from the global turmerol.

It is a normally happening, yellowish-dark fluid found in geographical developments under the Earth’s surface. It is usually refined into different kinds of powers.

Why Petrol Prices Are High In India

Parts of petrol are isolated utilizing a system called partial refining, for example division of a fluid blend into portions varying in breaking point by methods for refining, ordinarily utilizing a fractional segment.

Petrol is an essential thing in our day-to-day life. Everyone uses it mainly for the mode of transportation. The price is charging at petrol pumps, is the retail price of petrol for consumers.

Image Of A Petrol Bunk 2

There are two categories of Petrol bunks in Industry:


Automated one which is automatically modifies the rates with no human intervention

Non – Automated:

Non-Automated one which will manually revise. There is only 20% out of 58,000 petrol bunks are automated in industry and the rest are non-automated for the industry. The revised rates of the petrol shall be displayed at bunks for the public.

How to Check Petrol Prices in India every day?

Petrol marketing entities account for at least 90% of retail fuel fillings stations in India. Renowned brands such as Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), and Indian Oil have designed a new initiative which helps consumers to spot the updated prices.

Indian Oil Petrol Bunk In India

The Impact of GST on Oil and Natural Gas Industry

Reason behind the hike or high price of Petrol price of India is the impact of GST.  The Goods and Services Tax (GST) is a unified indirect tax implemented by Indian Government.

The cost compliance would have doubled as the industry that had to comply with the present GST tax structures.

The implementation of GST has resulted in non-creditable taxes, which is called the participants of the industry had to pay GST depending upon the purchase of plant and machinery units.

They are not been able to obtain credit on salable things. Moreover, upstream ones would have been affected adversely by a hike in the tax rate from 15% to 18%.

Determinants of Petrol Prices

  1. Seasonal condition
  2. Weather reports
  3. Restricted refining capabilities
  4. Devaluation of USD

Who controls petrol prices in India?

There are four Factors Impacting Petrol Prices in India

  1. Crude oil prices
  2. Taxes
  3. Refinery Consumption Ratio
  4. Currency Conversion Rate

Bpcl Petrol Bunk In India

Causes of increases in petrol prices

There are some factors which effects in hike of petrol prices in India.

  1. Cost of crude oil and freight charges
  2. Refinery transfer price (RTP)
  3. OMCs profit margin
  4. Central and state taxes
  5. Dealer commission

Why petrol prices are high in India compared to other countries?

Historically, the Indian Government has controlled the price of petroleum products. The most important product of these is being liquefied petroleum gas (LPG), diesel, petrol, and kerosene.

Consumers charged low price and difference in the sales is the realization of the Oil Marketing Companies (OMCs), their cost of supply is called under recoveries, were financed by contributions from the Government.

The recoveries were large as the Government fixed sale prices quite low compared to cost of supply.

Depending upon these following factors the petrol price in India is High when compared to other countries:

Image Of A Petrol Bunk

Highest petrol price in India history

The Highest prices in the history for different states are as follows :

Andhra Pradesh 82.07 ₹/L
Assam 81.25 ₹/L
Bihar 80.23 ₹/L
Chhattisgarh 75.73 ₹/L
Gujarat 72.28 ₹/L
Haryana 74.59 ₹/L
Himachal Pradesh 75.22 ₹/L
Jammu & Kashmir 78.09 ₹/L
Jharkhand 72.97 ₹/L


The Indian petrol prices are high when compared to other countries petrol prices. The Indian government petrol price is decided by depending upon the dollar price and dirham price.

Subsidising the petrol and its products adds extra burden to the government and this is the main reason for hike of petrol prices in India.

Even though the total world’s crude prices are collapsed and petrol export dependant economies are facing lot of troubles.

Excise duty, Value Added Tax (VAT) and Dealer commission almost contributes to 70% of the total price of the petrol currently in India.

The petrol price is based on Crude oil price that is being imported from Arab countries. India is having 33% tax on petrol and diesel which includes all taxes such as import tax, tax of government on private companies, shipping charges and others decides the petrol price in India.

Petrol price is calculated based on the worldwide supply factors and demand factors.

By calculating the following prices of petrol is calculated in India. Factors that are main in petrol price are :

  1. Cost of crude oil
  2. The Centre taxes and States impose
  3. The dealer’s commission and VAT
  4. Excise Duty on Petrol
  5. VAT on Basic Price on Petrol

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