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MORE ON FUEL PRICES Currently, petrol is retailing at Rs - a litre in Delhi, and diesel is priced at Rs 87.67. In Mumbai, Chennai and Kolkata petrol costs Rs -, Rs - and Rs - respectively.

On the other hand, diesel is retailing at Rs 90.03, Rs 92.57 and Rs 92.02 in Mumbai, Chennai and Kolkata respectively.  India imports about 80% of its oil needs and so domestic pump rates

are dependent on international prices, as denominated by Indian basket of crude oil. The other factors on which domestic petrol and diesel prices depend on include central excise duty, VAT

or value added tax levied by state governments, dealer and refining margins and transportation cost. As of now, petrol and diesel don’t come under the purview of GST.  The value of the rupee

also has a bearing on domestic fuel prices. A weak rupee increases the landed cost of dollar-denominated crude oil. Petrol and diesel prices in India are reviewed daily in line with the

benchmark international rate of the preceding 15 days. So state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation

Ltd (HPCL) are supposed to review petrol and diesel prices daily in line with the cost. Diesel is one of the primary sources of energy for transportation of goods in India. Any change in

diesel prices has a direct impact on inflation.