Petrol, Diesel Prices Today On June 16, 2024: Fresh petrol and diesel prices have been announced in India for June 16 and the rates have increased in various cities of Karnataka. Every day at 6 am, oil marketing companies (OMCs) announce fresh prices of fuel. This routine involves adjusting prices in response to global crude oil prices and foreign exchange rate fluctuations.
The prices have remained unchanged in most parts of the country since March 2024 when the central government cut petrol prices by Rs 2. Before that, the fuel prices remained steady since May 2022, following a reduction in fuel taxes by the central government and several states. Now, the Karnataka government has increased petrol and diesel prices by Rs 3 per litre as it has increased sales tax.
In India, petrol and diesel prices are affected by various factors, including freight charges, value-added tax (VAT), and local taxes, leading to differing rates across states.
Petrol Diesel Price Today In India (Check city-wise rate table below)
Check city-wise petrol and diesel prices on June 16;
Karnataka Hikes Petrol Prices
According to a state government notification, the Karnataka Sales Tax (KST) has been increased from 25.92 percent to 29.84 percent on petrol and from 14.3 percent to 18.4 percent on diesel, Moneycontrol reported.
The finance department’s notification stated that the changes would take effect immediately. The price of petrol will increase to Rs 102.85 per litre, while diesel will rise to Rs 88.93 per litre. In Bengaluru, petrol was selling at Rs 99.84 per litre, while diesel was at Rs 85.93 per litre.
Fuel retail prices are adjusted by OMCs daily at 6 am based on the global price of crude oil. The government oversees fuel prices through excise tax, base pricing, and price caps.
Latest Crude Oil Prices
Oil futures prices settled slightly lower on Friday after a survey showed deteriorating US consumer sentiment, but prices rose 4% for the week as investors weighed forecasts for solid demand for crude oil and fuel in 2024, according to Reuters.
Brent crude futures settled down 13 cents at $82.62 a barrel, while West Texas Intermediate (WTI) U.S. crude futures were down 17 cents at $78.54. Brent and the US benchmark gained nearly 4 per cent over the week, highest weekly rise in percentage terms since April.
Factors Affecting Petrol And Diesel Prices In India
Crude oil price: The primary raw material for the production of petrol and diesel is crude oil; as such, its price directly influences the ultimate cost of these fuels.
The exchange rate between the Indian rupee and the US dollar: As a major importer of crude oil, India’s petrol and diesel prices are also influenced by the exchange rate between the Indian and US dollar.
Tax: Various taxes on petrol and diesel are imposed by both the central and state governments. These taxes may differ across states, exerting a notable influence on the ultimate prices of petrol and diesel.
The cost of refining:
The final price of petrol and diesel is additionally influenced by the expenses incurred in refining crude oil into these fuels. The refining process can be costly, and the refining expenses may fluctuate based on factors like the type of crude oil utilised and the refinery’s efficiency.
The demand for petrol and diesel: The demand for petrol and diesel can also affect their prices. If demand for these fuels increases, it can lead to higher prices.
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