Hyderabad: The prices of petrol and diesel in Hyderabad and other Indian cities are likely to drop as union petroleum and natural gas minister Hardeep Singh Puri on Sunday asked Oil Marketing Companies (OMCs) to cut the retail prices of petrol and diesel if the crude oil prices in the international market come down and also if OMCs under recovery come down.
“Oil marketing companies should cut down prices once international prices are stabilised and they have managed to recover under-recovery,” he said.
How prices are calculated?
Oil companies review and revise the prices of petrol and diesel on a daily basis. The new prices become effective from morning at 6 a.m.
The daily review and revision of prices are based on the average price of benchmark fuel in the international market in the preceding 15 days, and foreign exchange rates.
Though Oil Marketing Companies are free to revise product prices based on economics, in practical terms political considerations are also important in the revision of prices.
Meanwhile, a senior Oil Marketing company said, “We are earning a gross profit on petrol and it is in single digit. However, during the last 15 days, due to cracks, petrol profitability has been affected. However, diesel sale is still on gross loss and it is in double-digit.”
Petrol, diesel prices in Hyderabad
The prices of petrol and diesel vary from state to state due to different rates of Value Added Tax (VAT) by the state governments.
In Hyderabad, the prices of petrol and diesel as of January 23 are 109.66 and 97.82 per liter respectively.
Following are the fuel rates in metros
|Cities||Petrol price per liter||Diesel price per liter|
|Hyderabad||Rs. 109.66||Rs. 97.82|
|Delhi||Rs. 96.72||Rs. 89.62|
|Mumbai||Rs. 106.31||Rs. 94.27|
|Kolkata||Rs. 106.03||Rs. 92.76|
|Chennai||Rs. 102.63||Rs. 94.24|