Understanding Petrol Prices in India
Petrol prices in India are set by three government oil marketing companies: Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL). Since 2017, prices are revised daily under the Dynamic Fuel Pricing system.
The price you pay at the pump includes the base price of petrol (linked to international crude oil), excise duty charged by the central government, dealer commission, and VAT charged by your state government. VAT rates vary significantly between states, which is why petrol costs more in Mumbai than in Delhi.
Tips to save on petrol: maintain proper tyre pressure, avoid aggressive driving, use cruise control on highways, remove unnecessary weight from your vehicle, and plan your routes to avoid traffic jams.