Use the FuelPrice Fuel Cost Calculator or apply this formula: Fuel cost = (Distance / Consumption) × Cost per gallon. Fuel cost = (Distance / 100 × Consumption) × Cost per gallon.

• World Crude Oil Prices: India heavily depends on crude oil imports to fulfill its domestic oil needs. Variations in global crude oil prices directly influence gasoline prices in India. When international oil prices escalate, the expense of importing crude oil rises, consequently impacting the retail price of fuel.
• Taxes and Duties: Levies imposed by both central and state governments play a substantial role in determining the cost of gasoline in India. Central taxes, like excise duty, and state-level taxes, such as value-added tax (VAT), are imposed on gasoline, thereby elevating its retail price. These taxes are subject to fluctuations based on government policies and revenue needs.
• Currency Exchange Rates: The exchange rate between the Indian Rupee and the US Dollar plays a crucial role in setting gasoline prices. As crude oil is globally traded in dollars, any depreciation of the rupee against the dollar could result in increased import expenses, thereby influencing gasoline prices.
• Transportation and Distribution Costs: The expenses involved in transporting and distributing gasoline from refineries to retail outlets are significant determinants of the final price. Factors such as logistical considerations, infrastructure quality, and the distance traveled all influence these costs.
• Supply and Demand Dynamics: The interplay between supply and demand dynamics can heavily influence gasoline prices. Any discrepancy where demand surpasses supply, or disruptions occur in the production or distribution of gasoline, can lead to price escalations.

Oil Marketing Companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) primarily determine retail fuel prices in India. These state entities control a significant portion of the fuel market in the country.

The Government of India introduced the dynamic pricing mechanism called the 'Daily Review of Fuel Prices' in June 2017, which led to daily changes in fuel prices in India.

Refineries are paid by Indian Oil Corporation for each litre of fuel, and subsequently, the corporation sells it to distributors at a higher rate than the amount paid to refineries. The retail price is determined by adding excise duty, dealer commission, and VAT to the selling price.

According to the brokerage, the companies have estimated a loss of Rs 1.2 per liter on the sale in the current quarter. However, the combined margin of both fuels has been made positive by a profit of Rs 6.8 per liter.