India's PETROL prices are influenced by a combination of international crude oil prices, domestic tax structures, and currency exchange rates. As of the latest data, the price of petrol in India has been observed to be significantly higher than in some of its neighboring countries. This discrepancy can be attributed primarily to the higher taxes imposed on petrol in India.

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PETROL Price by States (Capital City PETROL Rate Listed Below)

State Price
Andaman And Nicobar 82.42 ₹/L
Andhra Pradesh 109.55 ₹/L
Arunachal Pradesh 93.48 ₹/L
Assam 97.82 ₹/L
Bihar 107.09 ₹/L
Chandigarh 94.24 ₹/L
Chhattisgarh 101.04 ₹/L
Dadra And Nagar Haveli 92.51 ₹/L
Daman And Diu 92.39 ₹/L
Delhi 94.72 ₹/L
Goa 97.24 ₹/L
Gujarat 94.79 ₹/L
Haryana 95.46 ₹/L
Himachal Pradesh 93.81 ₹/L
Jammu And Kashmir 99.96 ₹/L
Jharkhand 98.17 ₹/L
Karnataka 103.21 ₹/L
Kerala 105.68 ₹/L
Madhya Pradesh 107.45 ₹/L
Maharashtra 105.14 ₹/L
Manipur 99.15 ₹/L
Meghalaya 94.92 ₹/L
Mizoram 93.79 ₹/L
Nagaland 96.17 ₹/L
Odisha 102.68 ₹/L
Puducherry 93.98 ₹/L
Punjab 96.82 ₹/L
Rajasthan 104.87 ₹/L
Sikkim 100.85 ₹/L
Tamil Nadu 101.76 ₹/L
Telangana 109.65 ₹/L
Tripura 96.64 ₹/L
Uttar Pradesh 94.42 ₹/L
Uttarakhand 93.89 ₹/L
West Bengal 104.75 ₹/L

India's transition away from fuel subsidies and towards a dynamic fuel price methodology indeed represents a significant economic reform. By aligning fuel pricing more closely with global standards and market dynamics, the government aims to reduce speculative activities and ensure a more efficient allocation of resources in the energy sector.

The move to daily price revisions from fortnightly changes is a notable shift that helps in better reflecting the real-time fluctuations in international crude prices and currency exchange rates. This adjustment not only enhances transparency in fuel pricing but also enables consumers to benefit from more immediate adjustments in response to global market changes.

Moreover, by incorporating various factors such as international crude prices, exchange rates, demand dynamics, and trade flows, the dynamic fuel price methodology provides a more comprehensive and accurate basis for determining fuel prices. This approach allows for a more responsive and adaptive pricing mechanism, which can better withstand market volatility and external shocks.

Additionally, the inclusion of central taxes, excise duties, VAT, and retailer commissions in the determination of retail fuel prices ensures that the final prices reflect not only the cost of the product but also the various levies imposed by the government and the margins of retailers. While this may result in higher retail prices due to the significant share of taxes and duties, it also provides a more transparent breakdown of the components contributing to the final price.

Overall, India's adoption of the dynamic fuel price methodology represents a step towards modernizing its energy pricing framework and aligning it with global best practices. By embracing a more market-oriented approach, the government aims to foster greater efficiency, transparency, and sustainability in the energy sector while also creating room for expanding social and subsidy expenditure beyond energy.

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Despite getting cheaper oil from Russia, high taxes, refining costs, exchange rates, distribution and transportation costs, and government subsidies contribute to high oil prices in India.