Petrol, Diesel, CNG Price Comparison Across Indian Cities, Today (December 21, 2024)

Fuel Prices In India In 2024

Rising crude oil prices coupled with supply concerns, inflation, and taxes have led to sky-high fuel rates across India in 2024. The city-wise petrol and diesel prices hitting all-time highs this year, fuel costs are burning a hole in consumers' pockets. The price hike inflates consumer’s monthly budgets and causes a cascade effect on other expenses in various Indian cities. We examine the dynamics at play and provide tips to ease the burden on your wallet.

Key Reasons Behind The Increase In Fuel Price

Several macro and micro factors have aligned to push retail fuel prices northwards in 2024.

● Global Crude Oil Prices - War-like situations worldwide coupled with OPEC supply cuts led crude to hit highs of $[128]/barrel in 2024. Brent has steadied around $[110] but remains elevated. Higher crude equals higher base fuel cost.
● Rupee Depreciation - The Indian Rupee has weakened to Rs [82] against the Dollar due to foreign fund outflows. This directly impacts the landed cost of imported crude oil.
● Taxes - Central and State levies account for 55% of retail petrol price and 50% for diesel. VAT varies across states in India, leading to city-wise price differences.
● Marketing Margins - OMCs have increased dealer commissions to compensate for losses during price freezes. This gets added to the selling price.
● Logistics - Rising transport costs due to high diesel prices have also contributed to retail fuel rates going up in India.

How Fuel Prices In India Impacts Your Budget

At prevailing rates, the hike in transport fuel costs pinches the common man's budget across various cities in India. Here are some repercussions:
● Direct Impact - Fuel now takes a sizeable share of monthly budgets, especially for frequent drivers in Indian cities. More money spent here leaves less for savings and discretionary spending.
● Transportation - Consumers are now factoring in fuel prices before planning trips. Cab and auto fares have also gone up in various cities.
● Food Prices - Transportation costs feed into food items. Supply chain inflation is leading to astronomical vegetable and fruit rates across India.
● EMI Burden - Car and bike loan EMIs are becoming steeper with owners having to account for higher monthly fuel costs.
● Services - Sectors like airlines and hospitality are passing on increased input costs via fuel surcharges leading to inflation across India.

Tips To Ease The Strain On Your Wallet

While global factors are beyond an individual's control, adopting certain best practices can help ease monetary strain in Indian cities.
● Public Transport - Leave your vehicle at home and take the bus, metro, or train for daily commutes and other short trips. Monthly public transport passes are cost-effective.
● Trip Optimization - Plan commutes and routes to minimize fuel consumption through steady driving and avoiding congested areas. Carpool if possible.
● Maintenance - Keep your vehicle well-maintained as per the service schedule. This boosts fuel efficiency. Regular air pressure check also helps.
● Apps - Take advantage of apps that provide dynamic fuel rate data across stations in different cities to find the lowest-priced outlet in your vicinity.
● Rewards - Use fuel discount programs or cashback credit cards judiciously to enjoy savings per litre. But don't get tempted to overspend.
● Two-Wheeler - Consider a fuel-efficient bike for solo trips to save on fuel costs compared to driving a car. Ensure safe riding.

Conclusion

The relentless upward march of fuel prices in India in 2024 has left consumers in various cities dealing with financial strain. While the macroeconomic factors influencing rates are unlikely to ease in the near future, individuals can take steps to buffer the impact on their personal finances. Being prudent with trip planning, using public transport, maintaining vehicles, and leveraging available discounts will help stretch your fuel budget further in different Indian cities.
However, as long as high crude oil prices, taxes, and supply uncertainties persist, retail fuels will remain expensive. For now, adapting spending and consumption habits is the best resource for consumers in Indian cities to navigate through the turbulence. However, the onus also falls on policymakers to bring relief and stability to retail fuel pricing through long-term solutions.