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Diesel

Diesel is the backbone of India’s transport and logistics economy, powering trucks, buses, tractors, generators and large sections of commercial transport. Because diesel is heavily linked to freight movement, agriculture and industry, any price change can quickly ripple through the broader economy. Diesel prices in India depend on global crude oil prices, refining costs, currency movements, taxes imposed by the Centre and states, dealer commissions and oil marketing company pricing decisions. Major retailers include Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited. Since state taxes differ, diesel prices vary across regions. Diesel rates are especially sensitive because they influence transport costs, food prices and inflation trends. Governments and economists closely monitor diesel pricing during periods of rising crude oil prices. Over time, diesel demand is also changing as cleaner technologies, electric mobility and alternative fuels slowly reshape India’s energy mix.

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STORIES

The hidden inflation nobody is talking about: Transport inflation

As transportation costs increase across the supply chain, businesses eventually pass those higher expenses on to consumers. The result is ‘invisible inflation’ – a force that pushes up the cost of almost everything but is rarely talked about on its own.

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VIDEOS

How best to tackle oil shock? Dr Sajjid Z Chinoy responds

In an interview with India Today, Dr Sajjid Z Chinoy, Chief India Economist at JP Morgan, discussed the global energy shock and its impact on the Indian economy following the recent hikes in commercial LPG and anticipated domestic fuel price increases.