Diesel prices in India are based on dynamic fuel pricing system and hence revised on a regular basis. The diesel rates are revised at 6 am every day. This dynamic pricing ensures that even a minute’s variation in global oil prices can be transmitted to fuel users and dealers. The final diesel rate is decided by adding payment to the refineries, excise duty, dealer commission and Value-Added Tax or VAT. After adding these, the retail selling price of diesel gets nearly doubled. Several factors determine the price of diesel – like Rupee to US dollar exchange rate, cost of crude oil, global cues, demand for fuel, among others. When international crude oil prices gain, fuel price in India moves higher.