Trend of Petrol Price in Ahmedabad for April 2020 (rates per litre):
|Highest Rate in April||Rs.70.85|
|Lowest Rate in April||Rs.67.01|
Monthly Petrol Price Trend in Ahmedabad for April 2020:
- In Ahmedabad, petrol was priced at Rs.67.15 per litre on 1st of April. Compared to the previous month’s closing price, the rates were unchanged in the city.
- Petrol recorded its highest price for the month on 21st April with a litre costing Rs.70.85 while the lowest was recorded on 8th April when Oil Marketing Companies (OMCs) charged Rs.67.01 per litre.
- Over the month, petrol prices fluctuated a lot in the city as demand for fuel took a hit due to the lockdowns imposed by the governments to contain the spread of novel coronavirus. The fuel closed the month at Rs.67.39 per litre with the overall performance showing an inclining trend with the percentage change being 0.35%.
Trend of Petrol Price in Ahmedabad for March 2020 (rates per litre):
|Highest Rate in March||Rs.69.19|
|Lowest Rate in March||Rs.67.15|
Monthly Petrol Price Trend in Ahmedabad for March 2020:
- In Ahmedabad, petrol prices opened the month of March at Rs.69.19 per litre. This was the highest recorded price of the fuel in the city for the month. Compared to the previous month’s closing price, the rates were down by 13 paise for every litre.
- Given the weak demand for crude oil across the world due to the outbreak of the coronavirus pandemic, the rates slipped in the city. The decline in the prices saw every litre of petrol being retailed for Rs.68.11 on 9th March.
- The rates slipped further in the city and recorded its lowest for the month on 16th March when Oil Marketing Companies (OMCs) charged Rs.67.15 for a litre. Petrol closed the month at the same price as there was no change in the rates following that. The overall performance showed a declining trend in the prices over the month.
Trend of Petrol Price in Ahmedabad for February 2020 (rates per litre):
|Highest Rate in February||Rs.70.56|
|Lowest Rate in February||Rs.69.19|
Monthly Petrol Price Trend in Ahmedabad for February 2020:
- Petrol price in Ahmedabad stood at Rs.70.56 per litre on 1st February. Compared to the closing price of the previous month, the rates slipped by 13 paise for a litre.
- With the number of coronavirus cases increasing across the world, the rates of petrol slipped to Rs.69.37 per litre in the city as of 11 February.
- The rates continued to drop in Ahmedabad as the demand for fuel took a hit and international oil prices declined. Petrol closed the month at Rs.69.19 per litre, the lowest recorded price for the month. The overall performance of petrol in Ahmedabad was -1.94%, trending downwards.
Trend of Petrol Price in Ahmedabad for January 2020 (rates per litre):
|Highest Rate in January||Rs.73.33|
|Lowest Rate in January||Rs.70.69|
Monthly Petrol Price Trend in Ahmedabad for January 2020:
- In Ahmedabad, the prices of petrol fluctuated throughout the month of January. Overall, petrol prices saw a decline of 2.45% in Ahmedabad for the month of January. Petrol prices opened and closed at Rs.72.47 and Rs.70.69 for a litre in January.
- Petrol price in Ahmedadab saw an incline in the first and second weeks of January due to the tensions in the Middle East. Brent crude oil prices in the international market also increased during this period.
- In the third week of January, the prices of petrol decreased in Ahmedabad as crude oil prices in the international markets had softened.
- The remainder of the month saw a decline in petrol prices due to the outbreak of the coronavirus. The price of petrol also touched its lowest rate for the month on 31 January 2020.
Trend of Petrol Price in Ahmedabad for December 2019 (rates per litre):
|Highest Rate in December||Rs.72.47|
|Lowest Rate in December||Rs.71.98|
Monthly Petrol Price Trend in Ahmedabad for December 2019:
- Petrol price in Ahmedabad opened at the rate of Rs.72.28 per litre for the month of December 2019. The rate of the fuel remained steady for some time before it started rising towards the middle of the month.
- The prices of crude oil increased in the international oil market. However, price of the Brent crude was steady amidst the US-China trade deal expectations. However, during the year, there was an overall increase of 24% in the Brent crude prices.
- The rate of petrol in Ahmedabad closed at the rate of Rs.77.47 per litre for the month of December 2019. This is also the highest recorded price for the month. The overall performance of the fuel increased by 0.26% in Ahmedabad.
Trend of Petrol Price in Ahmedabad for November 2019 (rates per litre):
|Highest Rate in November||Rs.72.17|
|Lowest Rate in November||Rs.69.99|
Monthly Petrol Price Trend in Ahmedabad for November 2019:
- Petrol price in Ahmedabad stood at Rs.70.24 per litre, 12 paise lower than the previous day’s closing price. With the upcoming US and European economic data, the crude oil prices were relaxed across the globe.
- Petrol prices improved from the second week onward with petrol closing at Rs.70.81 per litre on the 14th of November.
- Prices improved further in the third week, with petrol climbing up to Rs.71.53 per litre on the 21st of November.
- Petrol rate in Pune closed the month at Rs.72.17 per litre, its highest recorded price for the month of November. The overall performance of petrol was 2.74%, trending upwards.
Trend of Petrol Price in Ahmedabad for October 2019 (rates per litre) :
|Highest Rate in October||Rs.71.98|
|Lowest Rate in October||Rs.70.35|
Monthly Petrol Price Trend in Ahmedabad for October 2019:
- Petrol price in Ahmedabad stood at Rs.71.98 per litre on the 1st of October, its highest recorded price for the month.
- Petrol saw a gradual decline in its prices soon amidst global economic crisis and seemingly weak demand for fuel. Petrol closed the second week at Rs.70.74 per litre.
- Prices slumped further in the third week, with petrol closing at Rs.70.69 per litre.
- Petrol rate in Ahmedabad closed the month at Rs.70.35 per litre, its lowest recorded price for the month of October. Fuel suffered in the international market to due to an unprecedented rise in US inventories and the looming economic slump. The overall performance of petrol in Ahmedabad was -2.26%, trending downwards.
Trend of Petrol Price in Ahmedabad for September 2019 (rates per litre)
|Highest Rate in September||Rs.70.74|
|Lowest Rate in September||Rs.69.16|
September - Week 1 (1-7):
- Petrol price in Ahmedabad opened at Rs.69.42 per litre, unchanged from previous day’s closing price. State-run oil marketing companies decided to against changing the rates based on the demand of the oil in the local market.
- Petrol rate in Ahmedabad remained unchanged for the next few days before slipping to Rs.69.39 per litre on 5th September, recording a 3 paise drop. However, in the international oil market, crude gained following Washington’s confirmation of a possible trade pact with Beijing.
- Price of petrol dropped further, closing the week at Rs.69.22 per litre. Overall, petrol’s performance in Ahmedabad was -0.28%, trending downwards.
September - Week 2 (8-14):
- Petrol prices in Ahmedabad opened at Rs.69.16 per litre on 8 September. The prices dropped 6 paise since the previous day’s closing price. Meanwhile, crude futures dropped in the international oil industry after participants reduced positions due to a weak trend.
- The rates recorded on 8 September was the lowest in Ahmedabad for the month of September till now. Petrol prices remained constant for the next day before increasing slightly from 10 September as there was a sharp drop in US inventories.
- Petrol prices closed the week at Rs.69.41 per litre. The prices were up by 25 paise per litre since the start of the week. The overall performance of petrol in Ahmedabad was -0.01%. However, market forecast suggests that the prices may see a hike in the coming days.
September - Week 3 (15-21):
- Petrol prices in Ahmedabad opened the third week of September at Rs.69.47 per litre. The rates increased by 6 paise per litre since the previous day.
- The prices remained stable for the next day before increasing substantially over the week. The rates of petrol increased in the city even though the prices of oil dropped in the international oil market after Saudi Arabia’s energy minister stated that the kingdom will restore lost oil production by month end.
- Petrol rate in Ahmedabad closed the week at Rs.70.74 per litre. This was the highest recorded price for the month till date. The substantial increase in petrol prices over the week was accounted to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of the fuel in Ahmedabad was 1.90%.
Trend of Petrol Price in Ahmedabad for August 2019 (rates per litre):
|Highest Rate in August||Rs.70.21|
|Lowest Rate in August||Rs.69.26|
August 2019 – Week 1 (1-7):
- Petrol price in Ahmedabad opened at Rs.70.21 per litre on 1 August, recording a 6 paise drop from the previous day’s closing price. Weak demand of the oil in the international as well as in the local market was the primary reason for the slump. Meanwhile, in the international crude oil market, crude prices dropped after the possibility of rate cuts initiated by the US Federal Reserve got dismissed.
- Price of Petrol slumped further on the next day, trending at Rs.70.06 per litre on 2 August. Prices kept trending downwards with petrol closing at Rs.69.67 per litre on 6 August. In the international oil market, crude prices slumped amid worries over weak demand of the oil after the Trump administration declared that it would impose tariffs on more Chinese imports.
- Petrol rate in Ahmedabad remained unchanged from its previous day’s closing price, standing at Rs.69.67 per litre on 7 August. The overall performance recorded in the first week of August was -0.76%.
August 2019 – Week 2 (8-14):
- Price of Petrol in Ahmedabad opened at Rs.69.63 per litre on 8 August, recording a 4 paise drop from previous day’s closing price.
- Petrol dipped further by 14 paise on the next day, standing at Rs.69.49 per litre. The dip was primarily due to the ongoing US-China trade tensions, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports. Unprecedented rise in US inventories was also one of the primary reasons for the dip.
- Petrol price in Ahmedabad dropped marginally in the next few days before stabilising at Rs.69.40 per litre. The overall performance compared to the opening day was -1.15% trending downwards. Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 4 (22-31):
- Petrol price in Ahmedabad opened at Rs.69.26 per litre on 22nd August, unchanged from previous day’s closing price and its lowest recorded price for the month of August. After stabilising for the next few days, petrol prices went up marginally, recording Rs.69.48 per litre on 26 August. In the international oil market, crude gained after US inventories recorded a substantial slump.
- Petrol rate in Ahmedabad were slashed by 6 paise, recording Rs.69.42 per litre. Petrol remained unchanged till the end of the week and closed the month with the same price.
- Overall, petrol’s performance in Ahmedabad was -1.12%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.
Trend of Petrol Price in Ahmedabad for July 2019 (rates per litre):
|Highest Rate in June||Rs.70.80 on 23 and 24 July|
|Lowest Rate in June||Rs.67.94 on 1 July|
July 2019 – Week 1 (1-7):
- Petrol price in Ahmedabad was at Rs.67.94 per litre on 1 July in Ahmedabad, recoding the lowest price for the week marked by the slight drop of crude oil prices in the international oil market amid ongoing supply cuts by the OPEC and its allies.
- State-run Oil Marketing Companies (OMCs) hiked petrol price in Ahmedabad on 2 July when a litre of petrol was sold at Rs.68.01 per litre. This remained untouched until 6 July.
- On 7 July, petrol price in Ahmedabad rose significantly by Rs.2.35 per litre due to the hike of Re.1 per litre through excise duty and Re.1 towards cess on road and infrastructure to increase the Centre’s revenue to fund social welfare scheme, with this the petrol price during the week inclined by 3.56%.
July 2019 – Week 2 (8-14):
- Petrol price in Ahmedabad opened at Rs.70.36 per litre, same as previous day’s closing rate. The prices were primarily stagnant because of the ongoing US-China trade tensions that’s speculated to disrupt the global economy.
- Petrol prices dipped slightly on the following day, closing at Rs.70.31 per litre—a 0.05 paise drop from previous day’s price. The slump could be attributed to the investors preferring safe-haven products because of the looming global economic slump as US-China trade tensions continued. The prices remained stagnant for the next couple of days before improving on 13 July.
- Petrol recorded its highest price of the week, standing at Rs.70.48 per litre—a 0.17% incline. Middle East skirmishes, US-Iran tensions outweighed the extended supply cuts initiated by OPEC. Also, the tropical storm in the Gulf of Mexico that prompted the oil producers to cut more than half of their supply contributed to the hike in price.
July 2019 – Week 3 (15-21):
- Petrol price in Ahmedabad on 15 July stood at Rs.70.61 per litre. This was the lowest price recorded during the week amid falling crude oil prices in the oil market after China announced its slowest quarterly economic growth indicating a decline in demand from the country.
- Prices rose during the week to touch the highest price on 18 July when a litre of petrol in the city was priced at Rs.70.74 per litre and remained unchanged until 21 July despite rising crude oil prices.
- Overall, prices inclined amid inclining crude oil prices prompted by escalating tensions in the Middle East after an Iranian drone was shot down by the US and the trade war between the US and China signaling a slowing global economy.
July 2019 – Week 3 (15-21):
- Petrol was priced at Rs.70.74 per litre when the week began, no change compared to the previous day’s price. However, crude oil prices in the oil market rose marginally after the International Energy Agency (IEA) said it will act, if required, to keep markets stable amid escalating tensions in the Middle East.
- Prices of petrol rose its highest at Rs.70.80 per litre on 23 July and remained unchanged the next day as well while crude oil prices declined slightly over weak demand coupled with the supply cuts led by the OPEC and its allies.
- By the end of the week, petrol prices in Ahmedabad witnessed a downward trend to close the week at Rs.70.54 a litre. Crude oil prices slid marginally in the oil market after the US Navy said it may have shot down a second Iranian drone.
Trend of Petrol Price in Ahmedabad for June 2019 (rates per litre)
|2nd June||Rs.68.94 per litre|
|30th June||Rs.67.94 per litre|
|Highest Rate in June||Rs.68.94 per litre on 2 June|
|Lowest Rate in June||Rs.67.42 per litre from 16 – 23 June|
June 2019 – Week 1 (2-8):
- Petrol price in Ahmedabad was priced Rs.68.94 per litre on 2 June, inclining marginally compared to the previous day’s price amid a slight decline in crude oil prices in the market.
- While prices remained constant on 4 and 5 June when a litre was sold at Rs.68.68 per litre, it continued to decline over the course of the week.
- Petrol prices in Ahmedabad during this week declined by 54 paise compared to its opening price of the week primarily due to the stabilisation of crude prices after it plummeted by 10% in the last for days.
June 2019 – Week 2 (9-15):
- Petrol opened at Rs.68.40 per litre on 9 June, no revision compared to the previous day’s price in Ahmedabad.
- On 10 June, State-run Oil Marketing Companies (OMCs) cut the petrol price in Ahmedabad by 49 paise with petrol being sold at Rs.67.91 a litre, this remained static until 12 June.
- Prices continued to fall over the week to close the week at Rs.67.48 per litre amid declining crude prices impacted by concerns over the ongoing US-China trade war, and production cuts led by the OPEC and its allies.
June 2019 – Week 3 (16-23):
- Petrol price in Ahmedabad was at Rs.67.42 per litre on 16 June and remained unchanged until the end of the week as OMCs decided not to revise petrol prices in Ahmedabad.
- Meanwhile, in the international oil market, crude oil prices slid on indications that the global economy was slowing down due to the ongoing US-China trade war and US sanctions on Iran.
- By the end of the week, tensions in the Middle East after Iran shot down a US military drone impacted crude oil rates, and investors were awaiting a cut in interest rate by the US Federal Reserve.
June 2019 – Week 4 (24-30):
- Petrol price in Ahmedabad was Rs.67.54 per litre on 24 June and was kept unchanged until 26 June even as crude oil prices stabilised over the previous day’s trading.
- On 27 June, prices were increased by 7 paise per litre with petrol available in Ahmedabad at Rs.67.61 a litre and continued to rise over the week.
- Overall, petrol prices in Ahmedabad in June 2019 declined by 1.45% marked largely by the drop in crude oil prices amid US-China tariff war and US sanctions on Iran as well as supply cuts led by the OPEC and its allies.
Fortnightly-based Revision vs. Daily Revision
The fundamental difference between the daily revision and the fortnightly-based revision is the frequency of revision. Despite the frequency, both the fuel pricing mechanisms determine the cost of petrol on the basis of overseas Brent Crude oil and the value of the USD. The earlier fortnightly-based revision was not believed to be transparent whereas the current daily revision ensures transparency in fuel pricing.
Dealers were facing issues related to stock management with the fortnightly-based revision. This is no more a complexity with the daily revision. The new system will augment the capabilities of oil marketing companies to transfer the rates into the economy competently. For instance, if the currency conversion rate fluctuates today, the same will be replicated in the next day’s petrol rate. An exchange rate is the quantum of one currency you can exchange for another.
How are Petrol Prices in Ahmedabad Determined?
The government of India has recently introduced a fresh fuel pricing mechanism called ‘dynamic fuel pricing or the daily revision’ on 16 June 2017. It is a streamlined version of the earlier fortnightly-based revision. As per the new system, all state-run oil marketing companies will update petrol prices in Ahmedabad at 06:00 a.m. every day. It is not twice a month! With the introduction of the daily revision, India joins the United State of America (USA) and Australia that also revise fuel rates regularly.
Trends in Petrol Price in Ahmedabad
Let’s look at weekly reports. Petrol rates in Ahmedabad were up by 0.8% between 14 August 2017 and 21 August 2017. The growth rate was decreased to 0.56% from 0.8% between 21 August 2017 and 28 August 2017. In the next week, the growth rate was again decreased to 0.51% from 0.56%. Between 04 September 2017 and 11 September 2017, petrol prices in the city were up by 0.66%. The cost of petrol in the first week of October 2017 was down by Rs.2 per litre due to a cut in the excise duty.
Quarterly Petrol Price Trend in Ahmedabad Between October and December 2018
|Opening date price||Rs.82.90 a litre||Rs.76.49 a litre||Rs.69.93 a litre|
|Closing date price||Rs.76.66 a litre||Rs.70.27 a litre||Rs.66.31 a litre|
|Highest price||Rs.83.14 a litre booked on the 4 October 2018||Rs.76.49 a litre booked on the 1 November 2018||Rs.69.93 a litre booked on the 1 December 2018|
|Lowest Price||Rs.76.66 a litre booked on 30 and 31 October 2018||Rs.70.27 a litre booked on the 30 November 2018||Rs.66.31 a litre booked on the 31 December 2018|
Petrol Price Trend in Ahmedabad Between October and December 2018
- Petrol prices in Ahmedabad are updated daily by state-run Oil Marketing Companies (OMCs) based on the ‘Dynamic Fuel Pricing’ mechanism, which considers the 14-day average price of crude oil along with the rupee-dollar exchange rate.
- Under this method, petrol was priced at Rs.82.90 per litre on 1 October and rose to touch the highest price of Rs.83.14 per litre on 4 October.
- With fuel prices on a significant rise, the Union government announced a reduction of the excise duty levied on fuel Rs.1.50 per litre, while it asked OMCs to further subsidise Rs.1 per litre.
- Prices of petrol in Ahmedabad began declining over the next couple of weeks as crude oil prices started to fall marginally.
- By the end of the month, petrol prices in Ahmedabad declined by 7.53% on the back of the cut in excise duty.
- On 1 November, the petrol rate in Ahmedabad stood at Rs.76.49 per litre – the highest price recorded for the month.
- Over the next couple of weeks, prices declined significantly as the geopolitical tensions between the US and China declined which led to a fall in the price of crude oil in the international market.
- On 30 November, petrol recorded its lowest rate in Ahmedabad when it was retailed at Rs.70.27 per litre.
- Overall, the petrol price trend in Ahmedabad during November declined by 8.13% attributed to the significant fall in crude oil rates in the international market.
- The petrol price on 1 December stood at Rs.69.93 per litre, which was the highest rate registered during the month.
- While crude oil was trading around $80 per barrel early October, it declined to around $56 per barrel late December which prompted fuel prices in the country to fall.
- The decline in crude oil prices was attributed to decline in geopolitical tensions between the US and China.
- By the end of the month, the petrol price trend in Ahmedabad declined by 5.18% influenced by the significant fall in crude oil prices in the international market as well as due to the slight appreciation of the rupee over the US dollar.
Quarterly Petrol Price Trend in Ahmedabad between July 2018 and September 2018
|Opening date price||Rs.74.57 per litre||Rs.75.66 per litre (As of 2 August 2018)||Rs.77.73 per litre|
|Closing date price||Rs.75.53 per litre||Rs.77.73 per litre||Rs.82.40 per litre|
|Highest price||Rs.76.00 per litre||Rs.77.73 per litre||Rs.82.40 per litre|
|Lowest price||Rs.74.57 per litre||Rs.75.66 per litre||Rs.77.73 per litre|
Petrol Price Trend in July in Ahmedabad
- Dynamic fuel pricing has been used throughout the month of July in order to review the rate of petrol in Ahmedabad, which is the largest city in Gujarat.
- Dynamic fuel pricing requires oil marketing companies to consider the preceding day’s exchange rate and the price of unrefined oil a barrel to determine the price for tomorrow.
- Under this mechanism, petrol prices remained constant for the first, second, third and fourth days of the month.
- The price of petrol per litre increased by 31 paise per litre on the 5th and 14 paise per litre on the 6th compared to the previous day. It increased in the week 2 and started dropping towards the month’s completion.
- Petrol prices increased noticeably in the week three and dropped in the fourth week slightly. Interestingly, on 16 July, the highest fuel price was registered at Rs.76.00 per litre in Ahmedabad and other cities in Gujarat.
- Considering the deviation between the closing and opening date prices, the growth rate worked out to be 1.28% this month.
- In other parts of Gujarat also, the growth rate in the prices of petrol was above 1%, caused by a weakened rupee primarily.
Petrol Rate Trend in August in Ahmedabad
- The price of petrol was on the rise in the first few days of the month. Slowly, it increased to Rs.76.28 per litre on the 7th.
- In the second week, the trend was steady even though there was a deviation in the price structure of crude oil and the currency ratio.
- From the 7th August to the 15th August, the fuel price remained steady at Rs.76.28 per litre. In the third week also, fuel was sold at a price of Rs.76.41 per litre between the 16th August and the 19th August.
- As per the price notification released by Indian Oil, Hindustan Petroleum and Bharat Petroleum, petrol prices were steady on the 21st, 22nd, 23rd, 24th, 25th and 26th of August at all the retail petrol distribution centers in Ahmedabad.
- Between the 27th August and the 31st August, the price of petrol per litre in the city of Ahmedabad increased by 61 paise per litre.
- Except for a falling rupee and the marginally raised unrefined oil rates, no other forces influenced the price revision of petrol throughout the month of August 2018.
- From 1.28%, the growth rate this month soared to 2.73%. The lowest and highest petrol prices were observed at the beginning and end of the month.
Petrol Rate Trend in September 2018 in Ahmedabad
- The trend in petrol prices in Ahmedabad were interesting to notice this month. Unlike the previous two months, they were highly volatile.
- The month started with a positive trend since the opening date price was slightly up against the previous day’s price.
- For the first week, the fuel was retailed at an average price of Rs.78.41 per litre in the largest city of Gujarat.
- The average fuel price for the second week has increased from Rs.78.41 per litre to Rs.79.89 per litre. Similarly, for the third and fourth weeks of the month, the average fuel rates continued to increase.
- For a majority of the days of September, the fuel was sold at a constant price. Over a span of 30 days this month, the fuel rate increased above Rs.5 per litre.
- The revision of the excise duty, also called the central tax, and the Value-added Tax (VAT), also called the sales tax, also matter a lot while releasing the daily update.
- The excise duty was imposed at the same price on petrol. Even the Value-added Tax was not changed by the State Government of Gujarat.
- While the lowest price for the whole quarter was reported to be Rs.74.57 per litre, the highest rate for the entire quarter stood at Rs.82.40 per litre.
Quarterly Petrol Price Trend in Ahmedabad Between April and June 2018
|Opening date price||Rs.73 a litre||Rs.73.98 a litre (As on 14th)||Rs.77.43 a litre|
|Closing date price||Rs.73.81 a litre (As on 24th)||Rs.77.49 a litre||Rs.74.72 a litre (As on 26th)|
|Highest price||Rs.73.81 a litre recorded on 24th||Rs.77.57 a litre recorded on 29th||Rs.77.43 a litre recorded on 1st|
|Lowest price||Rs.73 a litre recorded on 1st||Rs.73.98 a litre recorded on 14th||Rs.74.72 a litre recorded on 6th|
Petrol Price Trend in Ahmedabad in April 2018
- Petrol prices depend upon the changes of global crude oil rates and the currency exchange value on a daily basis. While the crude oil price and the currency exchange rate are external factors, domestic factors include taxes and operational costs of oil companies.
- State-run oil companies revise petrol and diesel prices daily under the ‘Dynamic Fuel Pricing’ mechanism. Prices are updated every day at 6:00 am IST.
- On 1st, petrol was available at Rs.73 a litre in Ahmedabad - the lowest price for the month.
- Petrol prices remained steady during the first and second week in Ahmedabad as the global crude oil price remained stable except with slight variations.
- The highest petrol price in Ahmedabad in April stood at Rs.73.81 per litre on the 24th. The increase in prices was attributed to the marginal incline in crude oil rates.
- Overall, petrol price trend in Ahmedabad grew by 1.10% largely due to the rise in the global crude oil rate and the incline in the currency exchange value.
Petrol Price Trend in Ahmedabad in May 2018
- Petrol prices in Ahmedabad were kept unchanged until the 11th of the month as crude oil prices reflected a steady rate.
- The lowest price registered during the month was registered on the 14th with petrol being sold at Rs.73.98 a litre.
- The global crude oil price continued to rise sharply over the next two week due to tensions over possible sanctions on Iran by the US administration after the latter pulled out the nuclear deal.
- With the apprehension of a potential shortage in supply of oil, fuel prices grew significantly. Petrol prices rose to touch an all-time high of Rs.77.57 a litre on the 29th.
- As per Petroleum Planning and Analysis Cell, the cost of crude oil per barrel in this month grew by $6 and the reason behind petrol being sold at an all-time high.
- The trend in petrol prices during the month reflected an upward trend of 4.74% influenced by the significant rise in crude oil prices in the global market.
|Also Know: Diesel Price In Ahmedabad|
Petrol Price Trend in Ahmedabad in June 2018
- With crude oil prices on the rise, the members of the Organisation of Petroleum Exporting Countries and its key ally Russia decided to meet on the 22nd of the month to find ways to tackle the high crude oil price in the market.
- On 1st, petrol was available at Rs.77.43 per in Ahmedabad, this was also the highest for the month.
- The crude oil market was sluggish due to which prices of petrol fell over the first and second week of the month in the city.
- By mid-June petrol prices in Ahmedabad had fallen by Rs.1.92 per litre compared to the opening date price.
- During the meeting, the OPEC and Russia agreed to increase production of oil in order to ease the rising oil prices in the market.
- Similar to other cities, petrol prices in Ahmedabad during the month reflected a downward trend of 3.49% impacted by the fall in crude oil prices.
Petrol Rates in Ahmedabad and other Prime Cities of India
The petrol rate across the city is the same except a few minute variations. In other words, there is no noticeable difference in the prices offered by all state-run oil marketing brands. Just to make a comparative study, it can be inferred that the petrol rate is cheaper at Hindustan Petroleum followed by Indian Oil, Bharat Petroleum, and Shell Oil in Ahmedabad. The same goes with other prime cities such as Bangalore, Chennai, New Delhi, Kolkata, and Mumbai. Between 4 October 2017 and 13 October 2017, the average prices of petrol in Ahmedabad, Bangalore, Chennai, New Delhi, Mumbai, and Kolkata were Rs.69.90, Rs.69.50, Rs.70.87, Rs.68.42, Rs.75.55, and Rs.71.20 respectively.
Computation of Petrol Costs in Ahmedabad
The following steps are followed to compute petrol prices in Ahmedabad:
Step 1: Calculation of the Cost of Crude Oil
The cost of crude oil is the first component of the price structure of petrol and can be computed by taking into account the previous day’s Brent Crude oil price and the value of the USD. Let’s assume that the cost of a barrel of crude oil (159 litres) is $47 and the value of the USD against the INR is Rs.64. The cost of a litre of crude oil works out to be Rs.20.10.
Step 2: Calculation of operational and transportation costs incurred by oil marketing companies
Oil marketing companies incur both operational costs (including freight charges) and transportation costs. Operational expenses will remain unchanged for a period of six months whereas transportation costs are reviewed once a year. Let’s now assume that the operational cost is Rs.5.65 and the transportation cost is Rs.2.68. After the second step, the petrol cost per litre Rs.28.43.
Step 3: The Central Government’s Excise Duty
Let’s assume that the central government's excise duty is Rs.19.48 per litre. The price of a litre of petrol will now increase to Rs.47.91.
Step 4: Commission charged by dealers
Let’s now consider that petrol dealers in Ahmedabad charge 7% commission on a litre of petrol. 7% of Rs.47.91 works out be Rs.3.35. The cost of a litre of petrol now increases to Rs.51.26 after the fourth step.
Step 5: VAT
This the final step where the tax on petrol imposed by the government of Gujarat and pollution cess are added. Petrol is taxed at 28.96% by the Gujrat government. Therefore, 28.96% of Rs.51.26 works out to be Rs.14.85. The cess on pollution charged by the local government is assumed to be 25 paise. Now, the retail price of petrol in Ahmedabad will be Rs.66.36 per litre.
Factors Impacting Petrol Prices in Ahmedabad
As mentioned in the earlier section, the petrol rate is determined by considering global crude oil prices and the value of the USD. These are the two important factors affecting the retail price of petrol in any Indian city including Ahmedabad. The cost of crude oil is likely to increase when global crude oil rates and the value of the USD increase. Similarly, the cost of crude oil will decrease when the value of the USD and overseas crude oil prices decrease. VAT and the central excise duty also influence the petrol price.
Let’s now look at the factors that influence the cost of Brent Crude. The primary influencers are the exchange rate, weather conditions, seasonal variations, political moves in oil-producing companies, the supply and demand pattern, and increase demand for crude oil from developing economies. For instance, the cost of crude oil will gain when all activities related to oil extraction get interrupted by undesirable weather conditions.
Impact of GST on Petrol Prices in Ahmedabad
Does GST impact the current petrol rate Certainly, it does not impact. Along with five petroleum products, petrol has been kept outside the regime of GST that was rolled out by the government of India in July 2017. As we all know, the highest tax rate set by the GST Council till date is 28%. Even though petrol is taxed at this rate, the petrol rate in Ahmedabad will drop by 30-35%. It may not be a feasible option from the perspective of the state and central governments, which stand to lose the major source of income. Consumers will benefit.
Petrol Price vs. Diesel Prices in Ahmedabad
The average prices of diesel and petrol in the city after the recent reduction in the excise duty were Rs.63 and Rs.69.92 respectively. With the daily revision in place, petrol and diesel rates are expected to increase slightly over the next 30-60 days.
*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.