Petrol Price in Allahabad
Allahabad is a city in Uttar Pradesh with a growing number of petrol buyers. Petrol has now become an expensive fuel in the city. The fuel has reached a price tag of Rs.78.34 per litre. Towards the end of May 2018, the fuel price has shown a declining trend. People across Uttar Pradesh have raised concerns over uninterruptedly growing petrol prices. To combat the situation, there may be another cut in excise duty. Whether or not to revise fuel prices is left at the discretion of the Oil Ministry and the Central Government.
Historical Petrol Price in Allahabad
Irrespective of variations in crude oil rates, interestingly, petrol rates in Allahabad were increased significantly at Hindustan Petroleum, Bharat Petroleum and Indian Oil. In January 2018, petrol was sold at Rs.72.15 per litre on the opening date. By the end of the month, the fuel price was up by Rs.2.25 per litre. In the subsequent month, fuel companies reported a price downfall of Rs.1.21 per litre in the city. The upward trend continued for the next three months. Fuel rates accelerated by Rs.1.37 per litre, Rs.0.67 per litre and Rs.2.79 per litre in March 2018, April 2018 and May 2018 respectively in Allahabad.
Revision of Fuel Rates in Allahabad
Dynamic fuel pricing is used currently to revise fuel rates (diesel and petrol rates) across the nation. It requires the daily revision of the price of fuels on the basis of global aspects such as crude oil costs and the INR/USD exchange rate. Alternatively, any variations in these two aspects will be factored to offer a new rate for fuel customers. For instance, if the USD reasonably appreciates against the local currency today, petrol rate tomorrow will get adjusted tomorrow. Similarly, variations in the crude oil market are accounted for.
Salient Features of Dynamic Fuel Pricing
- Needless to say, dynamic fuel pricing is practiced in other countries.
- It removes big fluctuations in the price of petrol despite the locality.
- 100% fuel pricing.
- It does not allow third parties to influence the pricing of petrol in the country.
- Petrol buyers are marked to real-time market performances.
Key Benefits of Dynamic Fuel Pricing
- Because of daily revisions, the supply of petrol cannot be interrupted in Allahabad.
- Fuel companies can reduce administrative overheads to the possible extent.
- Management of cash inflows and outflows can be easier for fuel companies.
- Moreover, fuel companies can automate their premises to revise fuel prices quickly, effectively.
Options to Trace Current Petrol Price in Allahabad
|Indian Oil||Hindustan Petroleum||Bharat Petroleum|
|Mobile applications||Download Fuel@IOC||Download My HPCL||Download SmartDrive|
|SMS service||RSP DEALER CODE to 9224992249||HPPRICE DEALER CODE to 9222201122||RSP Dealer code to 9223112222|
Computation of Petrol Price in Allahabad
Fuel companies will determine petrol rate in Allahabad by adding the mentioned below cost aspects:
- Crude oil cost: Crude oil rate per barrel in overseas markets was $78.3 as on 03 June 2018. In INR, the cost of a litre of unrefined oil worked to be Rs.32.98 per litre.
- OMC costs: OMC costs incurred on petrol include RTP, entry taxes, administrative overheads, landing overheads, carriage costs, profit margin of OMCs and freight expenses. As on 03 June 2018, they were Rs.5.41 per litre.
- Excise duty: Excise duty is a major cost aspect and is collected commonly. It may be changed. On petrol per litre, excise duty was Rs.9.20 per litre in November 2014. In August 2017, it was further increased to Rs.21.48 per litre. The Central Government revised it to Rs.19.48 per litre recently in February 2018.
- VAT: Value-added Tax, a state level tax, is levied by states. It was levied at 28.68% on petrol per litre by the State Government of Uttar Pradesh. It differs within states. So, petrol is retailed at different prices in each state.
- Commission: Commission is paid to fuel buyers for distributing petrol to consumers. In January 2018, it was revised to Rs.3.63 per litre.
In a nutshell, petrol price in Allahabad = excise duty + VAT + crude oil expenses + OMC expenses + commission
Factors Affecting Fuel Prices in Allahabad
As we all know, both excise duty and VAT are indigenously controlled to cushion the impact of uninterruptedly increasing fuel rates. In October 2017 and February 2018, the Central Government revised excise duty. It has been expected to be revised in the near future. Similarly, in Uttar Pradesh, VAT was recently defined in October 2017. If VAT and excise duty increase, petrol rates in Allahabad will increase and vice versa.
International factors greatly affect the price revision of petrol and diesel in India. They consist of unrefined oil costs, the INR/USD conversion ratio, political aspects in oil-marketing countries, etc. These forces are interrelated. For example, when the base currency weakens against the local currency, crude oil rates will increase and vice versa. As a result, the retail selling price of petrol per litre gets affected.
Sometimes, oil exporting nations will declare production cuts. When a production cut is declared, the required quantum of crude oil cannot be extracted. If oil-producing countries fall short of crude oil, fuels become expensive. The higher the demand for the commodity, the higher will the price be and vice versa. Bad weather is an example of an uncertainty. Production and transportation activities are more likely to be affected by a bad weather.
GST vs Petrol Price in Allahabad
Goods and Services Tax (GST) is an Indian tax framework that has subsumed all kinds of indirect levies imposed by the state and central governments. Under GST, commodities and services are taxed at 28%, 18%, 12% and 5%. Fascinatingly, petrol has not been included under GST to safeguard the income accumulated by states. When petrol is brought under GST, petrol is charged commonly across the country. It may not be a fair choice for the Central Government, which tends to lose its revenue sources. The GST Council may bring petrol under GST by restricting the present tax rates.
*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.