Petrol Price In Amravati
Amravati, the 6th most populous metropolitan area in the state of Maharashtra, is spread over 71 square miles with a population of over a million recorded as of 2011. Amravati is known for its educational institutions and boasts of a high literacy rate of 93%. While public and private transport is available, many prefer to commute through two-wheelers and four-wheelers. The city is growing at a tremendous pace and infrastructures such as roads are being developed in tandem with the growth of the city. With the increasing use of vehicles in the city, the consumption of petrol has increased as well.
State-owned oil companies such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) operate in the city. The petrol price in Amravati offered by these oil companies are relatively similar; however, there can be slight variations due to transportation cost and the brand.
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Let’s look at some of the factors and understand how daily petrol prices are determined in Amravati.
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Factors Affecting The Petrol Price In Amravati
Fuel price in India varies from state to state depending on the VAT tariff. Both domestic and international factors influence the petrol price in India. While domestic factors such as the Central and the State taxes, fuel pump dealer commision, transportation charges, and the profit margins of oil companies influence the petrol price, international factors such as the price of Indian Crude Oil Basket and the dollar to rupee conversion rate affect the prices of petrol.
- Indian Crude Basket Price: The Indian Crude Basket price is the price at which State-owned oil companies like IOCL, BPCL and HPCL purchase fuel from oil-producing countries. The price of global crude oil is influenced by the demand and supply as well as the exchange rate of the USD over INR. India imports over 70% of its crude oil which is then refined and transported. The Oil Marketing Companies (OMC) pay the Refinery Transfer Price (RTP) to the refinery for the refined fuel. The OMCs then sell the refined fuel to dealers before they retain a profit margin.
- Taxes: Two main taxes are levied on petrol in India - Central Government’s Excise Duty and the State’s Value Added Tax (VAT). One of the biggest factor affecting the petrol price in Amravati is the Excise Duty. Presently, the Central Government levies Rs.19.48 for a litre of petrol. The last revision of the Central Excise Duty was in February 2018, when the tax was decreased by Rs.2 per litre of petrol. The second major tax levied on fuel, which is one of the major factor impacting the petrol price in Amravati is the VAT levied by the State Government. The VAT differs from state to state and respective governments decide the tax rate for fuel. In Amravati, the State Government of Maharashtra levies 38.93% VAT for a litre of petrol.
- USD/ INR Exchange Rate: Trading of oil in the global market is done through the US dollar. India buys crude oil in USD and sells them in INR. Therefore, the petrol price in Amravati and other cities is influenced by the fluctuating exchange rate. Petrol prices decrease whenever the Rupee gains over the USD and vice versa.
- Oil Marketing Companies’ Profit Margins: Nearly 90% of oil market share is held by the three State-owned OMC such as the Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum. These OMCs refine the crude oil and transport the extracted petrol to dealers in India. Before petrol is sold to the dealers, OMCs add the refining, transportation and marketing costs to the cost of the crude oil.
- Petrol Dealer Commission: Fuel station dealers buy petrol from their respective OMCs, store and maintain the petrol stations before it’s sold to the consumers. They add costs involved in transporting the fuel and other maintenance costs to the Retail Selling Price (RSP) of petrol. Typically, OMCs decide the dealer margins and is revised once in a year.
- Demand And Supply Pattern: Fuel prices in India and cities such as Amravati is influenced by the demand as well as the supply of petrol in the country. Developing countries such as China and India usually have a high demand for fuel compared to other countries. When there are high demand for fuel, the petrol price increases as well. In a country like India, where transportation is entirely dependant on fuel, there is bound to be a shortage in supply of fuel. Oil marketing companies will have to bid at a higher price which in turn is passed on to the end customers.
Why Is Petrol Price In Amravati Different From Other Cities?
While the Indian Basket price for crude oil remains the same across cities, petrol price in Amravati is determined by the VAT levied by the Maharashtra State Government as well as the operating costs to transport fuel to the city. The VAT differs from state to state, hence, the reason why the petrol price in Amravati is different from other cities.
What is Dynamic Fuel Pricing & is it Applicable To Amravati?
Petrol prices in Amravati and other cities of India is determined by the ‘Dynamic Fuel Pricing’ or commonly known as daily price revision of fuel prices. From 16 June 2017 onwards India moved to Dynamic Fuel Pricing mechanism where petrol prices are determined daily, which are updated by 6 a.m daily at all petrol pumps in Amravati.
Methods To Find Out Today’s Petrol Price In Amravati
OMCs are offering the services of mobile apps and SMS to find out petrol prices in Amravati on a daily basis. Customers may consider mobile apps such as SmartDrive or My HPCL or Fuel@IOC to find out the petrol price on a daily basis.
As for the SMS service, consumers can send SMS to get today’s petrol price in Amravati. Below are the steps to send an SMS for the petrol price.
- Indian Oil Corporation: Consumers should type RSP, provide a space and then enter the dealer code and the SMS should be sent to 9224992249.
- HPCL: Consumers should type RSP, leave a space and then the dealer code and sent to 9222201122.
- BPCL: Consumers filling petrol from BPCL fuel stations, should type RSP, provide a space and then the dealer code. The SMS needs to be sent to 9223112222.
Apart from the mobile apps and SMS service, one can visit the OMC’s respective website and find out today’s petrol price in Amravati.
GST On Petrol Price In Amravati
Presently, all goods and services come under the ambit of the Goods and Services Tax (GST) introduced in India on 1 July 2017. However, the GST is not applicable on petroleum products including petrol and diesel. The revenue of both the Central and the State Government comes from the taxes levied on petrol, hence, bringing petroleum products under GST would incur losses as the tax on petrol is marginally higher than the highest tax slab of GST. Because of the impact, petrol price in Amravati does not come under the framework of the GST.
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