Petrol Prices in Andhra Pradesh
A recent report reveals that the revenue from the sale of petrol in Andhra Pradesh has reduced since the Karnataka government has withdrawn the 5% entry tax at petrol stations. The price difference is Rs.6.00 per litre. Even Andhra Pradesh should withdraw entry taxes in order to avoid losses. What is the petrol price in Andhra Pradesh currently? Let’s consider the three major cities in Andhra Pradesh.
Petrol Prices in Hyderabad, Visakhapatnam and Vijayawada
Hyderabad is the capital city of Andhra Pradesh. The average price of petrol in October 2017 was above Rs.72.00 per litre. The highest rate for the last three months was Rs.74.83 per litre while the lowest rate was Rs.66.99 per litre. Petrol rates have shown an increasing trend in September, August and July 2017. Due to the effect of dynamic fuel pricing, they were low in June 2017.
Visakhapatnam is the financial capital of Andhra Pradesh. In the city, the average petrol price in October 2017 was Rs.73.60 per litre. On 1 September 2017, petrol was priced at Rs.74.79. On 1 August 2017, the price was Rs.70.78. On 1 July 2017, the fuel was sold at Rs.68.20. In October 2017, the average petrol price in Vijayawada was more than the average price in Visakhapatnam and Hyderabad.
How are Petrol Prices in Andhra Pradesh Revised?
Since 16 June 2017, all petrol bunks across the state have been updating petrol rates on a daily basis. The system of revising fuel rates on a daily basis is called dynamic fuel pricing. The daily price revision will occur on the basis of the variations in global crude oil prices and the exchange rate. Adopting the dynamic fuel pricing system will align the Indian fuel retail market with global oil markets. Oil marketing companies (OMCs) are likely to benefit from the daily revision of fuel rates.
The daily revision of petrol prices is done at 06:00 a.m. every day despite the nature of petrol bunks. Automated petrol outlets can automatically reset the price while non-automated petrol outlets will manually reset the price. Dynamic fuel pricing encourages the automation drive of petrol outlets and ensures fuel pricing is fully transparent. Variations in crude oil rates and the currency conversion rate can instantly be transferred petrol users.
Revised petrol prices in all parts of Andhra Pradesh can be tracked easily. All oil marketing companies have designed mobile applications to help customers to get the latest price. Revised prices will be updated on the websites of these companies. After revising petrol prices, each petrol station will exhibit the revised price. Another way is to send a text message in the prescribed format. Oil marketing companies also offer customer care services.
Quarterly Petrol Price Trend in Andhra Pradesh Between October and December 2018
|Opening date price||Rs.88.85 a litre||Rs.84.19 a litre||Rs.76.98 a litre|
|Closing date price||Rs.84.38 a litre||Rs.77.35 a litre||Rs.72.97 a litre|
|Highest price||Rs.89.11 a litre booked on the 4 October 2018||Rs.84.19 a litre booked on the 1 November 2018||Rs.76.98 a litre booked on the 1 December 2018|
|Lowest Price||Rs.84.38 a litre booked on 30 and 31 October 2018||Rs.77.35 a litre booked on the 30 November 2018||Rs.72.97 a litre booked on the 31 December 2018|
Petrol Price Trend in Andhra Pradesh Between October and December 2018
- State-run Oil Marketing Companies (OMCs) fix petrol prices daily under the ‘Dynamic Fuel Pricing’ mechanism which considers the 14-day average price of crude oil along with the exchange rate of the rupee over the US dollar.
- Under this pricing mechanism, the petrol price in Andhra Pradesh on 1 October was fixed at Rs.88.85 per litre.
- Prices rose to touch the highest on 4 October when a litre of the fuel was dispensed at Rs.89.11 per litre as the crude oil price in the global market was trading at a four-year high of $80 per barrel.
- The Central government announced a cut in the excise duty of Rs.1.50 per litre, while it asked OMCs to further subsidise Rs.1 per litre which resulted in a reduction of Rs.2.50 per litre.
- Over the next few weeks, prices dropped and touched the lowest on 30 and 31 October when petrol was sold at Rs.84.38 per litre resulting in an overall decline of 5.03% during the month.
- Petrol prices in Andhra Pradesh on 1 November stood at Rs.84.19 per litre – the highest price recorded during the month.
- Petrol rates in Andhra Pradesh during this month declined in tandem with the slight fall in the global crude oil price.
- By the end of the month, petrol recorded its lowest price in Andhra Pradesh when it was priced at Rs.77.35 per litre on 30 November.
- Overall, petrol prices during this month fell sharply by 8.13% in the back of the declining oil prices in the market.
- On 1 December, petrol was priced at Rs.76.98 per litre, which was also the highest price registered during the month.
- The decline in petrol prices comes amid the steep fall in crude oil prices in the global market as there was a decline in geopolitical tensions between the US and China over trade between the two countries.
- Crude oil rates fell to around $55 per barrel late December from $80 per barrel early October which prompted the sharp decline in fuel prices in the country
- On 31 December, petrol recorded its lowest price when it was sold at Rs.72.97 per litre in the back of the fall in oil rates.
- By the end of the month, petrol prices in Andhra Pradesh fell by 5.21% attributed to the significant drop in oil prices along with a slight incline in the rupee’s exchange rate over the US dollar.
Quarterly Petrol Price Trend in Andhra Pradesh between July and September 2018
|Opening date price||Rs.80.03 a litre||Rs.80.90 a litre||Rs.83.42 a litre|
|Closing date price||Rs.80.94 a litre||Rs.83.30 a litre||Rs.88.51 a litre|
|Highest price||Rs.81.51 a litre recorded on the 14th||Rs.83.30 a litre recorded on the 31st||Rs.88.51 a litre recorded on the 30th|
|Lowest Price||Rs.80.03 a litre recorded on the 1st||Rs.80.90 a litre recorded on the 1st||Rs.83.42 a litre recorded on the 1st|
Petrol Price Trend in Andhra Pradesh in July 2018
- Petrol prices in Andhra Pradesh and other states in the country are revised every day by State-owned Oil Marketing Companies (OMCs) based on the dynamic fuel pricing mechanism.
- Under this mechanism, OMCs arrive at the retail price of petrol based on the global crude oil price and the exchange rate of the Indian currency over the U.S. dollar.
- The petrol price in Hyderabad, the capital city of Andhra Pradesh, on the 1st of July stood at Rs.80.03 per litre, this was also the lowest price recorded during the month.
- Prices were kept unchanged until the 5th before increasing it by 17 paise when a litre of petrol was sold at Rs.80.20 in Andhra Pradesh.
- There were relentless hikes over the course of first and second weeks which led to the highest price of Rs.81.51 per litre on the 14th of the month.
- Oil companies reduced petrol prices in Andhra Pradesh in the third and fourth weeks; however, it was not lower than the opening price.
- By the end of the month, a litre of petrol was dispensed at Rs.80.94 in Andhra Pradesh, an increase of 91 paise per litre when compared to the opening price.
- The petrol price trend in Andhra Pradesh in July grew by 1.14% influenced by the marginal rise in the global crude oil price.
Petrol Price Trend in Andhra Pradesh in August 2018
- In accordance with the daily revision of fuel prices, oil firms reduced the petrol price in Andhra Pradesh by 4 paise per litre when a litre of the fuel was sold at Rs.80.90 - the lowest petrol price in Andhra Pradesh for the said month.
- Since the petrol price is dependent on the rate of crude oil and the exchange rate of the rupee over the dollar, prices continued to incline in the first and second weeks in the state.
- The rise in oil prices comes amid geopolitical tensions between the U.S. and Iran after the former pulled out of the nuclear deal between the two nations.
- This led to the possibility of a decline in crude oil supply in the international market prompting oil prices to soar.
- There was no let-up in the hike of petrol prices in the state as there were relentless hikes by oil firms in the country.
- By the end of the month, the price of petrol rose from Rs.80.90 per litre to Rs.83.30 - an increase of Rs.2.40 per litre.
- Overall, the petrol price trend in Andhra Pradesh in August rose by 2.97% attributed to the incline in crude oil prices in the global market.
Petrol Price Trend in Andhra Pradesh in September 2018
- On the 1st of September, the petrol price in Andhra Pradesh stood at Rs.83.42 per litre. This was the lowest petrol price registered during the course of the month.
- The State government announced a cut of Rs.2 per litre on taxes levied on petrol and diesel providing some relief to consumers.
- However, the crude oil price soared to a four-year high of $80 per barrel and the rupee fell to lowest against the dollar breaching the Rs.72 mark.
- Both these factors led to a significant rise in petrol and diesel prices across the country including that of Andhra Pradesh.
- The rise in crude oil prices was influenced by geopolitical tensions and prices of fuel soared across the globe.
- The highest petrol price in Andhra Pradesh recorded during the month was on the 30th when a litre of petrol was sold at Rs.88.51, an incline of Rs.5.09 per litre when compared to the opening price of the month.
- The petrol price trend in Andhra Pradesh during the month moved upwards by 6.10% primarily impacted by the significant rise in crude oil prices coupled with the lowest drop in the exchange rate of the rupee over the U.S. dollar.
Quarterly Petrol Price Trend in Andhra Pradesh Between April and June 2018
|Opening date price||Rs.78.08 per litre||Rs.79.04 per litre||Rs.82.98 per litre|
|Closing date price||Rs.79.04 per litre||Rs.83.04 per litre||Rs.80.03 per litre|
|Highest price||Rs.79.08 per litre recorded on 24th||Rs.83.13 per litre recorded on 29th||Rs.82.98 per litre recorded on 1st|
|Lowest price||Rs.78.08 per litre recorded on 1st||Rs.79.04 per litre recorded from 1st to 11th||Rs.80.03 per litre recorded from 27th to 30th|
Petrol Price Trend in Andhra Pradesh in April 2018
- The petrol price in the 1st of the month in Hyderabad, the current capital city of Andhra Pradesh, stood at Rs.78.08 per litre, also the lowest price of petrol of the month.
- Fuel prices including petrol is revised under the dynamic fuel pricing mechanism by State-owned oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum.
- This type of mechanism takes into account the preceding day’s crude oil and currency exchange rate and is immediately passed on to the customer.
- Petrol prices in Andhra Pradesh during the second and third week continued to rise marginally in tandem with the crude oil price.
- Crude oil prices continued to incline which resulted in the increase in petrol prices in the State with the highest recorded for the month at Rs.79.08 per litre on 24th of April 2018.
- From the 25th onwards till the end of the month, fuel companies kept petrol prices unchanged which stood at Rs.79.04 per litre.
- The petrol price trend in Andhra Pradesh during the month reflected an upward trend of 1.23% largely impacted due to the incline in crude oil prices.
Petrol Price Trend in Andhra Pradesh in May 2018
- Fuel companies kept petrol prices unchanged in Andhra Pradesh at Rs.79.04 per litre till the 11th of the month, this was also the lowest price of the month.
- The non-revision in petrol prices is due to the steady rate of crude oil in the global market; however, post the 11th, petrol prices inclined sharply in the backdrop of geopolitical tensions.
- The geopolitical tensions was due to the potential trade war between the US and China which could affect the supply of crude oil.
- The crude oil price rose to stand at $80 per barrel thereby increasing the petrol prices to touch an all-time high of Rs.83.13 per litre on the 29th - the highest petrol price of the month.
- Petrol prices are impacted by external factors such as the crude oil price and the currency exchange rate of the US dollar over rupee while internal factors include taxes, profit margin of oil companies, operational costs incurred by oil companies and lastly the commission paid to petrol pump owners.
- The significant rise in petrol price was not influenced by none of the internal factors, but that of the price of crude oil rate.
- Overall, the petrol price trend in Andhra Pradesh reflected an upward trend of 5.06% mainly impacted by the high crude oil prices.
Petrol Price Trend in Andhra Pradesh in June 2018
- On the 1st of the month, the petrol price in Andhra Pradesh stood at Rs.82.98 per litre, a slight decline of 6 paise per litre after touching an all-time high in the previous month.
- With fuel prices at an all-time high around the globe, the Organisation of Petroleum Exporting Countries (OPEC) and its ally Russia decided to meet on the 22nd to find ways to address the rising crude oil rates.
- Meanwhile, petrol prices in Andhra Pradesh continued to remain steady during the first week, but started to show some respite over the second and third week.
- By mid-June, petrol prices had fallen by Rs.2.06 per litre due to the decline in the crude oil price.
- When the OPEC and Russia met on the 22nd, they agreed to increase the output to reduce the rate of crude oil as shortages in supply leads to an increase in crude oil prices.
- By the fourth week, petrol prices in Andhra Pradesh and other states in the country witnessed a sharp fall in the crude oil rate.
- The lowest petrol price in Andhra Pradesh in June stood at Rs.80.03 per litre on 27th and remained unchanged till the end of the month.
- By the end of the month, petrol prices declined by 3.56% largely influenced by the fall in the crude oil price.
Quarterly Petrol Price Trend In Andhra Pradesh between January and March 2018
|Opening date price||Rs.74.09 per litre||Rs.77.36 a litre||Rs.75.79 a litre|
|Closing date price||Rs.77.22 per litre||Rs.75.72 a litre||Rs.77.89 a litre|
|Highest price||Rs.77.22 per litre on 30||Rs.77.71 a litre on 6||Rs.77.89 a litre on 31|
|Lowest price||Rs.74.09 per litre on 1||Rs.75.71 a litre on 25||Rs.75.79 a litre on 1|
|% Deviation||4.05% (Up)||2.17% (Down)||2.70% (Up)|
Trend in Petrol Price in Andhra Pradesh in January 2018
- The OIl Manufacturing Companies in India has declared an average petrol price of Rs.74.09 per litre on 01 January 2018 in Andhra Pradesh. This was also the lowest petrol rate recorded for the month.
- For the first four days of the month petrol prices remained unchanged despite a slight decrease in the value of the USD.
- Petrol prices slightly picked up on 5 January as an after-effect of the fall in the exchange value of the USD and traded at Rs.74.11.
- Petrol prices continued to surge in the following days and traded at Rs.74.68, Rs.75.24, Rs.76.65, Rs.77.01 on 9, 14, 23, and 27 respectively.
- The highest petrol price of Rs.77.22 per litre was recorded on 30th of the month.
- Overall, petrol prices marked a 4.05% incline for the month of January mainly due to the fluctuations in the INR/USD exchange value and the frequent rise in crude oil prices.
Trend in Petrol Price in Andhra Pradesh in February 2018
- Petrol was valued at Rs.77.36 a litre on 01 March 2018.
- Owing dynamic fuel pricing, the fuel rates have gone up marginally in line with global factors, including the price of crude oil and the exchange rate in the second week of the month.
- Petrol prices started to increase significantly on 14 January when the fuel was valued at Rs.75.24 per litre. Soon, petrol rate increased further and settled at Rs.76.13 per litre on 20th of the month.
- However, the highest petrol rate of Rs.77.71 a litre was recorded on 6 February.
- The steady increase in petrol price can be attributed to the declining USD value. The US dollar value reduced by 0.14% and o.06% on 15 and 19 of January.
- The crude oil prices in Indian basket stood at $66.13 during the beginning of the month and increased to $67.86 per barrel by the end of the month which led to the increase in petrol prices.
- However, petrol prices scummed to high dollar rate and fell to the lowest on 25 February and was valued at Rs.75.71 a litre.
- Overall, the trend of petrol prices in Andhra Pradesh declined by 2.17%.
Trend in Petrol Rates in Andhra Pradesh in March 2018
- A slight increase was noted on the first day of the month as petrol was valued at Rs.75.79 a litre. This was also the lowest petrol price recorded for the month as the fuel prices had a steady growth throughout March recording an overall incline of 2.70% .
- On 3 March, petrol rate quickly jumped to Rs.76.24 per litre and continued to incline. The increase in petrol rates is mainly due to the fall in the value of USD by 0.04%, 0.29%, 0.19%, and 0.18% on 2, 5, 6, and 9 of March.
- Petrol prices increased further and traded at Rs.76.74, Rs.76.83, Rs.77.2 on 14, 25, and 28 of the month.
- The petrol prices were comparatively stable in Andhra Pradesh in the month of March since there were no major changes in global politics, the demand and supply pattern of the commodity, or the USD/INR exchange ratio.
- The highest petrol price of Rs.77.89 a litre was recorded on 31 March 2018.
How are Petrol Rates in Andhra Pradesh Calculated?
The Retail Selling Price (RSP) of petrol in any state is formed by the following cost elements:
Cost of crude oil: Crude oil is not a domestic commodity. Indian oil marketing companies import it from transnational oil marketing companies. The cost incurred by Indian oil marketing companies to purchase unrefined oil is called the cost of crude oil. Since crude oil is traded in global markets, the cost of crude oil is always quoted in US dollars. The cost of crude oil is computed based the exchange rate and the cost of crude oil per barrel. If the exchange rate is Rs.65 and the cost of crude oil is $50, then the cost of crude will be Rs.3,250 (65X50).
Taxes: The tax imposed on petrol is classified into two categories: 1) the central excise duty and 2) the state VAT. The central government imposes the excise duty, which remains constant throughout the country. The central excise duty on petrol was Rs.19.48 per litre as on 4 October 2017. Petrol is also taxed by state governments. In Andhra Pradesh, the state VAT imposed on petrol was 38.93% as on 4 October 2017. Almost 50% of the Retail Selling Price of petrol is formed by taxes.
Expenses incurred by OMCs: The expenses incurred by oil marketing companies include the refinery transfer price, entry taxes, marketing expenses, operational costs and freight charges. The refinery transfer price is charged by refineries in India. Freight charges are included in the cost of crude oil. The profit margin of oil marketing companies is added to the costs incurred by them. Other elements of the price structure of petrol include the commission charged by dealers.
Factors Affecting Petrol Costs in Andhra Pradesh
Petrol prices in Andhra Pradesh are affected by three factors, which include the cost of crude oil, the exchange rate and taxes. The exchange rate of INR/USD expresses the value of the Indian currency against the USD. Ups and downs in the exchange rate will equally impact the cost of crude oil that in turn affects the retail selling price of petrol. The INR/USD is a commonly traded currency pair in the foreign exchange market. The Reserve Bank of India determines the exchange rate of INR/USD.
The exchange rate is influenced by interest rates and the overall performance of the nation. As we all know, crude oil is a global commodity. It is affected by many factors. The most common influencers include seasonal variations, weather conditions, global surpluses and global political trends. The petrol rate increases when the tax imposed on petrol goes up. The rate decreases when the tax levied on petrol decreases.
GST Impact on Petrol Prices in Andhra Pradesh
GST, a new tax platform, has been adopted in India. The new tax platform replaces the various types of indirect taxes. Being a common platform, GST covers all categories of goods and services, which are sold within the country. GST has no impact on petrol rates because petrol has been kept outside the GST system.
Also Check Petrol Price in NearBy Cities of Andhra Pradesh
|Petrol Price in Hyderabad||Petrol Price in Visakhapatnam||Petrol Price in Guntur|
|Petrol Price in Nellore||Petrol Price in Kurnool|
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