Petrol Price in Belgaum
Belgaum, a city in Karnataka, is for famous many aspects, including industrial activities and IT services. The city has a vast number of petrol users compared to other prime cities in Karnataka. The demand for the fuel is high. Belgaum has a better connectivity as far as the supply of petrol is concerned. You will find at least one fuel retailing center in each locality. A few fuel retailing centers work 24/7 to suffice the fuel requirement of the city. With this introduction, let’s get into the main discussion. The primary intent of this article is to provide the useful information to petrol consumes in Belgaum. The article covers various facets related fuel prices.
Including Belgaum, petrol prices in all regions of the country are increasing. What could be the reasons for this move? If sources are to be believed, the market price of a barrel of unrefined oil in global marketplaces increased by 20% last year. When crude oil becomes expensive, fuel prices will increase. The commission, which is charged to supply petrol to end users, has been hiked by Rs.1 a litre by fuel suppliers. The Value-added Tax (VAT) has not been reduced in the recent past. Another crucial element that is pushing fuel prices is the recently launched dynamic fuel pricing.
Also check : Petrol Price in Bangalore
Today’s Petrol Price in Belgaum
Today’s petrol price in Belgaum is reliant on the market rate of crude oil and the INR/USD conversion rate. Besides, taxes play a vital role in determining the petrol rate in Belgaum. The taxes, which are levied on petrol, are of two types. The first category is the excise duty and the second category is the Value-added Tax. The excise duty on petrol is charged by the Central Government. On the other hand, the VAT is charged by state governments. The excise duty does not vary from state to state, but the VAT does. As of 27 February 2018, the central tax imposed on petrol was Rs.19.48 a litre whereas the VAT in Karnataka was 30%.
Also check : Diesel Price in Belgaum
Excise Duty vs Petrol Price in Belgaum
More than 50% of the price you pay for buying petrol in Belgaum goes towards central and state taxes. The BJP-led government has revised the central tax nine times since it came to power in 2014. In the month of October 2017, the Central Government had declined the central tax on petrol by Rs.2 a litre. Besides, the Central Government had proposed to reduce it further by Rs.2 a litre in the Union Budget 2018-2019, which was presented in the first week of February 2018. Despite these two recent cuts, petrol prices in Belgaum remained unaffected.
Dynamic Fuel Pricing vs Current Petrol Prices in Belgaum
The petrol prices in Belgaum have been growing since the arrival of dynamic fuel pricing. What is dynamic fuel pricing? Primarily, it is a system used to fix and review fuel prices, including petrol prices and diesel prices. In India, all state-owned oil retailing companies adopted this system in June last year. The system requires the revision of fuel prices regularly based on the market rate of crude oil and the exchange rate. This is the reason why the petrol rate in Belgaum is changing each day. Dynamic fuel pricing has also been deployed by advanced markets such as Japan, Australia and the USA.
Characteristics of Dynamic Fuel Pricing
- The revision of fuel prices shall be made at 06:00 a.m. each day and the revised prices are made available to customers.
- There is no waiting period unlike before. In other words, fuel customers will be aligned with the global market performance.
- Mechanised petrol stations in Belgaum will revise the petrol price without the interference of the workforce under dynamic fuel pricing.
- Non-mechanised petrol stations in the city are required to review the petrol rate manually.
- Any changes in the price determinants of petrol shall be instantaneously conveyed to fuel users.
- The daily fuel revision mechanism helps oil marketing companies to wisely manage cash inflows and outflows.
How to obtain the Current Petrol Price in Belgaum
Do you use a smartphone? If yes, you can obtain the latest petrol rate in Belgaum using mobile applications. There are three mobile applications you can use. ‘Fuel@IOC’ is the mobile application developed by Indian Oil Company Limited. The mobile application developed by Bharat Petroleum Company Limited is ‘SmartDrive.’ Similarly, Hindustan Petroleum Company Limited has developed a mobile application called ‘My HPCL.’ You just need to download these applications to trace the fuel price. This is the simplest option you have today.
Fuel users in Belgaum can also make use of SMS services provided by oil marketing brands. If you are willing to get the petrol price offered by Indian Oil, type RSP and the dealer code and send it to 9224992249. If you are willing to obtain the petrol price offered by Bharat Petroleum, type RSP and the dealer code and send it to 9223112222. If you would like to know the petrol price at Hindustan Petroleum, just type RSP and the dealer code and send it to 9222201122. The dealer code shall be provided by petrol supply stations in your city.
Breakup of Petrol Price in Belgaum as of 3 February 2018
|Market price of crude oil in global markets, including direct expenses such as freights||$65 per barrel or Rs.4,200|
|Market price of crude oil per litre (Rs.4,299/159) (One barrel = 159 litres)||Rs.26.42 a litre|
|Evaluation of overheads incurred by oil marketing companies|
|Refinery Transfer Price (RTP), entry levies, landing overheads, operational overheads and other overheads||Rs.4.74 a litre|
|Profit margin of oil marketing companies, transportation overheads and freight charges||Rs.3.30 a litre|
|Price of refined fuel||Rs.34.46 a litre|
|Central taxes, including the recently levied road cess||Rs.19.48 a litre|
|Dealer price||Rs.53.96 a litre (This price is quoted to petrol dealers in Belgaum)|
|Commission charged by fuel dealers||Rs.3.59 a litre|
|Fuel price (before imposing Value-added Tax)||Rs.57.53 a litre|
|30% VAT levied by the Government of Karnataka|
|Retail selling price of petrol in Belgaum||Rs.70.38 a litre|
Note: The data is not accurate. This is just to show the price structure of petrol in Belgaum)
Influences of Petrol Prices in Belgaum
- Crude Oil Rates: Unrefined oil or crude oil is a raw material to produce petrol and byproducts of petrol. It is hugely imported by India, which is not an oil-producing country. Since crude oil is retailed in transnational markets, crude oil rates are affected by international political moves, supply, demand etc. The variations in the market price of unrefined oil impacts the buying price of petrol in India.
- INR/USD: The INR/USD exchange rate hugely impacts the price of the fuel since crude oil is bought from oil-producing nations. How is this rate fixed? In India, the conversion rate of this currency pair is quoted by the Central Bank on a daily basis. The influencers of the INR/USD exchange rate include bank interest rates, imports, exports, public debts, etc.
- Logistics: Petrol is supplied to retail stations by road. The longer the distance covered, the higher will be the fuel price. The shorter the distance covered, the price of the fuel shall be comparatively lower. But, the transportation cost is not a major influencer of the petrol rate in Belgaum.
GST vs Fuel Rates in Belgaum
The GST framework has no effect as far fuel prices are concerned currently as petrol is out of the GST’s purview. If the GST Council brings petrol under the regime of GST, there shall be a sheer fall in fuel rates, including petrol prices. Levies and import duties will exceed the production overhead of petrol. The Goods and Services Tax is imposed at four slabs: 1) 5%, which is the lowest tax slab, 2)12%, 3)18% and 4)28%, which is the highest tax slab.
In case the GST Council imposes a 12% tax on petrol, the petrol rate in Delhi will dampen to Rs.38 a litre approximately. If taxed at 18%, the approximate fuel price will be Rs.40 a litre. In case the GST Council proposes to tax petrol at 28%, the fuel will be priced at Rs.43.00 a litre approximately in Delhi. These computations are based on assumptions. This is just an example to show the impact of GST on fuel prices in Belgaum. In a nutshell, bringing petrol under the GST framework shall reduce the retail selling price, but it does not stand in favor of the government.
Also Check Petrol Price in NearBy Cities of Belgaum
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*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.