Petrol Price in Bellary
This is a unique fuel page designed exclusively for petrol users from the city of Bellary. A fuel customer may like to understand many aspects related to petrol, a commonly used fuel. Before we discuss advanced topics, let’s first understand petrol price trends in Bellary, a city in Karnataka. Including taxes, petrol price was Rs.81.03 per litre on 31 May 2018 at Indian Oil. There may be a little deviation in the prices offered by Hindustan Petroleum and Bharat Petroleum. IOCL, BPCL and HPCL have their own customer clusters.
A brief Introduction to Fuel Companies
Like mentioned earlier, there are three state-owned fuel marketing companies in India: HPCL, BPCL and IOCL. They own more than 90% of the market share and are spread across the country. In each city, they have fuel dealers to market their products. Reliance Oil and Shell Oil are other privately-owned fuel retailers in the country. OMCs work for a profit and are renowned for premier quality products and services. Even Bellary has a huge number of petrol stations to supply the fuel.
Revision of Petrol Prices in Bellary
Petrol is a fuel or a commodity. To determine the value of petrol, OMCs use dynamic fuel pricing. What is that? Dynamic fuel pricing is a framework used to update the price of petrol in India on the basis of crude oil overheads and the currency conversion rate. The framework requires the revision of fuel prices regularly and has been in place since June 2017 in India. Before introducing dynamic fuel pricing, fuel companies used to revise the fuel rate twice a month.
Characteristics of Dynamic Fuel Pricing
- A new price has to be declared at each fuel station in Bellary.
- 100% fuel transparency, no big lapses in fuel prices.
- Indian fuel market can be connected with the global fuel industry.
- Deviations in crude oil prices are quickly and easily transferred to end customers.
Merits of Dynamic Fuel Pricing for OMCs
- Stock or inventory can be easily controlled.
- Administrative overheads may be dampened.
- They can automate their processes for the revision.
- Cash flows and working capital can be well maintained.
Best Ways to Trace Current Petrol Price in Bellary
How do you check the latest petrol price in Bellary? Do you visit the fuel station close to you? If yes, you no longer need to do that. HPCL, IOCL and BPCL have designed mobile applications for the benefit of fuel buyers. Each fuel company has its own individualised mobile application. In Bellary, BPCL customers can start using SmartDrive, which is a mobile application designed by BPCL. Similarly, IOCL customers may begin using Fuel@IOC, which is a mobile application developed by Indian Oil. HPCL customers have an opportunity to download and use My HPCL.
Other Options to Trace Today’s Petrol Rate in Bellary
You can send an SMS request to your fuel company, which will instantly send the current fuel price. This option is easy and simple. Indian Oil, the largest fuel company in India, provides SMS services to help its customers trace options. Customers have to forward an SMS request to 9224992249. The format to send this request is - RSP dealer code to 9224992249.
Customers utilising BPCL fuel stations may obtain the latest price by forwarding an SMS request. The format to forward an SMS request to BPCL is - RSP dealer code to 9223112222. Likewise, customers purchasing petrol from HPCL dealers in Bellary may trace the revised price through forwarding an SMS request to 9222201122. The format is - HPPRICE dealer code to 9222201122.
Computation of Petrol Price in Bellary
The price of a commodity or a service has to be decided by its sellers. Petrol is priced by OMCs in India since the fuel is produced and sold by OMCs. The value of petrol per litre is computed by adding all the cost aspects, which include crude oil costs, excise duty, Value-added Tax (VAT), commission for dealers, etc. What are crude oil costs? Crude oil costs are spent to buy unrefined oil or crude oil from overseas markets. They were Rs.31 per litre when revised on 20 May 2018.
When you buy something, you remit taxes. Similarly, when you purchase petrol in Bellary, you pay excise duty and Value-added Tax. Excise duty is a central tax whereas VAT is a state tax. The central tax is equally levied. Each state has a different level of tax. For instance, in Bellary, a city in Karnataka, excise duty was Rs.19.48 per litre. Similarly, VAT in Karnataka was 28.31% in May 2018. Fuel dealers will charge a definite amount of commission, which was Rs.3.62 per litre.
In a nutshell, petrol rate in Bellary = crude oil costs + excise duty + Value-added Tax + commission for dealers
Factors Affecting Petrol Prices in Bellary
Despite the locality, petrol price is affected by domestic factors and overseas factors. Domestic factors consist the central and state taxes. Overseas factors include the cost of unrefined oil and the exchange rate. Let’s examine the impact of each factor. We have seen the variations in excise duty several times. The higher the excise duty, the higher the fuel price. The lower the excise duty, the lower the fuel price. Any variations in VAT, similarly, have a direct impact on the pricing of petrol.
For instance, if the Government of Karnataka decides to reduce VAT on petrol today, fuel companies have to adjust fuel rates in Bellary accordingly. Overseas factors are highly volatile in nature. The higher the crude oil cost, the higher is the fuel rate and vice versa. The effect of the USD/INR exchange rate cannot be neglected. The higher the USD/INR exchange rate, the lower will be the fuel rate and vice versa.
GST vs Petrol Price in Bellary
GST is a common term nowadays. It is a unified tax framework and has been levied on all forms of goods and services. Interestingly, petrol is not taxed under GST. Even diesel is outside the purview of GST. When GST is executed on petrol, there will be a huge fall in the price of petrol. It may not be a feasible decision from the perspective of the Central Government.
Visit the official website of BankBazaar to obtain the latest petrol and diesel prices in your city. You also have an opportunity to check your credit score at no cost, compare a huge array of financial products under one roof and make a uniformed financial decision.
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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.