Petrol Price in Bhopal
The petrol price is relentlessly increasing across the country, including the city of Bhopal. Did you know? There are several noticeable changes that have taken place over the last one year. This page gives the latest information related to petrol price in Bhopal a. It covers various elements connected to petrol, including its pricing and tax policies.
A Glimpse at the State and Central Taxes on Petrol in Bhopal, the Capital City of Madhya Pradesh
The excise duty is a common tax whereas the VAT will vary. These can be changed whenever needed. Since the formation, the BJP Government has reviewed the central levy many times. In November 2014, the tax was Rs.9.20 on petrol a litre, and in August 2017, it was Rs.21.48 per litre. The Central Government declined it to Rs.19.48 per litre in February 2018. The VAT in Madhya Pradesh on petrol is lower compared to Maharashtra but is higher compared to Karnataka, Jharkhand, Kerala, Manipur and Manipur. If the petrol price in Bhopal is Rs.77.34 per litre, Rs.38 goes towards these two categories of taxes approximately.
Fuel Pricing Methodology Used in Bhopal
Fuel companies have to use a certain methodology to reset fuel rates. Today, they adhere to dynamic fuel pricing. It is a fuel reviewing methodology launched in India in 2017. Fuel companies such as IOL, which stands for Indian Oil Company; BPCL, which stands for Bharat Petroleum Corporation Limited; and HPCL, which stands for Hindustan Petroleum Corporation Limited, will consider resetting the petrol rate in Bhopal based on the conversion rate (rupee vs dollar) and the market price of crude oil. They will no longer take into account the fortnightly averages.
Before dynamic fuel pricing, the revision of fuel prices in Bhopal used to fall on the 1 and 16 of every month. Put alternatively, there used to be two revisions in a month. Due to which, fuel rates used to change in a big margin. Because of the arrival of dynamic fuel pricing, the petrol price in Bhopal is instantly changed regularly and the new price is declared at 06:00 a.m. at all state-own oil companies in the city. Therefore, be sure to check the latest price before you buy.
Will Dynamic Fuel Pricing Benefit Oil Companies in India?
Yes. It is a better move from the perspective of OMCs, which can depreciate the money and time needed to administer regular business activities. As a result, the profit margin will increase. As far as the petrol price in Bhopal is concerned, there cannot be a big lapse. OMCs also can uninterruptedly distribute the fuel to users through supply centers. They can even be able to estimate the cash outflows and cash inflows for a certain period of time.
Options to Track Today’s Petrol Price in Bhopal
Today’s petrol price in Bhopal can be tracked using offline and online methods. There are certain online portals that provide daily updates. The best thing you can do is to make use of the mobile applications designed by IOCL, HPCL and BPCL to obtain the latest petrol price in Bhopal. According to recent reports, many fuel users across the state of Madhya Pradesh have downloaded SmartDrive, a mobile app by BPCL; Fuel@IOC, a mobile app by Indian Oil; and My HPCL, a mobile app by Hindustan Petroleum. This has been a good option for smartphone users. Or else, you can check the current petrol rate in Bhopal sending an SMS request to OMCs.
How is the RSP of Petrol Determined?
- The Retail Selling Price of petrol is offered to petrol buyers in the end. OMCs will determine this price in the following phases:
- Phase 1: OMCs compute the buying price of crude oil, which is a major cost element. The cost of crude oil per litre = USD/INR exchange rate X market price of crude oil per barrel / 159
- Phase 2: The expenses incurred by OMCs will be added to the cost of unrefined oil. They encompass primarily RTP, running expenses, landing costs etc.
- Phase 3: Taxes are added. This is a major segment of the current fuel prices in Bhopal. They have been estimated to be Rs.37 per litre as of early April 2018.
- Phase 4: Finally, the local dealers in Bhopal add their commission. Besides, a pollution cess of 25p per litre is added.
Factors Impacting Current Fuel Prices in Bhopal
- Taxes: Taxes impact the fuel rates in the city heavily. For instance, if the central tax increases, the RSP of petrol will increase and vice versa. Similarly, if the VAT increases at a state-level, the fuel price will increase and vice versa. This aspect can be domestically controlled.
- Crude Oil Rate: Recently, crude oil rates have soared. Therefore, the petrol prices not only in Madhya Pradesh but also in other states have accelerated to their all-time highs. Put simply, any movements in crude oil rates will directly affect the fuel rates in Bhopal.
- Exchange Rate: The conversion rate of the Indian rupee against the prime currency, the USD, makes a huge change to the fuel price since crude oil is a global commodity and is priced in dollars.
GST vs Petrol Price in Bhopal
The GST has nothing do with the petrol prices in India since diesel and petrol have been excluded by the GST committee members. In India, petrol and diesel are a primary basis of revenues to both the State Government of Madhya Pradesh and the Government of India. The GST committee members decide to include petrol under the framework of the GST, then the current petrol rate in the city will decay by Rs.20-25 per litre. Will the government do it? It can be done by making necessary changes.
Also Check Petrol Price in NearBy Cities of Bhopal
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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.