Today's Petrol Price in Bihar

Petrol prices are influenced by the global crude oil price and the exchange rate of the rupee over the U.S. dollar. Any fluctuations of these two factors lead to a change in the price. Hence, if the crude oil price inclines, State-run Oil Marketing Companies (OMCs) pass on the hike to consumers which results in the petrol price increase.

How are Fuel Prices in Bihar revised?

Fuel prices, including petrol prices and diesel prices, are revised daily under dynamic fuel pricing method. India had proposed to substitute the earlier fortnightly-based fuel revision system by introducing dynamic fuel pricing on 16 June 2017. All publicly-held oil marketing companies - Hindustan Petroleum, Bharat Petroleum, Indian Oil and Shell Oil - will be revising fuel rates in Bihar in sync with the currency conversion rate and the buying price of crude oil in global markets.

What are the benefits of Dynamic Fuel Pricing?

Dynamic fuel pricing system offers significant benefits to both oil marketing companies (OMCs) and fuel consumers. Working capital, the difference between current liabilities and current assets, can be easily managed by oil marketing companies. They can also keep their cash outflows and cash inflows unaffected throughout the year. Fuel pricing is done in two ways 1) manually and 2) automatically. It can be done automatically by automated petrol bunks and manually by non-automated petrol pumps.

How to obtain the Latest Petrol Price in Bihar?

You have three ways through which the latest petrol rate in Bihar can be traced:

1. Mobile apps: It is the simplest and easiest method. All you have to do is to get mobile applications downloaded onto your smartphones. Download the mobile application of your choice.

1. SMS requests: All oil marketing companies will provide SMS alert services where^06in a customer has to send an SMS request to obtain the today's petrol price in Bihar.

1. Online: Once the fuel price is revised every day at 06:00 a.m., it shall be uploaded to the respective websites of OMCs.

What is the methodology used to assess the Petrol Price in Bihar?

There is no science involved in computing the petrol price in Bihar. It is assessed by adding the following cost elements:

1. Cost of Crude Oil: The cost of crude oil or the cost of unrefined oil is referred to as the spot rate of standard unrefined oil. Crude oil has several brands. The most popular include WTI, which stands for West Texas Intermediate, OPEC and Brent Crude Oil. India is importing crude oil at $65-$67 per barrel currently.

1. OMC Expenditures: Oil marketing companies play a huge role. They import crude oil from oil-producing countries. The imported crude oil then shifted to refineries, which covert unrefined oil into usable fuel by charging the refinery transfer price. OMCs also incur entry taxes, freight charges, landing expenses and other overheads.

1. VAT and Custom Duties: The Value-added Tax is the state tax, which is charged on petrol by the State Government of Bihar. As on 4 October 2017, it was 26%. In the Union Budget 2018, which was presented in the first week of February 2018, the central levy on petrol was lessened to 15.34 per litre.

What are the influencers of the Petrol Rate in Bihar?

The petrol rate in Bihar is expected to rise when the Indian currency weakens against the USD, the crude oil prices increase in transnational markets, the Central Government depreciates the custom duties and the State Government declines the Value-added Tax (VAT). On the other hand, it is expected to fall when the currency of the United States of America weakens against the Indian currency, the crude oil rates decrease in global markets, the Central Government accelerates the custom duties and the State Government increases the Value-added Tax (VAT).

Today's Petrol Price in Bihar Today vs GST

The Goods and Services Tax (GST), an indirect tax, has replaced several forms of taxes in the country. It was passed by the Central Government in March 2017, but came into existence in July 2017. The GST is alternatively defined as a comprehensive taxation platform to tax all forms of goods and services except petrol, petroleum derivatives and diesel. Bringing petrol under the purview of the GST would result in losses for the Central Government. The opposition party is demanding to tax petrol at the GST rates, but it is up to the GST Council to determine whether or not bring the fuel under the GST tax structure.

*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.