Petrol Price in Bihar
The fuel retailing sector in India has seen many changes in 2017, right from the introduction of a new fuel pricing methodology to the recently announced Union Budget 2018-2019. This page aims at offering you deep insights into the recent changes and the potential audience for this page shall be petrol users from the Indian state of Bihar.
Why are Petrol Prices Increasing?
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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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.
Quarterly Diesel Price Trend in Bihar Between October and December 2018
|Opening date price||Rs.89.95 a litre||Rs.83.11 a litre||Rs.76.57 a litre|
|Closing date price||Rs.83.28 a litre||Rs.76.91 a litre||Rs.72.95 a litre|
|Highest price||Rs.90.19 a litre booked on the 4 October 2018||Rs.83.11 a litre booked on the 1 November 2018||Rs.76.57 a litre booked on the 1 December 2018|
|Lowest Price||Rs.83.28 a litre booked on 30 and 31 October 2018||Rs.76.91 a litre booked on the 30 November 2018||Rs.72.95 a litre booked on the 31 December 2018|
Petrol Price Trend in Bihar Between October and December 2018
- Petrol was priced at Rs.89.95 per litre in Bihar on 1 October based on the ‘Dynamic Fuel Pricing’ mechanism.
- Under this pricing mechanism, State-run oil companies consider the 14-day average price of crude oil along with the rupee-dollar exchange rate. Prices of petrol and diesel are revised daily in India.
- Petrol prices in Bihar rose on the back of a rising crude oil rate to record the highest price of the month when a litre of petrol was sold at Rs.90.19 per litre on 4 October.
- This prompted the Union government to announce a cut in the excise duty charged on the sale of fuel in the country. While the Centre cut Rs.1.50 per litre, it asked oil companies to subsidise further Rs.1 per litre.
- Prices fell immediately and continued to drop until the end of the month, recording a decline of 7.42% impacted by the cut in the excise duty.
- On 1 November, petrol opened the month at Rs.83.11 per litre – the highest price recorded during the month.
- As the crude oil prices were on the decline, petrol rates in Bihar continued to fall. The fluctuations in the crude oil price were attributed to the geopolitical tensions between the US and China over trade between the two countries.
- On 30 November, petrol recorded its lowest price of the month, when it was sold at Rs.76.91 per litre.
- Overall, petrol prices in Bihar in November decreased by 7.46% on the back of a falling crude oil prices in the international market.
- Petrol was priced at Rs.76.57 per litre on 1 December, which was also the highest rate registered during the month in Bihar.
- The crude oil was trading around $55 per barrel late December, down from a four-year high of $80 per barrel early October prompting fuel prices in India to drop significantly.
- The petrol price trend in Bihar in December declined by 4.73%, which was influenced by the decline in crude oil prices in the market.
Quarterly Petrol Price Trend in Bihar between July and September 2018
|Opening date price||Rs.81.18 a litre||Rs.82.24 a litre||Rs.84.89 a litre|
|Closing date price||Rs.82.09 a litre||Rs.84.78 a litre||Rs.89.64 a litre|
|Highest price||Rs.82.74 a litre recorded on the 14th||Rs.84.84 a litre recorded on the 30th||Rs.89.88 a litre recorded on the 29th|
|Lowest Price||Rs.81.04 a litre recorded on the 5th||Rs.82.24 a litre recorded on the 1st||Rs.84.89 a litre recorded on the 1st|
Petrol Price Trend in Bihar in July 2018
- Petrol and diesel prices are revised under the dynamic fuel pricing mechanism by State-run Oil Marketing Companies (OMCs) on a daily basis and new rates are effective 6:00 am IST.
- Oil companies consider the global crude oil price and the exchange rate of the Indian currency against the U.S. dollar before fixing the selling price of petrol in a city.
- In accordance with the daily revision, the petrol price in Patna, the capital city of Bihar, on the 1st of the month stood at Rs.81.18 per litre.
- On the 5th, the petrol price in Bihar was reduced to Rs.81.04 per litre which was the lowest prices registered during the month.
- Petrol prices continued to incline during the first and second weeks influenced by the rise in crude oil prices in the global market.
- On the 14th, petrol recorded its highest price for the month in Bihar when a litre was sold at Rs.82.74.
- After touching the highest price, prices declined in the third and fourth weeks but not lower than the opening price of the month.
- The petrol price trend in Bihar in July grew by 1.12% attributed to the increase in oil prices in the international market.
Petrol Price Trend in Bihar in August 2018
- The petrol price in Bihar was reduced by 13 paise on the 1st of August when a litre was sold at Rs.82.24. This was also the lowest rate recorded during the course of the month.
- The global crude oil prices were trading higher in the back of geopolitical tensions leading to the rise in fuel prices across the globe.
- During the first and second weeks, petrol prices witnessed an upward movement in accordance with the rise in crude oil prices.
- The incline in oil prices was in the back of the U.S. sanctions on Iran after it pulled out the nuclear deal between the two nations.
- With the decline in the supply of oil from Iran, crude oil was trading higher in the futures market leading to an incline in petrol prices.
- By the end of the month, the petrol price in Bihar grew to touch Rs.84.84 per litre on the 30th - the highest petrol price registered for the month.
- Overall, the petrol price grew by 3.09% during August in the back of a sharp rise in oil prices in the global market.
Petrol Price Trend in Bihar in September 2018
- On the 1st of September, oil companies hiked petrol prices in Bihar by 11 paise when a litre of petrol was sold at Rs.84.89 - the lowest price recorded in September in Bihar.
- The petrol price in trend in the first and second weeks inclined steeply; however, neither the state governments or the Union government didn’t lower taxes levied on the supply of fuel in the country except for states such as Rajasthan, West Bengal, Karnataka and Andhra Pradesh.
- Crude oil prices rose to touch a four-year high when it was trading at $80 per barrel. Additionally, the rupee fell to its lowest when it was trading at Rs.72 over the U.S. dollar.
- Both these factors prompted petrol prices to touch record levels in the last couple of weeks across the country.
- On the 29th, petrol prices in Bihar inclined to touch the highest rate of Rs.89.88 per litre offering no relief to consumers in the country.
- Overall, the petrol price trend in Bihar in September grew sharply by 5.60% attributed to the steep rise in oil prices coupled with the sharp decline in the exchange rate of rupee over the U.S. dollar.
Quarterly Petrol Price Trend in Bihar between April and June 2018
|Opening date price||Rs.79.24 a litre||Rs.80.13 a litre||Rs.83.79 a litre|
|Closing date price||Rs.80.13 a litre||Rs.83.85 a litre||Rs.81.04 a litre|
|Highest rate||Rs.80.13 a lire registered on the 25th||Rs.83.93 a litre registered on the 29th||Rs.83.79 a litre registered on the 1st|
|Lowest rate||Rs.79.24 a litre registered on the 1st||Rs.80.13 a litre registered on the 3rd||Rs.81.04 a litre registered on the 27th|
Petrol Price Trend in Bihar in April 2018
- Bihar has a vast number of fuel stations. At each fuel station, the revised petrol rate is released every day at 06:00 a.m. The revision of petrol rates is completely based on the global parameters.
- The prime cities of the state include Patna, Gaya, Munger, Purnia, etc. Patna is the capital city of Bihar. Petrol rates will vary marginally from one brand to another within the same state. They also depend on travelling expenses.
- Petrol price trends in Bihar in the month of April 2018 were interesting to observe. The first week of the month witnessed a growth rate of 0.35%. The second week also witnessed a growth rate in sync with the crude oil rate.
- On the 21st, a litre of diesel was sold at a price of Rs.79.72 in the capital city of Bihar, Patna. On the 28th , the fuel rate stood at Rs.80.13 a litre under dynamic fuel pricing.
- Since crude oil gained demand reasonably in the month of April 2018, the price of crude oil per barrel was increased by oil-producing economies. As a result, petrol prices in Bihar was up 1.12% to Rs.80.13 a litre on the 30th.
Petrol Price Trend in Bihar in May 2018
- Since there were no changes observed in the price of crude oil and the USD/INR exchange rate, petrol rates in Bihar were retained unchanged at Rs.80.13 a litre in the first week.
- The average fuel rate stood at Rs.80.79 a litre for the third week, while the average fuel rate for the fourth week stood at Rs.83.17 a litre.
- Like the first month, both the central and state governments retained the same taxes. Other internal influencers such as the commission charged by fuel dealers, the overheads spent by OMCs and transportation costs were also retained unchanged.
- Therefore, we can say that an upsurge of 4.64% in petrol rates in May 2018 was caused by crude oil rates and the exchange rate.
- In the previous month, the highest fuel price was Rs.80.13 a litre whereas the highest petrol rate for this month stood at Rs.83.93 a litre.
Petrol Price Trend in Bihar in June 2018
- The month of June 2018 was completely different from the previous two months as far as petrol rates in Bihar are concerned. The trend was negative this month.
- Fuel companies reduced the fuel rate by 6 paise a litre on the 1st. Similarly, under dynamic fuel pricing, petrol prices in Bihar were reduced to Rs.83.14 a litre on the 7th, Rs.81.91 a litre on the 14th and Rs.81.69 a litre on the 21st.
- Because of the negative trend, the lowest petrol rate was declared at the end of the month whereas the highest petrol price was declared at the beginning of the month.
- The impact of the domestic influencers such as the exchange rate, excise duty and sales taxes was not considerable.
- Crude oil rates were $69.30 in April 2018. They were increased to $75.31 per barrel in May 2018 and were further decreased to 73.85 per barrel in June 2018.
- Considering the revised crude oil prices and the USD/INR exchange ratio, trends were determined by Hindustan Petroleum, Indian Oil and Bharat Petroleum.
Quarterly Petrol Price Trend In Bihar between January and March 2018
|Opening date price||Rs.74.31 per litre||Rs.77.38 per litre||Rs.76.84 per litre|
|Closing date price||Rs.77.23 per litre||Rs.76.74 per litre||Rs.79.06 per litre|
|Highest price||Rs.77.23 per litre on 31||Rs.77.88 per litre on 6||Rs.79.06 per litre on 31|
|Lowest price||Rs.74.31 per litre on 1||Rs.76.69 per litre on 25||Rs.76.84 per litre on 1|
|Deviation in percentage||3.78% (Up)||0.83% (Down)||2.81% (Up)|
Trend in Petrol Price in Bihar in January 2018
- In Patna, the capital city of Bihar, the opening price of petrol was Rs.74.31 per litre on 01 January 2018. This was also the lowest recorded price for the month.
- The prices of petrol remained unchanged for the first four days of the month before slightly increasing to Rs.74.33 on 5 January. The slight increase can be due to the decline in USD rate by 0.1% on the same day.
- From 5 January to the end of the month, there was a steady growth in petrol prices. Petrol was sold at Rs.75.6, Rs.76.94, Rs.77.08, and Rs.77.15 per litre on 16, 26, 28, and 29.
- Petrol price hit the highest rate for the month of Rs.77.23 per litre on 31 January.
- Overall, there was an increase of 3.78% in the trend of petrol prices in the month of January in Patna, Bihar.
- One of the crucial reasons for the increase in petrol prices was the increase in crude oil rate. From $66.13 per barrel on 5 January, the crude oil prices went up to $66.86 per barrel on 30 of the month in the Indian basket.
Trend in Petrol Price in Bihar in February 2018
- On 01 February 2018, the petrol prices stood at Rs.77.38 per litre which was a 15 paisa increase from the previous day. This is also the lowest petrol rate for the month of February.
- Prices quickly increased and petrol was sold at Rs.77.46, Rs.77.56, Rs.77.87 on 3, 4, 8 respectively.
- On 6 February, petrol prices hit the highest rate of Rs.77.88 per litre.
- From 9 February, petrol prices fell gradually and traded at Rs.77.86, Rs.77.65, Rs.7.61, Rs.77.51 on 9, 12, 13, and 15 February as the dollar value fell by 0.18%, 0.11%, 0.02%, and 0.32% on the same dates.
- The lowest price of Rs.76.69 per litre for the month was recorded on 25 February.
- Prices continued to fall and settled at Rs.76.74 on 27 and 28 of the month.
- In Patna, the trend of petrol prices declined by 0.83% forming a downward curve.
Trend in Petrol Rates in Bihar in March 2018
- The Oil manufacturing Companies in India declared the opening price of petrol of Rs.76.84 per litre on 01 March 2018. This
- On 02 March, petrol prices quickly jumped to Rs.77.02 per litre as the dollar rate fell by 0.04%.
- As the trend of petrol prices was an incline of 2.81%, petrol prices picked up in the following days. The hike in petrol prices was mainly due to the decline of USD rate by 0.29%, 0.19%, 0.04%, and 0.13% on 5, 6, 7, and 18 of the month.
- On 15 March, petrol was valued at 77.95 per litre.
- On 31 March, petrol price ended at Rs.79.06 per litre. This was also the highest petrol price recorded for the month.
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.