Petrol Prices in Chennai
Chennai, the capital city of Tamil Nadu, is a renowned south Indian city for education, culture, and tourism. The city is also known as the Detroit of South Asia. Over 9.8 million people are residing in the city with a density of 26,533 people a square kilometer. Tamil is the regional language and other spoken languages include Telugu, Kannada, Malayalam, and English. Chennai attracts domestic and international tourists with incredible beaches.
Being a famous tourist destination, the city offers excellent public transportation facilities. The connectivity offered within the city is at par with other metro cities of India. Chennai is a well-connected city for indigenous and overseas visitors. The local bus facility is a widely used mode of transportation followed by auto rickshaws, suburban railway network, maxi cabs, and mini private buses. The cost of living seems moderate in the city.
Among all industry verticals, the manufacturing and car segments are gaining more importance. The transportation sector is in demand. Namakkal district is the transportation hub of the city. The district accounts for at least 40% of trucks operated throughout Tamil Nadu. Sankagiri, well-known for truck body constructing, is another notable region of Chennai.
CNG is a preferred fuel for vehicles as the vehicles that release black fumes have been prohibited in the town some time ago. Diesel-run vehicles are widely used, leading to an increase in the diesel consumption rate. The number of petrol-run vehicles in the town is as much as it can be in a metro city. In 2013, the fuel supply was scant. The issue was later addressed by the local government.
Petrol Costs in Chennai
As we all know, on 4th October 2018, the central government lowered the excise duty by Rs.2.50 per litre on petrol and diesel, giving a big relief to consumers. Following the revision, petrol was priced at Rs.84.76 a litre in Chennai and diesel at Rs.77.16 on 5 October, declining by Rs.2.63 and Rs.2.68 per litre, respectively. The move overburdens the government by Rs.26,000 crore in yearly revenues and Rs.13,000 crore during the residual portion of the present financial year.
Petrol Price in Chennai and Other Major Cities
The petrol price in Chennai is marginally higher compared to other major metro cities such as Delhi, Mumbai, Kolkata and Hyderabad as the local Value Added Tax (VAT) levied by the Tamil Nadu government is higher. As of 2018, Tamil Nadu charges 34% on petrol, while Delhi charges 27%, West Bengal at 25%, Maharashtra at 26% + Rs.7.12 per litre as additional tax and Andhra Pradesh levies 31% + Rs.2 per litre additional tax.
How are Petrol Prices in Chennai Assessed?
The cost of crude oil, the refinery cost, the dealer’s commission, the profit margin of OMCs, the state VAT imposed on petrol, and the excise duty levied on petrol are the major components to form the retail selling price (RSP) of petrol in Chennai. Crude oil is traded globally in the USD. The cost oil is influenced by global supplies and reserves, the demand from leading countries, seasonal variations, weather conditions, and the exchange rate of the USD against the major currencies.
Refinery expenses vary domestically. These are the expenses incurred by oil marketing companies to convert unrefined oil into petrol. OMCs then add a certain percentage of profit margin on every litre of petrol sold to retail petrol suppliers. The price charged to retail petrol suppliers is then taxed by the central and state governments.
The central excise duty remains the same in the price structure of petrol in all parts of the country, including Chennai. The state VAT varies from one state to another. As on 1st January 2019, the VAT imposed on petrol by the state government of Tamil Nadu is 34%.
The dealer’s commission is another element that may slightly change from dealer to dealer in Chennai and other cities of India. It depends upon the distance covered from supply stations to retail petrol stations. The higher the distance covered, the higher will be the dealer’s commission. The lower the distance covered, the lower will be the dealer’s commission.
Quarterly Petrol Price Trend in Chennai Between January and March 2019
|Opening date price||Rs.71.38/litre||Rs.73.59/litre||Rs.74.54/litre|
|Closing date price||Rs.73.84/litre||Rs.74.43/litre||Rs.75.59/litre|
|Highest price||Rs.74.03/litre recorded between 22nd and 28th||Rs.74.43/litre recorded on 28th||Rs.75.65/litre recorded on 24th, 25th, 26th and 27th|
|Lowest Price||Rs.71.05/litre recorded on 4th, 5th and 6th||Rs.72.94/litre recorded on 11th, 12th and 13th||Rs.74.54/litre recorded on 1st, 2nd and 3rd|
|Opening date price||Rs.87.13 a litre||Rs.82.51 a litre||Rs.75.34 a litre|
|Closing date price||Rs.82.70 a litre||Rs.75.71 a litre||Rs.71.38 a litre|
|Highest price||Rs.87.39 a litre booked on the 4 October 2018||Rs.82.51 a litre booked on the 1 November 2018||Rs.75.34 a litre booked on the 1 December 2018|
|Lowest Price||Rs.82.70 a litre booked on the 30 and 31 October 2018||Rs.75.71 a litre booked on the 30 November 2018||Rs.71.38 a litre booked on the 31 December 2018|
Petrol Price Trend in Chennai between October and December 2018
- Petrol prices in Chennai are based on the Dynamic Fuel Pricing mechanism under which the global crude oil price and the exchange rate of the rupee over the US dollar is considered before arriving at the retail price of petrol.
- The petrol price in Chennai on 1 October stood at Rs.87.13 per litre – a record high after the global crude oil price was trading at $80 per barrel.
- On 4 October, the Union government announced a cut in excise duty of Rs.1.50 per litre and asked State-run oil companies to subsidise further Rs.1 per litre.
- With the cut in excise duty, petrol prices dropped to Rs.82.70 per litre on 30 October, which was also the lowest price of the month.
- Overall, the petrol price trend in Chennai declined by 5.09% during the month backed by the cut in excise duty and a marginal decline in crude oil prices in the global market.
- In November, petrol was priced at Rs.82.51 per litre on the first day. This was also the highest price of the month.
- Over the course of the month, petrol prices in Chennai declined as the global crude oil prices moved downwards.
- The lowest petrol price in Chennai during November was recorded at Rs.75.71 per litre on 30th influenced by the drop-in oil prices in the international market.
- The petrol price trend in Chennai during November declined by 8.24% prompted by the fall in oil prices coupled with the marginal decline in the rupee’s value over the US dollar.
- On 1 December 2018, petrol in Chennai was sold at Rs.75.34 per litre – the highest price recorded during the month.
- While prices inclined during the third week of the month, it dropped to its lowest on 31 December when a litre was available at Rs.71.38.
- Overall, petrol prices in Chennai dropped by 5.26% mainly due to the drop in oil prices which was down to $56 per barrel from the previous high of $80 early October.
|Opening date price||Rs.78.40 a litre||Rs.79.26 a litre||Rs.81.81 a litre|
|Closing date price||Rs.79.31 a litre||Rs.81.63 a litre||Rs.86.80 a litre|
|Highest price||Rs.79.80 a litre recorded on the 16th||Rs.81.63 a litre recorded on the 31st||Rs.86.80 a litre recorded on the 30th|
|Lowest Price||Rs.78.40 a litre recorded on the 1st||Rs.79.26 a litre recorded on the 1st||Rs.81.81 a litre recorded on the 1st|
Petrol Price Trend in July 2018 in Chennai
- Fuel pricing takes place every day considering the variations in the crude oil rate and the USD/INR exchange rate. Oil marketing enterprises are solely liable to fix the price.
- Similarly, any changes in the excise duty (levied by the Centre) and the sale tax (imposed by the respective state) are accounted for revising fuel rates.
- In July 2018, the pricing of petrol in Chennai, the capital city of Tamil Nadu, remained uninfluenced by the taxes levied by the Centre and state.
- Oil marketing undertakings kept reviewing the price of petrol under dynamic fuel pricing throughout the month.
- The rate was Rs.78.61 a litre on the 5th. It further increased to Rs.78.76 a litre on the 6th, Rs.79.29 a litre on the 9th and Rs.79.80 a litre on the 16th. Since the fuel rate slid in the last week of the month, the highest rate was observed on the 16th.
- The weakened Indian currency caused a growth rate of 1.16% this month. Even though the price of the Indian Crude Basket fell to $73.47 a barrel, the benefit was not transferred to fuel customers.
- Other metro cities such as Kolkata, Delhi and Mumbai, petrol rates were marginally increased by the Indian OMCs.
Petrol Rate Trend in Chennai in August 2018
- Like the previous month, the sales tax and the central taxes were not revised in August 2018. The revision took place throughout the month on the basis of transnational elements.
- The fuel price was on the rise in the first week and was revised to Rs.80.09 a litre on 7 August 2018. It was unchanged at Rs.80.09 a litre in the second week because of the slow-moving overseas petroleum market.
- Between 16 August and 19 August, the fuel was marketed in Chennai at a price of Rs.80.23 a litre and on 20 August 2018, the price accelerated to Rs.80.55.
- As the benefit of falling overseas oil rates has not been passed on to the fuel users this month, the fuel was seen selling at the same price. The average oil rate slid to $72.53 per barrel from $73.47 per barrel.
- Because of the weakened domestic currency, petrol rates in Chennai witnessed a growth rate of almost 3% in August.
- The exchange rate of the base currency versus the INR was Rs.68.36 on 1 August. It increased to Rs.68.65 on 7 August, Rs.69.97 on 14 August and fell to Rs.69.87 on 21 August. By the end of the month, it crossed the Rs.70 mark.
Trend in Petrol Rate in September 2018 in Chennai
- In sync with the global influencers, fuel prices continued to climb since the beginning of the month. The growth rate for the first seven days was estimated to be 1.61%.
- Unlike Rajasthan, West Bengal, Karnataka and Andhra Pradesh, no sales tax on petrol was slashed by the State Government of Tamil Nadu to reduce the burden on the common public this month.
- The government decided not to reduce fuel prices since the government didn’t have enough financial scope to tolerate the revenue losses resulting from reducing the Value-added Tax on diesel and petrol.
- Therefore, petrol rates in the city produced an upward trend throughout the month and were up by 6.09%.
- The closing price stood at Rs.86.80 a litre, which was also the highest fuel rate for the whole quarter.
- In Chennai, petrol was taxed at 32.06% by the state and the central levy remained unmodified at Rs.19.48 between July and September.
|Opening date price||Rs.76.48 per litre||Rs.77.43 per litre||Rs.81.32 per litre|
|Closing date price||Rs.77.43 per litre||Rs.81.39 per litre||Rs.78.40 per litre|
|Highest price||Rs.77.47 per litre recorded on 24th||Rs.81.47 per litre recorded on 29th||Rs.81.32 per litre recorded on 1st|
|Lowest price||Rs.76.48 per litre recorded on 1st||Rs.77.43 per litre recorded from 1st to 11th||Rs.78.40 per litre recorded from 27th to 30th|
Petrol Price Trend in Chennai in April 2018
- On 1st April 2018, the petrol price in Chennai stood at Rs.76.48 per litre, also the lowest petrol price for the month in the city.
- Petrol prices in the first week continued to be steady with an average price of approximately Rs.76.50 a litre.
- The WTI Crude and Brent Crude price inclined slightly leading to a marginal rise in petrol prices in Chennai.
- The highest petrol price in Chennai was recorded on the 24th with the fuel being sold at Rs.77.47 per litre. The rise in petrol prices in Chennai during the third and fourth week is attributed to a slight increase in the global crude oil rate.
- The rise in petrol prices in Chennai was not impacted by domestic factors such as excise duty and Value Added Tax (VAT) since they were left untouched by both the Centre and Tamil Nadu’s government.
- The petrol price trend in Chennai in April 2018 witnessed an upward trajectory by 1.24% largely impacted by the rise in the global crude oil rate and the exchange rate of the US dollar.
Petrol Price Trend in Chennai in May 2018
- The petrol price in Tamil Nadu’s capital on 1st May 2018 stood at Rs.77.43 per litre similar to the previous day’s price.
- Oil companies did not revise the petrol price till the 11th due to the 2018 Karnataka Assembly Election and petrol prices continued to stand at Rs.77.43 per litre, which is also the lowest for the month.
- Fuel companies decided to start the revision in petrol prices Chennai under the ‘Dynamic Fuel Pricing’ mechanism since the Karnataka Election had concluded.
- During the third week, petrol prices in Chennai were hiked by as much as 22 paise per litre in tandem with the global crude oil rates.
- However, petrol prices in Chennai and across other cities in the country witnessed a sharp incline with the fuel price reaching its all-time high of Rs.81.47 per on 29th.
- The record high cost of petrol is attributed to the rise in crude oil price, which stood at $80 per barrel, and amid geopolitical fears as the US administration decided to pull out of the nuclear deal with Iran leading to apprehension that Iran could curb its supply of crude oil to the international market.
- In the May 2018, petrol prices in Chennai witnessed an upward trend of 5.12% mainly due to geopolitical tensions which led to an increase in the crude oil price.
Petrol Price Trend in Chennai in June 2018
- After touching an all-time high in May, petrol prices in Chennai in the first week of June declined marginally in tandem with the fall in crude oil rates.
- On the first, petrol was sold at Rs.81.32 per litre in Chennai, also the highest petrol price in the city of the month.
- With crude oil rates falling by 1%, oil companies reduced the petrol price across the country with Chennai witnessing a declining trend in fuel prices.
- The global crude oil rate fell from a record high of $80 to $73.50 which led to a decline in fuel prices in India.
- The Organisation of Petroleum Exporting Countries (OPEC) decided to meet on 22nd June to discuss ways to address the concern of rising crude oil rates. The OPEC and its key ally Russia decided to increase the production of crude oil marginally in an attempt to control the spiralling crude oil price.
- With the crude oil price on the decline, petrol price in Chennai fell and recorded its lowest price for the month at Rs.75.55 per litre.
- Overall, the petrol price trend in Chennai during June 2018 reflected a downward trend at 3.59% largely due to the OPEC’s decision to increase the output of crude oil.
Trend in Petrol Prices in Chennai between January 2018 and March 2018
|Opening date||Rs.72.53 per litre||Rs.75.77 per litre||Rs.74.21 per litre|
|Closing date||Rs.75.63 per litre||Rs.74.15 per litre||Rs.76.29 per litre|
|Highest price||Rs.75.63 per litre registered on 30||Rs.76.12 per litre registered on 07||Rs.76.29 per litre registered on 31 March|
|Lowest price||Rs.72.53 per litre registered on 01||Rs.74.14 per litre registered on 28||Rs.74.21 per litre registered on 01 March|
|% Deviation||4.10% up||2.18% down||2.73% up|
Trend in Petrol Prices in Chennai in January 2018
- Indian Oil Company announced the opening date price of Rs.72.53 per litre that has neither fallen nor has advanced against the previous day ’s price. This is the lowest price for the month as well.
- As there were no major changes in crude oil costs and the currency conversion ratio, all the three fuel companies, IOL, BPCL and HPCL, extended the price offer of Rs.72.53 per litre on 2, 3 and 4.
- Until the end of the first half, the fuel price moved upwards influenced by a substantial fall in the USD value and an extensive hike in crude oil costs, which accelerated to $68.02 a barrel.
- The third week also registered an increasing tendency.
- Fuel companies extended mounting the petrol rate in Chennai in sync with the transnational fuel price determinants between 21 and 30.
- For the month, the highest price was registered on 30 at Rs.75.63 per litre and the month concluded with the same price range.
- In January, the price of the Indian Crude Basket soared to $67.06 a barrel from $62.29 per barrel, and thus, Oil Marketing Companies (OMCs) reported a price rise of 4.10% for the month.
Trend in Petrol Rates in Chennai in February 2018
- Petrol was valued at Rs.75.77 per litre by Indian Oil Company and even HPCL and BPCL offered almost the same price tag on an opening day.
- On 2, 3, 4, 5, 6 and 7, the fuel was retailed at an average price of Rs.75.82 a litre, Rs.75.81 a litre, Rs.75.88 a litre, Rs.76.04 a litre, and Rs.76.12 a litre respectively.
- At Rs.76.12 a litre, the highest fuel rate in Chennai was offered by all the three recognized fuel retailers on 7 and later on the fuel began recouping its rate.
- At the end of the week 2, the fuel price decayed to Rs.75.65 a litre in response to a sheer drop in the price of crude oil, which was at $63.63 a barrel (159 litres).
- The week three also registered a continuous price drop and concluded with a price factor of Rs.74.37 a litre.
- The downward tendency even prolonged during the fourth week since crude oil rates were on a fall.
- The lowest fuel price was registered at Rs.74.14 per litre on the last day at Indian Oil Company and the remaining fuel companies as well.
- A steep decrease in the crude oil price of Indian Basket influenced the petrol rate to decline to Rs.74.15 per litre this month.
Trend in Petrol Price in Chennai in March 2018
- Crude oil rates in global marketplaces started rebounding again at the beginning of the month and this is the prime reason why the petrol rate on the opening date was up 07 paise.
- In Chennai, the OMCs reported the lowest price at Rs.74.21 per litre for the month on 01 and commenced increasing the price again.
- The fuel was valued at Rs.75.07 a litre on 07 and was up almost a rupee compared to the opening date price. It is due to a depreciated USD.
- The fuel climbed to a price offer of Rs.75.16 at the end of the week 2 and prolonged to grow as well in the subsequent week.
- We can spot a mixed reaction as far the fuel price is concerned during the week 3, which closed with an offer of Rs.74.87 a litre.
- Fascinatingly, the petrol rate recouped again in the last week and was Rs.74.94 a litre, Rs.74.98 a litre, Rs.75.06 a litre, Rs.75.24 a litre, Rs.75.49 a litre and Rs.75.61 a litre on 22, 23, 24, 25, 26 and 27 correspondingly.
- This month the OMCs have announced a 2.73% price hike in Chennai since the price of Indian Basket bounced back to $63.80 a barrel.
- The highest fuel rate was declared on the last day at Rs.76.29 per litre by. Between January 2018 and March 2018, both forms of taxes, excise duty and Value-added Tax, were retained unchanged.
Note: The Indian Crude Basket is an aggregated crude oil price, which is considered by the Indian Government to set and reset the fuel rates in India.
In New Delhi, petrol was priced highest at Rs.70.88 on 3rd October 2017. In Kolkata, it was priced highest at Rs.73.62. The highest rate recorded till date in Chennai is Rs.73.48 while in Bangalore it is Rs.71.99. All metro cities have witnessed a growing trend until 4th October 2017. Diesel and petrol prices in New Delhi are less compared to those of other metro cities till date.
Which are the Factors Influencing Petrol Price in Chennai?
Every petrol consumer somebody like you in Chennai would want to know why the cost of petrol changes over a period time. Let’s begin the central excise duty. As discussed earlier, it was recently revised on 4th October 2018. Since the duty has been cut by Rs.2.50 on petrol per litre, prices have now been lower compared to those before the revision.
Another important factor that influences the buying cost of petrol in the city is the cost of raw oil, which is aligned to the currency exchange rate and the global supplies and reserves. If crude oil is in short supply globally, the buying cost of oil will increase. If the supply of oil is at par with global requirements, then the buying cost of oil will be moderate.
Being a base currency, the performance of the USD is measured against the currencies of major economies such as Australia, the United Kingdom (UK), Japan, and New Zealand. When the INR is falling against the USD, crude oil prices will increase respectively; when the INR strengthens against the USD, prices will fall accordingly.
Political events in oil-producing countries can cause changes in oil prices, which in turn impact petrol prices in Chennai. How about the local tax imposed on petrol? In fact, this is also a major influencer. All these elements directly impact the cost price of petrol in Chennai.
Influence of GST on Petrol Price in Chennai
What is the highest GST rate fixed till date? It is undeniably 28%. Besides petroleum products, petrol does not fall under the purview of GST, which stands for Goods and Services Tax. All tax elements in the current price breakup of petrol price should be eliminated if GST is to be imposed.
The retail selling price (RSP) of petrol will fall by a big margin even if GST is enforced at its highest rate, i.e., 28%. The move harms the revenue source of the Tamil Nadu government and the central. Bringing petrol under the scope of GST is at the discretion of the central government.
How about the oil and natural gas industry? The entire oil and natural gas industry has been kept outside the scope of GST. The industry has many participants, right from OMCs to petrol bunk owners. The GST implementation on the industry is likely to impact its participants adversely.
For instance, industry stakeholders are required to adhere to double tax regimes, causing increased compliance costs. The GST council may consider increasing the tax rate to ensure petrol is brought under the GST regime and the revenue source of the state and the central remains unaffected.
Diesel Costs vs. Petrol Costs in Chennai
Diesel prices are much lower than petrol prices in India. Despite the basic cost of diesel after refining is higher than that of petrol, the taxes such as the excise duty and the local sales tax or VAT, makes diesel much cheaper than petrol.
In Chennai, the petrol price, before VAT is included, is Rs.54.06 per litre and diesel costs Rs.53.42 per litre. However, with VAT included, it stands at Rs.72.44 per litre and Rs.66.77 per litre for petrol and diesel, respectively. These prices are as on 3 January 2019.
Also Check Petrol Price in NearBy Cities of Chennai
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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.