Find the current petrol price in Chennai and factors affecting price of petrol in India. The below petrol rate trend in Chennai offers insights such as the highest and lowest petrol prices recorded during a month.
Trend of Petrol Price in Chennai for October 2019 (rates per litre)
|Highest Rate in October||Rs.77.56|
|Lowest Rate in October||Rs.76.67|
October - Week 1 (1-7):
- In Chennai Petrol price opened the month of October at Rs.77.56 per litre. The prices increased by 22 paise per litre since the previous day’s closing price. It was the highest recorded price for the month so far.
- After staying constant for the next day, petrol price in Chennai declined considerably in the metropolitan city as crude oil prices cooled down and reversed all gains. On October 5, a litre of petrol cost Rs.76.96.
- The petrol rate closed the week at Rs.76.67 after the prices fell by another 29 paise on October 7. It was the lowest recorded price for the month till date. The overall performance of petrol in Chennai was -1.14%
Trend of Petrol Price in Chennai for September 2019 (rates per litre)
|Highest Rate in September||Rs.77.34|
|Lowest Rate in September||Rs.74.48|
September - Week 1 (1-7):
- Petrol price in chennai opened at Rs.74.77 on 1 September. The rates were unchanged from the closing price of the previous day as the demand for oil was low.
- The rates remained the same for the next few days even though crude oil prices in the international oil market climbed after trade talks with China in the coming months was confirmed by the United States.
- Petrol plummeted in the last two days of the week before closing at Rs.74.55 per litre. The overall performance of the fuel in Chennai for the first week was trending downwards at -0.29%.
September - Week 2 (8-14):
- Petrol rate in Chennai opened at Rs.74.48 per litre on the 8th of September—7 paise lower than the previous day’s closing price. It’s also Chennai’s lowest recorded petrol price for the month of September till now. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
- Petrol price in Chennai remained unchanged for a day before rising slightly again on 10 September, recording Rs.74.54 per litre. The hike was primarily due to a sharp drop in US inventories.
- Petrol kept trending upwards, closing the week at Rs.74.76 per litre. Though the overall performance of petrol was -0.01%, the market forecast suggests that the prices are going to shoot up in the coming days.
September - Week 3 (15-21):
- Petrol price in Chennai opened at Rs.74.82 per litre on the 15th of September - 6 paise higher than the previous day’s closing price.
- After staying stable for a day, petrol rates soared, recording Rs.74.97 per litre on 18 September. Meanwhile, in the international market prices slid after Saudi Arabia’s energy minister stated the kingdom will restore lost oil production by the end of the month.
- In Chennai petrol price closed the week at Rs.76.21 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of petrol in Chennai was 1.92%, trending upwards.
September - Week 4 (22-30):
- In Chennai, petrol price opened at Rs.76.49 per litre on the 22nd of September. The rates charged were 28 paise higher than the previous day’s closing price.
- Due to geopolitical tensions, the prices soared in the next few days. The drone attacks on Saudi Arabia’s Aramco oil refinery also played a key role in the substantial increase of petrol prices. The rates jumped to Rs.77.25 per litre on September 27 before remaining constant for the next two days.
- Petrol price in Chennai closed the week at Rs.77.34 per litre. This was the highest recorded price in the month of September in the southern metropolitan city. Petrol’s overall performance for the month of September was 3.43%.
Trend of Petrol Price in Chennai for August 2019 (rates per litre):
|Highest Rate in August||Rs.75.65|
|Lowest Rate in August||Rs.74.59|
August 2019 – Week 1 (1-7):
- Petrol price in Chennai opened at Rs.75.65 per litre on 1 August, 6 paise lower than the previous day’s closing price. State-run oil marketing companies decided to reduce the rates owing to weak demand of the oil. Meanwhile, in the international crude oil market, crude prices dropped after the possibility of a possible rate cut initiated by the US Federal Reserve got squashed. However, diesel prices remained stable without undergoing any price change.
- Petrol rate slumped further, recording Rs.75.48 per litre on 2 August, marking a drop of 17 paise per litre. Prices kept trending downwards with petrol closing at Rs.75.14 per litre on 5 August. In the international oil market, crude prices fell amid worries over weak demand of the oil after the Trump administration declared that it would impose tariffs on more Chinese imports.
- Chennai Petrol price remained unchanged from its previous day’s closing price (6 August) and closed the week at Rs.75.05 per litre, recorded on 7 August, its lowest price till now for the month of August. The overall decline in petrol price recorded in the first week of August is -0.79%. Meanwhile, in the international oil market, crude dropped owing to US-China trade tensions. With Trump announcing to impose more tariffs on Chinese imports, crude prices can drop further in the coming days.
August 2019 – Week 2 (8-14):
- Petrol price in Chennai opened at Rs.75.65 per litre on the second week of August, recording a 6 paise drop from previous day’s closing price.
- Petrol dropped further by 17 paise on the next day, standing at Rs.75.38 per litre. The dip was primarily due to the ongoing US-China trade tensions, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports.
- Petrol price in Chennai slumped slightly in the next few days before stabilising at Rs.74.74 per litre. The overall performance compared to the opening day was -1.20% (decline). Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis and rise in US inventories.
August 2019 – Week 3 (15-21):
- Petrol price in Chennai opened at Rs.74.74 per litre on 15 August, similar to previous day’s closing rate.
- Petrol remained unchanged for the next few days before dropping to Rs.74.66 per litre—recording a drop of 8 paise.
- Petrol closed the week at Rs.74.59 per litre—its lowest recorded price in the month of August. The overall performance of petrol in Chennai was -1.40%, trending downwards. However, in the international oil market, crude prices went up following a drop in US inventories. The gains were miniscule though due to poor demand of the oil owing to sluggish economic growth globally.
August 2019 – Week 4 (22-31)
- Petrol price in Chennai opened at Rs.74.59 per litre, unchanged from previous day’s closing price. After staying stagnant for the next few days, petrol prices went up marginally, recording Rs.74.83 per litre on 26 August. In the international oil market, crude gained after US inventories recorded a substantial slump.
- Petrol prices were slashed by 6 paise on the next day, recording Rs.74.77 per litre. Petrol remained unchanged till the end of the week.
- Overall, petrol’s performance in Chennai was -1.16%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.
Petrol Rate 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.
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.
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.
Trend of Petrol Price in Chennai for July 2019 (rates per litre):
|Highest Rate in July||Rs.76.29|
|Lowest Rate in July||Rs.73.18|
July 2019 – Week 1 (1-7):
- Petrol price in Chennai opened at Rs.73.18 per litre on 1 July, an increase of 10 paise. The hike was primarily due to the oil marketing companies increasing petrol prices by 9 paise per litre.
- Prices were recorded at Rs.73.24 per litre on 2 July, a hike of 6 paise. This was again in accordance with the latest revision in petrol prices initiated by the oil marketing companies. The prices remained constant till 6 July.
- On 7 July, Chennai petrol price was recorded its highest price of the week, standing at Rs.75.81 per litre. This steep increase was primarily due to the Government’s announcement to increase excise duty and road and infrastructure cess on petrol by Rs.2 per litre.
July 2019 – Week 2 (8-14):
- When the week began, petrol in Chennai was priced at Rs.75.81 per litre, unchanged compared to yesterday’s price after the Union Government announced to hike the excise duty on petrol and diesel by Rs.2 per litre to fund its social welfare schemes.
- State-controlled Oil Marketing Companies (OMCs) reduced the petrol price in Chennai to Rs.75.76 per litre. This remained unchanged until 12 July amid a slight decline in crude oil prices due to supply cuts by the OPEC and allies despite tensions in the Middle East.
- Overall, petrol prices were up marginally by 0.19% largely driven by the stable crude oil price in the international market prompted by the production cuts by the OPEC even after tensions between the US and China over trade between the two nations and in the Middle East.
July 2019 – Week 3 (15-21):
- Petrol was priced at Rs.76.08 per litre on 15 July – the lowest price recorded for the week despite rising crude oil prices in the oil market after China reported the slowest quarterly economic growth amid concerns of demand from the world’s largest crude oil importer.
- Prices of petrol in Chennai during the week continued to rise influenced by the incline in crude oil prices in the international market and touched a weekly high of Rs.76.23 per litre on 18 July and remained unchanged until 21 July.
- By the end of the week, prices inclined marginally attributed by the rise in crude oil prices due to tensions in the Middle East after the US shot down an Iranian drone and the slowdown of the Chinese economy indicating a drop in demand from China.
July 2019 – Week 4 (22-28):
- Petrol price in Chennai opened at Rs.76.23 per litre, unchanged from previous day’s closing price. State-run oil marketing companies decided not to alter the prices after forecasting weak demand in the global crude oil market.
- Petrol rose marginally by 6 paise on the next day, recording at Rs.76.29 per litre. The slight rise could be due to the ongoing Middle East skirmishes and a huge fall in US inventories.
- Petrol in Chennai started to drop from 25 July and closed the week at Rs.76.01 per litre on 28 July. The price drop could be attributed to the weak demand of the crude oil among investors. A slow global economic growth added to demand concerns. With PPEN and Russia agreeing to extend supply cuts till May 2020, the international oil market is projected to be fairly balanced in 2019.
Also Check Petrol Price in Metro Cities
|Petrol Price Delhi||Petrol Price in Bangalore||Petrol Price n Hyderabad|
|Petrol Price in Mumbai||Petrol Price Kolkata||Petrol Price Pune|
Trend of Petrol Price in Chennai for June 2019 (rates per litre):
|Highest Rate in June||Rs.74.27 on June 2|
|Lowest Rate in June||Rs.72.61 on June 16|
June 2019 – Week 1 (2-8):
- Petrol price in Chennai opened at Rs.74.27 per litre at the beginning of the month of June. There was a slight decline in the price from 31 May owing to a fall in crude oil prices in the worldwide oil market.
- The price of petrol continued to decline throughout the week and hit Rs.72.61 on 16 June. It remained unchanged till 23 June.
- The decrease in the petrol price can be attributed to the stabilisation of crude oil prices. Brent crude futures fell by 0.4% after declining sharply by 10% in the last four days.
June 2019 – Week 2 (9-15):
- The price of petrol at the beginning of the week on 9 June stood at Rs.73.68 per litre. It remained unchanged from the previous day.
- The petrol price in Chennai declined throughout the week and reached Rs.72.68 on 15 June.
- Mid-week, crude oil prices stabilised. Meanwhile, the worldwide demand for petrol is reducing because of the expected economic downtrend.
June 2019 – Week 3 (16-23):
- On 16 June, the petrol price in Chennai stood at Rs.72.68 per litre. It remained unchanged from the previous day.
- The price remained unchanged throughout the week, despite the rise in crude prices amid tensions in the Middle East.
June 2019 – Week 4 (24-30):
- The price of petrol in Chennai stood at Rs.75.74 per litre on 24 June. The price continued to increase marginally throughout the week. There was a 1.60% decline between 2 June and 30 June.
- On the last day of the month, the price of the petrol stood at Rs.73.08.
- The rate of crude oil fell in global markets as a result of expectations on the G20 summit as well as a meeting of the OPEC and other oil producers.
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.
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.
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.
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.
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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.