Petrol Price in Chhattisgarh
The state of Chhattisgarh is located in Central India and has a rich source of minerals. The state accounts for 15% of the country’s steel production and is one of the states with surplus power. The state is well connected by road, rail and air to several other states in the country. Public transportation in Chhattisgarh includes buses, auto rickshaws and taxis.
Two-wheelers and four-wheelers have recently become an important source to commute between destinations in Chhattisgarh. With the rise in vehicular density in the State, petrol consumption is on the rise.
Petrol prices in Chhattisgarh is revised on a daily basis in tandem with the new ‘dynamic fuel pricing’ mechanism. Why does the petrol price in Chhattisgarh change daily? What components influence the petrol prices in a city? Let’s review each of these questions to understand how oil companies fix the daily petrol price in Chhattisgarh.
How Often Petrol Prices are Revised in Chhattisgarh?
As mentioned, petrol prices in India are revised on a daily basis. The dynamic fuel pricing mechanism was introduced from 16 June 2017. Under this pricing methodology, Oil-Marketing Companies (OMCs) include the global crude oil price of the preceding day and the exchange rate of the US dollar.
Prior to the dynamic fuel pricing mechanism, India followed the fortnightly revision. Oil companies revised fuel prices every fortnight taking into account the average price of the preceding fortnight. However, OMCs incurred losses as they were unable to pass on any increase or decrease in the international crude oil price to the consumer. Hence, the fortnightly fuel pricing mechanism was discontinued.
Petrol prices in Chhattisgarh are updated daily at 6:00 a.m. IST automatically at automated fuel stations, while it’s manually updated at non-automated petrol pumps.
What Causes Petrol Prices to Change?
Several factors influence the petrol rate in Chhattisgarh and in other cities of India. These factors are external and internal in nature. While the global crude oil rate and the US dollar value are external in nature, profit margins of oil companies, dealer commision and taxes form the internal factors.
- External Factors: The primary factor to influence the petrol price is the global crude oil price. India depends on nearly 70% of crude oil from oil-producing countries, which makes it an expensive commodity in the country. The price for a barrel of crude oil is dynamic in nature and fluctuates based on production cuts, shortage in supply, geopolitical tensions or fluctuations in the demand. These elements either increase or decrease the crude oil price in the international market. The second external factor is the exchange rate of the US dollar. Since trading of crude oil in the global market happens in US dollars, any fluctuations in the value of the US dollar impacts the final selling price of petrol in Chhattisgarh. If the US dollar appreciates over the Indian Rupee, the cost to purchase crude oil increases and vice versa.
- Internal Factors: Internal or domestic factors include taxes levied by the government, operating costs and dealer commission. Tax on petrol is the biggest component in the petrol price. While the Centre levies excise duty at Rs.19.48 per litre on petrol, Chhattisgarh charges Value Added Tax (VAT) at 27.02%. Any revision in the tax rates impacts the petrol price in Chhattisgarh and in cities across India. Since OMCs transport the crude oil from oil-producing countries which is then refined and supplied to all the fuel stations in the country, they include their profit margin and operating costs before petrol is sold. Additionally, OMCs add dealer commission to the final selling price of fuel in the country.
Ways to Track the Latest Petrol Price in Chhattisgarh
With petrol rates revised daily, here are ways consumers can track the latest petrol price in a city. Oil companies have introduced several user friendly methods to find the current petrol price in a city. Consumers can make use of mobile apps such as the ‘Fuel@IOC’ by Indian Oil, ‘SmartDrive’ by Bharat Petroleum and ‘MY HPCL’ app by Hindustan Petroleum to get the latest petrol rates.
For those customers looking to utilise the SMS service, the process below lets you find the petrol price.
- Indian Oil: SMS RSP Dealer Code and send SMS to 9224992249.
- Bharat Petroleum: SMS RSP Dealer Code and send SMS to 9223112222.
- Hindustan Petroleum: SMS HPPRICE Dealer code and send SMS to 9222201122.
Customers can also visit the OMCs’ respective website to track the latest fuel price in and across cities in the country.
Computation of Petrol Price in Chhattisgarh
Now that we understand the various factors which influence the petrol price in Chhattisgarh, here’s an example of the petrol price recorded on 3 June 2018. This table offers the breakup of the petrol price in Raipur, the capital of Chhattisgarh.
|1||Global Crude Oil Price + Freight Charges||$78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)|
|2||Profit margin of Oil Companies, transportation, refining, and operational costs||Rs.5.32/Ltr|
|3||Central Excise Duty + Road Cess||Rs.19.48/Ltr|
|5||Value Added Tax (VAT)||Rs.16.59/Ltr|
|Total||Retail selling price of petrol in Raipur||Rs.78.01/Ltr|
Petrol Vs. Diesel Price in Chhattisgarh
Petrol prices are higher compared to diesel in Chhattisgarh. This is due to the higher taxes that petrol attracts over diesel. Currently, petrol attracts excise duty of Rs.19.48 per litre, while diesel is charged Rs.15.33. Chhattisgarh levies VAT at 27.02% and 25.81% on petrol and diesel respectively.
GST on Petrol in Chhattisgarh
Currently, petroleum products such as petrol and diesel do not come under the new Goods and Service Tax (GST). These commodities continue to come under the excise duty and VAT taxation regime. The current taxes levied on petrol is higher compared to the highest GST slab of 28%. Bringing petrol under the ambit of GST will cause losses to both the Centre and the State in terms of revenue. That said, if petrol comes under the GST, price for a litre of petrol will reduce significantly.
*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.