Petrol Price in Coimbatore
Coimbatore is a district in Tamil Nadu. It is a well-connected city as far as fuel dealers are concerned. Majorly, petrol is distributed through Bharat Petroleum fuel dealers, Hindustan Petroleum fuel dealers and Indian Oil fuel dealers. The commission collected by the fuel dealers of these three oil companies remains unchanged. There will be a minute variation in transportation costs, which are incurred to supply petrol to fuel stations from refinery centres. As a result, petrol prices in different localities of the same city will slightly change.
Petrol Rate in Coimbatore – A comparison
Petrol price in Coimbatore has crossed a price offer of Rs.78 per litre and is expected to increase to Rs.80 per litre by May 2018. What was the trend in petrol price over the last four months (January 2018-April 2018) in the city of Coimbatore? In January 2018, the opening date and closing date prices were Rs.72.95 per litre and Rs.75.96 per litre respectively. The highest and lowest prices were closed at Rs.75.96 per litre and Rs.72.95 respectively for the month. In the following month, the opening date price was Rs.76.10 per litre. The closing date price dropped to Rs.74.47 per litre because of crude oil costs.
The highest rate for the month of February 2018 stood at Rs.76.44 per litre whereas the lowest price was booked at Rs.74.47 per litre. In March 2018, petrol prices in the city were reasonably accelerated by fuel marketing companies. At Rs.76.44 per litre, the highest rate was booked. April 2018 has also produced an upward trend. For the month, fuel companies reported a price rise of Rs.0.85 per litre. It can be inferred that fuel rates in Coimbatore have not been consistent over the last 4 months because of dynamic fuel pricing.
What is Dynamic Fuel Pricing?
Marketing companies will use certain methods to determine the prices of commodities and services sold by them. Fuel companies, similarly, follow dynamic fuel pricing to fix the value of petrol per litre. They will price the fuel taking into account daily crude oil rate movements. The exchange rate is also taken to consideration. Japan, Australia and the USA also follow dynamic fuel pricing, which came into existence in India in the month of June 2017. The impact of the currency conversion rate is insignificant.
Attributes of Dynamic Fuel Pricing
- Fuel rates in Coimbatore will change on a daily basis at HPCL, BPCL and IOCL.
- Fuel entities may or may not increase the fuel rate. Sometimes, they will extend the same price range.
- Fuel is priced in a way that is free from political influences.
Benefits of Dynamic Fuel Pricing to OMCs
- Stocks and cash are effectively managed.
- OMCs can save money and time.
- They can computerise their operations to implement the system of dynamic fuel pricing.
Methods to Trace Today’s Petrol Price in Coimbatore
|Mobile applications||Download mobile application offered by Hindustan Petroleum which is ‘My HPCL.’||Download mobile application offered by Bharat Petroleum, which is ‘SmartDrive.’||Download mobile application provided by IOCL which is ‘Fuel@IOC.’|
|SMS services||You have to send an SMS request to 9222201122.||Send an SMS request to 9223112222.||Send an SMS request to 9224992249.|
|Online portals||Consider visiting the website of HPCL, which is www.hindustanpetroleum.com||Just visit the website of Bharat Petroleum, which is www.bharatpetroleum.com||The website to be visited is www.iocl.com|
Calculation of Petrol Price in Coimbatore
Petrol rate in Coimbatore = Crude oil costs + taxes + commission for dealers + OMC expenses
- Crude oil cost is a major cost component, which will change periodically. The combined price of Brent and WTI crude is considered. It will change on the crude oil market. In April 2018, the aggregated crude oil price stood at $69.30 per barrel. It will first be converted into Indian rupees and will be divided by 159 since a barrel of crude oil is equal to 159 litres.
- Excise duty and Value-added Tax are imposed on petrol. No other taxes are levied apart from these two. Over the last three months, no changes were made as far as excise duty is concerned. It was Rs.19.48 a litre in May 2018. Likewise, VAT has not been revised recently by the State Government of Tamil Nadu. It was collected at 32.06% during the same month.
- Oil Marketing Companies are required to spend several types of overheads, which include operating overheads, landing overheads, entry levies, refinery overheads, freight expenses, carriage overheads, etc. The overall sum of the overheads spent by OMCs was estimated to be Rs.6.10 per litre.
Factors Impacting Fuel Rates in Coimbatore
Internal factors: Excise duty and Value-added Tax are domestically governed. For instance, the Central Government retains the authority to make changes in excise duty. The NDA Government revised it many times since 2014. If the government revises excise duty, petrol price should be revised. Similarly, if there are any changes in VAT, fuel companies will make necessary changes.
External factors: The exchange rate has to be taken into consideration since crude oil is an overseas commodity. Crude oil costs and the USD/INR exchange rate are inversely related. When the overseas currency weakens, crude oil rates will reduce proportionally. On the contrary, when the base currency strengthens, crude oil rates will also increase. Fuel prices will get affected in the end.
Impact of GST on Current Petrol Rate in Coimbatore
Goods and Services Tax (GST) is a multi-stage tax framework. It is paid by the people who purchase goods and services at different tax slabs. Petrol and diesel buyers will not pay GST. The have continued to pay the current tax. VAT and excise duty should be compensated if the GST Committee wishes to include petrol. If implemented at 28%, the current petrol price in Coimbatore will deteriorate by 20-30% as per specialists. Moreover, compliance overheads are expected to increase by 100%.
*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.