Petrol Price in Cuttack
Are you a petrol consumer from Cuttack? If yes, this article is useful for you. The article educates you on multiple elements connected to the oil sector, which contributes greatly to the economic development of India. Oil Marketing Companies (OMCs), fuel users and fuel suppliers are the stakeholders engaged in this industry. The role of OMCs has been significant. They are wholly liable to offer and modify the fuel prices in India.
In Odisha, Cuttack is a renowned city, which is witnessing an overall development. Like other cities, petrol price in Cuttack is accelerating gradually because of lately declared production cuts by oil manufacturing nations and a sharp hike in crude oil rates. Fuel prices in Cuttack may be domestically governed to a certain extent. For instance, the Central Government may bring down excise duty to lessen increasing fuel rates. Similarly, the State Government of Odisha may ponder restructuring VAT for the benefit of fuel buyers in the state. But, to a greater extent, fuel pricing in India is affected by global elements.
Analysis of Current Fuel Prices in Cuttack
Petrol and diesel are derived from crude oil. They differ in terms of usability and pricing. Diesel is less priced compared to petrol since diesel is used for agricultural production. Both have crossed their historical highs during the 1 week of January 2018. March 2018 closed with a price tag of Rs.72.38 per litre in the city. During the first 10 days of April 2018, both diesel and petrol rates in Cuttack were on an upward trend.
|Opening price||Closing rate||Highest rate||Lowest rate|
Petrol rate in Cuttack stood at Rs.69.10 a litre during the first few days of January 2018, which concluded with a price label of Rs.71.92 a litre. It was down 1.53% in February 2018. Again, the fuel price started gaining in March 2018 and was up 1.73%. Both downward and upward trends can be observed in this table. It is owing to dynamic fuel pricing and a few noticeable fluctuations in unrefined oil over the last 90 days.
Impact of Dynamic Fuel Pricing on Petrol Price in Cuttack
Undoubtedly, dynamic fuel pricing has been pushing current fuel rates in Cuttack. When it was proposed in June previous year, the average petrol rate was Rs.67.32 a litre and increased to Rs.72.80 per litre in March 2018. You can observe a price hike of Rs.5 a litre since dynamic fuel pricing. Under dynamic fuel pricing, petrol prices tend to be revised each day by IOCL, HPCL and BPCL. Thus, a new price will be released periodically to petrol consumers in Cuttack.
Dynamic Fuel Pricing vs Fortnightly-based Revision
Fortnightly-based fuel pricing system was dropped last year by OMCs. We, today, have dynamic fuel pricing in place. The fundamental difference between these two fuel revision methodologies is the regularity of fuel revision. The former fuel pricing methodology used to reset fuel prices on a fortnightly-basis. On the contrary, today’s fuel pricing system will do it every day taking into account the trends in the conversion ratio (USD/INR) and unrefined oil prices.
Daily price revision concept is beneficial to all parties, including OMCs and buyers. HPCL, BPCL and IOC operating across the country can enhance their profit margins by deteriorating running expenses and time. They can keep their cash ledger unaffected since dynamic fuel pricing allows them to estimate cash flows accurately. Petrol is supplied uninterruptedly to fuel users in the city. The latest petrol price in Cuttack offered today is completely translucent.
Useful Tips for Fuel Consumers to Extract Today’s Petrol Price in Cuttack
Option 1: Petrol buyers are advised to deploy mobile applications to extract the price. There are 3 individualised mobile apps, which include My HCPCL, SmartDrive and Fuel@IOC. These are offered by Hindustan Petroleum, Bharat Petroleum and Indian Oil respectively at no cost.
Option 2: Downloading mobile apps is not a right option for someone who does not own a smartphone. Such people have an option to send an SMS to extract the price provided at either IOC or HPCL or BPCL. Petrol rate in Cuttack minutely changes from station and station.
Price Structure of Petrol in Cuttack
|1||OMCs in India will project the cost of unrefined oil. The formula to compute the cost of crude oil per litre is: INR/USD conversion rate X price of crude oil a barrel/159 As of 3 February 2018, the cost of a litre of crude oil stood at Rs.26.42.|
|2||OMCs then assess the total amount of expenditures spent by them. As of 3 February 2018, it was Rs.8.10 a litre.|
|3||OMCs also add an excise duty of Rs.19.48 a litre on petrol. In Cuttack, a city in Odisha, VAT on petrol will be executed at 26%.|
|4||Fuel retailers add their commission and a pollution cess of 25p|
Put simply, Retail Selling Price of petrol = OMC expenditures + taxes (both central and state) + crude oil expenses + commission paid to retailers + pollution cess
Forces Affecting Petrol Price in Cuttack
Fuel prices (petrol and diesel prices) in domestic markets shall increase when the USD appreciates against the domestic currency continually, crude oil prices increase as a result of production cuts, and the government increases the tax burden for customers. On the contrary, fuel rates in local marketplaces will fall when the INR rebounds against the greenback, the state and central governments lessen the tax obligations for fuel users, and crude oil rates decline internationally.
Does the GST Framework affect Petrol Price in Cuttack?
No. It does not. The Government of India is not willing to include petrol under the present GST context. Petrol has been excluded from the list. The GST imposition on petrol will lessen the fuel rate at least by 30-35%. It will be a huge drop, and thus, affects not only the Central Government but also the State Government of Odisha in terms of revenues. The GST Committee has to make necessary changes to levy the GST structure on petrol in a style that does not harm the income source for the government.
*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.