Petrol Price in Erode
Petrol has turned out to be a costlier fuel in Erode. The fuel reached a price mark of Rs.77.89 a litre during the first week of May 2018. Do you know? Why are petrol prices in Erode increasing every day? Would you like to know the reason? The fuel sector in India has seen tremendous changes over the last 10-12 months. What are they? Has the GST system been implemented on the fuel sector? Should you have the similar questions, this page is helpful to you.
What is the Trend in Petrol Price in Erode?
So far this calendar year, petrol rates in Erode have been up by Rs.2 per litre. They were up by Rs.3 per litre, Rs.1.83 a litre and 0.85 paise per litre in January 2018, March 2018 and April 2018 respectively. In February 2018, fuel rates were down by Rs.1.62 a litre. The highest petrol rates were registered at Rs.76.02 a litre, Rs.76.51 a litre, Rs.76.51 a litre and Rs.77.88 a litre in January 2018, February 2018, March 2018 and April 2018 respectively in the city of Erode. Market experts have predicted a reasonable rise in petrol prices over the next six months.
Dynamic Fuel Pricing – A Major Change in the Indian Fuel Retailing Industry
Dynamic fuel pricing is currently in use in Erode. It has been deployed in June 2017 by the Government of India. Before introducing dynamic fuel pricing, a 40-day pilot was executed in five cities. Under this method, the fuel entities such as Indian Oil Corporations Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (HPCL) consider the exchange rate (USD/INR) and crude oil overheads to set and revise petrol prices in Erode. There can be a price drop or a price up. Sometimes, the fuel companies can retain the price offer unmodified.
How does Dynamic Fuel Pricing Work?
Today’s petrol price in Erode (as of 7th May 2018) is Rs.77.89 a litre. To determine the fuel price tomorrow, the OMCs will take account the closing crude oil price and the exchange rate. If there a drop in crude oil costs today, petrol price will be increased tomorrow. Similarly, if there is a hike in crude oil expenses, petrol rates will be decreased. The daily fluctuations in the currency translation ratio are also taken into consideration. Revision can be done automatically by mechanised fuel stations. It should be manually done by non-mechanised fuel stations.
Advantages of Dynamic Fuel Pricing
- The fuel supply cannot be interrupted like before.
- Fuel customers in Erode can be interlinked to global markets.
- The drops in crude oil overheads can be quickly transferred to end customers.
- No political factors can impact the revision of fuel rates in Erode. It means 100% fuel pricing is entrusted.
- The OMCs can easily and cost-efficiently manage their net working capital and cash flows.
- The OMCs can also augment their operational proficiency.
Trace Today’s Petrol Price in Erode via Mobile Applications
Since fuel rates are changing on a daily basis, HPCL, BPCL and IOCL have designed tailor-made mobile applications to trace the latest petrol price in Erode. Fuel customers should have smartphones to avail this facility. The customers who do not use smartphones can consider using offline modes. Indian Oil has released a mobile application called ‘Fuel@IOC.’ The mobile application launched by Bharat Petroleum is called ‘SmartDrive.’ Conversely, the name of the mobile application offered by Hindustan Petroleum is ‘My HPCL.’ These mobile applications are not only user-friendly but also provide additional benefits to users. In fact, most petrol consumers in Erode have now been using such applications.
Steps in Computing Petrol Price in Erode
The OMCs will compute the price of unrefined oil.
The overheads incurred by the OMCs are added to the price of crude oil.
Both the state and central taxes are added. The excise duty was Rs.19.48 a litre in Erode in May 2018. VAT on petrol was charged at 32.06% in the city.
Pollution cess and the commission paid to retail fuel suppliers are added.
Put simply, the Retail Selling price of petrol in Erode is the sum of all the aforementioned cost centers.
Forces Impacting Current Petrol Price in Erode
Fuel rates are greatly affected by the exchange rate, taxes and crude oil costs. The USD/INR currency pair represents the value of the USD, the greenback, versus the domestic currency, the INR. It tends to vary frequently in sync with interest rates, debt obligations, inflation etc. Be noted that the influence of the currency conversion rate will be nominal. Fuel prices in Erode will upsurge marginally if the INR gains against the USD and vice versa.
Let’s now understand the impact of crude oil expenses. HPLC, IOCL and BPCL will hike fuel rates if there is a rise in crude oil costs. Conversely, they shall decrease petrol rates when crude oil costs increase in overseas markets. Similarly, petrol is priced considering the changes in taxes. The OMCs will increase the fuel price in Erode if the Central Government increases the central tax and vice versa.
GST Versus Today’s Petrol Rate in Erode
GST is not applicable to petrol till date. If the GST Council brings petrol under the GST tax slab, excise duty and VAT are substituted by the new tax slab. Petrol prices will drop sharply even though the fuel is taxed at 28%, the highest tax slab. The motive of the Central Government behind not bringing petrol and petroleum products under the GST framework was to safeguard the state governments from revenue losses.
As per market watchers, the execution of GST on the whole fuel industry streamlines the tax system in India. The Oil Ministry has also been urged by political leaders to impose the GST purview on petrol. Of course, it can be done making some changes. For instance, the GST Council may consider imposing additional taxes to compensate losses.
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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.