Petrol Price in Guntur
What is the trend in petrol prices in Guntur currently? Are they moving? Or, are they falling? Why are petrol prices in Guntur fluctuating? If you have similar questions in your mind, here is a piece of writing for you. Petrol is not a commercial commodity and used for transportation purposes basically. The demand for the fuel has been growing in Guntur like other Indian towns. You are wrong if you think the petrol price is sensitive to its demand. Usually, when a commodity gains demand, its price also goes up. On the contrary, when it loses demand, its price falls. This is an example of the law of demand, which is not applicable to fuel prices in any part of the country, including Guntur.
|Also Know: Diesel Price In Guntur|
There are two important aspects that determine the current petrol price in Guntur: 1) the exchange rate and market prices of crude oil. The fuel is priced each day at 06:00 a.m. by oil marketing companies, which include Bharat Petroleum, Hindustan Petroleum and Indian Oil. These are three publicly-owned oil marketing brands operating in the entire country. According to official websites, petrol retailed with an average price of Rs.78.40 during the first week of March 2018 in Guntur. The petrol price, which is quoted to fuel consumers, consists the central tax levied by the Central Government and the VAT imposed by the Government of Andhra Pradesh.
Historical Petrol Rates in Guntur
In October 2017, the highest price was recorded on 03 and the lowest price on 16 October. The month opened with a price tag of Rs.76.85 per litre and closed with a price tag of Rs.74.99 per litre. As central taxes were reduced in October 2017, fuel rates in Guntur were comparatively lower in November 2017. On 13, the highest petrol rate was registered and the lowest petrol rate on 27. The petrol rate in Guntur was up by Rs.0.39 in December 2017. The lowest and highest rates stood at Rs.75.10 per litre and Rs.75.62 per litre respectively for the month. Fuel prices in Guntur continued to grow in January 2018. The New Year began with a price tag of Rs.75.97 per litre. By 31 January 2018, the fuel price up by 2.94 a litre. In February 2018, the petrol price in the city was down by Rs.1.58 a litre.
|Also Check: Petrol Price in Kurnool|
Dynamic Fuel Pricing
Today, we have a system wherein the pricing and revision of fuel rates happen on a daily basis. This system is called dynamic fuel pricing. Alternatively, it is called the daily revision. Fuel pricing and revision are done in Guntur in line with the currency conversion ratio and prices of unrefined oil. Any changes in these two influencers will be transmitted to end customers. This is the biggest benefit for them. Dynamic fuel pricing has also been deployed by developed countries such as Japan, the United States of America, Australia and Russia. In India, it was introduced in 2017 and has been well-accepted by consumers, the government and oil marketing corporations.
Dynamic Fuel Pricing vs Forthrightly Revision System
As its name indicates, dynamic fuel pricing revises fuel rates every day. The earlier fortnightly-based revision used to revise twice a month. The current fuel pricing mechanism assures transparency. This was not the case with the earlier system. Dynamic fuel pricing is easy and offers significant benefits to all industry stakeholders, including fuel customers, dealers and oil marketing companies. Dynamic fuel pricing connects the Indian fuel retailing sector to transnational markets.
Trace Today’s Petrol Price in Guntur through Mobile Apps
Petrol consumers in the city of Guntur may consider using mobile applications in order to track recent prices. All OMCs provide mobile applications. If you download SmartDrive, a mobile application provided by Bharat Petroleum, you will be able to trace the transactions you have made at fuel stations. You will also get insurance-related information. My HPCL, a mobile application offered by Hindustan Petroleum, has been made available for IOS, Android and Window devices. This app also provides insurance-related details to users. Another app you have is Fuel@IOC offered by Indian Oil Company Limited. If you are a user of Android and Apple, consider using this application. This is how you can trace today’s petrol price in Guntur.
Components of Petrol Price in Guntur
- Unrefined Oil Costs: The cost of unrefined oil is a primary element. It is quoted in overseas markets since unrefined oil is a transnational commodity. As of February 2018, the price of Brent crude stood at $65 per barrel (159 litres). The cost price of a litre of crude oil = the cost of crude oil per barrel X the exchange rate / 159.
- Taxes: In excess of 50% of the retail selling price of petrol in Guntur goes towards taxes. The excise duty has been revised to Rs.19.48 per litre, which includes road cess in the lately released Union Budget 2018-2019. Value-added Tax (VAT) is charged at 38.93% in Andhra Pradesh. It was revised on 4 September 2017.
- OMC Expenses: Oil marketing companies play a vital role. They are a major intermediary. The retail selling price of petrol includes OMC expenses, which are envisioned to be Rs.8 per litre.
Petrol Price in Guntur = crude oil price + taxes (excise and VAT) + OMC overheads + pollution cess + dealer commission
Influencers of Petrol Price in Guntur
The cost of crude oil is one of the significant factors impacting the petrol rate in Guntur. It is affected by many factors such as production cuts and political moves in oil-exporting nations, global supply and demand patterns, the economics of oil exporters and importers. Petrol rates and the prices of petroleum sub-products will change from city to another owing to the local government’s practice in charging taxes on petrol and diesel. For instance, fuel prices in Guntur are high compared to Bangalore and Delhi.
Oil marketing entities tend to increase fuel rates in Guntur whenever the Central Government increases the central excise to manage marginal earnings in the business. It has no other choices. Fuel rates in India are on rise owing to a steadily growing number of petrol-based four-wheelers and two-wheelers. The INR/USD conversion ratio is another important aspect considered by OMCs to offer prices for fuel consumers in Guntur. It is determined by considering the rate of inflation, imports and exports, interest on FDs and SB bank accounts, etc.
Latest Petrol Rate in Guntur vs GST
What is your opinion on GST? Should it be imposed on petrol and diesel in India? The imposition of GST on fuels, including petrol and diesel, is a better option according to market watchers. As of now, GST is not applicable to petrol. The GST Council may impose GST on petrol in the near future. Besides, the opposition leaders and the Oil Ministry had asked the GST Council to tax petrol under the GST purview. Till date, the Council has not replied. The present GST rates are required to be adjusted if the GST Council decides to tax petrol. As of now, GST is levied at 5%, 12%, 18% and 28% on commodities and services. The highest rate is 28% and the lowest rate is 5%. At 28%, the current petrol rate in Guntur will fall by 30-35%.
Also Check Petrol Price in NearBy Cities of Guntur
*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.