Petrol Price in Haldwani
As on 12 June 2018, petrol price in Haldwani, a prime city in Uttarakhand, was Rs.77.85 a litre, including taxes. In some cities, petrol is already retailing at a price more than Rs.80 a litre. Since petrol price is going beyond the reach of fuel consumers throughout India, the government is considering various alternatives to lessen fuel rates. Why have petrol prices increased recently in Haldwani? Over the last five months, petrol rates have increased by Rs.5-6 a litre because of the increased crude oil rates.
Introduction to Fuel Companies
The oil industry has enormous scope in India. Indian Oil, Bharat Petroleum and Hindustan Petroleum are the three fuel companies participating in the industry. They are state-run and have established the brand reputation for premier quality products and services. In each Indian city, we can observe HPCL dealers, IOCL dealers and BPCL dealers. The city of Haldwani also has a huge number of fuel dealers to market the fuel to final users. Supply stations are owned and maintained by small business enterprises, which work for a commission.
Revision of Petrol Price in Haldwani
Dynamic fuel pricing is used in order to revise the price of petrol in India today. Primarily, it is a mechanism introduced for the revision of fuel prices and is followed in other countries as well. Crude oil costs and the exchange rate are pondered to offer a revised petrol price to customers regularly. The frequency of revision is the prime difference between dynamic fuel pricing and the earlier revision system. Previously, in a month, fuel companies used to review petrol and diesel prices twice.
Why Dynamic Fuel Pricing?
- Fuel pricing can be 100% transparent.
- Stock-related issues can be tackled.
- Working capital can be easily managed.
- Petrol can be supplied consistently to end fuel consumers.
- Cash outflows and cash inflows can also be easily managed.
How to Trace Today’s Petrol Rate in Haldwani?
You are advised to make use of either offline sources or online sources in order to trace today’s petrol price in Haldwani. Nowadays, most people use mobile applications such as Fuel@IOC, SmartDrive and My HPCL to get the latest fuel price. Fuel@IOC can be used by IOCL customers whereas My HPCL can be used by HPCL customers. SmartDrive has been designed by Hindustan Petroleum for its customers. By using these mobile applications, which are easy to download and use, you will not only get the current petrol price in Haldwani but also get other details such as your previous transaction history, vehicle insurance details, etc.
Computation of Petrol Price in Haldwani
Petrol is being marketed by fuel companies. Therefore, the fuel has to be priced by fuel companies such as IOCL, BPCL and HPCL. As we can observe, there exists a minute variation in the prices fixed at each of these fuel companies. The retail selling price, which is paid by end consumers, includes the cost aspects incurred at every stage. Put simply, the petrol rate is calculated as follows:
Current petrol rate in Haldwani = crude oil costs + excise duty + VAT + commission for dealers + OMC expenses
OMCs will incur the cost of crude oil when importing crude oil from overseas markets. This cost aspect is influenced by production cuts, the demand for crude oil in overseas markets, political conditions, weather reports etc. The price is always paid in terms of US dollars. Taxes are a major part of the RSP of petrol. They include Value-added Tax and excise duty. VAT on petrol and diesel will change within the states of India. Excise duty is fixed in terms of rupees whereas VAT is fixed in terms of percentage. OMC expenses and the commission for dealers are also included in the selling price of the fuel in Haldwani.
Factors Impacting Petrol Price in Haldwani
Let’s discuss this section more practically. Fuel rates are greatly impacted by indigenous factors and overseas factors. Value-added Tax and excise duty are the internal factors. Crude oil costs and the exchange rate are the external forces. On petrol, excise duty is imposed by the Central Government. On the other hand, states will impose VAT. If the Central Government declines excise duty, fuel brands will decrease fuel prices and vice versa. If the State Government of Uttarakhand increases VAT, fuel entities will increase fuel rates and vice versa.
Excise duty has been changed several times over the last 4 years. It was Rs.9.20 a litre in the month of November 2014 and was revised to Rs.21.48 a litre in the month of August 2017. In the month of February 2018, excise duty was further revised to Rs.19.48 a litre by the Central Government. According to Petroleum Planning and Analysis Cell, as on 01 April 2018, on petrol per litre, VAT was charged at 29% in Haldwani, the third most populous city in Uttarakhand. The State Government of Uttarakhand has not revised VAT on petrol and diesel recently.
How does the exchange rate impact the pricing of the fuel in India? We should first understand that crude oil is not a domestic commodity. Since it is bought from other countries, the USD/INR conversion rate makes a big difference to the pricing of petrol in domestic markets. Let’s assume the INR appreciates against the USD, petrol price in Haldwani will increase proportionally. If the local currency weakens against the base currency, fuel prices the city will fall proportionally. One thing we should notice that the effect of the INR/USD exchange rate is minimal.
GST vs Current Petrol Rate in Haldwani
GST is a very common terminology in India today. It is a unified tax platform for merchants and customers in the country. GST is levied on anything you buy today except petrol and petroleum products. So, petrol buyers do not pay GST. The Central Government has kept petrol outside the GST system to safeguard its revenues. If petrol is taxed at the highest GST rate (28%), petrol prices will decrease significantly. On petrol, GST may be levied by restructuring the present tax rates.
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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.