Petrol Price in Himachal Pradesh Today

Fortnightly Revision vs Dynamic Fuel Pricing

The primary distinction between dynamic fuel pricing and the fortnightly revision is the frequency of revision. Dynamic fuel pricing revises fuel rates regularly whereas the price revision is done twice a month in case of the fortnightly revision. Dynamic fuel pricing considers the daily fluctuations in crude oil rates and the INR/USD exchange rate. On the other hand, the fortnightly revision considers the average price of crude oil and the INR/USD conversion rate.

How can the Latest Petrol Price in Himachal Pradesh be Traced?

With the daily revision in place, petrol prices tend to fluctuate regularly. The current petrol price can be easily traced in all parts of the state. Many people do not know that all oil marketing companies have designed mobile applications to assist consumers. The mobile applications can be downloaded to track the current petrol price. The best and easiest way is to check online.

How are Petrol Price in Himachal Pradesh Computed?

The retail selling price of petrol includes the following elements:

Cost oil price: Petrol is derived from crude oil or unrefined oil, which is traded in global markets. The cost of crude oil is reliant on seasonal fluctuations, global political events, the exchange rate, the capabilities of refineries and the demand for oil from emerging countries. As on 2 November 2017, the cost of WTI Crude Oil was Rs.54.34 per barrel. One barrel is equal to 159 litres. The cost of crude oil is incurred by oil marketing companies and includes freight charges as well.

Taxes: The biggest cost element in the price structure of petrol is the tax component. There are two kinds of taxes. The central excise duty and VAT. The central excise duty on petrol is imposed by the central government. As on 4 October 2017, the central excise duty was Rs.19.48 per litre. Earlier, the excise duty was 21.48 per litre. The excise duty is the same across all Indian states. The Value-added Tax (VAT) is something that varies from one state to another. The VAT imposed by the government of Himachal Pradesh was 27%.

Expenses incurred by OMCs: Oil marketing companies (OMCs) incur various types of costs, which include entry taxes, transportation costs, operational expenses and refinery transfer price. The profit margin of oil marketing companies is added to the overall expenses incurred by them. Another cost element is the commission charged by dealers. On 2 August 2017, dealer commission was up by 55%. The retail selling price in Himachal Pradesh includes all the aforementioned costs.

To put it simply, the retail selling petrol price = cost of crude oil + VAT + excise duty + dealer commission + OMC expenses + pollution cess

Factors Affecting Petrol Prices in Himachal Pradesh

Why is petrol priced differently in Indian cities? It is because of VAT. The higher the VAT, the higher will be the price of petrol; the lower the VAT, the lower will be the price of petrol. The central excise duty another influencer. Ups and downs in the excise duty will impact petrol prices. It was reduced to Rs.19.48 per litre on 3 October 2017. As a result, petrol prices were down by Rs.2 per litre on the next day. The petrol price is also affected by the INR/USD exchange rate and crude oil prices.

Does GST Impact Petrol Price in Himachal Pradesh?

Petrol prices in Himachal Pradesh remain unaffected by GST since petrol does not fall under the purview of GST. Even diesel has been kept outside the purview of GST. Currently, all types of goods and services are taxed at 5%, 12%, 18% and 28%. The highest rate is 28% and the lowest rate is 5%. The petrol price will be substantially cheaper for consumers if GST is imposed at the highest rate.

*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.