Petrol Prices in Himachal Pradesh
After the daily revision on 1 November 2017, the petrol price was Rs.69.97 per litre in Shimla, which is the capital city of Himachal Pradesh. The price was Rs.69.13 in Solan, the largest Municipal Council of Himachal Pradesh and was Rs.69.13 in Dharamsala, the second winter capital of Himachal Pradesh. The petrol price consists of crude oil prices and taxes. With the daily revision in place, petrol prices in Himachal Pradesh are expected to be steady over the next month.
Historic Petrol Price in Shimla (per litre)
In October 2017, the highest petrol price was Rs.71.56 and the lowest price was Rs.68.94 in Shimla. Since the central excise duty was reduced to Rs.19.48 on 3 October 2017, the fuel price was down by Rs.2 in all parts of Himachal Pradesh. Petrol prices in September 2017 and August 2017 were comparatively low. The highest rate for July 2017 was Rs.66.16 and the lowest rate was Rs.63.97 in the capital city.
Petrol Prices in Solan and Dharamsala
Between 04 September 2017 and `11 September 2017, the petrol price in Solan increased to Rs.70.37 from Rs.69.73. The fuel price reduced to Rs.70.47 from Rs.70.58 between 19 September 2017 and 25 September 2017. Let’s now take a look at monthly reports.
Petrol was priced at Rs.67.48 on the first day of June 2017. The fuel was priced at Rs.63.46 on the first day of July 2017. In Dharamsala, the petrol price was less than Rs.69.00 in June 2017. In October 2017, the fuel price was above Rs.70 in the city. The overall trend in petrol prices in all the three major cities in Himachal Pradesh was almost the same.
How are Petrol Costs in Himachal Pradesh Revised?
India has introduced dynamic fuel pricing system to revise fuel rates on 16 June 2017. Prior to dynamic fuel pricing, the price revision used to be occurred on the first and sixteenth of every month. Other developed nations such as the United States of America, Japan, Australia and Germany also use dynamic fuel pricing system. Under the system, fuel rates are reviewed on a daily basis in sync with crude oil rates and the INR/USD exchange rate.
Since 16 June 2017, all state-owned petrol stations in Himachal Pradesh have been updating the petrol rate regularly. Dynamic fuel pricing or the daily revision offers significant benefits to petrol consumers, dealers and oil marketing companies. Dealers can better manage stock under the system. The price revision can be automatically done in automated bunks.
Quarterly Petrol Price Trend in Himachal Pradesh Between October and December 2018
|Opening date price||Rs.84.02 a litre||Rs.77.97 a litre||Rs.71.46 a litre|
|Closing date price||Rs.78.09 a litre||Rs.71.80 a litre||Rs.67.82 a litre|
|Highest price||Rs.84.26 a litre booked on the 4 October 2018||Rs.77.97 a litre booked on the 1 November 2018||Rs.71.46 a litre booked on the 1 December 2018|
|Lowest Price||Rs.78.09 a litre booked on 30 and 31 October 2018||Rs.71.80 a litre booked on the 30 November 2018||Rs.67.82 a litre booked on the 31 December 2018|
Petrol Price Trend in Himachal Pradesh Between October and December 2018
- Petrol prices are updated daily by State-owned oil firms under the ‘Dynamic Fuel Pricing’ mechanism which includes the 14-day average rate of crude oil along with the rupee-dollar exchange rate.
- On 1 October, oil companies fixed the petrol price in Himachal Pradesh at Rs.84.02 per litre, a record high on the back of a high oil price in the international market.
- Prices continued to incline significantly to touch the highest of Rs.84.26 per litre prompting the Government of India to announce a cut in the excise duty levied on petrol and diesel.
- While Rs.1.50 as excise duty was cut per litre, the Centre asked oil companies to further subsidise Rs.1 per litre in the effort to ease the burden on consumers.
- Post the reduction in Central taxes, petrol prices in Himachal Pradesh dropped to its lowest for the month when it was sold at Rs.78.09 per litre on 30 and 31 October.
- Overall, the petrol price in October declined by 7.06% influenced by the cut in central taxes as well as a slight drop in crude oil prices.
- On 1 November, petrol was priced at Rs.77.97 per litre – the highest petrol price in Himachal Pradesh recorded in the month.
- The global crude oil was trading higher due to the geopolitical tensions between the US and China over trade between the two countries.
- However, oil prices slightly declined which prompted oil companies to decrease petrol and diesel prices in India.
- By the end of the month, petrol rates in Himachal Pradesh dropped to its lowest of the month when it was sold at Rs.67.82 per litre.
- The petrol price trend in November declined by 7.92% prompted by the significant fall in oil prices in the international market.
- On 1 December, the petrol price in Himachal Pradesh stood at Rs.71.46 per litre, which was also the highest rate registered during the month.
- While oil was trading around $80 per barrel early October, it fell to around $56 per barrel late December on the back of declining geopolitical tensions between the US and China.
- This led to a significant drop in fuel prices in the country when it touched its lowest of Rs.67.82 per litre on 31 December.
- Overall, petrol prices in Himachal Pradesh during December declined by 5.10% impacted by the fall in crude oil prices as well as a marginal appreciation of the Indian currency over the US dollar.
Quarterly Petrol Price Trend in Himachal Pradesh between July and September 2018
|Opening date price||Rs.75.86 a litre||Rs.76.70 a litre||Rs.78.85 a litre|
|Closing date price||Rs.76.61 a litre||Rs.78.85 a litre||Rs.83.53 a litre|
|Highest price||Rs.77.75 a litre recorded on the 15th||Rs.78.85 a litre recorded on the 31st||Rs.83.53 a litre recorded on 28th, 29th and 30th|
|Lowest Price||Rs.75.76 a litre recorded on the 6th||Rs.76.70 a litre recorded on the 1st||Rs.78.85 a litre recorded on the 1st|
Petrol Price Trend in Himachal Pradesh in July 2018
- Petrol prices in Himachal Pradesh and other states in the country are revised on a daily basis under the dynamic fuel pricing mechanism.
- State-owned oil companies fix the retail price of petrol based on the global crude oil price and the exchange rate of rupee over the U.S. dollar. Taxes levied by the Centre and respective state government are included before it is sold to consumers.
- On the 1st of July, the petrol price in Shimla, the capital city of Himachal Pradesh, stood at Rs.75.86 per litre.
- Prices declined to touch the lowest for the month at Rs.75.76 per litre on the 6th of the month.
- However, prices were hiked over the next couple of weeks in tandem with the rise in crude oil prices in the global market.
- Despite fluctuations, petrol prices never breached the opening price of the month and by the end of the month, the petrol price in Himachal Pradesh stood at Rs.76.61 per litre on the 31st, an increase of 75 paise over the opening price.
- Petrol prices during the month of July grew by 0.99% attributed to the marginal rise in crude oil prices in the global market.
Petrol Price Trend in Himachal Pradesh in August 2018
- On the 1st of August, the petrol price in Himachal Pradesh was hiked by 9 paise to be sold at Rs.76.70 per litre - the lowest price registered during the month.
- Prices fluctuated over the first and second weeks but it didn’t breach the opening price of the month.
- Due to geopolitical tensions between the U.S. and Iran after the former pulled out of the nuclear deal between the two countries.
- In the back of geopolitical tensions, there was a shortage in supply of oil in the global market prompting oil prices to increase.
- Several states in the country announced a reduction in the local or sales tax offering some relief to consumers in Rajasthan and Andhra Pradesh.
- By the end of the month, petrol prices inclined to touch its highest price for the month when a litre of the fuel sold at Rs.78.85 per litre.
- Petrol prices inclined by 2.80% in the month due to the rise of crude oil prices in the international market.
Petrol Price Trend in Himachal Pradesh in September 2018
- The petrol price in Himachal Pradesh on the 1st of September stood at Rs.78.85 per litre. This was also the lowest price registered during the course of the month.
- Petrol prices continued to be hiked in the first and second weeks offering no respite to consumers.
- While the global crude oil was trading at a four-year high of $80 per barrel, the rupee declined to its lowest at Rs.72 over the U.S. dollar.
- Both these factors influenced petrol prices in the country to record levels in the last couple weeks.
- There was no let up in the increase in fuel prices in the country as oil prices were on the rise due to geopolitical tensions.
- By the end of the month, petrol prices in the state rose to touch the highest at Rs.83.53 per litre on 28th and remained unchanged until the last day of the month.
- Overall, the petrol price trend was upward during the month growing by 5.94% primarily influenced by the significant rise in crude oil prices coupled with the depreciation of the Indian currency.
Quarterly Petrol Price Trend in Himachal Pradesh between April and June 2018
|Opening date price||Rs.73.88 a litre||Rs.74.77 a litre||Rs.78.48 a litre|
|Closing date price||Rs.74.77 a litre||Rs.78.54 a litre||Rs.75.73 a litre|
|Highest price||Rs.74.81 a litre recorded on the 24th||Rs.78.62 a litre recorded on the 29th||Rs.78.48 a litre recorded on the 1st|
|Lowest price||Rs.73.88 a litre recorded on the 1st||Rs.74.77 a litre recorded on the 3rd||Rs.75.73 a litre recorded on the 27th|
Petrol Price Trend in Himachal Pradesh in April 2018
- Hindustan Petroleum, Bharat Petroleum and Indian Oil, the three state-owned oil marketing companies, hold more than 90% of the fuel market whereas the private players hold the remaining 10% of the market share.
- The fuel price offered by each fuel company will be fixed under dynamic fuel pricing, which is a globally used system for fuel pricing.
- At Rs.73.88 a litre, the fuel was priced on the 1st in Shimla, the capital city of Himachal Pradesh. Other notable cities of the state such as Monali, Mandi, Kullu and Nahan also offered the same price.
- Petrol rates in the first week were not much volatile compared to the second week. The big lapses in petrol prices were noticed in the third week of the month in tandem with the currency conversion rate and the rate of crude oil.
- Under the system of dynamic fuel pricing, all the three oil marketing companies set the fuel rate at Rs.74.77 a litre on the 25th. Owing to the unchanged global influencers, petrol rate in the city of Shimla was remained unchanged at Rs.74.77 a litre during the last week of April 2018.
- Crude oil has a major role to play in determining the fuel rate in the domestic market. In this month, the price of crude oil per barrel was increased to $69.30 in transnational markets.
- As a result, it was reported by the fuel enterprises that petrol prices in all the prime cities of Himachal Pradesh soared by 1.20%.
Petrol Price Trend in Himachal Pradesh in May 2018
- Unlike the previous month, the trend was completely different in May 2018. The fuel was retailed at a rate of Rs.74.77 a litre at the beginning of this month.
- During the first half of the month, no major changes were seen in petrol rates in Himachal Pradesh. But, after the second week, they were seen travelling upwards.
- On the 21st, under dynamic fuel pricing, the fuel rate was Rs.76.78 a litre. It was further enhanced to Rs.78.46 a litre by the fuel retailers on the 28th.
- As the cost of unrefined oil per barrel in overseas markets was up by $6 in May 2018, the closing date price was reported to be up by Rs.3.77 per litre.
- In the previous month, the lowest price was Rs.73.88 a litre whereas the highest price was Rs.74.81 a litre. The highest rate stood at Rs.78.62 a litre and the lowest rate stood at Rs.74.77 a litre in May 2018.
- The growth rate was higher in May 2018 compared to the earlier month not only in Himachal Pradesh but also in other Indian states.
Petrol Price Trend in Himachal Pradesh in June 2018
- Fuel pricing is also greatly impacted by the revision of the internal factors such as state taxes and central taxes. Sales taxes will vary each state whereas central taxes remain unaffected.
- In April 2018, May 2018 and June 2018, the central tax charged by the Central Government was Rs.17.48 on petrol per litre whereas the sales tax imposed by the State Government of Himachal Pradesh was 24.34% on petrol per litre.
- According to market analysts, the variations in the exchange rate and crude oil rates were the primary causes behind a price fall 3.50% in June 2018.
- During the quarter, the fuel rates in Shimla and other cities of Himachal Pradesh were soared by Rs.1.85 a litre.
- At Indian Oil Corporation Limited, the highest fuel rate per litre stood at Rs.78.48 a litre for the month of June 2018. It was also the highest rate for the entire quarter.
Trend in Petrol Price in Himachal Pradesh between January and March 2018
|Opening date price||Rs.70.16 per litre||Rs.73.19 a litre||Rs.71.79 a litre|
|Closing date price||Rs.73.08 per litre||Rs.71.66 a litre||Rs.73.07 a litre|
|Highest price||Rs.73.08 per litre on 31||Rs.73.51 a litre on 6 and 7||Rs.73.07 a litre on 31|
|Lowest price||Rs.70.16 per litre on 1||Rs.71.66 a litre on 27 and 28||Rs.71.79 a litre on 1|
|% Deviation||4.16% (Up)||2.09% (Down)||1.78% (Up)|
Trend in Petrol Price in Himachal Pradesh in January 2018
- Interestingly, the fuel was priced the lowest at Rs.70.16 a litre on 1 since it was on an upward tendency this month. Neither the central tax nor the state tax was slated to decline in January.
- Therefore, an unstoppable growth in the fuel prices in Shimla, Solan and Dharamsala throughout the month was triggered by a big variation in the INR/USD conversion rate and the crude oil price.
- An offer of Rs.70.16 per litre was retained by the OMCs across Himachal Pradesh on 1, 2 and 3 owing to unchanged overseas price influencers.
- During the first half, the state produced a 1.69% hike in the fuel price triggered by a drop in the value of the greenback and the price of the Indian Crude Basket.
- The crude oil’s demand was reasonably hiked this month; due to which; the fuel entities never decreased the offer. Ultimately, on 31, the last day, they unveiled the highest rate of Rs.73.08 a litre.
- Compared to the earlier month, the growth rate was marginally up (4.16%) as the crude oil’s rate increased by 7.65%.
Trend in Petrol Price in Himachal Pradesh in February 2018
- The first day price offer remained unaffected by the Union Budget, which was announced by the Central Government on 1 for the current fiscal year. It was revised at Rs.73.19 a litre at Indian Oil, Hindustan Petroleum and Bharat Petroleum.
- It is uncommon to watch the highest fuel price falling within the first week at Rs.73.51 a litre, which means the fuel rates have fallen later on.
- The Central Government preserved the same level of the excise duty and even the VAT in Himachal Pradesh was not changed this month.
- So, a 5.53% fall in the Indian Crude Oil basket influenced the petrol prices in Himachal Pradesh to reduce by 2.09%. A gained USD also had a reasonable impact.
- In Shimla, Solan and Dharamsala, the fuel was priced the lowest at Rs.71.66 a litre on 27 and 28 considering the overall performance of global factors.
- A 2.09% drop in the fuel rate was announced at Indian Oil, a premier OMC in India, and other OMCs as well. This was completely because of a big fall in global crude oil prices (WTI and Brent), but no other global elements should be accounted for.
Trend in Petrol Rates in Himachal Pradesh in March 2018
- Unrefined oil commenced recouping its price in sync with its demand. Unlike February, the highest price range was not declared within the first week.
- The fuel was valued at Rs.72.6 a litre on 6, 7 and 8, Rs.72.64 a litre on 9 and 11, and Rs.72.68 a litre on 13 and 14.
- The petrol prices in Himachal Pradesh were stable since there were no major changes in global politics, the demand and supply pattern of the commodity, and the USD/INR exchange ratio.
- At the end of the second week, under the daily revision mechanism, the OMCs have offered a petrol price of Rs.72.66 per litre across the state, which was up 67 paise compared to the opening day price.
- The value of the base currency decreased to Rs.65.13 on 31 and the cost price of overseas crude oil increased to $63.80 per barrel, which is equivalent to 159 litres.
- As a result, in this month, Shimla and other major cities have registered a 1.78% increase in the petrol price. The growth rate was not that great.
- For this quarter, the lowest fuel price stood at Rs.70.16 a litre whereas the highest fuel rates was offered at Rs.73.51 a litre.
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.
Also Check Petrol Price in NearBy Cities of Himachal Pradesh
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