Petrol price in Hisar
Petrol price in Hisar, a city in the Indian state of Haryana, is composed of various domestic and international elements. While domestic elements may not impact the price of petrol on a daily basis, international elements such as global crude oil price and currency exchange rate will affect petrol price in Hisar on a day to day basis.
To know more about how and why petrol rate in Hisar is different every day, continue reading. The below information will help you understand various components involved in petrol pricing and how they affect the price of petrol on a regular basis.
|Also Know: Diesel Price In Hisar|
The Concept of Dynamic Fuel Pricing
Dynamic fuel pricing is a new pricing methodology implemented by Indian oil marketing companies (OMCs) including Hindustan Petroleum, Bharat Petroleum and Indian Oil to revise fuel prices on a daily basis. Prior to dynamic fuel pricing, petrol prices in India are revised on a fortnightly basis. The fortnightly-based revision was in use for more than 15 years. The average crude oil price in the international market in the past 14 days was considered to revise petrol prices. However, the method resulted in sharp rise or fall in petrol prices across India creating havoc among the end users.
|Also Check: Petrol Price in Delhi|
To prevent sudden rise or fall of fuel prices, the Indian government has adopted dynamic fuel pricing mechanism which is a popular fuel pricing method in use in most of the developed countries. In the new methodology, the OMCs will have complete authority to review the petrol price in Hisar. The price revision will be done on a daily basis by considering global crude oil prices and the Indian rupee to US dollar exchange ratio in the yesterday’s market. The revised price will be updated at every petrol pump in Hisar by 06:00 a.m. everyday.
Benefits of Dynamic Fuel Pricing Mechanism
- Dynamic fuel pricing or daily revision of fuel prices is an advanced fuel revision method used in most of the developed countries such as Australia, the USA, Japan and Russia.
- The method brings more transparency in petrol pricing in India
- It passes even the slightest benefit in the international crude oil prices to the end consumer and petrol dealers.
- Fully automated petrol stations in Hisar will get an auto-update of revised prices by 6.00 a.m. every day.
- Oil companies will be able to forecast their profit and losses in advance and can eliminate any speculations from their quarterly report.
- Petrol price in India stays unaffected by political pressures
Computing Petrol Prices in Hisar
To understand how petrol is priced in Hisar, it is essential to be aware of the major stakeholders involved in the fuel sector. To begin with, we have crude oil exporters, the Indian oil marketing companies, fuel suppliers, the central and state governments. With respect to Hisar, Haryana state government is one of the major stakeholders.
The crude oil reserves within India are sufficient to only 10% of the nation’s oil requirements. Hence, India imports more than 90% of crude oil requirements from oil-exporting countries such as OPEC. Hence, oil exporters play a key role in the Indian fuel industry.
The Indian OMCs purchase unrefined oil from oil-exporting countries and pay them in US dollars. The crude oil is then transported across the ocean to Indian ports and from there to oil refineries. The unrefined oil is then processed to extract petrol, diesel and other fuel products. The OMCs incur all the expenses from transporting the fuel to refining it. They thus add all the expenses to the cost price of crude oil to arrive at a selling price. Petrol dealers then purchase the refined crude from OMCs, transport it from refineries to respective fuel stations. They hence add logistics costs and fuel station maintenance costs to arrive at cost without taxes.
In the final stage, state and central government taxes will be added to the price of petrol. While the central government collects excise duty on every litre of petrol sold in the country, the state government will collect value-added tax, which varies from one state to another.
Currently, the excise duty on petrol is Rs.19.48 per litre. The Haryana state government collects 17.22% of VAT on every litre of petrol sold in the state. The same tax rate is applicable in the city of Hisar.
Both the state and central governments revise the tax rates timely. Especially when the crude oil prices in the international market are shooting up, the centre considers to revise excise duty to reduce the burden on general public.
Tracking Latest Petrol Price in Hisar using mobile apps
To make it easy for regular consumers of petrol and diesel, oil companies have come up with mobile applications through which their customers can get an update on the latest Petrol rate in Hisar or in any other Indian city.
Customers just need to download the mobile application in their smartphone to view and track petrol rates in Hisar. Hindustan Petroleum provides My HPCL app, Indian Oil offers Fuel@IOC and Bharat Petroleum provides SmartDrive mobile applications.
People without a smartphone can use the SMS facility provided by the same oil companies to know today’s petrol price in Hisar.
- India Oil consumers can send an SMS in the format ‘RSP DEALER CODE’ to 9224992249.
- Bharat Petroleum consumers can get prices by sending an SMS – ‘RSP DEALER CODE’ to 9223112222
- Hindustan Petroleum customers can send an SMS in the format – ‘HPPRICE DEALER CODE’ to 9222201122
Dealer codes may vary from one petrol station to another. The next time you visit your nearest petrol station note down the dealer code, which is typically displayed at the petrol pump. From the next time, you don’t have to visit the pump to know the price. Simply, send an SMS using the dealer code, to know the current petrol price in Hisar.
Effect of GST on Petrol Rate in Hisar
Ever since goods and services tax or GST has been implemented in India, there are a lot of apprehensions about how it affects petrol prices in India. While many expected that GST would drastically decrease petrol price, nothing has changed post the implementation. The reason – petrol, diesel and other fuel products are currently kept outside the purview of the new tax regime. Hence, they are being taxed as per the previous tax structure, which includes both state and central government taxes. Therefore, the effect of GST on petrol price in Hisar and other Indian cities is zero for now.
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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.