Petrol Rate in Hyderabad
Hyderabad is fast becoming a large metropolitan city with several people migrating with the massive opportunities in the Information Technology industry. Consumption of petrol in Hyderabad has an increase in the recent past, making it an essential commodity for the common man.
Prior to 16 June 2017, Petrol Price in Hyderabad were revised every 15-days or two weeks, revising the price on the 1st and 16th of every month. The pricing mechanism was based on the 15-day average price of the crude oil in the international market as well as the rupee-dollar exchange rate. Presently, India has moved to a new pricing method known as the ‘Dynamic Fuel Pricing’.
Under the new method, the petrol price in Hyderabad is revised daily by considering the 14-day average price of crude oil and the rupee-dollar exchange value. The new fuel price is effective from 6:00 am IST. State-run Oil Marketing Companies (OMCs) such as Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Ltd. (BPCL) and Hindustan Petroleum Corporation Ltd. (HPCL) fix the final selling price of petrol in Hyderabad.
|Also Know: Diesel Price In Hyderabad|
Trend of Petrol Price in Hyderabad for January 2020 (Rates per litre):
|Highest Rate in January||Rs.80.61|
|Lowest Rate in January||Rs.79.85|
January – Week 1 (1 – 7):
- The petrol price in Hyderabad opened at the rate of Rs.79.85 per litre on 1st January 2020. The fuel closed at the same rate on the previous day, i.e. the 31st of December 2019.
- The price of the fuel inclined from the 2nd day of the week owing to the heated-up situation in the Middle East. One of the major reasons behind the hike in the price of the fuel was the threating statement made by the US President of imposing curbs on Iraq. This led to a hike of over 2% in the price of Brent crude oil in the international market.
- In Hyderabad, the price of petrol came to a close at the rate of Rs.80.61 per litre at the end of the first week of January 2020. This was also the highest recorded rate of the fuel during the week. There was an incline of 0.95% in the overall performance of the fuel during the week.
Trend of Petrol Price in Hyderabad for December 2019 (Rates per litre)
|Highest Rate in December||Rs.79.70|
|Lowest Rate in December||Rs.79.31|
December – Week 1 (1 – 7):
- Petrol price in Hyderabad stood at Rs.79.64 per litre on the 1st of December, 13 paise higher than the previous day’s closing price.
- Petrol remained stable for the next few days at Rs.79.64 per litre.
- Prices dipped on the 7th of December, with petrol closing at Rs.79.55 per litre, a 9 paise drop from the previous day’s closing price. Overall performance of petrol in Hyderabad was -0.11%, trending downwards.
December – Week 2 (8--14):
- Petrol price in Hyderabad stood at Rs.79.64 per litre on the 8th of December, 9 paise higher than its previous day’s closing price.
- Prices improved on the next day with growing demand for the oil. Petrol stood at Rs.79.70 per litre, its highest recorded price in the month of December.
- However, staying stable for a couple of days, petrol prices dipped with petrol closing the week at Rs.79.53 per litre. Overall performance of petrol in Hyderabad was -0.13%, trending downwards.
December – Week 3 (15 - 21):
- Petrol prices in Hyderabad stood at Rs.79.43 per litre at the start of the third week of December. Compared to the previous day’s closing price, the rates witnessed a drop of 10 paise.
- The rates continued to be on a downward curve in the next few days. Petrol prices slipped to Rs.79.31 per litre as of 19 December due to low demand for the fuel.
- The fuel closed the week at Rs.79.31 per litre in Hyderabad. This was the lowest recorded price for the month till date. Petrol’s overall performance in the city was -0.41%, trending downwards.
December – Week 4 (22 - 29):
- Petrol price in Hyderabad started the fourth week of December at Rs.79.31 per litre. The rates charged for a litre was unchanged from the previous week’s closing price.
- The rates remained unchanged for the next few days before starting to climb from 27 December. Petrol prices didn’t see any change over the first few days of the week as Oil Marketing Companies (OMCs) waited for Washington and Beijing to sign a trade deal.
- In Hyderabad, petrol prices closed the week at Rs.79.58 per litre. The overall performance of the fuel in the city was -0.07%, trending downwards.
Trend of Petrol Price in Hyderabad for November 2019 (Rates per litre)
|Highest Rate in November||Rs.79.51|
|Lowest Rate in November||Rs.77.11|
November – Week 1 (1 – 7):
- The price of petrol in Hyderabad opened at Rs.77.39 per litre on the first week of November. Petrol closed at Rs.77.52 per litre on 31 October 2019. This concludes a dip of 13 paise per litre when compared to the previous rate.
- The Washington-Beijing trade war has affected the demand for the fuel. Brent crude oil was being traded at $55.94 per barrel in the international market. The rate of the crude oil was 26 cents lower than the last recorded closing rate. The crude oil prices were relaxed in the international market owing to the upcoming US and European economic data.
- At the end of the first week, i.e. on the 7th of November, the price of petrol in India stood at Rs.77.11. So far, this is the lowest price of petrol for the month of November. The overall dip in performance of petrol is -0.36%.
November – Week 2 (8 – 14):
- Petrol price in Hyderabad stood at Rs.77.22 per litre on the 8th of November, recording a 11 paise hike than the previous day’s closing price. Earlier, during the first week of November, petrol was in declining mode. However, the trend changed this week.
- Petrol rose further in the following days, closing the week at Rs.78.02 per litre, its highest recorded price for the month of November till now.
- The overall performance of petrol in Hyderabad was 0.81%, trending upwards. Meanwhile, in the international oil market, fuel prices improved as data showed signs of improvement in US and China economies.
November – Week 3 (15 – 21):
- Petrol price in Hyderabad at Rs.78.21 per litre on the 15th of November, recording a 19 paise hike than the previous day’s closing price. Earlier, during the first week of November, petrol was on declining mode. However, the trend changed last week.
- Petrol rose further in the following days, closing the week at Rs.78.81 per litre, its highest recorded price for the month of November till now.
- The overall performance of petrol in Hyderabad was 1.83%, trending upwards. Meanwhile, in the international oil market, fuel prices improved as data showed signs of improvement in US and China economies.
November – Week 4 (22 – 30):
- Petrol price in Hyderabad started the fourth week of November at Rs.at Rs.78.97 per litre. The prices saw an increase of16 paise per litre when compared to the previous day’s rates.
- The rates continued to climb over the week as international oil prices increased. Petrol prices jumped to Rs.79.41 on 26th November.
- Petrol rate closed the month of November at Rs.79.51 per litre. This was the highest recorded price of petrol in Hyderabad for the month. Overall performance of the fuel was 2.73%, trending upwards.
Trend of Petrol Price in Hyderabad for October 2019 (rates per litre)
|Highest Rate in October||Rs.79.31|
|Lowest Rate in October||Rs.77.52|
October - Week 1 (1-7):
- Petrol opened the first week of October in Hyderabad at Rs.79.31 per litre. Compared to the previous day’s closing price, the rates increased by 23 paise per litre. The rate charged on the opening day was the highest recorded price in the city for the month till date.
- With prices of crude oil cooling down and reversing all gains, the prices dropped considerably over the week. After staying constant on October 2, the prices declined by 60 paise in the next three days to cost Rs.78.71 on October 5.
- The petrol price in Hyderabad closed the week at Rs.78.41 per litre in Hyderabad with the prices of crude oil recording the second consecutive weekly decline. The overall performance of petrol over the week was -1.13%
October - Week 2 (8 – 14):
- Petrol price in Hyderabad opened at Rs.78.23 per litre on the 8th of October. There was a drop of 18 paise per litre since the previous day’s closing price.
- With international oil prices fluctuating over the week, the rates dropped further after staying constant for the next day. OPEC indicating deeper cuts in supply and renewed geopolitical tensions in the Middle East also played its part in the decline of the prices.
- The rates closed the second week of the month at Rs.77.94 per litre. The closing price was the lowest recorded price of petrol in the city for the month of October till date. The overall performance of the fuel was -1.72% and was trending downwards.
October - Week 3 (15 – 21):
- In Hyderabad, petrol price in Hyderabad opened the third week of October at Rs.77.89 per litre. The rates witnessed a fall of 5 paise per litre from the previous day’s prices.
- Petrol rate in Hyderabad remained the same throughout the week in Hyderabad. International crude oil prices however fluctuated over the week as concerns regarding the demand for oil across the world increased.
- Petrol closed the third week of October at Rs.76.15 per litre. Till date, this was the lowest recorded price for petrol in the month of September. The overall performance of petrol in Hyderabad was -1.81%, trending downwards.
October - Week 4 (22 – 28):
- The price of petrol opened at Rs.77.84 per litre for the fourth week of October in Hyderabad. The rate for the same was Rs.77.89 per litre at the end of the previous day. This marked a dip of 5 paise per litre for the price of petrol.
- Although the Brent oil was being traded at more than $60 per barrel in the international market, the price of the crude oil witnessed an overall drop.
- At the end of the fourth week, the petrol price in Hyderabad stood at Rs.77.58 per litre. This was the lowest recorded rate for the month of October. In terms of the overall performance of the fuel, it witnessed a percentage change of -2.18%.
October - Week 5 (29-31):
- Petrol price in Hyderabad opened at Rs.77.52 per litre on the 29th?of October, dropping 6?paise?from the previous day’s closing price. It’s also the lowest recorded petrol price in Hyderabad for the month of October. In the international oil market, prices remained stagnant despite Russia promising to pledge a deal with OPEC to keep a check on production and support prices.
- Petrol rate in Hyderabad stood at Rs.77.52?on the 31st?of October, unchanged from its previous day’s closing price. Meanwhile, in the international oil market, crude prices dipped after an unprecedented rise in US inventories.
- In the month of October, petrol saw a steady decline in its prices. The overall performance of petrol price in Hyderabad was -2.29%, trending downwards.
Trend of Petrol Price in Hyderabad for September 2019 (rates per litre)
|Highest Rate in September||Rs.79.08|
|Lowest Rate in September||Rs.76.20|
September - Week 1 (1-7):
- The prices of petrol in Hyderabad opened the month of September at Rs.76.49 per litre. Petrol prices were the same as the one charged the previous day as the demand for oil in the local market was low.
- Petrol price in Hyderabad remained constant for the next three days before declining continuously to end the week at Rs.76.27 per litre. In the international oil market, crude oil prices gained after the United States confirmed that trade talks with China will be held in the coming months.
- The overall performance of petrol in Hyderabad for the first week of September was -0.28%.
September - Week 2 (8-14):
- Petrol Price in Hyderabad opened at Rs.76.20 per litre on the 8th of September -7 paise lower than the previous day’s closing price. It’s also the lowest recorded petrol price in Hyderabad for the month of September till now. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
- Petrol rate in Hyderabad remained unchanged for a day before rising slightly again on 10 September, recording Rs.76.26 per litre. The hike was primarily due to a sharp drop in US inventories.
- The price petrol kept trending upwards, closing the week at Rs.76.48 per litre. Though the overall performance of petrol was -0.01%, market forecast suggests that the prices are going to shoot up in the coming days.
September - Week 3 (15-21):
- Petrol price in Hyderabad opened at Rs.76.54 per litre on the 15th of September—6 paise higher than the previous day’s closing price.
- After staying stable for a day, petrol prices soared, recording Rs.76.79 per litre on 17 September. Meanwhile, in the international market, crude prices dropped after Saudi Arabia’s energy minister stated the kingdom will restore lost oil production by the end of the month.
- Petrol rate in Hyderabad closed the week at Rs.77.95 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of petrol was 1.90%, trending upwards.
September - Week 4 (22-30):
- In Hyderabad, petrol price opened at Rs.78.23 per litre on the 22nd of September. The rates were 28 paise higher than the previous day’s closing price.
- Over the week, the prices continued to climb in the city due to geopolitical tensions and the drone attack on Saudi Arabia’s Aramco oil refinery. Petrol prices jumped to Rs.79 per litre on 27 September before remaining constant for two days.
- Petrol price closed the final week of September at Rs.79.08 per litre. This was the highest recorded price in the city for the month. The overall performance of petrol was 3.38%, trending upwards.
Trend of Petrol Price in Hyderabad for August 2019 (rates per litre):
|Highest Rate in August||Rs.77.37|
|Lowest Rate in August||Rs.76.31|
August 2019 – Week 1 (1-7):
- Petrol price in Hyderabad opened at Rs.77.37 per litre on 1 August, dropping slightly from the previous day’s closing price. Weak demand of the oil in the international as well as in the local market was the primary reason for the slump. Meanwhile, in the international crude oil market, crude prices dropped after the possibility of rate cuts initiated by the US Federal Reserve got squashed.
- Petrol slumped further on the next day, trending at Rs.77.20 per litre on 2 August— a 17 paise per litre drop from the previous day’s closing price. Prices kept trending downwards with petrol closing at Rs.76.78 per litre on 6 August. In the international oil market, crude prices slumped amid worries over weak demand of the oil after the Trump administration declared that it would impose tariffs on more Chinese imports, further fuelling the trade tension between the two countries.
- Petrol remained unchanged from its previous day’s closing price, recording Rs.76.78 per litre on 7 August, its lowest price till now in the month of August. The overall decline in petrol price in Hyderabad recorded in the first week of August is -0.76%.
August 2019 – Week 2 (8-14):
- price of petrol in Hyderabad opened at Rs.76.72 per litre on the second week of August, recording a 6 paise drop from previous day’s closing price.
- Petrol dipped further by 16 paise on the next day, standing at Rs.76.56 per litre. The dip was primarily due to the ongoing US-China trade tension, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports. Rise in US inventories also contributed to the price drop.
- Petrol price in Hyderabad slumped slightly in the next few days before stabilising at Rs.76.47 per litre, its lowest recorded price till now for the month of August. The overall performance compared to the opening day was -1.16% (decline). Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 3 (15-21):
- Petrol price in Hyderabad opened at Rs.76.47 on 15 August, unchanged from the previous day’s closing price.
- Petrol prices remained stable for the next few days before dropping to Rs.76.38 per litre on 18 August due to weak demand of petrol in the local market.
- Petrol prices in Hyderabad slumped further before stabilising at Rs.76.31, its lowest recorded price in the month of August. The overall performance of petrol was -1.37%, trending downwards. Meanwhile, in the international crude industry, oil prices went up due to a drop in US inventories. However, prices are speculated to come down due to sluggish economic growth.
August 2019 – Week 4 (22-31) :
- Petrol price in Hyderabad opened at Rs.76.31 per litre on 22nd August, unchanged from previous day’s closing price. After staying stagnant for the next few days, petrol prices went up marginally, recording Rs.76.55 per litre on 26 August. In the international oil market, crude gained after US inventories recorded a substantial slump.
- Petrol prices were slashed by 6 paise, recording Rs.76.49 per litre. Petrol remained unchanged till the end of the week.
- Overall, petrol’s performance in Hyderabad was -1.13%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.
Trend of Petrol Price in Hyderabad for July 2019 (rates per litre)
|Highest Rate in July||Rs.78.02|
|Lowest Rate in July||Rs.74.86|
July 2019 – Week 1 (1-7):
- Petrol price in Hyderabad opened at Rs.74.86 per litre on 1 July, an increase of 10 paise per barrel owing to oil marketing companies’ decision to raise petrol and diesel prices.
- Petrol further rose to Rs.74.94 per litre on 2 July. The hike was primarily due to the revised rates as initiated by the oil marketing companies. The prices remained constant until 6 July.
- Petrol rate in Hyderabad peaked at Rs.77.53 per litre on 7 July, the highest price recorded in the first week of the month of July. The sharp increase was primarily due the Indian Government’s decision to raise excise duty and road and infrastructure cess on petrol by Rs.2 per litre, an announcement made during theBudget 2019.
July 2019 – Week 2 (8-14):
- Petrol prices in Hyderabad was priced at Rs.77.53 per litre when the week began, unchanged compared to the previous day’s price, which was an increase of about Rs.2 per litre after the Union Government raised excise duty on petrol and diesel to fund its social welfare scheme.
- Prices were reduced on 9 July when a litre of petrol was priced at Rs.77.48 amid slight decline in crude oil prices backed by supply cuts led by the OPEC and its allies despite tensions in the Middle East and the ongoing trade war between the US and China.
- By the end of the week, petrol prices in Hyderabad inclined marginally by 0.18% attributed by the slight increase in crude oil prices despite the supply cuts led by the OPEC and its allies.
July 2019 – Week 3 (15-21):
- Petrol was priced at Rs.77.80 per litre on 15 July, which was also the lowest petrol price in Hyderabad during the week after crude oil prices were slightly low after China reported its slowest quarterly economy in 27 years signaling a weak demand from China.
- Prices rose to touch Rs.77.95 per litre on 18 July – the highest for the week – and remained unchanged until the end of the week amid rising crude oil prices due to weak demand and tensions in the Middle East.
- By the end of the week, petrol price in Hyderabad was at its highest attributed by the increase in oil prices in the market prompted by tensions in the Middle East after the US shot down an Iranian drone and the ongoing trade war between the US and China.
July 2019 – Week 4 (22-28):
- Petrol in Hyderabad opened at Rs.77.95 per litre on 22 July, unchanged from the previous day’s closing price. State-run oil marketing companies decided not to alter or change prices. However, in the international crude oil industry, prices dipped owing to weak demand of oil.
- Petrol prices increased marginally on the next day by Rs.0.07, standing at Rs.78.02 per litre on 23 and 24 July. The rise was primarily due to a speculated drop in US inventories and ongoing Middle East tensions. The US navy claiming that they have shot down an Iranian drone may have also affected petrol prices globally. However, after staying stable for a couple of days, petrol prices started to drop.
- After the hike, petrol price gradually dropped, closing the week at Rs.77.53 per lite on 28 July. The slump could be attributed to the weak demand of petrol among investors. Goldman Sachs had earlier slashed its 2019 oil demand projection, thereby lowering its outlook for fuel use. International Energy Agency or IEA predicted that petrol prices are unlikely to go up in the next few days or weeks due to poor demand and a glut in the international crude oil industry.
Also Check Petrol Price in Metro Cities
|Petrol Price Delhi||Petrol Price in Chennai||Petrol Price in Bangalore|
|Petrol Price in Mumbai||Petrol Price Kolkata||Petrol Price Pune|
Trend of Petrol Price in Hyderabad for June 2019 (rates per litre)
|Highest Rate in June||Rs.75.96|
|Lowest Rate in June||Rs.74.29|
June 2019 –Week1 (2-8):
- The price of petrol in Hyderabad fell to Rs.75.96 per litre on 2 June 2019, 9 paise lower than on 31 May.
- Petrol price in Hyderabad kept falling through the week, hitting a low of Rs.75.37 on 8 June.
- Global crude oil price declines during the initial days of the week triggered the continuing decline in petrol cost. Though crude price became steady in the last couple of days of the week, investors remained cautious in anticipation of a slowdown in the global economy.
June 2019 –Week 2 (9-15):
- Starting at Rs.75.37 on 9 June 2019, the same as the previous day, petrol price in Hyderabad continued to decrease, and settled at Rs.74.36 on 15 June.
- The prices of crude oil continued to remain stable as OPEC was expected to hold back supply for some more time. The expected economic slump is also leading to reduced demand for petrol across the world.
June 2019 – Week 3 (16-22):
- After a 7 paise fall from the previous day in petrol price in Hyderabad on 16 June 2019 to Rs.74.29, there was no change in the fuel’s price during the week.
- Crude oil prices, on the other hand, saw a downtrend amid confusion over how the US-China trade disruption would hit global economic growth.
June 2019 – Week 4 (23-30):
- On 23 June 2019, petrol in Hyderabad carried over at the same rate as the previous day – Rs.74.29.
- Between 23 and 30 June, the prices rose to Rs.74.76, up 47 paise (0.63%). The overall decrease in petrol price during the month was 1.58%.
- Crude oil prices fell at the beginning of this week as the world watched with bated breath the proceedings of the G20 summit. There was also an important meeting between other oil producers and the Organisation of the Petroleum Exporting Countries (OPEC). But with news of US crude supplies being lower than expected, its price went up on 26 June.
Dynamic Fuel Pricing Meaning:
State-run oil firms consider the 14-days average price of the global crude oil prices as well as the rupee’s exchange rate against the U.S. dollar under the Dynamic Fuel Pricing mechanism since oil prices are dynamic in nature. This is the reason why petrol prices in Hyderabad fluctuate daily. Under this mechanism, oil companies can offset any losses and pass on any benefits to the consumer.
The reason behind the move to revise fuel prices daily was aimed to pass on the benefit, even the smallest of the change to the customer as well as to dealers. Under the previous method, there were instances of sharp incline or decline in fuel prices, burdening consumers alike.
With the new pricing, oil companies can shield themselves from sudden leaps in fuel prices which is needed to be brought into effect at the end of a fortnight.
Components Affecting the Petrol Price in Hyderabad
The primary factors which affect the petrol price in Hyderabad are the global crude oil price and the rupee’s exchange rate against the U.S. dollar. However, there are other components which determine the retail price of petrol in a city. These include freight charges, entry tax, refinery charges, oil companies’ margin and logistics. Apart from these operational costs, the Centre levies excise duty, while the respective state government charges the local sales tax or Value Added Tax (VAT).
These charges are usually constant and are not dynamic like the crude oil price or the rupee-dollar exchange rate. Let’s review the reasons why crude oil prices fluctuate.
- Crude Oil Supply and Demand: Presently, the demand for crude oil in the international market is steady; however, it does fluctuate due to several factors. The Organisation of Petroleum Exporting Countries (OPEC) are the biggest suppliers of crude oil in the market, thereby influencing oil prices. Policies of the OPEC are influenced by any geopolitical developments, hence, any pressure on any of the member countries is bound to limit the supply, which leads to a rise in the prices of crude oil and vice versa.
- Geopolitical Events: Geopolitics plays an important role in determining the oil price in the market. Tensions in oil-producing or oil-exporting countries often lead to a rise in oil prices, impacted by the shortage in supply. Also, events such as war, natural disasters, and political upheaval influence the rise in oil rates.
- Future Supply of Oil and Inventories: The biggest oil-producing nations reserve crude oil to keep their economies healthy in case the oil prices incline due to several reasons. These countries stock up their inventories and then spread the supply across the economy to keep oil prices stable.
Petrol Price Calculation in Hyderabad
Know how the petrol price in Hyderabad is calculated by State-owned oil companies. Prices shown here are as of 3 January 2019.
|Components||Petrol Price Calculation (per litre)|
|International Crude Oil Price with Ocean Freight||$56.5 or Rs.3,967 per barrel|
|One Barrel of Crude Oil||159 litres|
|Crude Oil – Cost||Rs.24.95|
|OMCs Cost for Refinery and Logistics||Rs.7.16|
|Basic Cost of Fuel after Refining Cost||Rs.32.11|
|Excise Duty + Road Cess||Rs.17.98|
|Price Charged to Petrol Pump Owners before VAT||Rs.50.09|
|Commission to Dealers||Rs.3.57|
|Cost before VAT||Rs.53.66|
|Final Retail Price of Petrol as on 3 January 2019||Rs.72.55|
Petrol Price in Hyderabad Compared to other Metro Cities
The VAT levied on the sale of petrol in Hyderabad is the highest among other states. While petrol attracts VAT of 35.20%, other major metro cities such as Delhi charges 27%, in Mumbai, the VAT on petrol is 26%, while in Chennai it’s 34%.
Petrol Price Vs. Diesel Price in Hyderabad
The basic cost of crude oil is similar for both petrol and diesel, however, taxes on petrol is higher compared to diesel. In Hyderabad, petrol attracts VAT of 35.20%, while diesel attracts 27%, making the former costlier.
Why Petrol is not under GST?
A new taxation system known as the Goods and Service Tax (GST) was introduced in India from 16 July 2017. However, five petroleum products such as petrol, diesel, natural gas, crude oil, and Aviation Turbine Fuel (ATF) were exempted from the GST. This is because, both the Centre and states were not in favour of GST levied on the sale of petrol and diesel. By bringing petrol and diesel under the GST, the Centre could lose up to Rs.20,000 crore as revenue generated through excise duty, while the states wanted to keep their revenue pool intact for any contingency.
Also, the total tax incidence of excise duty and VAT is about 45-50% on petrol, while diesel attracts about 35-40%. Under the GST, the highest tax incidence is 28%, thereby reducing the revenue generated by both the Central government and states. The GST is a charged as a percentage on the ex-factory price of the commodity which could have a huge impact on the final selling price whenever the refinery price is hiked amid the rise in crude oil prices in the international market and it could be true vice versa as well.
If petrol is brought under the ambit of the GST, the final price we pay towards the purchase of petrol will certainly decline, benefiting consumers the most. That said, we need to see if there will be a different tax structure for petroleum products as they are a huge source of revenue for both the Centre and states.
State Taxes and Petrol Price in Hyderabad
State and central government taxes form about 50% of the selling price of petrol in Hyderabad. While the state government of Telangana levies a value added tax (VAT) of 35.20% on a litre of petrol, the central government’s excise duty is Rs. 19.48/Lt of petrol.
The VAT levied by the state government is highest among the other states in India and is the second highest among the south Indian states.
It was reported that the non-abolishment of entry tax, which is 8% of VAT, by the Telangana government is the reason for high tax rate in the state. As per the new goods and services tax (GST) act, all taxes including the entry tax need to be abolished. However, the state government is still collecting entry tax as part of VAT and preventing people from enjoying the reduced tax benefits.
How Often Petrol Prices are Revised in Hyderabad?
With the introduction of dynamic fuel pricing or daily revision of prices, petrol prices in Hyderabad are revised on a daily basis with effect from 16 June 2017.
Before dynamic pricing, petrol prices in the city were revised on a fortnightly basis, i.e., on 1st and 16th of every month. But now with the daily price revision in place, Hyderabadis, along with people from other cities, have to pay a different price every day for petrol.
The updated petrol price will be displayed at the petrol pumps within the city. As per the new regulations, all the petrol pumps need to update the revised petrol price by 6 a.m. every morning. While automated petrol stations, which are centrally connected, will have an auto update of petrol price in Hyderabad, the non-automated stations have to do it manually, by fetching the same from the oil company’s websites.
Customers can download the mobile apps of respective oil companies such as the state-owned Indian Oil, Hindustan Petroleum, Bharat Petroleum and privately-held Shell and Essar to find the daily revised petrol price.
For dealer/fuel station-specific price, customers can SMS the dealer’s code, which is again displayed at the petrol pump, to a specific number as allotted by the oil companies.
Effect of GST on Hyderabad Petrol Price
As we all are aware, the Indian government has implemented a new tax system to charge all the goods and services in the country. Popularly known as GST, the goods and services tax is an indirect tax levied on the supply of goods and services in the country.
GST successfully replaced all state and central taxes levied at cascading stages on a product/service. Since its inception, many of us are curious about how GST affects petrol price in Hyderabad. If you are one among them, here is the eye-opener.
The effect of GST on petrol price is currently nil, as petrol along with other petroleum products, are not taxed under GST. They still have the old tax model, which includes state levied value added tax (VAT) and centre levied excise duty.
This is the reason why petrol prices remained least affected, even after GST became effective from July 2017.
However, experts opine that bringing petrol under GST would significantly bring its price down as the combined state and central taxes on petrol are more than the highest tax rate levied under GST.
Petrol versus Diesel Rate in Hyderabad
Petrol price in Hyderabad, just like in other cities, is higher than the diesel price. Though both petrol and diesel are extracted from the same crude oil, the price difference is mainly due to the difference in the taxes levied on each product, the difference in the international crude oil price and to some extent the difference in dealer’s margin.
While the central excise tax levied on petrol is Rs. 19.48/Lt, it is Rs.15.33/Lt on diesel. Similarly, there is a difference in the value added tax (VAT) levied by the state government. The VAT on petrol in Telangana state is 35.20%, whereas it is only 27% on diesel.
The difference in tax is what makes petrol dearer than diesel. Other factors that make a marginal difference in the price of petrol and diesel are the dealer’s margin, oil company’s profits, cost of marketing, transport and other charges.
Also Check Petrol Price in NearBy Cities of Hyderabad
*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.