Petrol Price In Hyderabad Today

Petrol Price 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, fuel prices in India 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.

Quarterly Petrol Price Trend in Hyderabad between October and December 2018

Petrol Price Trend in Hyderabad between October and November

• Petrol price in Hyderabad was offered at Rs.88.85 a litre on the first day of October at Indian Oil fuel stations. HPCL and BPCL also observe almost the same price.
• Because of a downfall in the excise duty on 4 October, the price of a litre petrol was reduced to Rs.86.45.
• Fuel prices saw an upward trend between 6 and 17 October and they rose by Rs.1.22 a litre during the same period.
• On 20 October, the price of petrol was Rs.86.98 a litre. The same price was offered on the following day.
• Similarly, on 26, 27 and 28 October, petrol rate in Hyderabad per litre was fixed at Rs.85.76 in tandem with the two important overseas influencers: 1) the price of petroleum per barrel and 2) dollar-rupee exchange rate.
• On 1 November, the opening date price was worked out to be Rs.84.19 a litre as per the daily price revision system.
• The average fuel rate per litre in the first week of November was over Rs.83.73 a litre and in the second week, the average fuel price was over Rs.82.81 a litre.
• In the third week, the average fuel price stood at Rs.74.69 a litre; while in the last week of November, it was Rs.74.15 a litre.
• In October, the prices of petrol per litre were down by 5.03% caused primarily by the reduction of the central tax.
• In November, they were down by over 8% majorly because of the sluggish petroleum market in overseas markets.
• Fuel pricing is also influenced by several factors such the cost of OMCs, sales tax, dealer commission, etc.
• As appealed by the Centre, 11-BJP led governments have diminished the sales tax by Rs.2.5 a litre on diesel and petrol at the starting of October.
• But, the State Government of Andhra Pradesh made no changes in the sales tax.
• Petrol rates in Hyderabad were more volatile in December compared to November and October. They were changed for several days of December.
• The price of petrol per litre was fixed at Rs.76.98 on 1 December. It was changed on 2 and 3 December.
• Fuel prices were changed for three days in the week 2 of December. They were also changed for week 3 of the same month.
• As the crude oil rate slightly recovered in December, petrol rates in Hyderabad decreased to Rs.72.97 a litre from Rs.76.98 a litre.
• The highest petrol rate was Rs.88.96 a litre in October, Rs.84.19 a litre in November and Rs.76.98 a litre in December. The lowest fuel price was Rs.84.38 a litre, Rs.77.35 a litre and Rs.72.97 a litre in October, November and December respectively.

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.

Quarterly Petrol Price Trend in Hyderabad between July 2018 September 2018

Petrol Price Trend in Hyderabad in July 2018

• The petrol price in Hyderabad on the 1st of July stood at Rs.80.03 per litre and remained unchanged until the 5th of the month - the lowest petrol price in July in Hyderabad.
• Fuel prices in India are revised daily by state-run oil companies based on the dynamic fuel pricing mechanism under which the global crude oil rate, and the exchange rate of the rupee over the U.S. dollar is considered before arriving at the retail price of petrol in a city.
• With fuel prices unchanged for the first five days, oil companies began revising prices from the 6th onwards which led the petrol price in Hyderabad to incline by more than 80 paise per litre by the 10th of the month.
• There was no respite in the increase in petrol prices across the country with the petrol price in Hyderabad rising to touch a record level of Rs.81.51 per litre on the 14th of the month, this was also the highest price for the month.
• On the 16th, oil companies cut petrol price in Hyderabad by more than 10 paise per litre to stand at Rs.81.40 and remained unchanged until the 19th of the month.
• By the end of the month, petrol prices in Hyderabad, as well as other cities in the country, witnessed a decline in rates and by the end of the month, petrol was being sold at Rs.80.94 per litre.
• The trend in the petrol price in Hyderabad during July was upward with an increase of more than 1% compared to the opening price at the start of the month.

Petrol Price Trend in Hyderabad in August 2018

• On the 1st of August, oil companies reduced the petrol price in Hyderabad by 4 paise a litre to stand at Rs.80.90, incidentally, this was also the lowest price for the month.
• Petrol prices in Hyderabad during the first and second weeks continued to move upwards with prices touching Rs.81.89 per litre on the 11th of the month.
• Oil companies reduced petrol price by 10 paise per litre on the 13th when the fuel was available at Rs.81.79 per litre until the 15th.
• With the rise in crude oil prices and the slight fall in the Indian currency’s exchange rate over the U.S. dollar, petrol prices in Hyderabad and other cities continue to soar during the third and fourth week.
• There was no change in the excise duty or the local sales tax which led the petrol price to rise unabated.
• By the end of the month, the petrol price in the city had risen to touch Rs.83.30 per litre on the 31st of the month - the highest price recorded for the month.
• Overall, there was an upward incline in petrol prices in Hyderabad in August by more than 2.80% influenced by the significant rise in crude oil prices and the fall in rupee.

Petrol Price Trend in Hyderabad in September 2018

• Oil companies continued to increase petrol prices in the country with the fuel available at Rs.83.42 per litre in Hyderabad on the 1st of the month.
• The upward trend in petrol prices continued in the first and second week of the month attributed to the increase in oil prices.
• The global crude oil prices surged in the back of geopolitical tensions which led to a significant rise in petrol prices in the country.
• Select Indian states such as Rajasthan, Karnataka, Andhra Pradesh and West Bengal decided to cut local sales tax or VAT to give some respite to consumers; however, the cut was insignificant in Hyderabad as prices continued to soar.
• The highest petrol price recorded in September in Hyderabad stood at Rs.88.51 per litre on the 30th of the month.
• Overall, there was an incline of 5.75% in petrol prices in Hyderabad during the course of the month influenced by factors such as high crude oil price coupled with the fall in the Indian currency over the U.S. dollar.

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 Trend in Hyderabad between April 2018 and June 2018

Petrol Price Trend in Hyderabad in April 2018

• In Hyderabad, Hindustan Petroleum, Bharat Petroleum and Indian Oil have priced petrol at Rs.78.08 a litre under the dynamic fuel pricing system. Petrol will be priced considering the exchange rate and the cost of unrefined oil on a daily basis.
• Petrol rates have steadily increased during the first seven days of the month and have started falling during the second week. On 9th, the fuel price was Rs.78.40 a litre and was further decreased to Rs.78.29 a litre on 14th.
• Like the first two weeks, the third week also exhibited both downward and upward trends triggered by the international influencers. The closing price of the third week stood at Rs.78.59 a litre in the city of Hyderabad.
• Fascinatingly, petrol was retailed with a price of Rs.79.04 a litre on 25th, 26th, 27th, 28th, 29th and 30th because of the stable crude oil market. The entire month depicts the downward, upward and constant trends.
• The closing date price for the month was up 1.22% to Rs.79.04 a litre since the cost of crude oil per barrel has accelerated to $69.30 in April 2018. The INR, which was valued at 65.13 on 1st, dropped against the USD to 66.47 on 30th.

Petrol Price Trend in Hyderabad in May 2018

• Petrol rates during the first week were reported to be steady at Rs.79.04 a litre. The same trend was observed in other state capitals, including the national capital.
• 0n 14th, petrol price in Hyderabad was Rs.79.27 a litre. It means the fuel price was increased by just 23 paise per litre during the first two weeks of the month.
• Until 29th, the city has witnessed a growing trend as far as petrol rates are concerned. The highest rate was reported to be Rs.83.13 a litre towards the end of the month.
• The system of dynamic fuel pricing declined the fuel rate to Rs.82.45 a litre on 30th and further increased it to Rs.83.04 a litre on the closing date.
• In the end, in Hyderabad, petrol rates were up by 5.06% since the crude oil price was increased to $75.31 per barrel from $69.30 per barrel. Like the previous month, the exchange rate’s impact was considered to be insignificant.

Petrol Price Trend in Hyderabad in June 2018

• For the first week, the average fuel price stood at Rs.82.61 a litre in Hyderabad. The opening date price was Rs.82.98 a litre. Over the week, the price has gradually decreased to Rs.82.28 a litre.
• On the foreign exchange market, the local currency weakened against the greenback significantly during the first 15 days of the month. As a result, the fuel price was dropped by almost Rs.2 per litre.
• The average fuel price, for the third week, dropped to Rs.80.87 a litre. It further decreased to Rs.80.33 a litre for the last week.
• Petrol rate was steady at Rs.80.03 per litre on 27th, 28th, 29th and 30th. This was the lowest fuel price recorded for the month. The downward trend of 3.55% in June 2018 was triggered by a big fall in the price of unrefined oil.
• For this quarter, the highest and lowest fuel rates stood at Rs.82.98 a litre and Rs.78.08 a litre respectively.
• Petrol rate fluctuations were not influenced by indigenous factors such as Value-added Tax (VAT) and excise duty. Between April 2018 and June 2018, excise duty was Rs.19.48 a litre and VAT was 36.12%.

Note: There are two types of crude oil: WTI and Brent. The average price of WTI and Brent crude is considered to revise petrol and diesel rates in India.

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.

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.

Quarterly Petrol Price Trend In Hyderabad between January 2018 and March 2018

Trend in petrol price in Hyderabad in January 2018

• The price of petrol per litre stood at Rs.74.09 as people celebrated the New Year on 01 January 2018 in Hyderabad. The lowest petrol price in the city was also recorded on the same day.
• Though petrol price remained the same for the next few days, a slight increase was noted throughout the week as the value of the US dollar fell.
• By 12 January, petrol was bought at Rs.74.89. The reason for the hike was because the value of the USD fell from Rs.63.704 to Rs.63.624 which is a 0.13% drop.
• Due to the cost price of the Indian Crude Basket, petrol price in Hyderabad continued to spike from 13 January. By 21 January, petrol price stood at Rs.76.33 per litre.
• Since then the city witnessed petrol prices surging every day. On 25, 26, 27, 28, and 29, petrol prices were recorded at Rs.77.76, Rs.76.91, Rs.77.01, Rs.77.06, Rs.77.13, respectively.
• On the last two days of the month, the price of petrol per litre in Hyderabad stood at Rs.77.22.
• The overall trend of petrol prices in Hyderabad for the month of January 2018 was an upward curve and the change was recorded at 4.05%.

Trend in petrol rate in Hyderabad in February 2018

• In all the three publicly-owned fuel companies, namely HPCL, BPCL and Indian Oil in Hyderabad, petrol price opened at Rs.77.36 per litre on 01 February 2018.
• It is interesting that though the value of USD increased from Rs.64.154 to Rs.64.224 on 06 February 2018, petrol rates increased to Rs.77.71 from Rs.77.63 the previous day. This could mainly be due to the high demand for petrol in the city. This was also the highest petrol price recorded for the month.
• On 10 February 2018, petrol price per litre was Rs.77.66. A downward curve was noticed in petrol prices in the following days as petrol prices succumbed to strong USD.
• On 15, 17, 23, and 26 of the month, petrol traded at Rs.77.98, Rs.76.49, Rs.75.71, and Rs.75.74.
• The lowest price for the month was recorded on 25 February, when petrol was booked at Rs.75.71 per litre.
• On the last two days of the month, an almost insignificant price was noted as the price of petrol per litre in Hyderabad closed at Rs.75.72.
• The overall trend of petrol prices in the city for this month was a downward curve and the change was recorded at -2.17%.

Trend in petrol prices in Hyderabad in March 2018

• There was a slight increase in petrol prices on 01 March 2018 in the city of Hyderabad. The price of petrol stood at Rs.75.79 per litre on 1st which is a Rs.0.07 increase from the previous day. However, this was the lowest petrol price recorded for the month.
• In the first week of the month, the Indian Crude Basket prices picked up and it is safe to say the value of USD was mostly falling or remained unchanged.
• The highest petrol prices for the month of March was recorded on 11 March when the prices of the fluid stood at Rs.77.89 per litre.
• By 07 March, petrol rate increased to Rs.76.66 as the value of the USD fell from Rs.65.044 to Rs.64.919 which is a fall by -0.19%.
• As the USD value kept declining on and off in the following days, petrol prices continued to increase and traded at Rs.76.83, Rs.77.2, and Rs.77.39 on 25, 27, 29, respectively.
• Petrol rate closed at Rs.Rs.77.89 per litre on 31 March 2018.
• The overall trend of petrol prices in the city for this month was an upward curve and the change was recorded as 2.70%.

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.