Petrol Price In India Today

Petrol Rate in India:

Find the current petrol rate and factors affecting petrol prices in India. The below petrol price trend in India offers insights such as the highest and lowest petrol prices recorded during a month.

Trend of Petrol Price in India for January 2020 (Rates per litre):

January – Week 1 (1 - 7)

• Petrol price in India opened at Rs.75.18 per litrefor the first week of January 2020. The rate was similar to the closing rate of the fuel on the 31st of December 2019. The prices went upwards in the following days of the week.
• A hike of more than 2% was witnessed in the Brent crude prices in the international market after the US President Donald Trump had intimidated to impose curbs on Iraq with the heated-up situation in the Middle East.
• The price of petrol stood at the rate of Rs.75.90 per litre at the end of the first week og January 2020 in India. This was also the highest recorded rate of the fuel during the week. The lowest recorded rate was on the 1st day of the week. There was an overall performance increase of 0.96% for the fuel in India.

January – Week 2 (8-14)

• Petrol price in India stood at Rs.75.80 per litre on 8 January. Compared to the previous week’s closing price, the rates dropped by 10 paise for every litre.
• The rates increased over the next few days and touched the highest for the month on 11 January with every litre costing Rs.76.07. The spike in the prices was accounted to the turmoil in global oil markets due to the standoff between US and Iran.
• Petrol price in India closed the week at Rs.75.76 per litre after slipping in the last few days of the week. The fuel’s overall performance in the capital showed an incline of 0.77% and was trending upwards.

Trend of Petrol Price in India for December 2019 (Rates per litre):

December – Week 1 (1 – 7)

• Petrol price in India stood at Rs.74.99 per litre on the 1st of December, 13 paise higher than the previous day’s closing price.
• Petrol rate remained stable for the next few days at Rs.74.99 per litre.
• The Price of Petrol dipped on the 7th of December, with petrol closing at Rs.74.90 per litre, a 9 paise drop from the previous day’s closing price. Overall performance of petrol in India was -0.12%, trending downwards.

December – Week 2 (8--14)

• Petrol price in India stood at Rs.74.99 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.75.04 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.74.88 per litre. Overall performance of petrol in India was -0.14%, trending downwards.

December – Week 3 (15 - 21)

• In India, petrol opened the third week of December at Rs.74.78 per litre. The rates of the fuel declined by 10 paise when compared to the previous week’s closing price.
• Due to low demand in the country, the price of petrol slipped further in the next few days. The drop in the prices resulted in every litre being retailed for Rs.74.68 in the country as of 17 December.
• Petrol closed the week at Rs.74.67 per litre. This was lowest recorded price of petrol for the month till date. The overall performance of the fuel was -0.42%, trending downwards.

December – Week 4 (22 - 29)

• In India, petrol price stood at Rs.74.67 per litre on 22 December. The rates charged for a litre was the same as the previous week’s closing price.
• The rates of the fuel remained unchanged until 26 December as Oil Marketing Companies (OMCs) waited for a trade deal to be signed between Washington and Beijing after the US president stated that it would be signed soon.
• Petrol price in India started to increase from 27 December as international oil prices shot up on hopes of a breakthrough in the trade pact between the countries. The rates closed the week at Rs.74.92 per litre with the overall performance being -0.09%, trending downwards.

Trend of Petrol Price in India for November 2019 (Rates per litre)

November – Week 1 (1 – 7)

• The price of petrol in India opened at Rs.72.86 per litre on the first week of November. The price of the fuel was Rs.72.98 at the end of the previous day. There was a dip of 12 paise per litre when compared to the previous day’s rate.
• The price of Brent crude oil in the international market traded at $55.94 which is 26 cents lesser than the last closing rate. The Washington-Beijing trade war has affected the demand for energy. The crude oil prices were relaxed as a whole due to the upcoming European and US 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.72.60. 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 India stood at Rs.72.70 per litre on the 8th of November, recording a 10 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.73.45 per litre, its highest recorded price for the month of November till now.
• The overall performance of petrol in India was 0.80%, 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)

• In India, petrol prices opened the third week of November at Rs.73.63 per litre. Compared to the previous day’s price, the rates of petrol witnessed an increase of 18 paise per litre.
• The rates of the fuel increased gradually in the country over the week with fuel prices in the international oil market improving as data showed improvement in US and China economies. The prices jumped to Rs.74.20 per litre on 19 November. This was the highest recorded price of diesel for the month till date.
• Petrol price in India closed the week at Rs.74.20 per litre. The overall performance of the fuel was 1.83%, trending upwards.

November – Week 4 (22 – 30)

• Petrol price in India stood at Rs.74.35 per litre on the 22nd of November. The rates saw an increase of 15 paise per litre when compared to the previous day’s closing price.
• With fuel prices improving, the rates of the fuel jumped further over the week and closed the month at Rs.74.86 per litre. This was highest recorded price of petrol in the country for the month.
• In India, petrol’s overall performance was 2.74%, trending upwards.

Trend of Petrol Price in India for October 2019 (rates per litre)

October - Week 1 (1-7):

• The petrol price in India opened the first week of October at Rs.74.67 per litre. Compared to the previous’s day rates, the rates increased by 21 paise per litre. It was the highest recorded price for the month so far in the national capital.
• Petrol rate in India dropped considerably over the week with crude oil prices cooling down and reversing all gains. On October 5, consumers were required to pay Rs.74.10 for a litre of petrol.
• The prices closed the first week of October at Rs.73.82 per litre, the lowest recorded price for the month so far. The overall performance of petrol in the country was -1.13%.

October - Week 2 (8–14):

• Petrol prices in India opened the second week of October at Rs.73.65 per litre. The rates charged for a litre of petrol were 17 paise lower than the previous day’s closing price.
• After staying stable for a day, petrol prices in the country declined further as international crude prices slid. Concerns regarding global economic growth and fuel demand as well as renewed geopolitical tensions in the Middle East ensured that the crude oil prices fluctuated over the week.
• In India, the rates of petrol closed the week at Rs.73.38 per litre, the lowest recorded price for the fuel in the month so far. The overall performance of petrol was -1.72%, trending downwards.

October - Week 3 (15 – 21):

• Petrol price in India opened the third week of October at Rs.73.33 per litre. The rates witnessed a drop of 5 paise for every litre when compared to the rates charged on the previous day.
• The prices remained static throughout the week in the country. International oil prices however fluctuated throughout the week due to concerns regarding the demand for fuel across the world.
• The rates closed the week at Rs.73.33 per litre. This was the lowest recorded price for petrol in the country for the month till date. The overall performance of petrol was -1.79%, trending downwards.

October - Week 4 (22 – 28):

• Petrol price in India opened at Rs.73.28 per litre at the beginning of the fourth week. When compared to the previous day’s rate, there was a dip of 5 paise per litre in the price of the fuel.
• The crude oil witnessed an overall fall in the international market. However, the Brent oil was being traded at a steady rate of more than $60 per barrel in the international market.
• At the end of the fourth week, the price of petrol closed at Rs.73.04 per litre which has been the lowest recorded price of the fuel in the month of October. The overall performance of petrol dropped by -2.18% in the month of October.

October - Week 5 (29-31):

• Petrol price in India opened at Rs.72.98 per litre on October 29—6 paise lower than the previous day’s closing price. In the international oil market, crude oil prices remained stable.
• Petrol rate in India remained unchanged on the next day in India. In the international market, oil prices were static too albeit Russia’s assurance to come to terms with OPEC to keep production in check and support prices.
• Price of petrol in India stood at Rs.72.98, marking a decline of -2.26%. Oil prices in India didn’t show any improvement in the entire month of October either, recording a steady decline till the end of the month.

Trend of Petrol Price in India for September 2019 (rates per litre)

September - Week 1 (1-7):

• The Petrol price in India opened the month at Rs.72.01 per litre, unchanged from what was charged the previous day.
• Due to soft demand, the prices remained constant for the next few days before sliding continuously to close the first week at Rs.71.81 per litre. Globally crude oil prices did well after Washington announced that trade talks will be held with Beijing to reach a trade pact.
• The overall performance of Petrol in the country over the first week of September was -0.27%.

September - Week 2 (8-14):

• Petrol price in India opened at Rs.72.01 per litre in India on the 8th of September—4 paise lower than the previous day’s closing price. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
• After staying stable for a day, petrol rose again on 11 September, recording Rs.71.80 per litre. The hike in prices was primarily due to a sharp drop in US inventories.
• Petrol rate in India closed the week at Rs.72.01 per litre, thereby marking a sharp increase since its 4 paise drop at the beginning of the week.

September - Week 3 (15-21):

• Petrol price in India opened at Rs.72.07 per litre 6 paise higher than the previous day’s closing price on the 15th of September.
• After staying stable for a day, petrol rate in India soared recording Rs.72.46 per litre on 18 September.
• Price of Petrol closed the week at Rs.73.39 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 1.91%, trending upwards.

September - Week 4 (22-30):

• Petrol price in India opened the final week of September at Rs.73.66 per litre. Compared to the previous day’s closing price, the rates increased by 27 paise per litre.
• The rates continued to climb over the week in the country due to geopolitical tensions and the drone attacks on Saudi Arabia’s Aramco oil refinery. Consumers were required to pay Rs.74.38 for a litre of petrol on September 27.
• On 30th September the rates witnessed a hike of 8 paise and closed at Rs.74.46, the highest recorded price for the month of September. The overall performance of petrol in the country for September was 3.40%, trending upwards.

Trend of Petrol Price in India for August 2019 (rates per litre):

August 2019 – Week 1 (1-7):

• Petrol price in India opened at Rs.72.86 per litre on 1 August, 6 paise lower than the previous day’s closing price. In the international crude oil market, crude prices dropped after the US Federal Reserve dismissed all the rumours revolving around rate cuts. However, diesel in India remained stable without undergoing any price change.
• Petrol rate slumped further, recording Rs.72.69 per litre on 2 August, marking a drop of 17 paise per litre. Prices dropped further, trending at Rs.72.52 per litre on 5 August. In the international oil market, crude prices fell amid worries over weaker demand after the Trump administration said it would impose tariffs on more Chinese imports.
• Petrol closed the week at Rs.72.28, its lowest recorded price till now in the month of August. The overall decline in petrol rate in India recorded in the first week of August is -0.79%. In the international oil market, crude price dropped owing to US-China trade tensions. With Trump announcing to impose more tariffs on Chinese imports, crude prices could drop further in the coming days.

August 2019 – Week 2 (8-14):

• Petrol price in India opened at Rs.72.23 per litre on the second week of August 5 paise lower than the previous day’s closing price.
• Petrol rate in India dipped further by 15 paise on the next day, standing at Rs.72.08 per litre. The dip was primarily due to the ongoing US-China trade tension, further fuelled by Trump administration’s decision to impose more tariffs on Chinese imports.
• Petrol in India slumped slightly more in the next few days before stabilising at Rs. 71.99 per litre. Meanwhile, in the international oil market, crude prices fell owing to possible supply cuts due to weak demand because of trade and geopolitical tensions. The overall performance of petrol was -1.19% trending downwards.

August 2019 – Week 3 (15-21)

• Petrol rate in India opened at Rs.71.99 on 15 August, unchanged from the previous day’s closing price.
• Petrol prices remained stable for the next few days before dropping to Rs.71.91 per litre on 18 August due to weak demand of the oil in the local market.
• Petrol prices in India slumped further, dropping to Rs.71.84 per litre. Prices stabilised at petrol closed at Rs.71.84, as recorded on 21 August. However, in the international oil market crude prices went up after a drop in US inventories. But the gains were minimal due to sluggish economic growth in the global market.

August 2019 – Week 4 (22-31)

• Petrol price in India opened at Rs.71.84 per litre, unchanged from previous day’s closing price. After staying stagnant for the next few days, petrol prices went up marginally, recording Rs.72.07 per litre. In the international oil market, crude gained after US inventories recorded a substantial slump.
• Petrol prices were slashed by 6 paise on the next day, recording Rs.72.01 per litre. Petrol remained unchanged till the end of the week.
• Overall, petrol’s performance in India was -1.16%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.

Also Check Petrol Price in Metro Cities

Trend of Petrol Price in India for July 2019 (rates per litre):

July 2019 – Week 1 (1-7):

• Petrol price in India was at Rs.70.50 per litre on 1 July, the lowest rate recorded for week 1 amid slight decline in crude oil prices influenced by the supply cuts led by the OPEC and its allies.
• On 2 July, petrol rate India were hiked by 7 paise per litre to be sold at Rs.70.57 per litre, this was kept unchanged until 6 July influenced by the marginal increase in crude oil prices in the international market due to tensions in the Middle East.
• By the end of the week, price of petrol in India rose to its highest when it was sold at Rs.73.01 per litre due to the increase in excise duty of Re.1 per litre and road and infrastructure cess of Re.1 per litre

July 2019 – Week 2 (8-14):

• The petrol price in India on 8 July stood at Rs.73.01 per litre, the same as yesterday’s price after the Central Government increased excise duty on petrol and diesel by Rs.2 per litre to raise revenue for its social welfare schemes.
• Prices rate fell the next day to Rs.72.96 per litre, the lowest prices recorded during the week as crude prices declined amid supply cuts led by the OPEC and its allies despite tensions in the Middle East and the trade war between the US and China.
• By the end of the week, prices of petrol rose by 0.17% influenced by the drop in crude oil prices despite falling demand for crude after a global economy slowdown due to the ongoing tariff war between the US and China.

July 2019 – Week 3 (15-21):

• In India, petrol price on 15 July stood at Rs.73.27 per litre, which was also the lowest price recorded during the week despite a marginal increase in crude oil prices in the oil market after China reported its slowest quarterly economic growth indicating a slump in demand in China.
• Prices were hiked over the course of the week even as crude oil prices continued to move upwards amid escalating tensions in the Middle East and the slowdown of Chinese economy as well as the trade tensions between the US and China.
• By the end of the week, petrol prices in India rose by 14 paise per litre largely due to the incline in crude oil prices in the market influenced by the tensions in the Middle East after the US shot down an Iranian drone and the declining growth of the Chinese economy.

July 2019 – Week 4 (22-28):

• Petrol rate in India opened at Rs.73.41 per litre on 22 July, unchanged from the previous day’s closing price. Prices remained stable primarily because of the lack of demand in crude oil in the international market amid growing tensions in the Middle East.
• Petrol price went up slightly on the next day, recording at Rs.73.47 per litre and remained stable till the next day after which it fell to Rs.73.41 per litre on 25 July. In the international oil market, crude gained midst reports of a huge drop in US inventories and after the US Navy said it may have downed a second Iranian drone last week.
• Petrol price in India started to drop from the next day, closing the week at Rs.73.20 per litre on 28 July. Weak demand among the market players could be one of the most obvious reasons of the price drop. Also, Goldman Sachs had earlier slashed its 2019 oil demand projection, thereby lowering its outlook for fuel use.

Trend of Petrol Price in India for June 2019 (rates per litre)

June 2019 – Week 1 (2-8):

• Petrol price in India on 2 June stood at Rs.66.19 per litre, a marginal increase over the previous day’s rate influenced by the slide in crude oil prices in the global oil market.
• Price rate continued to decline during the week with petrol recording its lowest for the week at Rs.64.93 per litre on 8 June.
• The decline in petrol rate in India came amidst the stable price of crude oil even as Brent crude futures, the international benchmark, was down by 22 cents or 0.4% after a slump of 10% in the last four days.

June 2019 – Week 2 (9-15):

• Petrol price in India remained the same on 9 June compared to the previous day’s price even as petrol was sold at Rs.64.93 per litre in India.
• State-run Oil Marketing Companies (OMCs) reduced the petrol price by 51 paise a litre on 10 June when it was retailed at Rs.64.42 per litre and was kept unchanged until 12 June.
• On 15 June, petrol price were further cut when a litre of petrol was available at Rs.63.96, down by 24 paise compared to the price it was sold the previous day.

June 2019 – Week 3 (16-23):

• The petrol price in India on 16 June stood at Rs.63.87 per litre and was kept unchanged until 19 June, down by 9 paise a litre.
• Prices of petrol in India remained unchanged even as crude oil prices in the international market declined amid indications that the global economic growth was declining due to the ongoing trade war between the US and China.
• On 20 June, petrol prices were reduced to be sold at Rs.63.81 per litre and were kept unchanged until the end of the week. The sliding crude oil rates came amid tensions in the Middle East after Iran shot down a US military drone.

June 2019 – Week 4 (24-30):

• The price of petrol on 24 June stood at Rs.63.93 per litre and was kept unchanged until 26 June before it rose by 5 paise on 27 June when it was available at Rs.63.98 per litre.
• Prices were increased on 28 June when a litre of petrol in India stood at Rs.64.04, increasing by 6 paise per litre and remained unchanged the next day as well.
• Petrol price in India in June declined by 2.82% influenced by the significant drop in crude oil rates as traders awaited the outcome of the G20 summit and the meeting of OPEC and its allies about the extension of its production cuts.

Budget 2019: Central Government Hikes Excise Duty on Petrol, Diesel by Re.1 (Date:5th July'19)

The Central Government has decided to increase an additional excise duty on petrol and diesel by Re.1 per litre. Finance Minister Nirmala Sitharaman made the announcement in her maiden Budget speech today. Petroleum products, being a huge source of revenue for the government’s exchequer and an increase will certainly hurt consumers. With the additional levy, petrol and diesel prices in the country will increase by a sharp margin. On 4 July, petrol was priced Rs.70.51 per litre in Delhi and Rs.76.15 per litre in Mumbai, while diesel was sold at Rs.64.33 per litre in Delhi and Rs.67.96 per litre in Mumbai.

Currently, the excise duty on petrol is Rs.17.98 per litre, while the Value Added Tax (VAT) levied on petrol amounts to Rs.14.98 per litre. The overall rate charged to dealers amounts to Rs.32.96 per litre. As for diesel, the central government charges Rs.13.83 per litre as excise duty and Rs.9.47 per litre as VAT, while the price charged to dealers is Rs.23.30 per litre. In has been a practise in the past to cut excise duty on petrol and diesel whenever crude oil prices increases; however, since 2014, the government has been increase duties leading to an increase in revenue for the central government.

Petrol is an essential commodity in our day-to-day life. We use it mainly for the purpose of transportation. The price, which is charged at petrol pumps, is the retail price of petrol for consumers. Have you ever questioned yourself that how petrol rates in India are computed? Which are the influencers of the cost of petrol? Whether or not petrol has been covered under the regime of GST? These are very important questions from the stance of petrol users someone like you. Let’s get into the discussion.

Daily Revision of Petrol and Petrol Price in India (Dynamic Fuel Pricing)

How are petrol and petrol prices in India determined today? We have a new fuel pricing mechanism in place called dynamic fuel pricing, which is also called daily revision of fuel rates. The new pricing system was introduced in India on 16th June 2017 after conducting a long 40-day trial in five cities - Chandigarh, Udaipur, Jamshedpur, Puducherry, Vishakhapatnam.

Under this system, fuel rates are revised on a daily basis considering global crude oil rates and the rate of currency conversion. The system is in practice across 58,000 petrol bunks in India. The system brings transparency and addresses complexities involved in the previous fortnightly-based revision. It lets fuel users pay market-determined prices despite the impact.

Petrol and petrol rates are revised at 06:00 a.m. every day.

There are two categories of petrol bunks:

1. Automated, which automatically modify rates with no human intervention and
2. Non-automated, which manually revise. Only 20% out of 58,000 petrol bunks are automated and the rest are non-automated. The revised rates shall be displayed at bunks for the public.

How to Check Petrol Prices in India every day?

State-owned oil marketing entities account for at least 90% of retail fuel stations in India. Renowned oil brands such as Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL), and Indian Oil have strategically designed a few initiatives that help consumers spot the latest rates.

Here is How You Can Track Petrol Prices Regularly:

Mobile app You can also download Bankbazaar App and check the prices instantly on your smartphone.

Impact of GST on Oil and Natural Gas Industry

The Goods and Services Tax (GST) is a unified indirect tax platform that was implemented in July 2017.As on today, the oil and natural gas industry has been kept outside the GST regime. What would have been the impact on the industry if GST was imposed?

The cost of compliance would have doubled as the industry had to comply with the present and GST tax structures. The implementation of GST would have resulted in non-creditable tax, which means the participants of the industry had to pay GST upon the purchase of plant and machinery. They would not have been able to obtain credit on saleable products. Moreover, upstream corporations would have been adversely affected by a hike in the tax rate from 15% to 18%.

With respect to the segment of gas utilities, gas marketers would have faced complexities since they had to remit GST on transmission rates. GST excludes five petroleum derivatives - natural gas, high-speed diesel, crude oil, motor spirit and aviation turbine fuel while it covers other commodities such as kerosene, LPG, fuel oil, naphtha.

GST Impact on Petrol Prices in India

Let’s take a look at how much is taxed on petrol.

32% of the retail price of petrol goes to the central government and 21.5% to the state. The central government gets Rs.21.48 and the state Rs. 14.15 if the RSP is 65.63. This is the current scenario.

What is the impact of GST on petrol prices in India? Let’s take an example of the capital city, Delhi.

A litre of petrol costs Rs.70.56 in Delhi as on 28th September 2017. It will fall to Rs.30.85 a litre when we take out Rs.21.48 paid as the excise duty a litre, the state government’s 27% VAT, Rs.3.24 remitted as commission to dealers. If GST is imposed on petrol, how much do we pay?

Here goes the calculation:

· In case 12% GST on petrol, a litre of petrol costs Rs.38.10.

· In case 18% GST on petrol, the cost of petrol per litre is Rs.40.05.

· In case 28% GST, which is the highest rate fixed till date, the cost in the city is Rs. 43.44 per litre.

Petrol prices in India would have cheaper for consumers, but the revenue source for both the governments would have been adversely affected. Let’s wait till the next turn.

Industry Stakeholders

It is important to understand the participants of the oil and natural gas industry to understand how petrol prices in India are determined. They include:

• Oil production and exploration corporations: These corporations are liable for producing oil in its crude form. The major participants of this segment include Crain India, Reliance Industries, Oil and Natural Gas Corporation (ONGC), Oil India. Only 25% of the country’s oil requirements is met through these companies and the rest through importing.

• Oil Marketing Corporations: Oil marketing companies, also called refineries, manage everything from the stage of crude oil till the delivery of saleable fuel to dealers. This segment consists both public and private sector companies such as Reliance Industries, Essar, Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Private Corporate.

• Dealers: Owners of petrol bunks are called dealers who can be individuals or business entities. They sell petrol to end customers after adding their margins and local taxes.

Components of Petrol Prices in India

A litre of petrol in the national capital costs you Rs.70.56 at the moment. The central excise duty is Rs.21.48 a litre as on today? Why are we paying so much then? How is the RSP computed? The computation of RSP is based a few considerations, which are:

1.Cost of crude oil plus cost and freight charges

The cost of crude oil is the biggest component of the RSP. Oil manufacturing companies pay crude oil prices in addition to the cost and freight charges to buy oil from overseas companies. India is one among the biggest importers of crude oil.

2.Refinery transfer price (RTP)

Refinery transfer price is the cost incurred by OMCs to convert crude oil into refined petrol. In other words, RTP is a fee charged by refineries to OMCs to convert oil into refined petrol.

3.OMCs profit margin

OMCs retain the possession of oil until it is refined and then they sell refined petrol to local dealers after adding a profit margin.

4.Central and state taxes

Tax on petrol is imposed by the state and the central. The central excise duty is the same across the nation while the component of VAT varies within states.

5. Dealer commission

Local dealers or petrol bunk owners sell petrol to end customers after adding their commission per litre of petrol. Dealer commission may slightly vary.

All the aforementioned components get added to the final price. The variable components of petrol prices in India are transportation costs and the state VAT.

Breakup of Petrol Prices in India

The INR has strengthened against the USD recently. The crude oil price floats around $48 at present. The cost of one barrel, which is equivalent to 159 litres, is Rs.3210 that means a litre of oil costs you Rs.20.19. Crude oil prices are also marked to market dynamics. With this information, let’s now take a closer glimpse at the breakup of petrol prices in India as on 24th August 2017.

This is how the retail selling price of petrol is computed in India.

VAT on Petrol Prices in India

The tables listed below gives you an idea about effective rates of VAT imposed on petrol by Indian states as on 1st September 2019. The data has been released by the Petroleum Planning and Analysis Cell (PPAC).

Factors Impacting Petrol Prices in India

The cost of petrol in India is impacted by the following factors:

1. Crude oil prices

The pricing of crude oil is often what impacts petrol rates the most. Crude oil, also called unrefined oil, is an international commodity. The market for which is dynamic in nature. The most common influencers of the cost of oil include:

• Demand and supply: The law of demand applies even for petrol prices, which increase when there is an increased demand for oil and decrease if there is a decreased demand.
• Future supplies and reserves: An inadequate amount of oil reserves increases the oil cost that in turn impacts fuel rates.
• Political events: Crude oil pricing is affected by wars, natural calamities, new government regulations.
• Demand from leading economies: The oil price boosts when there is a larger demand from leading economies of the world.

2. Taxes

As discussed earlier, petrol is taxed by centrally and by the state. Petrol prices in India will change in proportion to changes in the central excise duty and the state VAT.

3. Refinery Consumption Ratio

This is a very important consideration. Crude oil when imported by OMCs is sent to refineries for further processing. A lower refinery consumption ratio leads to a lower quantity of refined petrol for sale and, thus increases the cost of petrol.

4. Currency Conversion Rate

The USD is the base currency to buy raw oil. If the USD strengthens against the INR, the buying cost of oil shall go up; when it weakens, the cost will be declined. Ups and downs in oil impact the buying cost of petrol as a result.

Determinants of Bunk Prices

1. Seasonal condition

Seasonal conditions in oil producing countries have a direct impact on extracting raw oil. Oil manufacturing companies cannot have the same productivity throughout all seasons. A drop in productivity gives a boost to the buying cost of raw oil at global markets, thereby affects petrol prices at bunks.

2. Weather reports

Weather reports differ from seasonal conditions. Crude oil once purchased by OMCs is transported to refineries. When bad weather reports interrupt transportation activities, we are left with an inadequate quantum of refined petrol for consumption.

3.Restricted refining capabilities

There exists a dearth of refined petrol when refineries limit their refining capabilities due to high running expenses. So, usable oil is short in supply, leading to a price hike at bunks.

4.Devaluation of USD

As we know, crude oil is traded in US dollars. Oil manufacturing companies tend to tweak prices if the USD weakens against the major currencies of the world.

LPG, Domestic LPG, CNG, Kerosene

• Liquified Petroleum Gas (LPG) is a composition of commercial propane and commercial butane. It can be extremely dangerous. The way it is utilised, shifted, and bottled should be paid extreme importance. LPG, under moderate pressures, can be readily liquified.

• Domestic LPG is a composition of hydrocarbons that are vaporous at usual temperature. Hydrocarbons can be stockpiled in cylinders and liquified at temperate pressure. Domestic LPG is a gas with no colors and not dangerous. The gas connection at homes should be done with utmost care.

• Compressed natural gas (CNG), a fuel, can be utilised in lieu of propone, gasoline, diesel fuel. CNG ignition foodstuffs lesser detrimental gases than other fuels. In the event of a spill, it is harmless compared to other fuels. It can be discovered above oil repositories.

• Kerosene, also called paraffin, is a combustible liquid and utilised as a fuel for power, heat, light. It is usually a multipurpose fuel and can be used effectively, carefully in order to get incredible results. Kerosene is famous among people for cost-effectiveness.

Also check Today's Petrol Price in the most popular Indian cities

Frequently Asked Questions on Petrol Price

• What is the retail price of fuel?

  The retail price of fuel encompasses the product’s cost, the operating expenses of the state government, excise duties, taxes, margins.

• Who manages bunk prices in India?

  In June 2010 and October 2014, the Indian government has deregulated diesel and petrol prices. Both central and state governments have no direct control over fuel price in India. Now, they are market determined. The components of pump prices today are global crude prices, transportation and refinery costs, VAT, excise duty.

• Why do fuel prices vary from one country to another?

  Fuel prices vary from one country to another due to the following reasons:

• Currency variations
• Government subsidies for fuel
• Government tax rates and excise duty
• Availability of crude oil
• Market speculation
• Government regulations related to petroleum products
• Does the US exchange rate impact fuel prices?

  The world’s crude oil is traded in US dollars. Due to which, fluctuations in currency exchange rates shall definitely impact fuel prices. For instance, if the Indian rupee falls against the US dollar, the purchasing price of crude oil for India may increase.

• Why is diesel rate lower than petrol price in India?

  The agricultural sector consumes diesel. The sector employs more than 40% of Indians and accounts for 14% of gross domestic product (GDP). Diesel price is lower than petrol rate since it is subsidised by respective governments. Petrol is used for non-economic activities.

• Why has the Indian government not imposed GST on diesel and petrol?

  Diesel and petrol are major revenue sources for both state and central governments. Currently, the central excise duty is 23% and the state government VAT is 34%. If the central government had imposed GST on petrol and diesel, the government would have generated 28% tax. This is the biggest value of GST that would have affected the revenue.

• Which are the factors affecting natural gas prices?

  Natural gas prices are influenced by net imports, underground storage levels, natural gas production, economic conditions, weather, petroleum prices.

• Why do fuel prices differ within Indian states?

  Petrol rates differ within Indian states because of three vital factors: 1) tax regulations, 2) transportation expenses, 3) political health. India has different tax regulations across the states. Both central and state governments tax petroleum derivatives differently. A state with a lower tax rate has a lower price charged for petrol and diesel. Transportation expenses even impact petrol prices. The distance covered from refineries to dealers gets added. A shorter distance covered has a lower price charged compared to a longer distance. Political stability is another important consideration. A shift in rolling government may alter existing tax structures and subsidies either through a hike or through a drop.

• How Shell petrol differs from other brands?

  Well, there is no difference in terms of quality. Quantity may differ as Shell petrol price is a little more than Bharat Petroleum Petrol price, HP petrol price or Indian Oil petrol price.

*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.

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