Petrol Price In India Today

Petrol Rate in India

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Here are the complete details that you can find about petrol rates in different cities.

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 November 2022 (Rates per litre):

November – Week 1 & 2 (1 to 14)

• Petrol prices opened the month of November standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of November.
• The first week and second week of November closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the weeks, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for October 2022 (Rates per litre):

October – Week 1 (1 to 7)

• Petrol prices opened the month of October standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of October.
• The first week of October closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

October – Week 2 (8 to 14)

• Petrol prices opened the month of October standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of October.
• The second week of October closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

October – Week 3 (15 to 21)

• Petrol prices opened the month of October standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of October.
• The third week of October closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

October – Week 4 & 5 (22 to 31)

• Petrol prices opened the month of October standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of October.
• The fourth week and fifth week of October closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the weeks, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for September 2022 (Rates per litre)

September – Week 1 (1 to 7)

• Petrol prices opened the month of September standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of September.
• The first week of September closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

September – Week 2 (8 to 14)

• Petrol prices opened the month of September standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of September.
• The second week of September closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

September – Week 3 (15 to 21)

• Petrol prices opened the month of September standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of September.
• The third week of September closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

September – Week 4 (22 to 28)

• Petrol prices opened the month of September standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of September.
• The fourth week of September closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

September – Week 5 (29 to 30)

• Petrol prices opened the month of September standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of September.
• The fifth week of September closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for August 2022 (Rates per litre)

August – Week 1 (1 to 7)

• Petrol prices opened the month of August standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of August.
• The first week of August closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

August – Week 2 (8 to 14)

• Petrol prices opened the month of August standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of August.
• The second week of August closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

August – Week 3 (15 to 21)

• Petrol prices opened the month of August standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of August.
• The third week of August closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

August – Week 4 (22 to 28)

• Petrol prices opened the month of August standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of August.
• The fourth week of August closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

August – Week 5 (29 to 31)

• Petrol prices opened the month of August standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of August.
• The last week of August closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for July 2022 (Rates per litre)

July – Week 1 (1 to 7)

• Petrol prices opened the month of July standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the month of July.
• The first week of July closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

July – Week 2 (8 to 14)

• Petrol prices opened the month of July standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the month of July.
• The first two weeks of July closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

July – Week 3 (15 to 21)

• Petrol prices opened the month of July standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the month of July.
• The third week of July closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

July – Week 4 (22 to 28)

• Petrol prices opened the month of July standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of July.
• The fourth week of July closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

July – Week 5 (29 to 31)

• Petrol prices opened the month of July standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel, when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the month of July.
• The fifth week of July closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for June 2022 (Rates per litre)

June – Week 1 (1 to 7)

• Petrol prices opened the month of June standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the first week of the month of June.
• The first week of June closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

June – Week 2 (8 to 14)

• Petrol prices opened the month of June standing at the rate of Rs.96.76 per litre. There were no changes in the price of the fuel when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the first two weeks of the month of June.
• The second week of June closed with the price of the fuel standing at the rate of Rs.96.76 per litre. There was an overall stability in the fuel prices over the week.

June – Week 3 (15 to 21)

• Petrol prices opened the month of June standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the first three weeks of the month of June.
• The third week of June closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

June – Week 4 (22 to 30)

• Petrol prices opened the month of June standing at the rate of Rs.96.76 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the month of June.
• The last week of June closed with the price of the fuel standing at the rate of Rs.96.76 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

Trend of Petrol Price in India for May 2022 (Rates per litre)

May – Week 1 (1 to 7)

• Petrol price in India opened the month of May standing at the rate of Rs.105.41 per litre.
• The petrol rate in India witnessed an overall incline in its price over the first week of the month of May. The highest rate of the fuel was recorded from 2 to 7 May wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 May when it stood at the rate of Rs.105.41 per litre.
• In India, the first week of May closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 0.04% in the performance of petrol price in India.

May – Week 2 (8 to 14)

• Petrol price in India opened the month of May standing at the rate of Rs.105.41 per litre.
• The petrol rate in India witnessed stability during the second week of the month of May. The highest rate of the fuel was recorded from 2 to 14 May wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 May when it stood at the rate of Rs.105.41 per litre.
• In India, the second week of May closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 0.04% in the performance of petrol price in India.

May – Week 3 (15 to 21)

• Petrol price in India opened the month of May standing at the rate of Rs.105.41 per litre.
• The petrol rate in India witnessed stability during the second and third weeks of the month of May. The highest rate of the fuel was recorded from 2 to 21 May wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 May when it stood at the rate of Rs.105.41 per litre.
• In India, the third week of May closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 0.04% in the performance of petrol price in India.

May – Week 4 & 5 (22 to 31)

• Petrol price in India opened the month of May standing at the rate of Rs.105.41 per litre.
• The petrol rate in India witnessed stability during the second and third weeks of the month of May and witnessed a drop in the fourth week. The highest rate of the fuel was recorded from 2 to 21 May wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded from 22 to 31 May when it stood at the rate of Rs.96.76 per litre.
• In India, the fourth week of May closed with the price of the fuel standing at the rate of Rs.96.76 per litre. There was an overall declining trend of -8.21% in the performance of petrol price in India.

Trend of Petrol Price in India for April 2022 (Rates per litre)

April – Week 1 (1 to 7)

• Petrol price in India opened the month of April standing at the rate of Rs.101.85 per litre.
• The petrol rate in India witnessed an inclining trend over the first week of the month. The highest rate of the fuel was recorded on 7 April wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 April when it stood at the rate of Rs.101.85 per litre.
• In India, the first week of April closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 3.53% in the performance of petrol price in India.

April – Week 2 (8 to 14)

• Petrol price in India opened the month of April standing at the rate of Rs.101.85 per litre.
• The petrol rate in India witnessed a stability during the second week after the inclining trend over the first week. The highest rate of the fuel was recorded from 6 to 14 April wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 April when it stood at the rate of Rs.101.85 per litre.
• In India, the second week of April closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 3.53% in the performance of petrol price in India.

April – Week 3 (15 to 21)

• Petrol price in India opened the month of April standing at the rate of Rs.101.85 per litre.
• The petrol rate in India witnessed a stability over the second and third weeks of the month after the inclining trend over the first week. The highest rate of the fuel was recorded from 6 to 21 April wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 April when it stood at the rate of Rs.101.85 per litre.
• In India, the third week of April closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 3.53% in the performance of petrol price in India.

April – Week 4 (22 to 30)

• Petrol price in India opened the month of April standing at the rate of Rs.101.85 per litre.
• The petrol rate in India witnessed an overall stability in its price for the majority of the month of April. Although it displayed an inclining trend during the first week, the prices stood steady for the last 3 weeks. The highest rate of the fuel was recorded from 6 to 30 April wherein a litre of petrol was being traded at the rate of Rs.105.45. The lowest price of petrol was recorded on 1 April when it stood at the rate of Rs.101.85 per litre.
• In India, the last week of April closed with the price of the fuel standing at the rate of Rs.105.45 per litre. There was an overall inclining trend of 3.53% in the performance of petrol price in India.

Trend of Petrol Price in India for March 2022 (Rates per litre)

March – Week 1 (1 to 7)

• Petrol prices opened the month of March standing at the rate of Rs.95.45 per litre. There were no changes in the price of the fuel when compared to the closing rates of the previous month.
• The price of the fuel was stable and witnessed no fluctuations during the first week of the month of March.
• The first week of March closed with the price of the fuel standing at the rate of Rs.95.45 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

March – Week 2 (8 to 14)

• Petrol prices opened the month of March standing at the rate of Rs.95.45 per litre. There were no changes in the price of the fuel when compared to the closing rates of the previous week.
• The price of the fuel was stable and witnessed no fluctuations during the first two weeks of the month of March.
• The second week of March closed with the price of the fuel standing at the rate of Rs.95.45 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

March – Week 3 (15 to 21)

• Petrol prices opened the month of March standing at the rate of Rs.95.45 per litre. When compared to the closing rates of the previous week, there were no changes in the price of the fuel.
• The price of the fuel was stable and witnessed no fluctuations during the first three weeks of the month of March.
• The third week of March closed with the price of the fuel standing at the rate of Rs.95.45 per litre. Over the week, the fuel prices displayed a stability in its overall performance.

March – Week 4 (22 to 28)

• Petrol price in India opened the month of March standing at the rate of Rs.95.45 per litre. After being stable for weeks, the fuel price witnessed a hike on 22 March.
• The price of the fuel was stable and witnessed no fluctuations during the first three weeks of the month of March in India. At the starting of the fourth week, petrol rate in India started inclining. The highest rate of the fuel was recorded on 28 March wherein a litre of petrol was being traded at the rate of Rs.99.45. The lowest price of petrol was recorded from 1 to 21 March when it stood at the rate of Rs.95.45 per litre.
• The fourth week of March closed with the price of the fuel standing at the rate of Rs.99.45 per litre in India. Over the week, the fuel prices displayed an inclining trend of 4.19% in its overall performance in India.

March – Week 5 (29 to 31)

• Petrol price in India opened the month of March standing at the rate of Rs.95.45 per litre. After being stable for weeks, the fuel price witnessed a hike on 22 March.
• The petrol rate in India witnessed an inclining trend from the fourth week of the month. The highest rate of the fuel was recorded on 31 March wherein a litre of petrol was being traded at the rate of Rs.101.85. The lowest price of petrol was recorded from 1 to 21 March when it stood at the rate of Rs.95.45 per litre.
• In India, the month of March closed with the price of the fuel standing at the rate of Rs.101.85 per litre. There was an overall inclining trend of 6.71% in the performance of petrol price in India.

Trend of Petrol Price in India for February 2022 (Rates per litre)

February – Week 1 (1 to 7)

• Petrol prices opened the month of February standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the month of February in India.
• Petrol closed the first week of February standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

February – Week 2 (8 to 14)

• In the month of February, petrol prices opened standing at the rate of Rs.95.45 per litre. When compared to the previous closing rate, there were no changes in the price of the fuel.
• The price of petrol did not witness any fluctuations during the month and stood stable throughout the month of February.
• The second week of February closed with the price of the fuel standing at the rate of Rs.95.45 per litre. The overall performance of the fuel was stable over the month.

February – Week 3 (15 to 21)

• The price of petrol opened the month of February standing at the rate of Rs.95.45 per litre. There were no fluctuations in the price of the fuel when compared to the closing rate of the previous week.
• There were no changes in the price of the fuel during the month and the prices witnessed stability throughout the month of February.
• The third week of February closed with the price of the fuel standing at the rate of Rs.95.45 per litre. The overall performance of the fuel was stable over the month.

February – Week 4 (22 to 28)

• In February, the petrol prices opened the month standing at the rate of Rs.95.45 per litre. When compared to the closing rate of the previous week, there were no changes in the price of the fuel.
• During the month, the price of the fuel was stable and witnessed no fluctuations.
• The fourth week of February closed with the price of the fuel standing at the rate of Rs.95.45 per litre. The overall performance of the fuel was stable over the month.

Trend of Petrol Price in India for January 2022 (Rates per litre)

January – Week 1 (1 to 7)

• Petrol prices opened the month of January standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the first week of January in India.
• Petrol closed the first week of January standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

January – Week 2 (8 to 14)

• Petrol prices opened the month of January standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the first two weeks of January in the city of India.
• Petrol closed the second week of January standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

January – Week 3 (15 to 21)

• Petrol prices opened the month of January standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the first three weeks of January in the city of India.
• Petrol closed the third week of January standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

January – Week 4 (22 to 28)

• Petrol prices opened the month of January standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the first four weeks of January in the city of India.
• Petrol closed the fourth week of January standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

January – Week 5 (29 to 31)

• Petrol prices opened the month of January standing at the rate of Rs.95.45 per litre in India. There were no changes in the price of the fuel when compared to the previous closing rate.
• There were no fluctuations in the price of petrol. The price of the fuel was stable throughout the month of January in India.
• Petrol closed the fifth week of January standing at the rate of Rs.95.45 per litre. The overall performance of the fuel witnessed a stability during the month in India.

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 price in delhi was priced Rs.70.51 per litre 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.

In India,Petrol prices is decided on daily basis by the top oil companies like Bharat Petroleum,Indian Oil and Hindustan Petroleum.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:

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

How is the RSP computed? The computation of RSP is based a few considerations, which are:

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.

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.

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.

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.

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.

5. Logistics

Logistics is one of the factor that impact fuel price. Usually petrol and diesel transported to the various cities across different states. Petrol and diesel price is low in cities that have oil companies compare to cities that are far from the area where oil companies available

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.

Why Fuel Prices are different 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

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

FAQs on Petrol Price in India

• 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.

• 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.