Petrol Rate in Indore:
The petrol price was Rs.73.08 per litre at Indian Oil in Indore, the most populous and largest city in Madhya Pradesh, after the daily revision on 31 October 2017. At Hindustan Petroleum, the fuel price was Rs.73.76 on the same date. The fuel price includes the local tax imposed by the government of Madhya Pradesh and the central excise duty of Rs.19.48 per litre, which has recently been revised on 3 October 2017. In October 2017, the fuel was sold at an average rate of Rs.73.50 per litre throughout the month. The petrol rate in Indore is expected to go up marginally over the next month.
Previous Petrol Price in Indore (per litre)
Let’s take a look at the weekly reports for September 2017. On 4 September 2017, the price of petrol in the city was Rs.76.06. On 11 September 2017, the price was Rs.76.75. The price reached to Rs.77.00 on 19 September 2017. The fuel was priced below Rs.77 on 25 September 2017. The fuel was sold at Rs.72.09 on the opening day of August 2017. It was priced less than Rs.70 on the opening day of July 2017. On 1 June 2017, the fuel price in the city was almost Rs.75.
Petrol Price in Indore and other Prime Cities in India
The petrol price cannot be the same across all Indian cities since the fuel is taxed at different rates by state governments. Petrol is taxed at 38.90% in Madhya Pradesh, at 27% in New Delhi, at 30% in Karnataka, at 47.94% in Maharashtra and at 34% in Tamil Nadu. In October 2017, the average price of petrol was Rs.73.90 in Indore, Rs.70.20 in Bangalore, Rs.69.20 in New Delhi, Rs.76.24 in Mumbai and Rs.71.64 in Chennai.
How are Petrol Rates in Indore Revised?
After conducting a 40-day pilot, all state-owned oil marketing companies, which include Bharat Petroleum, Indian Oil, and Hindustan Petroleum, have adopted dynamic fuel pricing system to revise fuel rates (petrol and diesel rates). Dynamic fuel pricing came into effect on 16 June 2017 in India. Therefore, all petrol bunks owned by these three oil marketing entities in Indore have been reviewing the petrol price on a daily since the implementation of dynamic fuel pricing.
Dynamic fuel pricing is alternatively called the daily revision. This new fuel pricing mechanism is also followed in German, the United States of America, Russia and Australia. Fuel pricing is 100% transparent under the new fuel pricing mechanism. Like the fortnightly revision, the petrol price is determined on the basis of crude oil rates and the INR/USD rate. But, the variations in these two determinants are instantly replicated in the retail selling price of petrol under the daily revision system.
This is the reason why petrol is priced differently every day. In the earlier fortnightly revision, fuel prices used to be revised on the first and sixteenth of every month (twice a month) based on the average foreign exchange rate and crude oil prices. Dynamic fuel pricing aligns consumers with market dynamics. It means that consumers will pay the price, which is determined based on the regular movements in the currency exchange rate and crude oil prices.
How do I Track the Current Petrol Price in Indore?
Well, customers can easily track the current petrol price in all parts of the city easily as all oil marketing brands designed mobile applications to help customers. Smartphone users can download the mobile application of their choice to get the current petrol price. Customers who are not using smartphones can avail the benefit of the customer care and SMS services offered by all oil marketing companies.
Additional Benefits of Dynamic Fuel Pricing
The following are the additional benefits of Dynamic Fuel Pricing:
- Dealers will be able to adopt the best stock management practices unlike the fortnightly revision.
- The system fosters the automation drive of petrol bunks. It means that all automated petrol stations in Indore can automatically update diesel and petrol rates.
- The working capital of dealers and oil marketing companies can be easily managed.
- The Indian fuel retailing segment can be linked to global markets.
How are Petrol Prices in Indore Computed?
What are the components of the final price of petrol paid by consumers? Well, the final petrol price paid by consumers in Indore includes the cost of crude oil, taxes, excise duty, dealer commission and VAT. Petrol is not a domestic commodity. It is a derivative of crude oil, which is imported by Indian oil marketing companies from transnational oil marketing entities. The cost of crude oil differs from one brand to another. As on 1 November 2017, WTI Crude Oil was priced at $54.38 per barrel. One barrel is equivalent to 159 litres.
How much are you taxed while buying petrol in Indore? Petrol consumers in the city are taxed by both the state and central governments. As on 4 October 2017, the central excise duty was Rs.19.48 per litre and the VAT imposed on petrol in Madhya Pradesh was 38.90%. These two types of taxes account for more than 50% of the retail selling price of petrol. Dealer commission is another component. It was increased by 43% on 1 August 2017 by state-run oil marketing companies.
Which are the Factors Affecting Petrol Costs in Indore?
Petrol prices in Indore are impacted by three important factors, which include the cost of crude oil, the INR/USD exchange rate and taxes. Crude oil purchased on a contractual basis. If the exchange rate of the INR appreciates against the USD on the date of purchase, the cost price of crude oil reduces; if the USD gains against the INR, then the cost price of crude oil increases. Eventually, the retail petrol price is affected. Similarly, ups and downs in the tax imposed by the central and state governments lead to variations in the final petrol price in the city.
GST vs Petrol Prices in Indore
Does GST impact petrol rates in Indore? It does not impact. GST has been levied on all types of goods and services that are sold within the nation except five petroleum products. Did you know this? What will happen if GST is levied on petrol? The petrol will dampen by 20-30% even if GST imposed at the highest rate of 28%. Though petrol prices will be cheaper for consumers, the government stands to lose the major revenue source. The current GST rates should be reworked to bring petrol under the GST regime.
Also Check Petrol Price in NearBy Cities of Indore
|Petrol Price in Ratlam||Petrol Price in Jabalpur||Petrol Price in Bhopal|
|Petrol Price in Nagpur||Petrol Price in Vadodara||Petrol Price in Raipur|
*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.