Petrol Price in Jaipur
This article speaks about various elements related to petrol by keeping in mind petrol consumers in Jaipur. It is extremely vital to check the current petrol price in Jaipur since it has been varying on a daily basis since June previous year. Fuel rates have been changing in all regions of the country because of dynamic fuel pricing, not only in Jaipur, the capital city of Rajasthan. All state-owned oil marketing enterprises will revise the fuel price at retail petrol outlets each day. At 06:00 a.m., they will offer a new price to fuel consumers in the city. As of 9 March 2018, the petrol rate in Jaipur was Rs.75.38 a litre and it consists of a central tax of Rs.19.48. It also includes Value-added Tax (VAT), which is levied at 32.95% on petrol in Rajasthan. To impose VAT, the price charged to dealers is taken into consideration.
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Trends in Current Fuel Rates in Jaipur
Like many of us, petrol is utilised for transportation. Demand for petrol in all cities of India, including Jaipur, has increased over the last few years because of the arrival of fuel-efficient petrol-based vehicles. An increasing number of petrol-based two-wheelers and four-wheelers has no direct impact on fuel rates. In India, in excess of 75% of fuel requirement is sufficed through importing crude oil from other countries, primarily OPEC countries. Only 25% of Indian fuel requirement is met through indigenous production. So, trends in petrol prices in Jaipur will largely rely on overseas market performances.
During the first two months in 2018, petrol was sold at an average rate of Rs.75 a litre in Jaipur. The New Year commenced with a price tag of Rs.72.74 a litre. Towards the end of January 2018, the fuel was retailed at Rs.75.88. February 2018 began with a price tag of Rs.76.02 a litre and ended with a price tag of Rs.74.44 a litre. During this month, petrol price in Jaipur was down by 2.12%. In January 2018, it showed a rising trend of 4.14%. In the city, the lowest rate was registered on 1 January 2018 at Rs.72.74 a litre. Similarly, the highest rate was registered at Rs.75.88 a litre on 18 January 2018. The first two months in 2018 produced both upward and downward trends in petrol prices in Jaipur. Due to dynamic fuel pricing in place, they are expected to increase or decline marginally.
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Features of Dynamic Fuel Pricing
At all petrol centers in Jaipur, oil marketing enterprises, including Indian Oil Company Limited (OICL), Bharat Petroleum Company Limited (BPCL) and Hindustan Petroleum Company Limited (HPCL), will provide a new price of petrol to its consumers. Under this system, the revision of fuel rates in Jaipur will be done based on movements in crude oil prices and the exchange rate. In other words, fuel users are offered market-determined petrol prices in Jaipur. Any ups and downs will be transmitted to them instantly. This is a major benefit offered by dynamic fuel pricing to customers. It has been introduced in all Indian cities, including Jaipur in June 2017. Prior to it, oil marketing businesses (OMCs) used to review petrol rates on 1st and 16th of every month.
Dynamic Fuel Pricing Benefits for OMCs
The newly adopted fuel revision scheme offers many advantages to OMCs. Here, we list the major ones. Managing stocks was a major problem for OMCs before the daily revision system (dynamic fuel pricing). Since June 2017, neither OMCs nor consumers have raised concerns over stocks. OMCs can minimise the workforce required to run the business under this system. As a result, they can reduce maintenance expenses. Moreover, the daily revision mechanism permits OMCs to easily monitor the capital needed to run day-to-day activities (working capital) and cash flows. They can assure fuel revision and pricing are completely transparent.
Solutions to Trace Current Petrol Price in Jaipur
This is an important section that discusses solutions available to obtain the latest petrol rate in Jaipur. Today, a majority of petrol consumers are making use of mobile applications conceptualised by all OMCs. Mobile applications are easy to download and use. They provide significant benefits to users. Information-related to a two-wheeler and four-wheeler insurance can also be traced using these applications. They can be accessed through all mobile-run devices. The mobile application designed by Hindustan Petroleum is ‘My HPCL,’ the mobile application designed by Bharat Petroleum is ‘SmartDrive,’ and the mobile application designed by Indian Oil is Fuel@IOC.If you are not using smartphones, you may consider using SMS services. Just visit websites of either BPCL or IOL or HPCL for more details. This how you can get today’s petrol price in Jaipur.
Structure of Current Petrol Price in Jaipur
In January 2018, petrol and diesel rates reached their historical highs as a result of increasing Brent crude oil rates globally. Over the last 10-12 months, they went up by 20%. In addition, fuel retailers increased their commission by Rs.1 a litre. As of 3 February 2018, the structure of petrol price per litre in Jaipur is as follows:
- Crude oil rate is estimated to be Rs.26.42 a litre. Cost of a litre of crude oil = cost of crude oil per barrel in INR/159
- OMCs expenses are then added. Operational expenditures, entry charges and Refinery Transfer Price (RTP) are estimated to be Rs.4.75 a litre. On the contrary, the margin of OMCs, transportation expenses and import duties are estimated to be Rs.3.31 a litre. The overall expenses incurred by OMCs are comprehended to be Rs.8 a litre roughly.
- A central levy of Rs.19.48 a litre is further added. Now, the price quoted to dealers works out to be Rs.53.96 a litre. To this price, dealers add a commission of Rs.3.59 a litre. Fuel price prior to VAT works out to be Rs.57.55 a litre.
- VAT makes petrol prices to change in different states. As of 4 September 2017, VAT in Rajasthan was 32.95%. So, 32.95% of Rs.57.55 works to be Rs.18.70. The petrol price in Jaipur will be Rs.76 a litre approximately.
Determinants of Petrol Cost in Jaipur
Crude oil has a major role to play. Production levels and political changes in oil-exporting economies directly affect fuel prices in India. If oil exporting countries announced a production cut, cost prices of crude oil bound to increase. Similarly, any variations in the USD/INR conversion ratio has an impact. The exchange rate is based on many aspects such as the import and export structure of India and the USA, bank interest rates offered in both countries and inflation rates in India and the USA. On a daily basis, the RBI regulates the exchange rate.
Taxes vs Today’s Petrol Price in Jaipur
Tax is a major income source for the central government. Like petrol, it is imposed on other commodities and services as well. In November 2014, excise duty on petrol was Rs.9.20 per litre. In August 2017, it jumped to Rs.21.48 a litre. It was further declined to Rs.19.48 a litre in February 2018 by the Central Government. Likewise, any changes made by the government will directly affect fuel prices in Jaipur and other Indian cities. Whether to increase or decrease VAT is left at the discretion of local governments. The Central Government had advised states to cut VAT in October 2017. Only Gujarat, Uttar Pradesh and Maharashtra had declined VAT, but no other states did. Eventually, the central and state governments’ policies related to imposing taxes on petrol affect petrol rate in Jaipur.
Current Fuel Rates in Jaipur vs GST
Goods and Services Tax is one of the largest tax reforms in the Indian tax system. It is a tax system, which removes all types of indirect taxes. GST gives a unified platform for taxpayers and merchants. GST is presently imposed at the highest rate of 25% except petrol. However, GST does not have any effect on fuel prices in Jaipur. If levied, fuel rates in the city will slide by 20-30%. The Central Government cannot execute GST on petrol at current rates since it loses a prime chunk of revenues. The GST Council has to rework on tax rates if it wishes to consider petrol under the GST regime.
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*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.