Petrol Price in Jamnagar
In today’s world, it’s easy to trace petrol prices on a daily basis if you are a fuel consumer from Jamnagar, a notable city in Gujarat. Fuel prices have been on a high since the beginning of 2018. The government is planning to implement either a long-run solution or a short-run solution to cushion the effect of unstoppably growing petrol prices. Reducing excise duty can be a short-term solution. If there is a cut in excise duty today, petrol can still gain its price after some time under dynamic fuel pricing.
Let’s study the behavior of petrol prices in Jamnagar during the first quarter of 2018. On 1 January 2018, petrol price was Rs.69.22 per litre and enhanced to Rs.72.44 per litre on 31 March 2018. That indicates there has been a price increase of Rs.3.22 per litre. For the entire quarter, the highest fuel price was registered at Rs.72.44 per litre. On the flipside, the lowest price stood at Rs.69.22 per litre. In Jamnagar, petrol rates were up by Rs.3.03 per litre and Rs.1.45 per litre in January 2018 and March 2018 respectively. They were down by Rs.1.52 per litre in February 2018.
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Fuel Dealers in Jamnagar
Jamnagar is the fifth biggest city in Gujarat. The city has a wide network of HPCL dealers, IOCL dealers and BPCL dealers to suffice the fuel requirements. Petrol is supplied to fuel stations from refinery centers owned by these three fuel companies. Shell Oil, another fuel brand, also has a few supply stations in the city. Despite brands, dealers charge a definite amount of commission, which has recently been hiked by a few paise. With a growing number of fuel consumers, the number of supply stations has been increasing in Jamnagar. Each brand is equally competitive and maintain the same quality throughout the year.
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Pricing of Petrol in Jamnagar
Petrol is a fuel or a commodity, which is priced like other commodities. Premier fuel companies such as Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited and Indian Oil Corporation Limited have begun using dynamic fuel pricing to price the fuel. Dynamic fuel pricing is based on the exchange rate, the USD/INR, and crude oil rates in global markets. It has been successful in well-established countries such as Japan, the United States of America (USA), Russia, etc. In India, it came into existence in 2017.
Salient Features of Dynamic Fuel Pricing
- The revision of petrol price in Jamnagar will no longer take place twice a month.
- Instead, petrol is valued every day in tandem with the movements in unrefined oil prices and the exchange rate.
- There cannot be a big difference as far as fuel prices are concerned.
- No government can influence the pricing of petrol.
Options to Trace Today’s Petrol Price in Jamnagar
- IOCL customers: Indian Oil has a vast number of customers. The company provides several options for its customers to get the current fuel price in Jamnagar. IOCL customers can either use the mobile application offered by IOCL or visit the official website of IOCL or avail the SMS services to obtain the recent offer.
- BPCL customers: BPCL is also a renowned fuel company in India. Like IOCL, BPCL provides a tailor-made mobile application called ‘SmartDrive.’ The mobile application is extremely beneficial to receive the current petrol rate in Jamnagar.
- HPCL customers: HPCL customers are recommended to download its mobile application called ‘My HPCL.’ This is the best option for smartphone users. Non-smartphone users may consider using offline methods to get the latest fuel price in Jamnagar.
Computation of Petrol Price in Jamnagar (May 2018)
- Crude oil cost per litre = Rs.31
- OMC expenses per litre = Rs.5.93
- Excise duty per litre = Rs.19.48
- Commission charged dealers per litre = Rs.3.62
- Pollution cess = 25 paise
- VAT on petrol per litre = 25.44% charged at fuel cost before VAT
All the aforesaid cost elements are added to arrive at the retail selling price of petrol per litre in the city of Jamnagar.
Forces Impacting Fuel Rates in Jamnagar
- Supply and demand: If the demand for crude oil increases in overseas markets, the price of crude oil per barrel will increase and vice versa. Crude oil rates also increase if there is no adequate amount of crude oil. Variations in crude oil costs, in the end, will impact petrol prices in domestic markets.
- Excise duty and VAT: The Government of India may increase excise duty to increase fuel prices in the country and decrease excise duty to diminish fuel rates. Excise duty is a common tax whereas VAT differs from state to state. VAT can also be revised by states. The higher the VAT on petrol, the higher will be the petrol price and vice versa.
- Exchange rate: The value of the Indian currency against the greenback is measured through the INR/USD exchange rate. Every day, the Central Bank of India will gauge and release the value of the USD versus the INR. Fuel rates will fall when the INR falls against the base currency and vice versa.
- Uncertainties: Bad weather is likely to impact the production of crude oil. When the production of unrefined oil gets impacted, the demand for crude oil will increase. Thus, OMCs will increase fuel prices. Production cuts also affect the pricing of unrefined oil.
Does GST impact Petrol Price in Jamnagar?
As we know, GST is a common tax platform in India. It does not affect petrol prices since petrol has been outside the purview of GST. Customers pay GST on other commodities and services. The highest GST slab set by the GST Committee is 28%. Even if GST is levied at 28% on petrol, petrol price in Jamnagar will fall down significantly. So, the Central Government may not have adequate funds for welfare activities. The government has to consider two options to levy GST on petrol. It can either increase the GST tax slab or impose additional taxes to compensate losses.
Also Check Petrol Price in NearBy Cities of Jamnagar
*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.