Petrol Price in Kanpur
Unlike diesel, generally, petrol is not used for commercial, industrial and agricultural purposes. Diesel, on the other, is often used for agricultural and commercial transportation. Therefore, it is highly subsidized by the Government of India. Both fuels are important and are the biggest source of revenue for the center and state governments. This is the reason why both fuels are outside the purview of the current taxation mechanism, which is the Goods and Services Tax (GST). You can find the latest trends in the Indian fuel retailing industry and the most relevant information related to the petrol price in Kanpur here.
Latest Petrol Price in Kanpur
So far this year, the petrol rates in Kanpur have depicted a mounting tendency. The average fuel price was Rs.70.60 in the city and it is envisioned to grow further owing to dynamic fuel pricing. What is this system? Well, this is a completely streamlined system, which has been adopted in India in order to revise fuel prices in all parts of the country regularly. Dynamic fuel pricing methodology shall be discussed in detail in the next sections.
A Comprehensive Analysis of the Current Petrol Price in Kanpur
On the opening day of April 2017, the petrol price in Kanpur was Rs.69.09 a litre that was up by Rs.1.43 a litre on 1 May 2017. On 1 June 2017, the fuel rate further fell to Rs.69.62 a litre. On 1 July, the fuel price witnessed a drastic fall. On the day, petrol in Kanpur was priced at Rs.66.30 a litre. Between 1 June 2017 and 1 July 2017, the petrol rate was down by more than Rs.3.00 a litre. It could be accredited to the implementation of the new fuel pricing version.
The fuel traded at Rs.68.40 a litre on 1 August last year and on 1 September the petrol price in Kanpur was up by almost Rs.3.00 a litre. The retail selling price of the fuel on 1 October was Rs.71.87 a litre. On the opening day of November, the fuel sold at Rs.70.21 a litre. Since the government diminished the excise duty on 3 October 2017, petrol prices in Kanpur fell by Rs.2.00 a litre. This is the reason why the revised fuel rate on 1 November was less.
Quarterly Petrol Price Trend in Kanpur Between October and December 2018
|Opening date price||Rs.82.88 a litre||Rs.77.02 a litre||Rs.71.67 a litre|
|Closing date price||Rs.77.16 a litre||Rs.71.94 a litre||Rs.68.71 a litre|
|Highest price||Rs.83.13 a litre booked on the 4 October 2018||Rs.77.02 a litre booked on the 1 November 2018||Rs.71.67 a litre booked on the 1 December 2018|
|Lowest Price||Rs.77.16 a litre booked on 30 and 31 October 2018||Rs.71.94 a litre booked on the 30 November 2018||Rs.68.71 a litre booked on the 31 December 2018|
Petrol Price Trend in Kanpur Between October and December 2018
- Petrol was priced Rs.82.88 per litre on 1 October – a record high on the back of the rise in crude oil prices in the international market.
- Prices of petrol and diesel are based on the ‘Dynamic Fuel Pricing’ mechanism, which is determined by the 14-day average price of crude oil along with the exchange rate of the rupee against the dollar.
- State-owned Oil Marketing Companies (OMCs) such as Indian Oil, Bharat Petroleum and Hindustan Petroleum, revise fuel prices daily based on this pricing mechanism.
- Prices in the first week rose to touch a record high of Rs.83.13 per litre on 4 October. The Centre announced a cut in the excise duty on fuel by Rs.1.50 per litre, while OMCs were asked to absorb further subsidy of Rs.1 per litre.
- While prices declined by the end of the month, it was on record highs due to the rising oil prices.
- In October, petrol prices in Kanpur declined by 6.90% attributed to the significant high rates of oil prices in the global market.
- The trend in November was similar, declining in tandem with the price of crude oil in the global market.
- While oil prices were on the downward trend, it was comparatively higher compared to the beginning of the year. This was attributed to the trade war between the US and China, which resulted in oil prices touching a four-year high.
- By the end of November, petrol rates in Kanpur dropped by 6.60% influenced by the slight decline in oil rates.
- On 1 December, the petrol price in Kanpur stood at Rs.71.67 per litre, which was also the highest price recorded during the month.
- Crude oil was trading around $56 per barrel late December as against $80 per barrel early October, leading to a significant drop in fuel prices in the country.
- By the end of the month, petrol was available at Rs.68.71 per litre on 30 December, declining by more than Rs.14 per litre when the quarter began in October.
- Overall, petrol prices in December declined by 4.13% due to the sharp fall in oil prices coupled with the slight appreciation of the rupee over the US dollar.
Trend in Petrol Price in Kanpur between July and September 2018
|Opening date price||Rs.76.48 per litre||Rs.77.07 per litre||Rs.79.08 per litre|
|Closing date price||Rs.76.98 per litre||Rs.78.71 per litre||Rs.82.65 per litre|
|Highest price||Rs.77.34 per litre||Rs.78.71 per litre||Rs.82.65 per litre|
|Lowest price||Rs.76.48 per litre||Rs.77.07 per litre||Rs.79.08 per litre|
Petrol Price Trend in July in Kanpur
- The trend of petrol price in July was noticed based on the daily changes in petrol price. The exchange rate (USD/INR) and crude oil prices were accounted for updating the price of petrol from 1 July to 31 July in Kanpur.
- These two aspects have a huge influence as crude oil or unrefined oil is exported to India from OPEC countries.
- Based on the USD/INR exchange rate and the price per barrel of crude oil as of 30 June, oil marketing companies (OMCs) priced petrol at Rs.76.48 per litre on 1 July 2018 in Kanpur, a prime city in Uttar Pradesh.
- The price reached the Rs.77 mark on 9 July 2018. Further, it jumped to Rs.77.18 per litre on the 12th. As per the notification released on 16 July, the petrol rate in Kanpur was Rs.77.34 per litre.
- Throughout the month, crude oil rates were observed moving upwards and downwards. The average cost of petroleum per barrel decreased to $73.47 in July.
- One dollar was equivalent to Rs.68.47 on 1 July. It steadily jumped to Rs.68.97 on 23 July 2018. In July, the base currency strengthened marginally.
- Between 1 July and 31 July, the rate of petrol per litre accelerated by just 50 paise per litre or 0.65%.
Petrol Rate Trend in August in Kanpur
- August commenced with a price range of Rs.77.07 per litre in the city of Kanpur. In other prime cities of Uttar Pradesh also, the month began with a positive note.
- All the three public sector fuel companies, which include Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, followed the same methodology to revalue the fuel price in Kanpur.
- When revised on the last day of the first week, the fuel rate stood at Rs.77.56 per litre. The price stood at Rs.77.56 per litre when revised on the last day of the second week.
- At Rs.77.56 per litre, Rs.77.67 per litre, Rs.77.97 per litre and Rs.78.04 per litre, fuel prices in Kanpur were consistent in August.
- The greenback gained drastically against a majority of the developing economies’ currencies. The domestic currency was no different.
- The average unrefined oil rate was reported to be down this month as well. The marginally reduced oil price and the strengthened dollar made fuel prices to increase by 2.12%.
- For July and August, the highest price was booked at Rs.78.71 per litre. On the other hand, the lowest price was registered at Rs.76.48 per litre.
Petrol Price Trend in September 2018 in Kanpur
- The sales tax, which is collected by the state, and the central tax, which is charged by the Centre, are also included in the cost of petrol charged to customers.
- The Congress Party ran a strike on 10 September 2018. Despite the nationwide strike, the Centre did not diminish the central tax.
- Petrol price increased by 78 paise per litre between 1 September 2018 and 7 September 2018. It was increased by 96 paise per litre between 7 September 2018 and 14 September 2018.
- Fuel prices kept increasing in the last 15 days of the end. By the end of the last week of the month, the price increased to Rs.82.65 per litre.
- Between 1 September and 30 September, the petrol rate accelerated by 4.51%. Except for the crude oil cost and the currency conversion rate, no other factors impacted the revaluation of petrol throughout the quarter.
- The highest price for the entire quarter stood at Rs.82.65 per litre whereas the lowest price stood at Rs.79.08 per litre.
Note: WTI and Brent crude oil prices are the benchmarks. For India, the Indian Crude Basket is the benchmark. The cost of crude oil will vary in accordance with several factors such as production cuts, seasonal conditions, geopolitical tensions, etc.
Dynamic Fuel Pricing - A new practice for Fuel Pricing
Have you noticed the recent petrol rates? If yes, what is the trend? Is it a growing trend or a declining trend? Let’s discuss. Today, all petrol bunks whether automated or non-automated will update the fuel price in Kanpur in sync with the currency conversion rate (INR/USD exchange rate) and the global price of unrefined oil. In lieu of revising fuel prices once a fortnight, all bunks owned by HPCL, BPCL and OIL – the three premier oil marketing companies – do it on a daily basis. This new system is called dynamic fuel pricing.
The dynamic fuel pricing system is a revised version in the retail fuel segment. The system is being followed by a few developed economies such as Australia and the USA. It substitutes the previous fortnightly-based revision. The revision of diesel and petrol rates is done every day at 06:00 A.M. Revised prices shall be made available to fuel consumers online and offline. Petrol consumers can make use of customised mobile applications to track the latest petrol price in Kanpur.
Key features of Dynamic Fuel Pricing
- The new system entrusts transparency in fuel pricing.
- Petrol consumers are linked to market dynamics.
- OMCs can manage their working capital effectively.
- Stock management can no longer be a problem for oil marketing companies (OMCs).
Quarterly Petrol Price Trend in Kanpur between April 2018 and June 2018
|Petrol rate||Rs.75 per litre as on the 2nd||Rs.75.77 a litre as on the 14th||Rs.78.51 a litre as on the 1st|
|Petrol rate||Rs.75.64 a litre as on the 24th||Rs.78.56 a litre as on the 31st||Rs.76.36 a litre as on the 26th|
|Highest price||Rs.75.64 a litre registered on the 24th||Rs.78.62 a litre registered on the 29th||Rs.78.51 a litre registered on the 1st|
|Lowest price||Rs.75 per litre registered on the 2nd||Rs.75.77 a litre registered on the 29th||Rs.76.36 a litre registered on the 26th|
Petrol Price Trend in Kanpur in April 2018
- In Kanpur, which is an industrial city in Uttar Pradesh, petrol rates are currently revised on a daily basis by Hindustan Petroleum, Bharat Petroleum and Indian Oil.
- The exchange rate and crude oil overheads are taken into consideration in order to review the petrol rate per litre in the city of Kanpur.
- In April 2018, petrol prices in Kanpur were not steady. They were changed considering these two overseas elements.
- Under dynamic fuel pricing, the fuel price per litre stood at Rs.75 on 02 April 2018, Rs.75.11 on 03 April 2018, and Rs.75.13 a litre on 05 April 2018.
- On the 9th, the fuel price per litre was Rs.75.14. It increased to Rs.75.07 a litre on the 13th, Rs.75.16 a litre on the 16th, Rs.75.20 a litre on the 19th, and Rs.75.64 a litre on the 24th.
- Any variations in excise duty and sales tax (VAT) also have a direct impact on the revision of fuel prices, but in this month, the revision of petrol rates in Kanpur was not affected by these two forms of taxes.
Petrol Price Trend in Kanpur in May 2018
- Despite the changes in crude oil prices, petrol rates in the city of remained steady during the first 11 days of May 2018 because of the assembly election in Karnataka.
- As the crude oil rate started increasing rapidly after the second week of the month, the fuel rate was on the rise.
- For the third week, the average petrol price per litre was Rs.76.13 and for the last week, the average petrol price per litre increased marginally.
- In May 2018, the highest fuel price stood at Rs.78.62. The fuel price, which was offered on 01 May 2018 in Kanpur, was the lowest price for the month.
- As the cost of unrefined oil per barrel was up by $6 in transnational markets, the growth rate in petrol rates in Kanpur was higher compared to April 2018.
- Like April 2018, no domestic factors impacted the revision of fuel rates in the city in this month as well.
Petrol Price Trend in Kanpur in June 2018
- Crude oil rates began falling this month. Therefore, fuel rates in Kanpur moved downwards throughout the month.
- Under dynamic fuel pricing, the fuel was sold at a price of Rs.78.51 a litre when the month began. The price was down 25 paise per litre to Rs.78.26 on the 4th and 11 paise per litre to Rs.78.15 on the 5th.
- Petrol price per litre further slid to Rs.78 on the 7th, Rs.77.05 on the 12th, Rs.76.84 on the 21st, and Rs.76.36 on the 26th.
- Due to the downward trend, the lowest fuel price was observed at the end of the month, while the highest fuel price was observed at the beginning of the month.
- Caused by the decreased crude oil rate, petrol prices in the city of Kanpur were down in June 2018. Throughout the month, the impact of the exchange rate was reported to be nominal.
How are Petrol Prices in Kanpur computed?
Is it not an interesting question? Yes, it is! The petrol price today in Kanpur is Rs.73.37 a litre. This is the final price remitted by petrol consumers. Which are the components of this price? Well, the primary components of the final price, the retail selling price (RSP), include the cost of crude oil, state levies and the central excise duty. Taxes levied on the fuel account for more than 50% of the RSP. Let’s analyse the price components in detail.
- Cost of Crude oil: Crude oil or unrefined oil is transacted globally in the USD. As on 22 January 2018, the cost of WTI Crude Oil was $63.73 a barrel whereas the cost of Brent Crude Oil was $ 69.02 a barrel according to reliable sources. One barrel is equivalent to 159 litres.
- StateLevies: Petrol is taxed at 32.90% by the state government of Uttar Pradesh currently. State levies tend to vary from one state to another.
- Central Taxes: Tax is imposed on petrol by the center as well. This form of tax is called excise duty. The central tax recently reduced to Rs.19.00 a litre on 3 October 2017. So, every petrol consumer from Kanpur will remit a tax of Rs.19.00 on every litre. This tax remains unchanged across the country.
- Other Components: Other components of the RSP of petrol include the overheads incurred by OMCs, pollution cess, the commission charged by petrol dealers and the profit margin of OMCs.
In a nutshell, the petrol price that you pay finally consists of all the aforesaid cost elements.
What are the Influencers of the Petrol Rate in Kanpur?
The petrol price in Kanpur today is impacted by three major components: 1) INR/USD conversion rate, 2) crude oil rates and 3) taxes. The fuel rate upsurges when the USD gains against the INR, the cost of unrefined oil upsurges globally and the tax component increases. Alternatively, the fuel price drops when the USD depreciates against the INR, the cost price of crude oil drops internationally and the tax element diminishes. This is tracked currently on a daily basis as cited earlier. Crude oil prices are transnationally curbed whereas other price influencers are domestically managed.
Does the GST system Influence the Petrol Rate in Kanpur?
The GST system has no impact on the petrol rate in the city since petrol is outside the purview of the new Indian tax law. Therefore, petrol consumers continue to remit regular taxes. The new tax law has been in use since July 2017. It is applicable to all types of commodities and services, which are being transacted across the nation, but it is not applicable to petrol, diesel and petroleum products. The government may impose the GST rates on these two fuels as well.
*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.