Petrol Price in Karnal
Many changes have taken place in the fuel retailing industry in India. Dynamic fuel pricing is one of the biggest changes deployed by the fuel marketing companies. Well, this page has been written keeping in mind the petrol users from Karnal, a city in Bihar. The page will help them understand various aspects connected to petrol. Let’s take a look at recent petrol prices in Karnal.
As of 8th May 2018, the Oil Marketing Companies (OMCs) have released a price mark of Rs.74.58 a litre, including a central levy of Rs.19.48 a litre and Value-added Tax (VAT). Each state has a different tax structure. For instance, on petrol, VAT is charged at 26.25%, 24.34%, 27.60%, 27.45%, and 28.31% in Haryana, Himachal Pradesh, Jammu and Kashmir, Jharkhand and Karnataka respectively.VAT in Haryana has been lower compared to that of in Karnataka, Jharkhand and Jammu and Kashmir. States can change the local tax whenever required.
|Also Know: Diesel Price In Karnal|
Excise Duty on Petrol
Petrol is taxed by the Government of India at Rs.19.48 a litre as of May 2018. The excise duty on petrol was Rs.9.20 a litre in March 2014. It was increased to Rs.21.48 a litre in August 2017. In February 2018, the Indian Government further diminished it to Rs.19.48 a litre. Fuel customers may envision a further drop in excise duty over the next few months.
|Also Check: Petrol Price in Ambala|
Dynamic Fuel Pricing – A big change
Dynamic fuel pricing is a fuel pricing framework introduced in 2017 in India. Advanced nations like Australia, the USA and Japan are also using the same methodology. Dynamic fuel pricing, also referred to as the daily revision system, was tested in 5 towns before introducing. In India, it has been perceived as a streamlined system for revising fuel rates. Therefore, petrol prices in Karnal are getting revised regularly under this system.
Fuel companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil will take into account the exchange rate and crude oil rates under the dynamic fuel pricing concept. They may increase or decrease the fuel price. Sometimes, they can retain the same price. The revision is wholly based on the performances of the Forex Market and the crude oil market.
How to Trace Latest Petrol Price in Karnal
Petrol consumers from the city of Karnal are advised to make use of mobile applications in order to obtain the latest petrol price. Many people have already downloaded such applications. Currently, there are three mobile applications widely in use. They include SmartDrive, My HPCL and Fuel@IOC. SmartDrive is provided by Bharat Petroleum whereas My HPCL is provided by Hindustan Petroleum. Fuel@IOC is offered by Indian Oil.
Computation of Petrol Prices in Karnal
The process of computing of petrol prices is complicated. The role of the OMCs has been significant. Firstly, they shall borrow unrefined oil from oil-exporting countries by paying the price in dollars. The price paid to buy crude oil is called ‘cost of crude oil’. As of May 2018, the crude oil rate per barrel was $69.30. The cost will be divided by 159 to compute the crude oil cost per litre.
The OMCs will incur many expenses such as entry levies, landing overheads, administrative overheads, profit margins etc. They are estimated to be Rs.8 per litre. When we add the OMCs expenses to the cost of crude oil, we arrive at the cost of the fuel after refining. The OMCs then add excise duty. Another cost element is the commission collected by dealers. Finally, fuel retailers will add Value-added Tax.
In simple words, petrol price in Karnal = crude oil costs + excise duty + VAT + commission + pollution cess
Factors Affecting Petrol Price in Karnal
Dynamic fuel pricing is just a fuel revision framework and is not a motive behind the changes in the fuel rate. To help you understand better, the factors affecting petrol rates may be clustered into two broad categories: a) international factors and b) domestic factors. The currency translation ratio and the cost price of unrefined oil are considered overseas factors. Excise duty and VAT are treated domestic factors.
Let’s understand the effect of each factor. Fuel prices in Karnal (petrol prices and diesel prices) and the currency translation ratio are inversely related. If the INR appreciates against the dollar, fuel rates will hike and vice versa. In January 2018 and March 2018, the INR slightly appreciated against the USD. Therefore, petrol rates in Karnal were up considerably. On the other hand, petrol rates were down in February 2018 since the INR marginally deprecated against the greenback.
Crude oil rates play a crucial role in fixing the price offer of fuels. To make changes in India, the average price of Brent Crude Oil and WTI Crude Oil is taken into account. It will fluctuate every day. If there is a price drop today, the benefit will be quickly transmitted to final consumers tomorrow. If the price of crude oil gains today, the OMCs will hike the petrol price in Karnal.
GST versus Petrol Price in Karnal
Does the GST system affect the fuel rate? The answer is, ‘NO’. Till date, the entire oil industry has been outside the GST tax structure. It is one of the biggest industries. The participants involved in the industry are vast in number. If the industry is covered under the GST framework, compliance costs are envisioned to hike by 200%. Moreover, the stakeholders will have to adhere to the present tax slab and the GST tax framework.
Today, GST is collected at 5%, 12%, 18% and 28%. The highest rate so far is 28%. If the GST Committee determines to bring petrol under the ambit of GST, the current tax slabs have to be replaced by the GST tax slab at 28%. Let’s presume today’s petrol price in Karnal is Rs.78 per litre. The price will diminish by Rs.30 per litre. As a result, not only the Central Government but also the State Government of Bihar will incur heavy losses.
Also Check Petrol Price in NearBy Cities of Karnal
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|Petrol Price in Delhi||Petrol Price in Faridabad|
*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.