Petrol Price In Karnataka Today

Petrol Price In Karnataka

Karnataka is one of the renowned south Indian states. Bangalore, the silicon valley of India, is the capital and largest city of the state with a huge network of IT and Non-IT companies. The state is the seventh biggest by region and eighth biggest by population. The real estate industry has always been booming in the state, attracting domestic and NRI investments.

As on 31st March 2015, In India, the total count of licensed vehicles was 2,10,023,289 out of which the total count of licensed vehicles in Karnataka was 14,784,961. With the growing number of petrol-run and diesel-run vehicles in the state, the petrol and diesel consumption is also growing at an attractive rate.

Trends in Petrol Prices in Karnataka

Petrol rates in Karnataka in the last three years have changed often. The change can be attributed to many reasons. Let’s consider the trend in petrol prices in Bangalore, the capital city of Karnataka, over the last five months. Petrol prices are moving in an upward direction in the capital and other major cities including Belgaum, Mysore, Davangere, Hubli.

The petrol cost per litre in Bangalore has accelerated by 3.33% for July and by 5.47% for August of the current fiscal year. Both May and June 2017 had a decreasing trend. Prices were constant throughout April 2017. The lowest rate recorded since April 2017 is Rs.64.21.

Petrol Prices in Karnataka vs. Other States

It is quite interesting to note that both diesel and petrol rates have slashed soon after the implementation of GST, which is completely a new, streamlined taxation platform. With effect from 1st July 2017, Karnataka is the first south Indian state to offer lower prices for diesel and petrol. Fuel rates have fallen by Rs.3.00 per litre.

As on 1st July 2017, the lowest price for diesel was recorded at Rs.53.65 a litre while in Bangalore it was Rs.54.23 a litre. Interestingly, petrol and diesel rates per litre in other states such as Delhi, Maharashtra, and Uttar Pradesh were comparatively high on the similar date.

Quarterly Petrol Price Trend in Karnataka Between April and June 2018

Petrol Price Trend in Karnataka in April 2018

• On the first day of the month, the petrol price in Karnataka stood at Rs.74.90 per litre, the lowest for the month.
• With crude oil prices slightly moving upwards, petrol prices were revised accordingly with an average rate between Rs.75 to Rs.76.
• The highest petrol rate in the month was recorded at Rs.75.86 per litre on the 24th.
• Despite an increase in petrol prices, the incline trend did not indicate a significant rise in fuel prices in the country.
• Overall, the month indicated an upward trajectory in petrol prices in the State by 1.23% due to the rise in oil prices in the international market.

Petrol Price Trend in Karnataka in May 2018

• Oil companies kept the petrol price unchanged since the 24th of the previous month due to the 2018 Karnataka Assembly Elections scheduled to be held on the 11th.
• After a 19-day hiatus, fuel companies began revising petrol prices under the daily pricing mechanism.
• Oil companies follow the ‘Dynamic Fuel Pricing’ mechanism to compute fuel prices in India. The preceding day’s global crude oil rate and the currency exchange value are considered before selling petrol at its Retail Selling Price (RSP).
• Petrol prices increased sharply during the second and third week as the crude oil rate increased to record at $80 per barrel.
• Fuel prices reached a new record of Rs.79.75 per litre as the global crude oil continued to move upwards.
• On the closing day, the petrol price in Karnataka stood at Rs.79.67 per litre – a slight fall from its peak rate.

Petrol Price Trend in Karnataka in June 2018

• Fuel companies sold petrol at Rs.79.61 per litre on the opening day of the month, down by 6 paise compared to the previous the day.
• With fuel prices on the rise around the globe, the Organisation of Petroleum Exporting Countries and its ally Russia decided to meet on 22 June 2018 to discuss ways to the rising oil prices.
• Crude oil prices continued to fall marginally and the petrol price was revised accordingly.
• Over the course of the month, the highest petrol price in Karnataka stood at Rs.79.61 per on the opening day of the month.
• The OPEC and Russia decided to increase the crude or unrefined oil output to the address the concern of higher fuel prices across the world.
• By the end of the petrol price in Karnataka fell to lowest of Rs.76.77 per litre, which was kept unchanged from the 27th to the end of the month.

Trend in Petrol Price in Karnataka between January 2018 and March 2018

Trend in Petrol Rate in Karnataka in January 2018

• Petrol was valued at Rs.71.06 per litre in Bangalore, the capital city of Karnataka and Rs. 71.17 per litre in Belgaum on 1. Almost the same price was observed in other prime cities, including Mysore and Hubli.
• The fuel continued gaining its rate under the dynamic fuel pricing mechanism that takes into account the changes in the INR/USD exchange rate and crude oil costs internationally.
• Within the first fifteen days, the fuel entities declared a rise of 1.73% in the petrol price in major cities since the Indian Crude Oil Basket gained its price substantially.
• Bangalore, Belgaum, Hubli and Mysore have recurrently augmented the fuel price until the last day of the month because of the stabilized demand, interrupted production and supply of unrefined oil.
• As a result, on 21, the last day of the week 3, the price offer of petrol accelerated to Rs.73.21 a litre and Rs.73.92 per litre on 28.
• Indian Oil Company, BPCL and HPCL unveiled the highest petrol price at Rs.74.07 per litre on 30 and extended the same rate on 31 as well.
• January produced a 4.06% increase in the fuel price as a result of almost a 5-rupee up in the crude oil rate, but not due to domestic factors.

Trend in Petrol Price in Karnataka in February 2018

• Unlike the previous month, February depicted a mixed reaction in the petrol price influenced by irregularities in crude oil costs. In Bangalore, the fuel rate as on the opening date was Rs.74.20 a litre.
• Even though the Union Budget was unveiled on 1 for the fiscal year 2018-2019, the OMCs neither reported a price drop nor a price up.
• The upward trend was extended until 06 and the highest rate was booked at Rs.74.54 per litre in Karnataka within the first week.
• 7 onwards, all the three OMCs have begun deteriorating the price offer in tandem with the variations in the global parameters.
• However, the fuel lost its price by almost a rupee per litre at the end of the week 2 impacted by a gained dollar.
• BPCL, HPCL and Indian Oil further depreciated the petrol rate to Rs.72.84 a litre on 21 and elongated the downward trend until 28, the last day.
• An aggregated price of WTI and Brent Crude Oil soared by 5.53% this month and thus, the petrol rate depreciated by 2.16%. The domestic influencers such as the Value-added Tax and the excise duty were retained unchanged during this month.

Trend in Petrol Price in Karnataka in March 2018

• The average fuel price stood at Rs.72.60 a litre and the lowest price was booked at Rs.72.69 a litre on 1 at HPCL and BPCL.
• Between 7 and 15, the fuel rate has increased to Rs.73.59 a litre at a growth rate of 0.08% as the USD/INR conversion rate decreased slightly.
• On 21, 22, 23, 24, 25, 26 and 27, the petrol price was Rs.73.33 a litre, Rs.73.40 a litre, Rs.73.44 a litre, Rs.73.52 a litre, Rs.73.69 a litre, Rs.73.94 a litre and Rs.74.05 a litre correspondingly.
• Over the last three months, the cost of crude oil has been depreciated to $63.80 per barrel. Domestic factors were not changed.
• Therefore, the closing price and the highest price for the month was Rs.74.71 a litre and the overall price has been hiked by 2.70%.

How are Petrol Rates in Karnataka Computed?

Petrol is priced based on a few considerations such as the cost of unrefined oil, which is traded in the USD; the refinery transfer price, which is the price paid by oil marketing companies to refineries; the central excise duty, which is fixed across the nation; the state VAT, which is the VAT imposed on petrol by the Karnataka government; and finally the dealer’s commission, which is the commission charged by retail petrol stations. The retail selling price of petrol in Karnataka includes all these cost elements. If any of these elements varies, the RSP will be adjusted accordingly.

How Frequently are Petrol Prices in Karnataka Updated?

Earlier, fuel price revision used to happen on the first and sixteenth of each month. Fuel rates used to be constant at least for a period of fifteen days. Currently, we have a new fuel pricing system called dynamic fuel pricing or daily revision of fuel prices in all cities of Karnataka.

The new system revises fuel prices on a daily basis based on two important factors:

1. crude oil prices and
2. the currency conversion rate. Why?

Indigenous production of crude oil in India is just 25% of the country’ oil requirements and the rest 75% is sufficed through importing. However, variations in crude oil prices and the currency conversion rate should be reflected in the selling price of fuels. The new system is transparent, perfect. Tracking information is easy for consumers as the biggest oil brands such as Indian Oil, HP, BP, and Shell have designed some means to get the latest information. Daily revision of petrol rates is a good proposal for many reasons. Firstly, it enables customers to absorb regular petrol price variations in Karnataka by a little margin. In case of fortnightly-based revision, there used to be big variations.

Impact of GST on Petrol Prices in Karnataka

The Goods and Services Tax (GST) excludes the oil and natural gas industry till now. If it was imposed, the cost of compliance would have increased. The industry participants were required to conform to the current and GST tax regimes. If it was imposed on petrol, the cost of petrol per litre would have come down at least by Rs.15-20.

The highest rate fixed by the GST council till today is 28%. Even if 28% GST tax bracket was imposed on petrol, the revenues for the government would have adversely been affected. A few experts are of the opinion that GST can also be imposed on petrol, diesel, and petroleum products. In fact, the issue was debated in the recent past.

Petrol vs. Diesel Rates in Karnataka

The process of daily revision of fuel prices has already been active in the state since 16th June 2017. Petrol rates in Bangalore and other major cities of Karnataka have reduced since dynamic fuel pricing. As on 6th October 2017, a litre of petrol costs Rs.69.17 while a litre of diesel costs Rs.56.79 in Mysore. A litre of diesel costs Rs.56.95 while a litre of petrol costs Rs.69.34 in Mandya. In Koppal, a litre of petrol costs Rs.70.08 while a litre of diesel costs Rs.57.64.

In Kolar, a litre of petrol costs Rs.69.34 while a litre of diesel costs Rs.56.95. In Haveri, a litre of diesel costs Rs.57.46 while a litre of petrol costs Rs.69.88. A litre of petrol in Belgaum costs Rs.69.49 a litre while a litre of diesel costs Rs.57.12. In Shimoga, a litre of diesel costs Rs.70.07 while a litre of petrol costs Rs.57.58. Entry taxes were banned in the state on 2nd July 2017 and, as a result, diesel and petrol rates were down by Rs.3 per litre.

In a nutshell, Karnataka is one of the south Indian states to charge petrol and diesel quite reasonably. The recent cut in entry taxes is the primary highlight in Karnataka. Diesel and petrol prices are envisioned to be steady over the next few months unless there are major changes in overseas crude oil.

Also Check Petrol Price in NearBy Cities of Karnataka

*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.