Petrol Price in Kerala Today

Factors Affecting Petrol Prices in Kerala 

The following factors affect petrol prices in Kerala:

• Crude Oil Prices in the Global Markets: India imports over 80% of its crude oil, making international oil prices the most significant factor. Geopolitical tensions, production cuts by OPEC countries, and global demand and supply imbalances directly impact the price of petrol in India. 

• Value of the Rupee against the Dollar: Crude oil is traded in US dollars. Therefore, any fluctuation in the exchange rate affects the import cost. A weaker rupee means India has to pay more for crude oil, leading to higher petrol prices. 

• Government Taxes: Taxes constitute a major portion of the retail petrol price. The Central Government's excise duty and the State Government's VAT are the two primary taxes. Kerala has one of the higher VAT rates in the country, which contributes to the higher price of petrol in the state. 

• Demand and Supply: The local demand for petrol in Kerala also plays a role. Higher demand, especially during festive seasons or holidays, can lead to a temporary increase in prices if the supply is constrained.
  

Impact of GST on Petrol Rates in Kerala 

The Goods and Services Tax (GST) was implemented in India in July 2017. It is the biggest tax reform since independence. Under the regime of GST, all classes of goods and services are taxed primarily under four slabs: 5%, 12%, 18%, and 28%. 

Petroleum products such as jet fuel, diesel, natural gas, and petrol have not been included in the regime of GST. So, GST does not impact fuel rates in Kerala including petrol and diesel.  

How to Save on Petrol Costs? 

Some of the driving habits that can save on petrol costs are mentioned below: 

• Plan your Trips: Combine errands to avoid multiple short trips. 

• Turn Off the Engine at Signals: Idling for more than a minute consumes more fuel than restarting the engine. 

• Check Tyre Pressure: Properly inflated tyres reduce rolling resistance and improve mileage. 

• Keep your Vehicle Well-Maintained: Regular servicing ensures your engine runs efficiently. 

• Maintain a Steady Speed: Avoid sudden acceleration and braking.

Fuel Credit Cards to Save on Petrol in Kerala

*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.