Petrol Rate in Kerala:
Kerala has witnessed 20% hike in the monthly utilisation of petroleum products. One of the main reasons behind the increased consumption is load-shedding. Many people are using power generators, which consume petroleum fuel.
Find the current petrol price in kerala and factors affecting petrol prices in India. The below petrol price trend in Kerala offers insights such as the highest and lowest petrol prices recorded during a month.
Trend of Petrol Price in Kerala for October 2019 (rates per litre)
|Highest Rate in October||Rs.78.04|
|Lowest Rate in October||Rs.77.17|
October - Week 1 (1-7):
- Petrol price in Kerala opened the first week of October at Rs.78.04 per litre. There was a hike of 22 paise to the previous day’s closing price. The price charged on the opening day was the highest recorded prices for the month till date in the state.
- The rates of diesel declined over the next few days after staying constant on October 2. Consumers were required to pay Rs.77.46 for a litre of petrol on October 5 as crude oil prices in the global market cooled down and reversed all gains made in the previous sessions.
- Petrol closed the opening week of the month at Rs.77.17 per litre in the southern state. It was the lowest recorded price for the month till date. The overall performance of petrol in the state was -1.11%.
Trend of Petrol Price in Kerala for September 2019 (rates per litre)
|Highest Rate in September||Rs.77.82|
|Lowest Rate in September||Rs.75.05|
September - Week 1 (1-7):
- Petrol price in Kerala opened at Rs.75.32 per litre, unchanged from previous day’s closing price. State-run oil marketing companies decided against changing the rates based on the demand of the oil in the local market.
- Petrol remained unchanged for the next few days before slipping to Rs.75.29 per litre on 5th September. However, in the international oil market, crude gained following Washington’s confirmation of a possible trade pact with Beijing.
- Petrol slumped further, closing the week at Rs.75.11 per litre. Overall, petrol’s performance in Kerala was -0.27%, trending downwards.
September - Week 2 (8-14):
- Petrol rate in Kerala opened at Rs.75.05 per litre on the 8th of September—6 paise lower than the previous day’s closing price. It’s also the lowest recorded petrol price in Kerala for the month of September till now. Meanwhile, in the international oil industry, crude futures dropped after participants reduced positions due to a weak trend in global markets.
- Petrol price in Kerala remained unchanged for a day before rising slightly again on 10 September. The hike was primarily due to a sharp drop in US inventories.
- The Price of petrol kept trending upwards, closing the week at Rs.75.31 per litre. Though the overall performance of petrol was -0.01%, market forecast suggests that the prices are going to shoot up in the coming days.
September - Week 3 (15-21):
- Petrol price in Kerala opened at Rs.75.38 per litre in Kerala on the 15th of September 7 paise higher than the previous day’s closing price.
- After staying stable for a day, petrol prices increased by 14 paise recording Rs.75.52 per litre on the 17th of September. Meanwhile, in the international market, crude prices dropped after Saudi Arabia’s energy minister stated the kingdom will restore lost oil production by the end of the month.
- Petrol rate in Kerala closed the week at Rs.76.73 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to last week’s drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of petrol Kerala was 1.87%, trending upwards.
September - Week 4 (22-30) :
- Petrol price in Kerala opened at Rs.75.15 per litre on the 22nd of September—27 paise higher than the previous day’s closing price. Petrol prices kept on soaring the coming days due to geopolitical tensions.
- The state-run oil marketing companies decided to hike the prices, with petrol recording Rs.77.74 on the 28th of September.
- Petrol rate in Kerala closed the week at Rs.77.82 per litre, its highest recorded price in the month of September. The substantial increase in petrol prices was primarily due to the drone attack on Saudi Arabia’s Aramco oil refinery. The overall performance of petrol was 3.31%, trending upwards.
Trend of Petrol Price in Kerala for August 2019 (rates per litre):
|Highest Rate in August||Rs.76.11|
|Lowest Rate in August||Rs.75.15|
August 2019 – Week 1 (1-7):
- When the week began, petrol in Kerala was priced at Rs.76.11 per litre, which is the also the highest price recorded during the week. This is due to the decline of crude oil prices in the international market amid falling US inventories and the trade war between the US and China.
- Prices continued to decline during the week amid drop in crude oil prices in the global market to record the lowest petrol price in Kerala on 6 and 7 August as a litre of petrol was sold at Rs.75.60.
- By the end of the week, petrol prices in Kerala had declined by 0.67% marked largely due to the decline in crude oil prices attributed by the falling US inventories indicating a weaker demand for crude in the market and the US’ additional imposition of tariffs on Chinese imports.
August 2019 – Week 2 (8-14):
- Petrol price in Kerala opened at Rs.75.55 per litre on 8 August, recording a 5 paise drop from the previous day’s closing price.
- Petrol dipped further by 16 paise on the next day, standing at Rs.75.39 per litre. The dip was primarily due to the ongoing US-China trade tensions, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports. Rise in US inventories was also one of the primary reasons for the dip.
- Petrol price in Kerala dropped marginally in the next few days before stabilising at Rs.75.30 per litre. The overall performance compared to the opening day was -1.06% trending downwards. Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 3 (15-21):
- Petrol in Kerala opened at Rs.75.30 on 15 August, unchanged from the previous day’s closing price.
- Petrol prices remained stable for the next few days before dropping to Rs.75.22 per litre on 18 August due to weak demand of the oil in the local market.
- Petrol prices in Kerala slumped further, stabilising at Rs.75.15 per litre—its lowest recorded price in the month of August. The overall performance of petrol was -1.26%, trending downwards. Meanwhile, in the international oil market crude prices went up after a drop in US inventories. But the gains were minimal due to sluggish economic growth in the global market.
August 2019 – Week 4 (22-31):
- Petrol in Kerala opened at Rs.75.15 per litre, unchanged from previous day’s closing price and its lowest recorded price for the month of August. After stabilising for the next few days, petrol prices went up marginally, recording Rs.75.38 per litre on 26 August. In the international oil market, crude gained after US inventories recorded a substantial slump.
- Petrol prices were slashed by 6 paise, recording Rs.75.32 per litre. Petrol remained unchanged till the end of the week and closed the month at the same price.
- Overall, petrol’s performance in Kerala was -1.03%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.
Trend of Petrol Price in Kerala for July 2019 (rates per litre)
|Highest Rate in July||Rs.76.74 on 23 and 24 July|
|Lowest Rate in July||Rs.67.39 on 1 July|
July 2019 – Week 1 (1-7):
- When the week began, petrol price in Kerala was at Rs.73.69 per litre, which was also the lowest price of the week impacted by a stable crude oil prices as supply cuts led by OPEC and its allies allayed fears of a global economic slowdown.
- Petrol price in Kerala rose on 2 July, when petrol was priced at Rs.73.77 per litre and remained unchanged until 6 July before rising by Rs.2.50 per litre as the Central Government imposed a hike in excise duty and cess on road and infrastructure by Rs.2 per litre.
- By the end of the week, petrol rate in Kerala rose by 3.50% largely influenced by the rise in duties by the Central Government in the 2019 Union Budget.
July 2019 – Week 2 (8-14):
- Petrol price in Kerala recorded at Rs.76.27 per litre on 8 July, same price as the previous day’s closing price. The stagnancy could be attributed to the soft demand of petrol due to a looming global economic crisis.
- Petrol further slumped on the second day, closing at Rs.76.21 per litre. The prices remained unchanged for the next few days till 14 July.
- Petrol prices in Kerala went up on 14 July, closing the week at Rs.76.40 per litre. This price surge was primarily due to US oil producers in the Gulf of Mexico initiating further supply cuts in the wake of a tropical storm. The ongoing tensions in the Middle East further contributed to the hike. Meanwhile, Brent crude futures were up 37 cents, or 0.6 percent
July 2019 – Week 3 (15-21):
- Petrol in Kerala recorded at Rs.75.53 per litre, a 14 paise increase compared to its previous day’s closing rate. The price hike was primarily due to the ongoing US-China trade crisis and Middle East skirmishes, outweighing the resumption of oil production in the Gulf of Mexico following the effect of Hurricane Barry.
- Petrol prices increased on the next day with the US shale oil supply boom. However, the global oil market looked a bit uncertain following China’s report of its slow economic growth. Washington-Beijing trade tensions also contributed to the gradual price hike.
- Petrol closed the week at Rs.76.67 per litre, recording the highest price for the month of July (till 21 July). The spike happened amidst the gradual increase in US stockpiles, indicating weak demand. However, the ongoing Iran-US tensions kept the petrol trending upwards. Also, there could be a possible spike in prices if the US-Iran tension deteriorates.
July 2019 – Week 4 (22-28):
- When the week began, petrol price in Kerala stood at Rs.76.67 per litre, which was also the lowest price recorded during the week while crude oil prices were up after the International Energy Agency said that it would intervene, if required, to keep the oil market stable amid escalating Middle East tensions.
- Oil Marketing Companies (OMCs) cut petrol prices in Kerala on 25 July to be retailed at Rs.76.67 a litre and continued to decline over the week to close at Rs.76.46 per litre. Weak demand and the output cuts led by the OPEC and its allies impacted crude oil prices to decline.
- After the US Navy said it may have shot down a second Iranian drone coupled with the decline in US inventories led to the slight decline in crude oil prices. Also, according to the International Energy Agency, it’s highly unlikely that oil prices will incline owing to weak demand.
Trend of Petrol Price in Kerala for June 2019 (rates per litre)
|2nd June||Rs.74.75 per litre|
|30th June||Rs.73.60 per litre|
|Highest Rate in June||Rs.74.75 per litre on 2 June|
|Lowest Rate in June||Rs.73.14 per litre from 16 – 23 June|
June 2019 – Week 1 (2-8):
- Petrol opened at Rs.74.75 per litre on 2 June in Kerala, inclining marginally compared to the previous day’s price even as crude oil prices declined in the international oil market.
- Petrol price in Kerala continued to slide during the week to record its lowest for the week at Rs.74.18 on 7 June.
- The sharp fall in petrol prices influenced by a subdued crude oil price even as international benchmark Brent crude futures dropped 22 cents or 0.4% after plummeting by 10% in the last four days.
June 2019 – Week 2 (9-15):
- There was no revision in petrol prices on 9 June compared to the previous day’s rate even as a litre of petrol in Kerala was sold at Rs.74.18.
- On 10 June, state-owned Oil Marketing Companies (OMCs) cut the petrol price by 52 paise per litre when a litre of petrol was retailed at Rs.73.66 and was kept unchanged the next day as well.
- Oil companies cut petrol prices over the next three days even as it closed the week at Rs.73.21 per litre impacted by the drop in crude oil prices.
June 2019 – Week 3 (16-23):
- On 16 June, a litre of petrol in Kerala was available at Rs.73.14 and remained unchanged until the end of the week.
- In the international oil market, crude oil prices fell amid indications that a slowing global economy due to the ongoing tariff war between the US and China.
- Additionally, the shooting down of a military drone of the US by Iran led to tensions in the Middle East, and the expectations of a rate cut by the US Federal Reserve led to a stable petrol price in the country.
June 2019 – Week 4 (24-30):
- During the last week if June, the petrol price in Kerala opened at Rs.73.27 per litre and remained static until 26 June, before it was hiked by 7 paise on 27 June when it was sold at Rs.73.34 per litre.
- On 28 June, oil companies raised the petrol price by 5 paise compared to its previous day rate and were kept unchanged the next day as well.
- Petrol prices in Kerala in June declined by 1.54% primarily affected by the decline in crude oil prices as traders awaited the G2o summit outcome and the meeting of the OPEC and its allies about the supply cuts in the market.
Trends in Petrol Prices in Kerala
Let’s consider the three major cities of Kerala for analyzing trends. In Trivandrum, the average price of petrol was Rs.72.18 between 10 October 2017 and 16 October 2017. In Kozhikode, between 10 October 2017 and 16 October 2017, the average rate of petrol was Rs.72.11. For the same period, the average cost of petrol in Kottayam was Rs.72.14. The average price was almost the same across the three major cities in Kerala.
Petrol Prices in Kerala and other States
Between 10 October 2017 and 16 October 2017, the average price of petrol in Kerala was Rs.72.14, which was the consolidated average of the three major cities the state. The average cost of petrol in Karnataka for the same tenure was Rs.69.46. In Maharashtra, it was Rs.75.92. The petrol rate in Mumbai was high compared to other states.
What is the Mechanism used to Determine the Cost of Petrol in Kerala?
The daily revision is currently in practice throughout the state since 16 June 2017. The daily revision is also called ‘dynamic fuel pricing.’ Before 16 June 2017, fuel rates in Kerala used to be revised twice a month, which is on the sixteenth and first of every month. The fortnightly-based revision was used by all state-run oil marketing companies for the last 15 years.
The daily revision plays a significant role in transmitting the volatility of the exchange rate and worldwide crude oil prices instantly to petrol customers. The exchange rate and the price of crude oil are highly volatile in nature. They tend to change regularly. Since the petrol price is revised on a daily basis under the new system, market-determined prices can be immediately shifted to consumers. This is the biggest advantage of dynamic fuel pricing.
The daily revision has been in practice in developed economies such as the United State of America (USA) and Australia. The Government of India has adopted the new system in order to bring transparency in fuel pricing and encourage the best inventory management practices. Petrol prices in Kerala once revised at 06:00 a.m. every day will be made available to customers.
Quarterly Petrol Price Trend in Kerala between January and March 2019
|Opening date price||Rs.71.98/litre||Rs.74.16/litre||Rs.75.09/litre|
|Closing date price||Rs.74.38/litre||Rs.74.98/litre||Rs.76.11/litre|
|Highest price||Rs.74.56/litre recorded between 22nd and 28th||Rs.74.98/litre recorded on 28th||Rs.76.17/litre recorded on 24th, 25th, 26th and 27th|
|Lowest Price||Rs.71.66/litre recorded on 4th, 5th and 6th||Rs.73.54/litre recorded on 11th, 12th and 13th||Rs.75.09/litre recorded on 1st, 2nd and 3rd|
Quarterly Petrol Price Trend in Kerala Between October and December 2018
|Opening date price||Rs.87.20 a litre||Rs.82.71 a litre||Rs.75.84 a litre|
|Closing date price||Rs.82.89 a litre||Rs.76.20 a litre||Rs.71.98 a litre|
|Highest price||Rs.87.45 a litre booked on the 4 October 2018||Rs.82.71 a litre booked on the 1 November 2018||Rs.75.84 a litre booked on the 1 December 2018|
|Lowest Price||Rs.82.89 a litre booked on the 30 and 31 October 2018||Rs.76.20 a litre booked on the 30 November 2018||Rs.71.98 a litre booked on the 31 December 2018|
Petrol Price Trend in Kerala Between October and December 2018
- Fuel prices in India are based on the 14-day average rate of crude oil in the international market and the exchange rate of the rupee over the US dollar.
- Rates are revised daily by State-run oil companies in India and are updated at 6:00 am every day. On 1 October, the petrol price in Kerala stood at Rs.87.20 per litre.
- Petrol prices were on record highs due to the rising crude oil prices in the market triggered by the trade war between the US and China as well as after the US pulled of the Iran nuclear deal.
- Prices touched the highest for the month when a litre was sold at Rs.87.45 per litre on 4 October prompting the Centre to cut excise duty of Rs.1.50 per litre and asked oil firms to further subsidise Rs.1 per litre.
- By the end of the month, petrol prices in Kerala declined to Rs.82.89 per litre on 30 and 31 October, dropping by 4.95% over the opening price of the month.
- On 1 November, the petrol rate in Kerala stood at Rs.82.71 per litre – the highest price recorded for the month.
- There was a marginal decline in oil prices in the global market which prompted oil firms to pass on the reduction to consumers.
- On 30 October, the lowest petrol price in Kerala was recorded for the month when a litre was available at Rs.76.20 per litre.
- Overall, the petrol price trend in Kerala for the month declined significantly by 7.87% influenced by the drop in crude oil prices and a slight appreciation of the Indian currency over the US dollar.
- In December, petrol was priced Rs.75.84 per litre on the first day of the month. This was also the highest price registered during the month.
- With the geopolitical tension on the decline, the global crude oil price dropped significantly from $80 per barrel early October to $56 per barrel late December.
- This prompted petrol prices in Kerala to drop to Rs.71.98 per litre on 31 December – the lowest rate recorded during the month.
- The petrol price trend in Kerala in December fell by 5.09% mainly attributed to the massive decline in crude oil price coupled with the appreciation of the rupee over the US dollar.
Quarterly Petrol Price Trend in Kerala between July and September 2018
|Opening date price||Rs.78.39 a litre||Rs.79.23 a litre||Rs.82.14 a litre|
|Closing date price||Rs.79.52 a litre||Rs.81.85 a litre||Rs.87.05 a litre|
|Highest price||Rs.80.16 a litre recorded on the 14th||Rs.81.85 a litre recorded on the 31st||Rs.87.05 a litre recorded on the 30th|
|Lowest Price||Rs.78.39 a litre recorded on the 1st||Rs.79.23 a litre recorded on the 1st||Rs.82.14 a litre recorded on the 1st|
Petrol Price Trend in Kerala in July 2018
- Petrol prices in India are revised on a daily basis under the dynamic fuel pricing mechanism, which is updated by State-run oil companies.
- Oil companies base the global crude oil price and the exchange rate of rupee over the U.S. dollar, making both these factors significant in fixing the retail selling price of petrol in Kerala as well as other states.
- On the 1st of July, the petrol price in Thiruvananthapuram - the capital of Kerala - stood at Rs.78.39 per litre, the lowest price for the month.
- Petrol prices during the first week rose to touch Rs.78.81 per litre but dropped to Rs.78.53 by the 6th, post which it continued to incline to touch the highest price of Rs.80.16 per litre on the 14th.
- After touching a high, petrol prices declined over the course of third and fourth weeks and by the end of the month, a litre of petrol in Kerala stood at Rs.79.30.
- In the month of July, petrol prices witnessed an upward trend of 1.42% influenced by the fluctuations in the global crude oil price and the exchange rate of rupee over the U.S. dollar.
Petrol Price Trend in Kerala in August 2018
- Oil companies cut the petrol price in Kerala by 7 paise on the 1st of August as a litre of petrol was sold at Rs.79.23 as per the dynamic fuel pricing mechanism - the lowest petrol price in August in Kerala.
- Petrol prices during the first and second week continued to rise with no respite to consumers as the global crude oil price moved upwards.
- Despite the significant rise in petrol prices in the country, there was no cut in taxes either from the State or the Centre and oil companies continued to absorb any decline in oil prices instead of passing it on to consumers.
- The upward trend was witnessed during third and fourth weeks as well with petrol prices touching record highs.
- By the end of the month, the highest petrol price in August was recorded at Rs.81.85 per litre on the 31st of the month.
- Overall, petrol prices in Kerala during the month rose by 3.20% compared to the opening price of the month. The rise in prices is attributed to the increase in oil prices in the international market due to geopolitical tensions.
Petrol Price Trend in Kerala in September 2018
- A litre of petrol in Kerala on the 1st of September stood at Rs.82.14, up by 39 paise over the previous day’s price, this was also the lowest price for the month.
- The geopolitical tensions of a possible trade war between the U.S. and China led the oil price to rise significantly in September.
- Per barrel of crude oil was trading in bourses at $80 - a four-year high, which prompted petrol prices in Kerala and other states to incline considerably.
- Along with the rise in crude oil prices, the rupee declined to its all-time low with the exchange rate touching Rs.72 against the dollar.
- Petrol prices continued to breach new records with relentless hikes by oil companies across the country.
- Except for certain states such as Rajasthan, Karnataka, West Bengal and Andhra Pradesh, no other states nor the Central government reduced any form of taxes which kept petrol prices on record highs.
- The highest petrol price recorded for the month stood at Rs.87.05 per litre, up by nearly Rs.4 per litre when compared to the opening price of the month.
- Petrol price trend in Kerala in September was upward and grew significantly by 5.64% impacted by high crude oil prices and the fall in exchange rate of the rupee.
Quarterly Petrol Price Trend in Kerala Between April and June 2018
|Opening date price||Rs.77.67 per litre||Rs.78.61 per litre||Rs.81.48 per litre|
|Closing date price||Rs.78.61 per litre||Rs.82.58 per litre||Rs.78.63 per litre|
|Highest price||Rs.78.65 per litre recorded on 24th||Rs.82.66 per litre recorded on 29th||Rs.81.48 per litre recorded on 1st|
|Lowest price||Rs.77.67 per litre recorded on 1st||Rs.78.61 per litre recorded from 1st to 11th||Rs.78.63 per litre recorded from 27th to 30th|
Petrol Price Trend in Kerala in April 2018
- On the 1st of the month, the petrol price in Thiruvananthapuram, the capital city of Kerala, stood at Rs.77.67 per litre. Fuel prices in Kerala and other states in India are revised on a daily basis under the ‘Dynamic Fuel Pricing’ mechanism. This price is also the lowest recorded cost of petrol in Kerala for the month.
- Petrol prices in Kerala for the next two weeks rose marginally by as much as 29 paise per litre compared to the opening date price. Fuel prices are revised according to the global crude oil prices by state-run oil marketing companies (OMCs).
- The slight increase in petrol price is attributed to the marginal increase in the international crude oil prices.
- By the end of the month, petrol prices increased by as much as 1.21% compared to the opening price of petrol in the state of Kerala.
- The incline in petrol prices is largely attributed to the increase in the crude oil prices which is sold in barrels in the global market.
Petrol Price Trend in Kerala in May 2018
- OMCs didn’t revise the petrol price in Kerala till the 11th of the month due to the 2018 Karnataka Assembly Election which was held on the 11th.
- The petrol price in Kerala on the 1st stood at Rs.78.61 per litre which continued till the 11th similar to other cities in the country. This was also the lowest petrol price in the state for the month.
- With the Karnataka State Assembly concluded, fuel companies began the exercise of revising petrol prices across the country.
- Petrol prices in Kerala and across the country started increasing sharply as the global crude oil price touched $80 per barrel which led to the higher price of the fuel.
- On 29th May 2018, the petrol price in Kerala touched an all-time high of Rs.82.66 per litre much to the dismay of consumers across the country.
- The rise on global crude oil rates is attributed to geopolitical fears as the US administration decided to pull out of the nuclear deal with Iran. With the backdrop of a possible shortage in supply of crude oil from Iran, the cost of crude oil rose sharply.
- Petrol prices in Kerala during the month reflected a rise of 5.05% overall mainly impacted by the rise in the price of crude oil in the international market.
Petrol Price Trend in Kerala in June 2018
- After touching an all-time high, the petrol price in Kerala in the 1st declined slightly with the price of crude oil relenting much to the relief of customers.
- During the first few days, petrol prices in Kerala remained steady with the prices falling below Rs.80 mark on the 11th.
- Crude oil rates fell by 1% and oil companies began reducing the petrol price in cities across the country including Kerala.
- From a high of $80 per barrel, oil prices began to decline to post $73.50 during the second week of the month.
- The Organisation of Petroleum Exporting Countries (OPEC) met on 22 June 2018 to decide on the future course of action against the sharp incline in crude oil rates. The OPEC along with its key ally Russia agreed to increase the output slightly to address the concern of the rising fuel prices.
- With the global crude oil price on the decline, the petrol price trend in Kerala reflected a downward trajectory at 3.50%. The decline in petrol prices is largely due to the fall in the global crude oil prices as the OPEC decided to increase the output marginally.
Trend in Petrol Price in Kerala between January 2018 and March 2018
|Opening date price||Rs.73.77 a litre||Rs.76.97 a litre||Rs.75.43 a litre|
|Closing date price||Rs.76.83 a litre||Rs.75.37 a litre||Rs.77.49 a litre|
|Highest price||Rs.76.83 a litre booked on 30||Rs.77.31 a litre booked on 6||Rs.77.49 a litre booked on 29|
|Lowest price||Rs.73.77 a litre booked on 1||Rs.75.36 a litre booked on 5||Rs.75.43 a litre booked on 1|
|% Change||3.98% up||2.12% down||2.66% up|
Trend in Petrol Price in Kerala in January 2018
- The fuel prices in all parts of Kerala have broken their historical highs, including its capital city at the beginning of the month. HPCL, BPCL and IOC have declared an average fuel price of Rs.73.77 a litre on 01 in tandem with the overseas influencers.
- Globally, crude oil gained demand and thus, oil-producing countries have slightly accelerated the price of WTI and Brent Crude oil.
- As a result, the fuel prices have been on a rise steadily during the third week and the fourth week. They have accelerated to Rs.74.9 a litre on 14 and Rs.75.96 a litre on 21. The growth rate was 1.41%.
- The fuel companies extended to enhance the rates under dynamic fuel pricing during the last week in sync the price influencers.
- On 22,23,24,25,26,27,28, at IOC, petrol was valued at Rs.76.12 a litre, Rs.76.27 a litre, Rs.76.32 a litre, Rs.76.39 a litre, Rs.76.53 a litre, Rs.76.63 a litre and Rs.76.68 a litre respectively.
- The fuel climbed to its highest price at Rs.76.83 a litre on 30 and 31. This month the crude oil rate was up in excess of $5 per barrel. However, the fuel has gained its price 3.98%.
Trend in Petrol Price in Kerala in February 2018
- Oil exporting countries have experienced a steady growth in the demand for unrefined oil during the first 5-7 days. They have not reduced the price.
- In the end, the OMCs have begun increasing the RSP of petrol. Thus, the highest rate was offered on 06 at Rs.77.31 a litre.
- Over the next 15 days, the crude oil’s cost was down almost Rs.1 per barrel. Therefore, fuel prices dropped to Rs.70 per litre on 15.
- Even though the Union Budget was proposed this month, the whole oil and natural gas industry was left unaffected.
- The falling trend continued even during the third week. The closing price of the week was Rs.68.98 a litre, which is inclusive of excise duty and VAT.
- The closing date price was Rs.75.37 a litre and was down 2.12% compared to the opening date price.
- In this month, no other factors have impacted the fuel rate except the crude oil price of Indian Basket, which declined to $63.54 a barrel.
- To some extent, a reasonable hike in the USD value has impacted the fall in the fuel price in all cities of Kerala. On 1, the USD/INR was Rs.63.95 and increased to Rs.65.22 on 28. There is a major change that should be accounted for.
Trend in Petrol Price in Kerala in March 2018
- The petrol price as on the opening date was up 06 paise to Rs.75.43 a litre. On 2, it reached to Rs.75.62 a litre and was revised at Rs.75.88 a litre on 3.
- The USD/INR currency conversion ratio depreciated 0.29% on 5, 0.19% on 6 and 0.04% on 7. Unrefined oil gained its price to $62.83 a barrel.
- Therefore, the OMCs have enhanced the petrol rate on 2, 3,4,5,6 and 7 continually. The fuel was offered at Rs.76.28 a litre at OIC. The same offer even made by HPCL and BPCL at the end of the week 1.
- On 14, the fuel was retailed at a price of Rs.76.37 a litre, which was up 09 paise compared to the price recorded on 7.
- The crude oil’s demand was stable until the completion of the month, which registered the unrefined oil price of $63.80 a barrel.
- The variations in the cost price crude oil should only be accounted for a price upsurge of 2.66% and pushed the petrol price to Rs.77.49 a litre on the second last day.
Note: Crude oil can be of two categories, which include 1) Brent Crude Oil and 2) WTC Crude Oil. In India, the Central Government takes into account the combined price of these two forms to make the required changes.
Computation of Petrol Prices in Kerala
Petrol rates in Kerala are assessed in the following steps:
Step 1: Calculation of the Crude Oil Price
Overseas oil-producing companies sell unrefined oil to Indian oil marketing companies (OMCs) at benchmark rates. The present price of a barrel, which is equivalent to 159 litres, of crude oil is $49 in global markets. Therefore, the cost of a litre of crude oil is computed by converting US dollars into Indian rupees and then divided by 159. The cost of crude oil also includes freight charges paid by oil marketing companies.
Step 2: Calculation of Refinery Expenses
Upon importing crude oil from overseas oil companies, Indian oil marketing companies will shift crude oil to refineries for further processing. Crude oil is then clustered into several products such as diesel, coal tar, and petrol in distillation towers of these refineries. The cost that is incurred to convert crude oil into petrol is called refinery cost, which is added to the cost of crude oil. Moreover, crude custom levies and charges from ports to refineries are added.
Step 3: Other Cost Elements
Clustered petrol is now ready to be stockpiled in the stowage reservoirs of oil marketing companies. The actual rate of petrol, which is paid by end consumers, consists of all the aforementioned costs plus the commission charged by dealers, excise duty, value added tax (VAT), and total duties. In other words, the petrol price is the cost price that consists refining, procuring, marketing, the excise duty, and state taxes.
Factors affecting Petrol Prices in Kerala
The following factors affect petrol prices in Kerala:
- Cost of Crude Oil
- Exchange Rate
- Excise Duty and VAT
The cost of crude oil influences the retail selling price of petrol. If it increases, the retail selling price will increase; if it decreases, the retail selling price will decrease. The cost of crude oil is influenced by many factors such as seasonal variations, weather reports, overseas demands and supplies, the capabilities of refineries, and political stability or instability in oil-producing countries.
The exchange rate of the Indian currency to the base currency also has a direct impact on the cost of crude oil. For example, if the INR falls against the USD, the buying cost of crude oil in Indian rupees will rise. Similarly, if the USD falls against the INR, the cost of crude oil in Indian rupees will decrease.
Petrol is taxed by the central and state governments. The cost price of petrol will increase if the percentage of tax imposed by both the governments increase. Similarly, the cost price of petrol will fall when the percentage of tax levied by both the governments decrease. On 4 October 2017, the central excise duty was reduced by Rs.2 by the central government. After the revision, the petrol rate in Kerala was reduced to Rs.72 from Rs.74.
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. If GST is levied on petrol even at the highest rate of 28%, the tax outgo will be lesser.
Also Check Petrol Price in NearBy Cities of Kerala
|Petrol Price in Trivandrum||Petrol Price in Malappuram||Petrol Price in Kozhikode|
|Petrol Price in Thrissur||Petrol Price in Kannur|
Apply For A Fuel Credit Card – Reduce Your Petrol Expenses
*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.