Petrol Price In Madhya Pradesh
There are multiple factors that affect the petrol price in Madhya Pradesh. Though crude oil is one of the key components when it comes to fuel pricing, this isn’t the only deciding factor. There are a few other aspects as well, which conclude the rates. To help you comprehend the fuel pricing system in India and learn how it affects in a state like Madhya Pradesh, read the article further.
But before that here is a quick introduction to Madhya Pradesh’s economic and industrial growth.
Madhya Pradesh is one of the most commonly known Agrarian states in India. Approximately, 74% of its population is entirely dependent on agriculture and farming. However, it is one of the fast-growing Indian states.
Until 2003, the state was regarded as India’s “sickest economies” during the tenure of Chief Minister – Digvijay Singh. But after the year 2005, the state saw consistent growth and reached to India’s best-performing states in GDP growth.
In fact, in January 2013, the state was honored with an award from Pranab Mukherjee, the President of India for developing its medical, tourism, infrastructure, and industrial growth. The state is the central part of India and has abundant natural resources, biodiversity, agriculture, fuels, and minerals. Its immense food parks and industry parks help promote sectoral growth.
Factors That Affect Petrol Price In Madhya Pradesh
It will not be an exaggeration to state that fuel rates in India affect an Indian resident either indirectly or directly. Since the deregulation, the fuel prices change on a fortnight basis and this involves various factors.
Although a major population of India keeps track of the prices of commodities like petrol and diesel on a daily basis, a lot are not that aware or familiar about their pricing structure or elements that make up their retail prices. Considering this, here’s exactly what you need to read:
1. The Price Of The Crude Oil
Petrol’s RSP (Retail Selling Price) is decided based on various factors. However, an important key component is “crude oil.” It is one of the vital raw materials to extract fuel. Since 75% of the crude oil requirements in India relies upon import, it is refined and transported.
This, of course, comprises of cost charges, freight charges, and refinery charges. All these together give the price of the crude oil, which is termed as RTP (Refinery Transfer Price). In short, this is the cost that Indian OMCs (Oil Marketing Companies) like HPCL (Hindustan Petroleum Corporation Limited), IOCL (Indian Oil Corporation Limited), and BPCL (Bharat Petroleum Corporation Limited) pay to the refineries that they import from. The Oil Marketing Companies retain some amount of margin before selling it to the dealers.
Though there are various types of taxes involved for fuel, they are broadly classified into two types:
- State Value Added Tax (VAT)
- Central Excise Duty – the Central Government imposes this
The above two tax types are added to the fuel rates that are set for the dealers. However, the VAT varies from one state to the other and keeps revising.
All these together make up the RSP (Retail Selling Price) of the fuel. However, there may be variations based on the region and the pumps owned by different Oil Marketing Companies. These minor variations in prices are due to the differences in dealer commissions and other profit margins.
As a rule of thumb, an increase in demand directly affects a commodity’s price. As far as the Asian continent is considered, and residing in a developing nation like India, fuel demand is always high. However, there are times when this demand gets even higher. Such are the times when the petrol prices also incline.
Quarterly Petrol Price Trend in Madhya Pradesh Between October and December 2018
|Opening date price||Rs.89.58 a litre||Rs.82.56 a litre||Rs.75.64 a litre|
|Closing date price||Rs.82.74 a litre||Rs.75.99 a litre||Rs.71.80 a litre|
|Highest price||Rs.89.83 a litre booked on the 4 October 2018||Rs.82.56 a litre booked on the 1 November 2018||Rs.75.64 a litre booked on the 1 December 2018|
|Lowest Price||Rs.82.74 a litre booked on the 30 and 31 October 2018||Rs.75.99 a litre booked on the 30 November 2018||Rs.71.80 a litre booked on the 31 December 2018|
Petrol Price Trend in Madhya Pradesh Between October and December 2018
- Under the ‘Dynamic Fuel Pricing’ mechanism, petrol and diesel prices are revised daily which includes the 14-day average price of the global crude oil price as well as the rupee-dollar exchange rate.
- On 1 October, the petrol price in Madhya Pradesh stood at Rs.89.58 per litre – a record high in the back of the rising crude oil prices in the international market.
- Petrol rates in Madhya Pradesh continue to move upwards to touch the highest price for the month when a litre of petrol was available at Rs.89.83 per litre on 4 October.
- The Central government announced a cut in the excise duty of Rs.1.50 per litre and asked oil firms to absorb Rs.1 per litre as subsidy, prompting a decline in fuel prices in the country.
- Prices dropped to Rs.82.74 per litre, the lowest price of the month, in the back of a fall in oil prices which led to a 7.64% decline in petrol rates in Madhya Pradesh in October.
- On 1 November, petrol was priced at Rs.82.56 per litre, which was also the lowest price of the month.
- Over the month, petrol prices dropped significantly due to the decline in geopolitical tensions between the US and China prompting oil prices to drop.
- By the end of the month, petrol prices dropped to its lowest for the month to touch Rs.75.99 per litre on 30 November.
- The petrol price trend in Madhya Pradesh in November moved downwards by 7.96% mainly due to the sharp drop in crude oil prices.
- In December, petrol opened the month at Rs.75.64 per litre, the lowest petrol price recorded in the month.
- The global crude oil was trading around $56 per barrel, down from $80 per barrel early October which influenced the reduction in petrol prices.
- On 31 December, petrol recorded its lowest rate for the month when it was sold at Rs.71.80 per litre.
- Overall, petrol prices in Madhya Pradesh dropped by 5.08% impacted by the sharp decline in crude oil priced as well as the depreciation of the US dollar over the Indian currency.
Quarterly Petrol Price Trend in Madhya Pradesh between July and September 2018
|Opening date price||Rs.81.33 a litre||Rs.81.97 a litre||Rs.84.25 a litre|
|Closing date price||Rs.82.00 a litre||Rs.84.26 a litre||Rs.89.37 a litre|
|Highest price||Rs.82.56 a litre recorded on the 14th||Rs.84.26 a litre recorded on the 31st||Rs.89.37 a litre recorded on the 30th|
|Lowest Price||Rs.80.97 a litre recorded on the 5th||Rs.81.97 a litre recorded on the 1st||Rs.84.25 a litre recorded on the 1st|
Petrol Price Trend in Madhya Pradesh in July 2018
- Petrol prices in Madhya Pradesh like other states in the country are revised on a daily basis by State-run oil companies based on the dynamic fuel pricing mechanism.
- The retail selling price of petrol in Madhya Pradesh is fixed by including the global crude oil price and rupee’s exchange rate against the U.S. dollar.
- In tandem with the daily revision, the petrol price in Madhya Pradesh on the 1st of July stood at Rs.81.33 per litre.
- However, prices declined in the next couple of days to touch Rs.80.97 per litre - the lowest price recorded during the month on the 5th.
- With the lowest price registered for the month, petrol prices in Madhya Pradesh moved upwards with an increase of 33 paise on the 6th and continued to incline over the course of first and second weeks.
- On the 14th, petrol prices in the state rose to touch its highest when a litre of petrol was sold at Rs.82.56 per litre.
- Prices of petrol fell on the third and fourth weeks but not lower than the opening price of the month. There was an upward trend in petrol prices in Madhya Pradesh during the month inclining by 0.82% influenced by the increase in the global crude oil price.
Petrol Price in Madhya Pradesh in August 2018
- On the 1st of August, a litre of petrol was sold at Rs.81.97 in Madhya Pradesh in accordance with the daily revision in prices of fuel in the country, this was also the lowest price during the month.
- There was no respite to the common man as oil companies continued to increase petrol prices across the country.
- With the rise in crude oil prices, petrol prices moved upwards during the first and second weeks before dropping slightly on the 15th.
- The decline was temporary as oil companies hiked petrol prices in Madhya Pradesh and other states in the third and fourth week of August.
- The increase in oil prices was influenced by geopolitical tensions of a trade war between the U.S. and China coupled with possible sanctions on Iran which led to the rise in oil rates in the global market.
- By the end of the month, petrol recorded its highest price of Rs.84.26 per litre on the 31st of the month.
- Overall, the petrol price trend in Madhya Pradesh in August was upward which rose by 2.79% impacted by the increase in oil prices.
Petrol Price Trend in Madhya Pradesh in September 2018
- Oil companies cut petrol price on the 1st of September by 1 paise per litre which stood at Rs.84.25 - the lowest price for the month in Madhya Pradesh.
- The benchmark Brent Crude was trading at a four-year high of $80 per barrel which triggered petrol prices to incline in the state.
- Petrol prices during the month rose to touch record highs in the month due to a sharp fall in the exchange rate of rupee over the U.S. dollar which fell to 72 - a record low for the Indian currency.
- Despite the significant increase in petrol prices, the Centre or states didn’t revise or lower taxes levied on the sale of petrol which kept petrol rates on highs.
- Some states such as Rajasthan, Karnataka, Andhra Pradesh and West Bengal announced a reduction in the local sales tax or VAT charged on petrol which offered some respite to the common man in those states.
- There was no indication of a decline in the crude oil price which led the petrol price in Madhya Pradesh to touch an all-time high of Rs.89.37 per litre on the 31st of the month.
- During the month, petrol prices rose by 6.07% attributed to the steep rise in oil prices coupled with the record low of the exchange rate of rupee over the dollar.
Quarterly Petrol Price Trend in Madhya Pradesh between April and June 2018
|Opening date price||Rs.79.27 a litre||Rs.80.18 a litre||Rs.83.96 a litre|
|Closing date price||Rs.80.18 a litre||Rs.84.02 a litre||Rs.81.14 a litre|
|Highest rate||Rs.80.22 a litre registered on 24th||Rs.84.02 a litre registered on 31st||Rs.83.96 a litre registered on 1st|
|Lowest rate||Rs.79.27 a litre registered on 1st||Rs.80.18 a litre registered on 1st||Rs.81.14 a litre registered on 27th, 28th, 29th and 30th|
Petrol Price Trend in Madhya Pradesh in April 2018
- Petrol prices across all the major cities of Madhya Pradesh have moved upwards during the first week of April 2018. In Bhopal, the capital city of Madhya Pradesh, petrol sold at a price over Rs.79 a litre during the first five days.
- Every fuel company in the state will follow the system of dynamic fuel pricing to revise the rate of petrol per litre based on two important aspects: the exchange rate and crude oil rates in overseas markets.
- Any changes in these two parameters are instantly reflected in the price of petrol. This is the reason why petrol rates were increased and decreased by fuel companies throughout the month.
- Since the crude oil market was sluggish from 25th until 30th, petrol prices in Madhya Pradesh were not changed.
- According to Petroleum Planning and Analysis Cell, the crude oil price per barrel slightly increased to $69.30. Therefore, petrol prices have increased by 1.14% this month.
- At Indian Oil, petrol was retailed at the highest rate of Rs.80.22 a litre on 24th. On the other hand, the lowest fuel rate was Rs.79.27 a litre.
Petrol Price Trend in Madhya Pradesh in May 2018
- Under dynamic fuel pricing, the price of petrol per litre stood at Rs.80.18 on 1st. Petrol rates were retained unchanged at Rs.80.18 a litre for the first eleven days of the month.
- On 14th, the fuel was valued at Rs.80.40 per litre. In synch with international crude oil rates, fuel brands such as Indian Oil, Hindustan Petroleum and Bharat Petroleum have begun increasing the rate of petrol across the state.
- As a result, petrol price in Madhya Pradesh has increased to Rs.82.20 a litre on 21st and Rs.83.94 a litre on 28th. The growth rate for this month stood at 4.78%. It was higher compared to the previous month.
- For the month, the highest petrol rate was Rs.84.02 a litre and the lowest petrol rate was Rs.79.27 a litre.
- Only the changes in the crude oil cost and the USD/INR exchange rate have caused an upward trend in the month of June 2018.
- Put alternatively, domestic influences such as Value-added Tax and excise duty were not considered in order to determine the price of petrol per litre.
Petrol Price Trend in Madhya Pradesh in June 2018
- On 1st, petrol price in Madhya Pradesh was Rs.83.96 a litre. During the first week, the prices of petrol have moved downwards caused by a downfall in the price of unrefined oil.
- The average petrol rate in Madhya Pradesh has gradually decreased over the next three weeks. In the end, petrol rates were reported to be down by 3.35% at IOCL fuel stations, BPCL fuel stations and BPCL fuel stations.
- Like the first two months of the quarter, excise duty and Value-added Tax were not revised by the Central Government and the State Government of Madhya Pradesh.
- Therefore, the pricing of petrol was completely free from the central and state taxes. In April, May and June, the INR weakened slightly against the USD.
- But, the revision of petrol rates in the state of Madhya Pradesh was not impacted by the USD/INR conversion rate.
- Between April and June, fuel rates were increased by Rs.1.87 per litre in all the prime cities of the state considering the variations in overseas unrefined oil prices.
Quarterly Petrol Price Trend In Madhya Pradesh Between January 2018 and March 2018
|Opening date price||Rs.74.82 per litre||Rs.78.85 per litre||Rs.77.34 per litre|
|Closing date price||Rs.78.71 per litre||Rs.77.28 per litre||Rs.79.07 per litre|
|Highest price||Rs.78.71 per litre registered on 30 and 31||Rs.79.18 per litre booked on 6||Rs.79.07 per litre booked on 31|
|Lowest price||Rs.74.82 per litre registered on 1 t||Rs.77.27 per litre booked on 25||Rs.77.34 per litre booked on 1|
Trend in Petrol Price in Madhya Pradesh in January 2018
- In Bhopal, the capital city of Madhya Pradesh, petrol was valued at Rs.74.82 per litre in all At BPCL, HPCL and IOCL stations on 01 January 2018. This was also the lowest petrol rate recorded for the month as the prices continually changed under the dynamic fuel pricing.
- As the value of the U.S dollar kept declining during the first week of the month, petrol prices increased on a day-to-day basis. The dollar value declined by 0.35%, 0.04%, and 0.05% on 2, 3, and 4 of the month due to which petrol prices fluctuated and stood at Rs.74.86, Rs.74.91, and Rs.74.95 on 2, 3, and 4 of the month respectively.
- By 15 January, petrol prices surged and hit Rs.76.17. The fall in the USD by 0.14% and the increase in crude oil which was sold at $68.02 per barrel lead to the hike in petrol prices.
- The highest petrol was tracked on 30 and 31 of March when fuel was sold at Rs.78.71 per litre. This was once again due to the dollar index which fell by 0.22%.
- The overall trend of petrol price inclined by 4.94% for the month of January.
Trend in Petrol Rate in Madhya Pradesh in February 2018
- Petrol was valued at Rs.78.85 per litre on 01 February 2018. *
- Although until the 7 February, the petrol prices were constantly increasing, it started to drop the following days as the USD value increased by 0.29% on 8 February. Petrol prices stood at Rs.79.11 on 5 before settling at Rs.79.18 on the 7 February.
- During these days, the highest petrol price of Rs.79.18 per litre was recorded on 6 February.
- Petrol prices further dropped to Rs.77.85 on 18 and Rs.77.3 on 26, and recorded the lowest petrol price of Rs.77.27 per litre on the 25 february.
- Petrol closed at Rs.77.28 per litre for the month of February marking an overall decline curve of 2.03% in Bhopal, the capital of Madhya Pradesh.
Trend in Petrol Price in Madhya Pradesh in March 2018
- In complete sync with the INR/USD exchange rate and the rate of crude oil (Indian Basket), the opening date price of petrol was Rs.77.34 per litre on 01 March 2018. This was also the lowest petrol price recorded for the month of March in Bhopal.
- The exchange rate of the USD fell during the first few days of the month by 0.04%, 0.29%, 0.19%, and 0.18% on 2, 5, 6, and 9 of the month. This led to a slight increase in petrol prices as the fuel traded at Rs.77.52, Rs.78.1, Rs.78.18, and Rs.78.22 on the same days.
- On 18 March, petrol rate fell to Rs.77.94. Per litre. Simultaneously, USD value picked up by 0.35% and 0.03% of 19 and 20 March.
- Petrol prices picked up on 25 March and traded at Rs.78.06.
- The highest petrol price was recorded on the last day of the month when the fuel traded at Rs.79.07 per litre.
- An overall upward curve by 2.19% was noticed in the trend of petrol prices for the month of March in Bhopal, Madhya Pradesh.
Who Controls The Fuel Rates In India?
No one controls the diesel or petrol prices in India. It all comes down to the market performance. Undoubtedly, the state and central taxes play a key role in the overall demand but it does pressurize the prices. Nevertheless, there is no one controlling it directly.
However, this wasn’t the case before. Thanks to the recently implemented mechanism called “dynamic fuel pricing system” in India. Earlier, both diesel and petrol prices were controlled via government subsidy. In fact, the fuel subsidies burnt a big hole in the Indian Government’s pocket whenever the crude oil rates went high after the Iraq invasion in 2003.
To reduce the subsidy bill of GOI (Government of India), petrol prices were deregulated in the year 2010 and diesel rates in the year 2014. Therefore, the prices are determined based on the market trends and the supply-demand chain.
Overall, the fuel prices in India comprises of the following components:
- International crude price
- VAT – Value Added Tax
- CER – Currency Exchange Rate
- Excise duty
- Transportation cost
- Refinery cost
Before June 16, 2017, the petrol prices in India were updated on a fortnight basis, meaning that based on the market performance of the previous day, the rates were modified on the first and sixteenth day for each month at 8:00 a.m.
However, this not only incurred a lot of losses to the oil marketing companies but also the governments could easily influence or affect them. To prevent all the drawbacks and to bring in better transparency in the system, the mechanism of “dynamic fuel pricing” was implemented.
What Is Dynamic Fuel Pricing?
The concept of Dynamic Fuel Pricing is something that is not only implemented in India but is also a mechanism that most developed countries follow. As per this system, the fuel prices are updated every morning at 6:00 a.m. based on the international and domestic market performances.
How Can Customers Know The Present Petrol Price In Madhya Pradesh?
There are 2 ways to know this information:
- A petrol buyer can easily download and install a mobile application to learn about the current petrol price based on a location. There are three mobile applications for this, which are SmartDrive, Fuel@IOC, and My HCPCL. These are put up at the app store free of cost by Bharat Petroleum, Indian Oil, and Hindustan Petroleum respectively.
- Mobile applications might not be ideal for a petrol buyer who does not have a smartphone. However, this doesn’t mean he or she cannot know about the current prices. An SMS can be sent to the respective service numbers of BPCL, HPCL, & IOC to receive the latest prices in Madhya Pradesh or any other region.
Does GST Affect The Vadodara’s Petrol Prices?
No, GST does not have any kind of influence in the petrol or diesel prices in India because these commodities have not been brought under its influence yet. Moreover, imposing GST (Goods and Service Tax) on fuel will not only lessen the rates by 27-37% but also the government might not be able to handle such big losses. Someday, if this turns out to be a reality, then the revenue of both State Government and Central Government will be heavily affected.
*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.