Petrol Price in Madurai
Madurai is a district headquarter in Tamil Nadu. Like other cities, the city of Madurai has a vast number of petrol users. The number is still growing. With the growing number of petrol users, petrol rates have also increased. We cannot apply the law of demand since crude oil is not an Indigenous commodity. Is it not interesting to understand the forces behind the changes in fuel rates? It is! This is a fuel page designed for petrol users from Madurai. The page discusses various facets connected to the petroleum industry.
Dynamic Fuel Pricing
Dynamic fuel pricing is the biggest change. It is a revised version of the previous fortnightly-based fuel pricing mechanism. Hindustan Petroleum, Bharat Petroleum and India Oil have implemented this system to align the Indian fuel segment with the global fuel industry. The system has also been deployed by Japan, the USA, Russia, etc. Sometimes, dynamic fuel pricing is also referred to as the daily revision mechanism.
Key Features of Dynamic Fuel Pricing
- Under this mechanism, petrol prices in Madurai shall be restructured regularly taking into account the cost price of crude oil and the INR/USD conversion ratio.
- Each fuel center whether automated or non-automated shall display the updated price each day at 06:00 a.m.
- Unlike before, fuel rates cannot be constant. Instead, they are expected to change.
Benefits of Dynamic Fuel Pricing
- The OMCs can easily monitor and manage stock or inventory. Cash management can be easier for them.
- Working capital, the difference between current liabilities and current assets, can be reduced.
- Dynamic fuel pricing also enhances the functional efficiency of the fuel corporations.
- The revision of fuel prices is done in a way that does not consider the political impact.
- Benefits are instantly transferred to end customers in Madurai.
- Petrol price in Madurai is completely transparent.
Download Mobile Applications to Track Latest Petrol Rate in Madurai
How are you tracing the latest petrol price in Madurai now? Are you finding it difficult to track the current fuel price? If yes, here is a solution for you. Downloading mobile applications is the best solution. This option is easy. If you are intending to obtain the revised fuel price offered by Hindustan Petroleum, download ‘My HPCL.’ If you’re a customer of Bharat Petroleum, consider downloading ‘SmartDrive’. Or, download ‘Fuel@IOC’ if you’re a customer of Indian Oil to get the current fuel price in Madurai.
Computation of Petrol Price in Madurai
|Petrol Price per litre|
|Global crude oil rates||$65.5 per barrel|
|1 barrel of unrefined oil||159 litres|
|OMC cost calculation|
|Entry levies, landing overheads, refinery transfer price, landing expenses||Rs.4.75 per litre|
|Profit margin of OMCs, freight expenses, transportation overheads||Rs.3.30 per litre|
|Cost of fuel after refining||Rs.34.48 per litre|
|Excise duty plus road cess||Rs.19.48 a litre|
|Dealer price before Value-added Tax||Rs.53.96 a litre|
|Dealer retail price|
|Commission charged by fuel retailers||Rs.3.59 a litre|
|Fuel rate before VAT||Rs.57.55 a litre|
|VAT@32.06%||Rs.18.45 a litre|
|Retail Selling Price of petrol in Madurai||Rs.76 a litre (Approximately)|
Note: Excise duty is a central level tax. The Central Government levies it commonly across the Indian states. It has been changed several times by the BJP Government. In May 2018, it was Rs.19.48 a litre according to Petroleum Planning and Analysis Cell.
Factors Impacting Fuel Prices in Madurai
Cost of crude oil: Undoubtedly, it is a major cost center and accounts for more than 30% of the market price of petrol. It has a long-run impact on the fuel rate. For instance, the OMCs have accelerated the petrol rate in Madurai in the month of January 2018. They have reduced the price mark in February 2018. In the month of March 2018 again, petrol rate was decreased. The motive behind these price fluctuations is the cost of unrefined oil. Petrol prices shall drop when crude oil costs drop. On the other hand, when crude oil prices increase, fuel rates shall hike.
USD/INR Exchange rate: We all understand the relevance of the INR/USD currency translation ratio. The currency pair exhibits the value of the Indian currency versus the greenback. It is a key aspect that impacts the price mark of petrol directly. In overseas markets, unrefined oil prices will drop if the INR devalues versus the USD. Conversely, if the Indian currency strengthens against the USD, crude oil rates will also augment.
Taxes: Crude oil expenses and the exchange rate are overseas factors. On the other hand, taxes are domestic elements and have a direct impact on the revision of fuel prices. How? When the Central Government diminished excise duty by Rs.2 a litre five months ago, fuel prices were also declined by Rs.2 per litre not only in Madurai but also in other parts of India. In a few states, VAT was also diminished. Therefore, HPCL, BPCL and IOCL shall adjust the RSP of petrol in tandem with the deviations in VAT and excise duty.
Goods and Services Tax (GST) versus Today’s Petrol Price in Madurai
Today’s petrol price is Rs.78.21 per litre. Is it including GST or excluding GST? This price mark is free from the GST structure. Petrol is not considered for the computation of tax under the present tax system. It is a widely used commodity and is the biggest revenue source for the Central Government. There is a motive behind not bringing the fuel under the GST realm.
The motive is that the execution of the GST tax system will dampen the current petrol price at least by 27-35%. In other words, petrol price in Madurai will be revised to Rs.55-60 per litre. Thus, not only the State Government of Tamil Nadu but also the Central Government of India are likely to incur massive losses. Petrol, therefore, has not been included to safeguard against losses.
Also Check Petrol Price in NearBy Cities of Madurai
|Petrol Price in Chennai||Petrol Price in Bangalore||Petrol Price in Hyderabad|
|Petrol Price in Coimbatore||Petrol Price in Trichy||Petrol Price in Visakhapatnam|
*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.