Petrol Price in Malappuram
Fuel price changes every day in Malappuram, which is a notable city in Kerala. Other parts of the country are also experiencing the same trend. Understanding the element of VAT is extremely important. Petrol prices cannot change within the same state. For instance, petrol price in Malappuram cannot deviate much from petrol price in Kannur, which is another prime city in Kerala. The average petrol price in Kerala will differ comprehensively from the average petrol rate in Maharashtra owing to Value-added Tax.
Let’s study petrol price trends between January 2018 and March 2018. It is just an analysis of historical data. Like other products, you cannot technically comprehend the price of petrol because of uncertainties. In January 2018, petrol price increased by Rs.2.96 per litre. In the following month, fuel rates were down by Rs.1.60 per litre. In March 2018, they were up by Rs.1.80 per litre. During this tenure, petrol rate in Malappuram increased by more than Rs.3 per litre. No changes were made in excise duty and VAT. There were changes in crude oil costs and the exchange rate.
|Also Know: Petrol Price in Kerala|
Revision of Petrol Price in Malappuram
Petrol prices are determined by various factors. The price of petrol has to be revised based on certain parameters like other products. Nowadays, fuel companies such as Hindustan Petroleum, Bharat Petroleum and Indian Oil are revising the rate of petrol under dynamic fuel pricing. Japan, Australia and Russia have deployed the system of dynamic fuel pricing, which is the name of the mechanism used for fuel pricing. Therefore, fuel prices in Malappuram are revised every day in tandem with crude oil prices and the exchange rate.
Salient Features of Dynamic Fuel Pricing
- Dynamic fuel pricing is a global practice.
- Many countries have adopted it to address the complexities involved in the previous system.
- No political factors can affect the pricing of petrol in the city.
- Each petrol supply center in Malappuram will declare the revised petrol price every day at 06:00 a.m.
- Ups and downs in the price of unrefined oil can be passed on to end customers.
Tips for Tracing Today’s Petrol Price in Malappuram
Usually, fuel customers will visit the nearest fuel station to get the fuel price. In lieu of this, they can now consider several options, including mobile applications, SMS services, and customer care services. Mobile applications are interesting to use. Let’s assume you are a loyal customer of Indian Oil, you can easily get the petrol price offered at Indian Oil by downloading its mobile application called ‘Fuel@IOC.’ The name of the mobile application that should be downloaded by BPCL customers is ‘SmartDrive’. Likewise, regular customers of HPCL may download My HPCL, a mobile application designed by HPCL.
Evaluation of Petrol Price in Malappuram
Who will assess the price of petrol per litre? Obviously, OMCs will assess the rate of petrol considering several cost centers. What are OMCs? OMCs stand for Oil Marketing Companies, which are three in number in India. They include Hindustan Petroleum, Indian Oil and Bharat Petroleum. OMCs will buy unrefined oil, which is priced in terms of US dollars. Let’s assume the price of crude oil per barrel to be $60 and the USD/INR exchange rate to be Rs.60. Then, in Indian rupees, the price of crude oil per litre will be computed by multiplying the crude oil cost per barrel by the exchange rate. It was Rs.31 per litre as on 20 May 2018.
The imported crude oil is converted into petrol at refinery centers owned by OMCs. Several types of expenses are incurred by OMCs to produce petrol out of crude oil. Major costs include refinery transfer price, landing costs, entry levies, etc. Excise duty is a prime cost element, which is charged by the Government of India commonly across India. On petrol per litre, it was Rs.19.48 in the month of May 2018 and cannot be constant. Value-added Tax (VAT) is another cost aspect and was charged at 32.03% in Malappuram. Dealers will charge a fixed percentage of commission for distributing petrol to end consumers. To compute the petrol price per litre, all the aforesaid cost aspects need to be added.
Petrol rate in Malappuram = excise duty + VAT + commission for fuel dealers + crude oil overheads
Why does Petrol Price in Malappuram Change?
As discussed earlier, petrol is derived from crude oil, which is imported by India in large quantities. So, the exchange rate directly impacts the pricing of crude oil. If the USD gains steadily against the Indian rupee, crude oil costs will fall. On the other hand, when the USD depreciates against the local currency, then, crude oil expenses will increase. Ultimately, any variations in the exchange rate will affect fuel prices in domestic markets.
VAT can be revised by states. Excise duty can also be revised by the Government of India. The present NDA Government, which came into power in 2014, revised excise duty on several occasions. If excise duty decreases, fuel rates will fall and vice versa. When VAT decreases, fuel prices in Malappuram will decrease and vice versa. Excise duty and VAT are the most common influencers, which are domestically governed.
GST vs current petrol rate Malappuram
GST is a common tax system introduced in India. If you buy a certain product or a service, you pay GST. It is interesting to notice that the consumers of petrol and diesel will not pay GST currently. Instead, they pay VAT and excise duty. In other words, the pricing of petrol not only in Malappuram but also in other parts of the country does not get impacted by GST. Petrol prices will diminish by a big margin when GST is charged on petrol. However, the government is not interested in bringing petrol under GST. It is a tough call undoubtedly. A wise decision has to be taken by the GST Committee members in consultation with the Prime Minister of India.
Also Check Petrol Price in NearBy Cities of Malappuram
|Petrol Price In Kannur||Petrol Price In Trivandrum||Petrol Price In Kannur|
|Petrol Price In Thrissur||Petrol Price In Coimbatore||Petrol Price In Mangalore|
*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.