Petrol Price In Mangalore Today

Petrol Price in Mangalore

Have you observed the recent petrol price in Mangalore? How is the trend? Is it moving in an upward direction or a downward direction? Do you have such questions in your mind? If yes, this page is for you. This is a fuel related page that has been individualized for the petrol consumers from Mangalore, a major town in the Indian state of Karnataka. The intent is to provide the most useful information for the users of the fuel despite their consumption pattern. The page discusses the following topics in detail: The current petrol price in Mangalore The petrol price revision mechanism A comparative analysis of petrol prices in Mangalore and other prime cities in Karnataka Petrol pricing system and determinants of petrol prices Let’s begin with the petrol pricing mechanism, which is currently in use. If you have noticed the latest petrol rate in Mangalore, you may have observed frequent price fluctuations. Why is it so? Most petrol users do not know that all Indian oil marketing companies – Shell Oil, Hindustan Petroleum, Bharat Petroleum and Indian Oil – have been reviewing the fuel price on a daily basis since post mid-June 2017. The daily revision of fuel prices is called as dynamic fuel pricing.

Dynamic Fuel Pricing - A New Fuel Pricing Initiative

India joins the United States of America, Australia, Japan and Russia by introducing this new system for petrol pricing and revising. The dynamic fuel pricing mechanism was tested before implementing in the entire country. The mechanism revises the petrol price on a daily basis in tandem with the INR/USD exchange rate and global crude oil rates. So, all petrol pumps across the city of Mangalore are presently revising the petrol price under the new mechanism. How is the price revision done? The price revision is done in two ways: automatically and manually. Since dynamic fuel pricing fosters the automation drive, all automated petrol bunks will revise the petrol price in Mangalore automatically whereas non-automated petrol bunks will do it manually. Upon revising the price, it shall be made available to end consumers through offline and online modes. How? Smartphone users can download the mobile applications designed by oil marketing companies (OMCs) to trace the current petrol price in Mangalore. If not, fuel consumers can also visit the websites of OMCs also.

Dynamic Fuel Pricing System from the Stance of Consumers

The latest fuel revision mechanism has been well-received by consumers across the nation. The variations in the price determinants – the exchange rate and crude oil prices – can be instantly transmitted to end petrol users. More importantly, price variations can be transparent and consistent.

Quarterly Petrol Price Trend in Mangalore Between January and March 2019

Quarterly Petrol Price Trend in Mangalore Between October and December 2018

Petrol Price Trend in Mangalore Between October and December 2018

• Petrol and diesel rates in India are revised every day by State-run Oil Marketing Companies (OMCs) based on the ‘Dynamic Fuel Pricing’ mechanism, which considers the 14-day average price of crude oil along with the exchange value of the rupee against the US dollar.
• Under this pricing mechanism, petrol was sold at Rs.83.84 per litre in Mangalore on 1 October, a record high amid high crude oil prices.
• By 4 October, petrol prices in Mangalore rose to touch the highest price of Rs.84.08 per litre, prompting the Government of India to announce a cut in the excise duty levied on fuel.

• While Rs.1.50 per litre of excise duty was cut, the Centre asked OMCs to further cut Rs.1 per litre as fuel subsidy.
• By the end of the month, petrol prices declined to touch the lowest rate of the month when it was sold at Rs.79.58 per litre.
• Overall, the petrol price trend in Mangalore declined by 5.09% influenced by the reduction in excise duty as well as due to a slight drop in crude oil prices.
• On 1 November, petrol in Mangalore was available at Rs.79.40 per litre, this was also the highest price recorded in Mangalore during the month.
• Crude oil prices were trading higher due to the geopolitical tensions between the US and China over trade between the two countries.

• However, by the end of the month, crude oil prices declined significantly which led to the fall in petrol and diesel prices in Mangalore.
• Petrol prices declined by 8.23% in November in Mangalore amid a steep fall in crude oil prices in the international market.
• On 1 December, petrol was sold at Rs.72.51 per litre in Mangalore – the highest rate recorded during the last month of the quarter.
• Crude oil prices in the global market lowered to trade around $56 per barrel late December as against $80 per barrel early October, prompting fuel prices to decline significantly in the country.
• Overall, the petrol price trend in Mangalore in December fell by 5.26% attributed to the steep decline in crude oil prices as well as due to the appreciation of the rupee against the US dollar.

Dynamic Fuel Pricing system from the Stance of OMCs

• OMCs can better manage liquidity.
• Cash inflows and outflows will remain unaffected.
• OMCs face no difficulties as far as inventory management is concerned.
• OMCs can reduce the operational overheads.

Quarterly Petrol Price Trend in Mangalore between July and September 2018

Petrol Price Trend in Mangalore in July

• The price of petrol is inclusive of several cost aspects such as the excise duty, the Value-added Tax, the commission for dealers, the expenses of oil marketing companies, the cost of crude oil, etc.
• So, these factors make a difference while resetting the price of petrol. Because of the introduction of dynamic fuel pricing, the revision of fuel rates will happen on a daily basis based on external influencers such as the crude oil overheads and the USD/INR conversion ratio.
• In July 2018, there were no changes in the indigenous forces. For instance, the excise duty on petrol per litre remained unchanged at Rs.19.48 per litre.
• If there was a change in the excise duty, the revision of petrol rates in Mangalore, which is a major city in Karnataka, would have impacted.
• The Indian oil marketing companies kept updating the rate of petrol per litre primarily in tandem with the overseas elements, which include the exchange rate and crude oil rates.
• As fuel rates were on the rise steadily until the end of the second month, the highest rate for the month was registered on 16 July 2018 in Mangalore and other cities in Karnataka.

Petrol Rate Trend in Mangalore in August

• As the Centre has deregulated petrol and diesel a few years ago, the public and private sector oil enterprises have been asked to reset fuel rates under a system called dynamic fuel pricing.
• Like the earlier month, the revision took place on the basis of the external factors this month as well.
• Petrol rates were hiked in the first week of the month. As of 2 August, petrol was valued at Rs.78.30 per litre in the city of Mangalore. By the completion of the first week, the Indian fuel companies increased fuel rates by 65 paise per litre.
• No fuel rates were changed in the complete second week of August 2018. They were constant at Rs.78.95 per litre.
• For the first four days of the third week, the fuel was bought at a price of Rs.79.09 per litre. On the 20th, the fuel rate increased by 31 paise per litre.
• Like other cities in Karnataka, the prices of petrol were consistent at Rs.79.50 per litre in the third week.
• The closing date price stood at Rs.80.47 per litre. It was also the highest fuel rate for the whole month. For the whole month, the growth rate was recorded at 2.77%.

Petrol Price trend in Mangalore in September

• The oil companies continued using the framework of dynamic fuel pricing to review fuel prices throughout the month. The movements in the price of crude oil in the global market were completely different this month.
• As of 1 September, at Indian Oil fuel station in Mangalore, the fuel price stood at Rs.80.47 per litre. On the second of September also, the fuel sold at a price of Rs.80.47 per litre.
• The price surpassed the mark of Rs.82.00 per litre by the completion of the first week. For the first two days of the second week, the price of petrol remained consistent at Rs.82.04 per litre.
• By the end of the third and fourth weeks of September, the fuel prices in the city of Mangalore soared to Rs.82.44 per litre and Rs.83.33 per litre respectively.
• For the last three days of the month, the fuel rate was also consistent at Rs.83.33 per litre under the daily fuel pricing mechanism.
• The opposition party leaders had called the Bharat Bandh on 10 September to protest against higher fuel rates across the country. Fuel pricing was not influenced irrespective of the Bandh called by the Congressmen.
• Eventually, it can be interpreted that the upward trends in the months of July, August and September were caused only by the fallen rupee.
• In this quarter, the petrol rate in Mangalore has gone up by almost Rs.8 per litre. Other cities of the state also witnessed the same hike.

Quarterly Petrol Price Trend in Mangalore between April and June 2018

Petrol Price Trend in Mangalore in April 2018

• Dynamic fuel pricing has been introduced by the Indian Government to revise the petrol rate and also the diesel rate based on the global influencers such as crude oil prices and the currency translation ratio.
• This is the reason why the rate of petrol per litre is revised on a daily basis. It is applicable to all the cities in India, including Mangalore.
• Throughout the month of April 2018, petrol prices in Mangalore, a prime city in the Indian state of Karnataka, were revised under the system of dynamic fuel pricing by the Indian oil marketing companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil.
• On 02 April 2018, the fuel rate in Mangalore was Rs.74.42 a litre. The fuel rate increased by 14 paise per litre on 03 April 2018. When revised on 05 April 2018, it stood at Rs.74.59 a litre.
• Petrol was valued at Rs.74.52 a litre in Mangalore on 13 April 2018, Rs.74.63 a litre on 16 April 2018, Rs.74.68 a litre on 19 April 2018, Rs.75.12 a litre on 23 April 2018, and Rs.75.25 a litre on 24 April 2018.
• Taxes will also impact the revision of petrol rates in Mangalore and other Indian cities as well. In this month, both excise duty and sales taxes were not changed.
• It can be interpreted that 1.11% growth rate in petrol prices in Mangalore was triggered only by the crude oil price and the USD/INR exchange rate.

Petrol Price Trend in Mangalore in May 2018

• As the Karnataka state assembly election was held in the month of May 2018, not only the diesel rates but also the petrol rates in Mangalore were steady until the 11th.
• As on 14 May 2018, the cost of crude oil per barrel was $74.96. It increased to $77.04 per barrel on 21 May 2018. Therefore, the fuel rate started moving upwards after the completion of the second week of May 2018.
• During the third week of May 2018, the fuel was sold at an average price of Rs.75.89 a litre in Mangalore. During the last week of the month, the average fuel price stood at Rs.78.20 a litre.
• In this month, the cost of crude oil was up 8.67% to $75.31 per barrel and the INR slightly depreciated against the greenback.
• Triggered by the increased crude oil rate, petrol prices in the city of Mangalore produced an upward trend.
• Like the first month, domestic elements such as excise duty and Value-added Tax (VAT) remained unchanged in this month also.

Petrol Price Trend in Mangalore in June 2018

• On 01 June 2018, the crude oil per barrel was $75.02. It dropped to $74.89 per barrel on 08 June 2018. The crude oil price per barrel further fell to $74.49 on 15 June 2018 and $72.18 on 22 June 2018.
• Fuel companies also commenced decreasing the petrol price in Mangalore in sync with the changes in crude oil prices. The opening date price was Rs.78.99 a litre.
• By the end of the first week, the fuel rate in the city was Rs.78.32 a litre. When revised on the 15th, the fuel was valued at Rs.69.74 per litre.
• In June 2018, petrol rates in the city of Mangalore were down by more than 3% caused by the slightly decreased crude oil price.
• The highest petrol rate was booked at Rs.78.99 for the month. It was also the highest fuel rate for the whole quarter.

Excise Duty and VAT

Petrol generates the revenue for both central and state governments. The central government imposes the excise duty whereas state governments impose Value-added Tax (VAT). Recently, the excise duty was revised to Rs.19.43 per litre in October 2017. The VAT levied on petrol was 30% in Karnataka as on 04 October 2017. These two tax components are subject to change from time to time. In October 2017, VAT was reduced in Maharashtra, Uttar Pradesh and Gujarat.

Petrol Price in Mangalore – How is that assessed?

Petrol Price Today in Mangalore includes the following cost elements:

• Crude oil prices
• Excise Duty and VAT
• Refinery transfer price (RTP)
• Dealer Commission
• Profit Margin of OMCs
• Pollution Cess
• Expenses incurred by oil marketing companies

The cost of crude oil is determined globally and changes based market dynamics.

The commission charged by dealers varies from one place to another.

The expenses incurred by OMCs include freight charges, landing expenses and operational expenses.

Refinery transfer price is the price remitted by OMCs to refineries for converting crude oil into petrol.

Excise duty imposed on petrol in Mangalore is 19.43 per litre on as 3 October 2017.

Value-added Tax (VAT) was 30% as on 04 September 2017 in Karnataka.

Determinants of the Petrol Price in Mangalore

The Petrol Rate in Mangalore increases when:

• The cost of crude oil goes up
• The tax rates increases
• The USD falls against the INR

On the other hand, the Petrol Rate in Mangalore decreases when:

• The cost of crude oil falls down.
• The tax rates decrease
• The USD gains against the INR

The cost of crude oil is based on global demand and supply, economics of oil producing companies, weather conditions, seasonal variations and global politics. On the other hand, the exchange rate is based on interest rates, inflation rates, Gross Domestic Product (GDP) and global economics.

Petrol Price in Mangalore vs GST

As we all know, we are all paying taxes under the new tax regime called GST, which stands for Goods and Services Tax (GST). Unlike other products, petrol and diesel have not been brought under the GST purview. As a result, the current petrol price in Mangalore remains unaffected by the GST regime. The imposition of GST system on petrol at the current tax structures will negatively affect the revenue source for the government.

Also Check Petrol Price in NearBy Cities of 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.