Petrol Price in Meerut
Situated in the Indian state of Uttar Pradesh, Meerut is a city with a rich ancient past boasting of settlements which dates back to the Indus Valley civilisation. With the national capital of New Delhi a few hours away, a large number of commuters travel to work from Meerut to Delhi, Greater Noida, Noida, Gurgaon and Ghaziabad.
State-owned buses offer public transportation to cities across the State as well as to nearby cities. Apart from buses, commuters use auto rickshaws and private vehicles to travel between destinations. With the rise in the vehicular density, petrol consumption has risen significantly in the recent past.
Fuel companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum operate more than 90% of fuel stations across Meerut. Petrol prices in Meerut are revised on a daily basis which is influenced mainly by the change in the global crude oil price. India imports more than 70% of crude or unrefined oil from oil-producing countries making the commodity an expensive product.
Apart from the global crude oil price, there are several other factors which impact the petrol price in Meerut. Let’s review each of these factors in detail and understand why petrol prices are revised daily and how fuel prices are assessed before customers pay the Retail Selling Price (RSP).
Causes of Change in Petrol Price
As mentioned, petrol prices in Meerut are revised on a daily basis. The daily revision of the petrol price in Meerut is influenced by international and domestic factors.
- Global Crude Oil Cost: Oil-Marketing Companies (OMCs) purchase crude oil from the international market and it forms the base price of the petrol price in India. Crude oil rates fluctuate due to various elements such as production cuts announced by the oil-producing countries, shortage of supply, higher demand or geopolitical tensions leading to an increase in the cost of crude oil. And, if there is an increase in production or ease in geopolitical tensions, crude oil prices decline accordingly. Due to the fluctuation of crude oil prices, petrol prices are dynamic in nature and are revised daily in tandem with the latest global crude oil price.
- US Dollar Exchange Rate: Trading of crude oil in the international market typically happens in US dollars. When the US dollar appreciates or depreciates over the Indian Rupee, the cost to purchase crude oil increases and vice versa. Whenever the cost to purchase crude oil rises, petrol prices rise as well.
- Profit Margin, Operating Costs & Dealer Commission: OMCs refine crude oil at their refinery and transport it to fuel stations across the nation. Profit margin and operating costs are added by OMCs to the petrol price before it’s sold to the consumer. Also, these oil companies add dealer commission to the petrol price, essentially a commision to fuel station owners.
- Tax on Petrol in India: Currently, petroleum products attract the Centre’s excise duty and the State’s sales tax or Value Added Tax (VAT). The Central Government levies excise duty of Rs.19.48 for a litre of petrol, while the State Government of Uttar Pradesh charges VAT at 28.68%. Changes to the tax rates have a direct impact on the petrol rate in Meerut.
Breakup of Petrol Price in Meerut
Fuel prices in India include various components which make up the final selling price. Here’s an example of the petrol price in Meerut recorded on 3 June 2018. This offers an insight into how petrol rates are priced.
|1||International Crude Oil Price + Freight Charges||$78.30 per barrel = Rs.32.98/Litre (considering $1=66.96 and 1 barrel oil = 159 litres)|
|2||Profit margin of Oil Companies, transportation, refining, and operational costs||Rs.5.32/Ltr|
|3||Central Excise Duty + Road Cess||Rs.19.48/Ltr|
|5||Value Added Tax (VAT)||Rs.17.61/Ltr|
|Total||Retail selling price of petrol in Meerut||Rs.79.03/Ltr|
What is Dynamic Fuel Pricing?
Until 16 June 2017, fuel prices including petrol and diesel were revised every fortnight based on the average global crude oil price in the preceding fortnight as well as the US dollar exchange value. However, this didn’t let oil companies increase or decrease petrol rates if there were sudden fluctuations in crude oil prices.
To offset the losses to the oil companies and to pass on the latest crude oil rate to consumers, the ‘dynamic fuel pricing’ mechanism was introduced. Under the new pricing method, petrol prices are updated daily at 6:00 a.m. IST to ensure that the benefit of even a slight change in the global crude oil price can be passed on to dealers and consumers. With this new pricing mechanism, the current petrol price in Meerut is more aligned to market dynamics.
Pros & Cons of Dynamic Fuel Pricing
The move to price petrol under the dynamic fuel pricing will benefit both the consumer and the oil marketing companies. Let’s look at some of the advantages and disadvantages of dynamic fuel pricing mechanism.
- In the event of a sudden spike in the crude oil prices, no party, including consumers and oil marketing companies, incur losses as it used to be under the fortnightly revision method.
- A decline in the global crude oil price will bring down the cost of the petrol price and benefits the customer the next day itself.
- In the event of an increase in the crude oil rate, oil companies will pass on the hike to consumers the next day without incurring any losses.
- Minimise the effect of rise or fall in crude oil prices on the working capital of companies and fuel station owners.
How to Check Petrol Price Daily?
With petrol prices changing every day, it might be a challenge to check the current petrol price in a city or a fuel station. However, OMCs have introduced several ways to track the latest petrol price in Meerut and in across cities in the country.
- Smartphone Apps: Consumers can take advantage of mobile apps launched by oil companies. While Indian Oil has launched the ‘Fuel@IOC’ app, Bharat Petroleum has introduced ‘SmartDrive’ and Hindustan Petroleum offers the latest petrol rate in Meerut through their ‘MY HPCL’ app.
Services Through Short Messaging Service (SMS): For those looking to find today’s petrol price in Meerut, SMS service is offered by OMCs to track the current fuel price.
- Indian Oil: SMS RSP Dealer Code and send SMS to 9224992249.
- Bharat Petroleum: SMS RSP Dealer Code and send SMS to 9223112222.
- Hindustan Petroleum: SMS HPPRICE Dealer code and send SMS to 9222201122.
- Online Portal: Customers can visit the OMCs’ respective websites to get the current petrol price in Meerut as well as other cities. The websites are updated daily to offer the latest petrol rate.
Is GST Applicable on Petrol in Meerut?
Currently, the Goods and Service Tax (GST) is not applicable to the sale of petrol in India. Petroleum products such as petrol and diesel continue to attract the Centre’s excise duty and the State’s VAT. Since the current tax on petrol is higher compared to the highest tax slab in GST, the revenue generated by selling petrol by the government will reduce significantly. Therefore, petrol is exempted from the framework of the GST. That said, if petrol is brought under GST, the petrol price in Meerut will reduce accordingly.
Also Check Petrol Price in NearBy Cities of Meerut
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*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.