Petrol Price in Nagercoil
Petrol prices in Nagercoil, a town in Tamil Nadu, are unstoppable now. Since January 2018, they have hiked by more than Rs.4 a litre. Fuel users throughout India are expecting a further cut in central taxes by the Central Government. Over the last four years, excise duty has been restructured several times by the NDA Government to cushion the brunt of rapidly growing fuel prices in India. In October last year, four states have slid the Value-added Tax on petrol. Will the State Government of Tamil Nadu decline its VAT on petrol like other states? It may!
Petrol is supplied across the city of Nagercoil through a good number of fuel stations, which function for a fixed amount of commission per litre. Fuel stations are recognised by their respective fuel marketing companies, which include Hindustan Petroleum (HPCL), Indian Oil (IOCL) and Bharat Petroleum. A few fuel centers are identified by other fuel marketing companies in Nagercoil such as Shell Oil and Reliance. Owing to transportation expenditures, there can be a deviation in petrol rates offered at different centers. As of 11 May 2018, petrol price in Nagercoil was valued at Rs.78.29 per litre.
How is Petrol Price in Nagercoil Revised Today?
This is an important question to be answered from the perspective of fuel buyers. You should first understand fuel rates are reset by the fuel selling entities, which have now been instructed to follow the dynamic fuel pricing approach. Until May 2017, on 1st and 16th of every month, fuel rates used to be reset. In lieu of having only 2 revisions in a month, revision now takes place every day in Nagercoil under the dynamic fuel pricing framework. It is almost a one-year-old concept in India. Other countries such as Australia and Japan have been following the same system since many years.
Attributes of Dynamic Fuel Pricing
- Downs and ups in the rate of crude oil and the currency translation rate are watched in order to value the fuel be it petrol or diesel.
- Sharp at 06:a.m., the restructured price for a particular day will be unveiled to the public at each fuel point.
- No big lapses can be observed under this system. Offers can move up or fall down only by a few paise.
- HPCL, IOCL and BPCL in Nagercoil can retain the same offer for the succeeding days. It is because of stabilised market conditions.
- The system allows market watchers to project the future price trend to a certain degree.
Merits of Dynamic Fuel Pricing
- The petrol price, which is offered to end buyers in the town of Nagercoil, has been fixed in a way that is fully free from political aspects.
- Petrol is steadily distributed to customers.
- Fuel stations can be completely automated to save money and time. Thus, the fuel retailing entities can enrich their throughput and profits as well.
- Buyers can no longer wait for a period of 15 days to benefit from the downfalls in crude oil rates.
- Via dynamic fuel pricing, the fuel marketing industry in India can be aligned with the overseas fuel marketing segment
Mobile Applications to Receive Today’s Petrol Rate in Nagercoil
- Fuel@IOC: Fuel@IOC has been designed by Indian Oil, a renowned fuel entity in India. It is tremendously helpful not only to receive the latest fuel price in Nagercoil but also to get other details.
- SmartDrive: SmartDrive has been customized for its customers by Bharat Petroleum. It is easy to download and use. The features are excellent.
- My HPCL: As its name symbolises, the mobile application is presented by Hindustan Petroleum to its vast number of customers.
What is the Procedure Followed to Compute the Petrol Price in Nagercoil?
Crude oil price per litre is computed first. Let’s assume the rate of unrefined oil per barrel is $68 today, the cost will be converted into the Indian currency and then will be divided by 159 to compute the cost per litre. The imported crude oil is delivered to refinery stations for further processing. The OMCs spend several categories of expenses to translate the raw material into a usable commodity, which is petrol. Later on, the refined oil is marketed through fuel points. Excise duty and VAT are also added. As of 10 May 2018, excise duty and VAT, on petrol per litre, were Rs.19.48 per litre and 32.08% respectively in the city. Here goes the simple equation:
Petrol rate in Nagercoil = commission for dealers + central and state taxes (excise duty and VAT)+ crude oil expenses + 25p pollution cess
Influencers of Petrol Price in Nagercoil
Taxes: As discussed earlier, the Government of India may declare a cut or a rise in excise duty on petrol to lessen the burden on buyers. In fact, we have seen this happening. HPCL, IOCL and BPCL are required to price the fuel considering VAT and excise duty. A cut in taxes will decrease the fuel rate whereas a rise in taxes will hike the fuel rate in parts of the country.
Crude oil rates: India relies heavily on importing unrefined oil from other countries since the home production cannot fully suffice the country’s demand. It has to adjust fuel rates based on the price of this commodity. IOCL declared a price up of 4% in January 2018 in Nagercoil since the commodity gained its value substantially.
Will the GST System Impact the Petrol Price in Nagercoil?
It does not! Why? There is a reason behind. Petrol is a very important commodity from the viewpoint of the Central Government since it generates a huge amount of revenues. When it diminishes the tax rate on petrol, revenues will fall down. The revenue generated through petrol is shared between the State Government of Tamil Nadu and the Central Government. Finally, the end result of the enclosure of petrol under the Goods and Services Tax (GST) structure has a negative impact. Therefore, the previous tax rates have been extended on petrol.
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