Petrol Price in Nashik
Did you check the petrol price in your city today? Why is petrol priced differently nowadays? Do you think the recently introduced GST framework affects fuel prices? Why is petrol costlier in Nashik compared to other Indian cities? Let’s answer these questions. The average petrol price in February was Rs.80.00 per litre in Nashik, a notable city in Maharashtra. The price encompasses levies and crude oil prices. The city of Nashik is witnessing a growing number of petrol-run automobiles.
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The state and central levies are subject to change from time to time. The central tax was decreased by Rs.2 per litre in October 2017 to curb growing fuel prices. After reducing the central tax, all states were urged to decrease state levies by the Central Government. Maharashtra was one among four states that have decreased the state tax in October 2017. In the recently announced Union Budget 2018-2019, the excise duty on petrol was further reduced by Rs.2 per litre.
Historical Petrol Prices in Nashik
The petrol price in Nashik was Rs.73.11 per litre on 2 April 2017. It rose to Rs.77.94 per litre on 1 May 2017. When revised on 1 June 2017, the fuel was priced at 78.92 per litre. On 1 July 2017, the petrol rate in Nashik was Rs.74.76 per litre. On 1 August 2017, it further rose to Rs.75.02 per litre whereas on 1 September 2017 it retailed at Rs.78.86 per litre. The fuel rate in Nashik reached its 4-year high at Rs.80.01 per litre on 1 October 2017. Since the excise duty was cut on 3 October 2017, the petrol price dropped to Rs.76.72 per litre on 1 November 2017.
Value-added Tax – A comparison among Indian States
As of 4 October 2017, the VAT imposed by the Government of Maharashtra on petrol was 47.94% in Mumbai, Navi Mumbai and Thane. While, it was 46.81% in rest of the state. In Gujarat, petrol was taxed at 28.96%. In Kerala, the VAT levied on petrol was 34.09%. The fuel was taxed at 30% in Karnataka. It was just 17% in Goa. Maharashtra is an expensive state with regard to fuel rates since both petrol and diesel are taxed heavily by the State Government. The central tax shall remain unchanged throughout the country.
Revision of Petrol Price in Nashik
All oil marketing entities in India – Indian Oil Private Limited, Bharat Petroleum Company Limited and Hindustan Petroleum Company Limited – adopted a new fuel reviewing methodology called dynamic fuel pricing in June 2017. Under the new methodology, oil marketing companies are required to revise the petrol rate in Nashik in line with the exchange rate and Brent crude oil prices every day at 06:00 a.m. Dynamic fuel pricing is also known as the daily revision system. Before introducing in all parts of the county, the daily price revision system was tested in four Indian cities.
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As per oil marketing corporations, dynamic fuel pricing shall entrust that the advantage of even the smallest variation in the currency conversion rate and transnational crude oil rates could be transmitted to retailers and end customers. The initiative eradicates the big leaps in prices, which are required to be reflected at the completion of a fortnight. Petrol buyers in the city of Nashik shall be aligned to global market dynamics. Besides, India shall be following the advanced fuel revision methodology like the United States of America, Japan, Russia and Australia.
Is Dynamic Fuel Pricing Beneficial for Oil Marketing Companies?
The dynamic fuel pricing, which determines today’s petrol price in Nashik, shall be extremely beneficial for Indian oil brands. The new system enables them to effectively manage working capital, which is the net difference between current liabilities and current assets. Stocks or inventories can also be properly managed by oil marketing companies. The biggest advantage of dynamic fuel pricing is that it ensures 100% transparency in fuel pricing. Unlike before, petrol consumers in Nashik do not have a waiting period of 15 days to receive a new price.
How do I get today’s Petrol Price in Nashik?
Since the petrol price in Nashik is changing every day, OMCs have come up with a few initiatives for fuel customers to obtain the latest fuel price in the city. They have announced SMS services and mobile applications. The name of the mobile application designed by Indian Oil is ‘Fuel@IOC’ whereas the name of the mobile application designed by Bharat Petroleum is ‘SmartDrive.’ Similarly, the name of the mobile application developed by Hindustan Petroleum is ‘My HPCL.’ The current fuel prices in Nashik can also be checked through visiting the websites of oil marketing companies, which upload new prices once the daily price revision is done at 06:00 a.m.
How is the Petrol Price in Nashik assessed?
The retail selling price of petrol = OMC expenses + crude oil prices + dealer commission + VAT + central tax + profit margin of OMCs + pollution cess
- OMC expenses: The OMC expenses encompass refinery transfer price, entry taxes, freight, import duties, etc.
- Dealer commission: The commission charged by fuel retailers will differ from city to city. Recently, it was increased by Rs.1 per litre.
- Excise duty: As of 1 February 2018, the central excise duty imposed on petrol was Rs.19.48 per litre. It also includes the road tax levied by the Central Government.
- Crude oil prices: Crude oil traded at $63-$65 per barrel in February 2018. It is expected to grow by 16% over the next 12 months, according to sources.
Why do Petrol Prices in Nashik change?
The petrol rate in Nashik is influenced by three important factors, which include the exchange rate, the price of crude oil and taxes. An exchange rate represents the value of a currency against another currency. The INR/USD currency pair gives us the value of the INR against the USD. If the USD, the base currency, drops against the INR, the domestic currency, the cost of crude oil falls. This will lead to a drop in the retail selling price of petrol in Nashik. If the INR drops against the USD, the cost price of unrefined oil increases in overseas markets. Eventually, fuel rates are affected.
GST vs Current Fuel Prices in Nashik
Before we understand the influence of the GST system on the current fuel prices in Nashik, let’s define the GST system. It is a commonly used tax system in India today and subsumes all forms of indirect levies. The GST is presently imposed at 5%, 12%, 18% and 28% on all classes of commodities and services. The highest rate defined by the GST Council till date is 28% whereas the lowest rate is 5%. Unlike other products, petrol is not taxed under the GST ambit presently, including its byproducts.
Dharmendra Pradhan, Oil Minister, recently said that the GST Council should consider petrol and diesel for taxation purposes. Market observers said that if petrol is brought under the GST system, petrol prices will fall. At 12%, the petrol price will fall to Rs.38.01 per litre. If GST is imposed at 18%, the fuel price will be Rs.40.05 per litre. At 28%, the fuel is priced at Rs.43.44 per litre in Delhi, the capital city of India. The imposition of GST on petrol will reduce the fuel price for consumers, but both the central and state governments are likely to lose the major chunk of revenues.
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