Petrol Price in Nellore
Are you aware of the recent trends with respect to fuel pricing? Do you know how petrol prices are fixed and revised in Nellore? Should the GST framework be implemented on petrol? Do you know why the petrol rate in Nellore is higher compared to Petrol Price in Delhi and Goa? Are these not important questions. Yes, these are! This page is targeted towards petrol consumers from Nellore, a notable town in the Indian state of Andhra Pradesh. The page discusses various aspects related to fuel pricing, including an analysis of historical petrol prices in Nellore.
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Daily Revision System or Dynamic Fuel Pricing
Currently, all petrol stations across the city of Nellore have been reviewing the price of fuels under dynamic fuel system. According to experts, dynamic fuel pricing is an important initiative that brings transparency with regard fuel pricing. The newly adopted mechanism is in sync with global markets. It is also in use in developed economies such as Australia, the USA, Japan, etc. In India, it was deployed in June 2017 and was well-received by all industry stakeholders.
The revision has to be done before 06:00 a.m. regularly by considering the currency conversion rate and Brent crude oil rates. The new price, which is set for petrol, reflects the changes in the price determinants. Thereby, fuel customers in Nellore are marked to real-time market performances. The daily revision system shall be advantageous to everyone involved in the supply chain. Petrol consumers in Nellore, OMCs and retail fuel dealers are safeguarded against huge petrol price variations via the daily revision system.
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Is the daily revision system advantageous?
- Fuel customers from the city of Nellore are benefited through quickly transferring any fall in international crude oil rates.
- Since the arrival of the daily revision system, the net effect of the GDP of the globe on the GDP of India accelerated significantly.
- Fuel consumers shall no longer face the problem of drastic fuel price variations.
- Oil marketing corporations shall no longer face the problem of working capital and cash flows.
- No political pressures can manipulate fuel pricing.
- Marketing companies shall be able to envision their net earnings in advance.
- The hypothetical element of predicting short-term and long-term fuel prices can be removed.
Can I trace the Current Petrol Price in Nellore?
Today’s petrol price in Nellore is obtained through offline and online means. The fuel consumers, who use smartphones, are recommended to download mobile applications to check fuel prices in Nellore. The mobile application provided by Indian Oil Company is Fuel@IOC, which can be accessed through the Apple Store and the Google Play Store. Android and Apple users can make use of this mobile application. Many people use SmartDrive, which is a popular mobile application provided by Bharat Petroleum. SmartDrive is individualised to accumulate vehicle and consumer-related information.
My HPCL is the mobile application provided by Hindustan Petroleum and can be accessed through IOS, Window and Android devices. You can download any of these mobile applications to check today’s petrol rate in Nellore. Besides, all oil marketing companies provide SMS services wherein customers are required to type ‘RSP’ and send the dealer code to 9224992249 (India Oil) or 9223112222 (Bharat Petroleum) or 9222201122 (Hindustan Petroleum).
How is the Petrol Price in Nellore fixed?
- Step 1: To determine the petrol price today in Nellore, the previous day’s Brent crude oil price and the value of the USD are taken into consideration. Let’s assume that the value of the USD is Rs.65 and the crude oil rate is $65. Now, we shall multiply 65 with 65 to arrive at the cost price of a barrel of oil, which is Rs.4,225. This amount is divided by 159 to arrive at the cost price of a litre of crude oil, which is Rs.26.50.
- Step 2: We have to now add the overheads spent by oil marketing companies. It is approximately Rs.8 per litre and is added to the cost price of a litre of crude oil.
- Step 3: We have to now consider the excise duty, which is decided annually by the Central Government. As of 1 February 2018, it was Rs.19.48 per litre on petrol. The excise duty includes the road cess, which has been recently introduced.
- Step 4: The commission charged by fuel retailers in Nellore is Rs.3.42 on petrol per litre. This is also one of the cost elements.
- Step 5: This is the final step where the VAT and the pollution cess are taken into account. As of 4 September 2017, the VAT charged by the Government of Andhra Pradesh was 38.93% and the pollution cess was 25 paise on petrol per litre.
Determinants of Petrol Price in Nellore
Petrol rates in Nellore are affected by crude oil rates, taxes, the exchange rate, etc. Crude oil rates are sensitive to production levels, the demand for unrefined oil in overseas markets and the political moves in oil-extracting nations. Fuel prices shall increase if India and Asian countries register a healthy economic progress. They shall change based on the policies of state governments in levying taxes on petrol. If there is a hike in the central tax, oil marketing brands shall increase the fuel prices to recoup losses and earn profits.
Let’s analyse the recent moves. The excise duty has been cut twice over the last 5 five month by the BJP-led government. It was lowered by Rs.2 per litre in October 2017 to control mounting fuel prices in India. Moreover, all states were intimated to decline the local tax on fuels. The State Government of Andhra Pradesh had refused to cut the local tax. Petrol prices in Nellore would have been cheaper if the State Government of Andhra Pradesh had decreased the local tax in October 2017.
Petrol Price in Nellore vs GST
Most people would want to include petrol under GST. Currently, GST is not levied on petrol, including its sub-products. Since petrol and petroleum products are a major revenue source for the central and state governments, they have not been brought under GST. Even though the GST Council proposes to tax petrol at the highest rate, which is 28%, the current petrol rate in Nellore shall reduce by 20-25% approximately. Market watchers say “Bringing petrol under GST makes the Indian tax system seamless.” The GST Council retains the right whether or not to bring petrol under GST. If GST is to be imposed on petrol, the prevailing tax rates are required to be modified a little to match the government’s requirements.
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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.