Petrol Price in Patna
Petrol price in Patna, the capital city of North Indian state of Bihar, is composed of various elements. For a common man, it often becomes difficult to actually understand how petrol is priced, why it doesn’t have an MRP and most importantly about why petrol price changes every day.
Well, it might be difficult but it is not impossible. Knowing some basics about various elements involved in petrol pricing, the factors that affect petrol price in Patna on a daily basis would give a basic idea about how petrol price in computed in the city and in across India.
Factors Affecting Petrol Rate in Patna
There are two major factors that affect petrol rate in Patna– international and domestic.
While international factors such as global crude oil prices and Indian rupee to US dollar currency exchange rate affect petrol price on a daily basis. Domestic factors such as state and central government taxes, oil companies’ profit margins and dealer’s commission do not affect petrol price in Patna on a day-to-day basis.
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However, any revision of domestic factors impact Petrol rate accordingly. Let’s see how and why these factors are responsible for varying petrol prices in Patna.
- Crude oil prices: With India importing more than 70% of its crude oil requirements from the OPEC nations, the price of crude oil in the international market plays a key role in petrol pricing in India.
With the implementation of dynamic fuel pricing model, petrol prices in India are being aligned to international crude oil prices on a daily basis. The volatile nature of crude oil price that changes dynamically thus impacts the petrol price in Patna.
To calculate petrol price in Patna today, the price of international crude oil in yesterday’s market will be considered.
- Currency exchange rate: Indian oil companies purchase crude oil in US dollars. While calculating petrol price in Patna, each US dollar will be converted into Indian rupee, based on the exchange rate prevailing on the previous day. The fluctuating nature of dollar thus shows impact on the petrol price on a daily basis. Whenever rupee falls against US dollar, petrol prices in India will increase and vice versa.
- Central government tax on Petrol: One of the domestic factors that affect petrol price in Patna is the excise duty levied by the central government on petrol. Currently, the government charges an excise duty of Rs.19.48 per litre of petrol. The rate remains same across states.
- Bihar state tax on Petrol: Bihar state government charges 24.64% value-added tax (VAT) on every litre of petrol sold in Patna. Whenever there is a revision in state taxes, petrol rate will be adjusted accordingly.
- Profit margins of oil companies: The profit margins of oil companies affect petrol price in Patna but not on a daily basis. It is one of the components that make-up petrol price in the city.
- Dealer’s commission: The refined petrol will be purchased by petrol dealers from the oil companies. The dealers add their own costs such as oil transportation cost, station maintenance cost, etc., in the form of dealers commission to the cost price of petrol. The commission is usually decided by the Indian oil companies and will be revised once every year. Whenever there is a revision of commission petrol price will get affected.
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Frequently asked questions (FAQs) on Petrol Price in Patna
- Why does petrol price in Patna change on a day-to-day basis?
- Where do I get the cheapest Petrol in Patna?
- Why does petrol price in Patna vary from one petrol pump to another?
- What is the effect of GST on Patna petrol prices?
Petrol price in Patna changes every day due to dynamic fuel pricing model. The pricing mechanism aligns domestic fuel prices in the country to international crude oil prices on a daily basis. The revised price will be updated at the petrol stations at 6:00 a.m. every day. The dynamic pricing system was implemented to bring more transparency in petrol pricing and to prevent sudden increase or decline of petrol prices in the country.
Petrol price across the city of Patna remains the same except for few minute differences. However, the state-owned fuel stations such as Indian Oil, Hindustan Petroleum, and Bharat Petroleum offer the best petrol price in Patna compared to private counterparts like Shell and Essar. Among the public players, Indian Oil offers the cheapest petrol in Patna.
Petrol price in Patna differs from one petrol station to another due to the variation in the dealer’s commission. Since dealers commission includes fuel transportation costs and fuel station maintenance costs, fuel stations located close to oil refineries charge less and those with high maintenance costs charge more.
GST or the goods and services tax is a new tax regime implemented in India. The new tax system is not being applied to all categories of products and services. Though most of the manufactured goods and services are taxed under GST, a few retail products are still kept outside GST net. Petrol and other fuel products are a few such products that are not taxed under GST. Hence, GST has no impact on petrol prices in Patna and also in rest of the country.
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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.