Petrol Price in Patna
The Price of petrol 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 in Patna changes every day.
|Also Know: Diesel Price In Patna|
Trend of Petrol Price in Patna for September 2019 (rates per litre)
|Highest Rate in September||Rs.77.95|
|Lowest Rate in September||Rs.75.40|
Monthly Petrol Price Trend in Patna for September 2019:
- Petrol price in Patna opened the month of September at Rs.75.61 per litre. The rates dropped towards the end of the first week after staying constant for the first four days.
- The prices started the week at Rs.75.35 per litre before increasing marginally throughout the week due to trade tensions between Iran and the United States. Petrol ended the week at Rs.75.60 per litre.
- In the third week, the prices in the city increased substantially after Saudi Arabian oil facilities were attacked by drones. The rates witnessed a hike of 26 paise in the week.
- In Patna, the rates of petrol closed the month at Rs.77.95 per litre. This was the highest recorded price for the month of September. The overall performance of the fuel was 3.09%.
Trend of Petrol Price in Patna for August 2019 (rates per litre):
|Highest Rate in August||Rs.76.41|
|Lowest Rate in August||Rs.75.44|
August 2019 – Week 1 (1-7):
- Petrol price in Patna opened at Rs.76.41 per litre on 1 August, recording a 6 paise drop from the previous day’s closing price. Weak demand of the oil in the international as well as in the local market was the primary reason for the slump.
- Petrol slumped further on the next day, trending at Rs.76.26 per litre. Prices kept trending downwards with petrol closing at Rs.75.87 per litre on 6 August. In the international oil market, crude prices slumped amid worries over weak demand of the oil after the Trump administration declared that it would impose tariffs on more Chinese imports.
- Petrol rate in Patna remained unchanged from its previous day’s closing price, standing at Rs.75.87 per litre on 7 August. The overall performance recorded in the first week of August was -0.70%.
August 2019 – Week 2 (8-14):
- Petrol price in Patna opened at Rs.75.82 per litre on 8 August, recording a 5 paise slump from the previous day’s closing price.
- Petrol dipped further by 15 paise on the next day, recording Rs.75.67 per litre. The dip was primarily due to the ongoing US-China trade tensions, fuelled further by Trump administration’s decision to impose more tariffs on Chinese imports. Unprecedented rise in US inventories was also one of the primary reasons for the dip.
- Petrol price in Patna dropped marginally in the next few days before stabilising at Rs.75.59 per litre. The overall performance of petrol compared to the opening day was -1.07%, trending downwards. Meanwhile, in the international oil market, crude prices dropped due to possible supply cuts amidst looming global economic crisis.
August 2019 – Week 4 (22-31):
- Petrol price in Patna opened at Rs.75.44 per litre on 22nd August, unchanged from previous day’s closing price and its lowest recorded price for the month of August. After stabilising for the next few days, petrol prices went up marginally, recording Rs.75.66 per litre on 26 August. In the international oil market, crude gained after US inventories recorded a substantial slump.
- Price of petrol in patna were slashed by 5 paise, recording Rs.75.01 per litre. Petrol remained unchanged till the end of the week and closed the month with the same price.
- Overall, petrol’s performance in Patna was -1.04%, trending downwards. In the international oil market, crude slumped after concerns about the strength of US economy.
Trend of Petrol Price in Patna for July 2019 (rates per litre)
|Highest Rate in July||Rs.77.17 on 23 and 24 July|
|Lowest Rate in July||Rs.74.65 on 1 July|
|Overall Performance||Decline to rise|
July 2019 – Week 2 (8-14):
- Petrol price in Patna opened at Rs.77.02 per litre, same as previous day’s closing rate. The prices were primarily stagnant because of the ongoing US-China trade tensions that’s speculated to affect the global economy adversely.
- Petrol prices dipped marginally on the following day, closing at Rs.76.93 per litre—a 0.09 paise slump from previous day’s price. The drop was primarily due to the investors preferring safe-haven products like gold over petrol because of the looming global economic crisis triggered by the ongoing US-China trade tensions. The prices remained stagnant for the next couple of days.
- Patna petrol price recorded its highest price of the week, closing at Rs.77.02 per litre (same as the opening day’s price). Middle East and US-Iran tensions couple with the tropical storm in the Gulf of Mexico contributed to the price surge. Also, the tropical storm prompted US oil producers in the Gulf of Mexico to cut supplies by more than half of the usual output.
July 2019 – Week 1 (1-7):
- When the week began, petrol price in Patna was at Rs.74.65 per litre – the lowest price recorded during the month marked by a marginal decline in crude oil prices supported by the supply cuts led by the OPEC and its allies.
- On 2 July, petrol rate in Patna were hiked by 2 paise per litre to be sold at Rs.74.67 a litre. This remained untouched until 6 July before it rose sharply by Rs.2.35 per litre due to the hike in excise duty by Re.1 and cess on road and infrastructure by Re.1 per litre.
- By the end of the week, petrol prices in Patna inclined by 3.18% largely due to the hike in duties and cess by the Central Government proposed in the 2019 Union Budget despite stable crude prices in the international oil market.
July 2019 – Week 3 (15-21):
- Petrol was priced at Rs.77.11 per litre when the week began – the lowest rate during the week amid a slight decline in crude oil prices after China said its quarterly economic growth was at its slowest in 27 years.
- Over the week, petrol prices in Patna rose to touch the highest of Rs.77.15 per litre on 18 July, this was kept unchanged until the end of the week despite inclining crude oil prices in the market influenced by geopolitical tensions.
- Overall, petrol prices rose in tandem with the rise in crude oil prices in the oil market amid escalating tensions in the Middle East after the US shot down an Iranian drone and the ongoing trade war between the US and China threatening to slow down the global economy.
July 2019 – Week 4 (22-28):
- Petrol in Patna was priced at Rs.77.15 per litre when the week began, unchanged from the previous day’s price. However, crude prices in the international oil market inclined marginally after the International Energy Agency (IEA) stated that it may act, if required, to keep markets stable amid rising Middle East tensions.
- Prices rose to its highest when a litre of petrol in Patna was sold at Rs.77.17 on 23 July, which remained unchanged the next day. But weak demand and the continuation of production cuts by the OPEC and its allies dragged crude oil prices down.
- By the end of the week, petrol prices fell to close at Rs.76.74 per litre indicating a slight incline in prices this week. Crude oil prices continued to drop due to a decline in US inventories leading concerns over muted demand for crude.
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.
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.
|Also Check: Petrol Price in Bihar|
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.