Petrol Prices in Rajasthan
Let’s consider the three prime cities of Rajasthan in order to analyse the recent trends in petrol prices in Rajasthan. The first city is Jaipur, which is the capital city of the state. The second city is Jodhpur, which is the second largest city after Jaipur. The third city is Kota, which is located in the southeast of Rajasthan.
Recently, the central government has lowered the excise duty by Rs.2.00 on 4 October 2017. After the revision, petrol prices in Jaipur have decreased to Rs.70.93. In September 2017, the highest rate in the city was Rs.73.31 and the lowest rate was Rs.71.88. The entire month has seen a growing trend. In August 2017, petrol rates have witnessed a growth rate of 5.34% in Jaipur. The highest rate was Rs.71.76 and the lowest rate was Rs.67.93. Even in July 2017, petrol prices have moved in an upward direction.
In Jodhpur, the petrol price on 2 January 2017 was Rs.73.05. It was decreased to Rs.69.22 on 1 April 2017. On 1 June 2017, the petrol price was further reduced to Rs.69.81. On the opening day of July 2017, the petrol rate in the city was Rs.65.70. In Kota, the petrol rate was Rs.72.78 on 2 January 2017 and was further dropped to Rs.68.96 on 1 April 2017. Between August 2017 and October 2017, the petrol rate in the city has grown to Rs.73.06 from Rs.67.60. There is no noticeable difference in petrol prices among the three major cities of the state.
Petrol Prices in Rajasthan and other States
Let’s make a comparative study of four states. Petrol rates in Mumbai became the highest in the nation after the government of Maharashtra increased the value-added tax on petrol. After the revision, the cost price of petrol was decreased to Rs.75.43 per litre. In Kerala, the average price of petrol was Rs.72.11. In Karnataka, the average cost of petrol was Rs.69.46 as on the latest date.
How frequently are Petrol Prices in Rajasthan Computed?
The government of India has rolled out a new fuel pricing model called dynamic fuel pricing on 16 June 2017. Since then, all state-owned oil marketing companies including Indian Oil, Shell India, Bharat Petroleum, and Hindustan Petroleum have been revising petrol prices on a daily basis across the state. The daily revision of petrol immensely benefits consumers and dealers by bringing transparency in fuel pricing and avoiding the interference of governments and political parties in fixing the price of fuels.
The primary distinction between the daily revision and the fortnight-based revision is the frequency of revision. Like the fortnightly-based revision, the daily revision also takes into account worldwide crude oil prices and the currency conversion rate. Currencies are traded in the foreign exchange market, which is highly volatile in nature. Crude oil prices will vary based on international market dynamics. Therefore, the daily revision seems to be a feasible fuel pricing model.
Petrol prices change every day. Tracking daily changes is easy as all oil marketing companies offer an SMS service and a customer care service. Petrol prices in Kerala can be checked online by visiting the website of respective oil marketing companies. All oil marketing companies have specific mobile applications that can be downloaded to track the latest updates.
Quarterly Petrol Price Trend in Rajasthan Between October and December 2018
|Opening date price||Rs.84.24 a litre||Rs.79.90 a litre||Rs.73.17 a litre|
|Closing date price||Rs.80.08 a litre||Rs.73.52 a litre||Rs.69.45 a litre|
|Highest price||Rs.84.48 a litre booked on the 4 October 2018||Rs.79.90 a litre booked on the 1 November 2018||Rs.73.17 a litre booked on the 1 December 2018|
|Lowest Price||Rs.80.08 a litre booked on 30 and 31 October 2018||Rs.73.52 a litre booked on the 30 November 2018||Rs.69.45 a litre booked on the 31 December 2018|
Petrol Price Trend in Rajasthan Between October and December 2018
- State-owned Oil Marketing Companies (OMCs) revise petrol and diesel prices daily under the ‘Dynamic Fuel Pricing’ mechanism which considers the 14-day average price of crude oil as well as the exchange rate of the rupee over the US dollar.
- Based on this pricing mechanism, the petrol price in Rajasthan was fixed at Rs.84.24 per litre on 1 October.
- Prices rose over the next couple of days in the back of a high crude oil price which prompted the Central government to announce a reduction of the excise duty levied on the sale of fuel in the country.
- While excise duty of Rs.1.50 per litre was cut, the Centre asked OMCs to subsidise further Rs.1 per litre resulting in the reduction of Rs.2.50 per litre.
- By the end of the month, petrol prices in Rajasthan were down by 4.94% backed by the cut in the excise duty.
- On 1 November, petrol was priced at Rs.79.90 per litre, which was also the highest price recorded for the month.
- Since the petrol price is influenced by the crude oil price, prices fell over the next few weeks as the crude oil price was down marginally.
- On 30 November, petrol recorded its lowest price when it was sold at Rs.73.52 per litre marked by the decline of oil prices in the market.
- Overall, the petrol price trend in November in Rajasthan was down by 7.99% mainly due to the sharp fall in crude oil prices.
- Petrol rates in Rajasthan on 1 December stood at Rs.73.17 per litre – the highest price registered for the month.
- Rates declined significantly over the month as crude oil prices were trading much lower than it was during early October.
- While the crude oil price was trading around $80 per barrel early October, it dropped to trade around $55 per barrel late December. This led to the lowest petrol price recorded during the month when it was dispensed at Rs.69.45 per litre on 31 December.
- By the end of December, petrol prices in Rajasthan declined significantly by 5.09% attributed by the sharp fall in crude oil prices in the international market along with the appreciation of the rupee over the US dollar.
Quarterly Petrol Price Trend in Rajasthan between July 2018 and September 2018
|Opening date price||Rs.77.99 per litre (As of 2 July)||Rs.79.16 per litre||Rs.81.45 per litre|
|Closing date price||Rs.79.18 per litre||Rs.81.45 per litre||Rs.83.75 per litre|
|Highest price||Rs.79.66 per litre||Rs.81.45 per litre||Rs.83.75 per litre|
|Lowest price||Rs.77.99 per litre||Rs.79.31 per litre||Rs.83.45 per litre|
Petrol Price Trend in Rajasthan in July 2018
- Dynamic fuel pricing is used to determine the trend in petrol prices.
- In various cities in Rajasthan such as Jaipur, Udaipur, Kota, Alwar, Pushkar and Ajmer, the revised petrol rates were released at 6:00 a.m. every day in July.
- Crude oil rates and the exchange rate are the regular influencers of the pricing of petrol. If there is a change in the taxes, oil companies have to consider the revised taxes to revalue the fuel.
- The State Government of Rajasthan has not revised the sales tax or the Value-added Tax. Moreover, the Central Government of India did not make any changes in excise duty.
- In line with the exchange and crude oil rates, petrol rates across the state of Rajasthan were hiked in the first few days of the month, increased in the middle of the month and decreased towards the month’s end.
- The growth rate has been calculated considering the difference between the closing date price and the opening date price.
- As fuel rates slid towards the end of July, the highest petrol rate was noted at Rs.79.66 per litre at the beginning of the week 3.
Petrol Rate Trend in Rajasthan in August 2018
- Dynamic fuel pricing was introduced in India to assure transparency in fuel pricing and align fuel users with real-time market dynamics.
- This system requires oil companies to immediately transfer the ups and downs in oil rates to end consumers. The performance of the currency exchange ratio is equally important.
- It was interesting to make a note that the petrol prices in August were constant at Rs.79.86 per litre, Rs.80.09 per litre, Rs.80.49 per litre and Rs.80.58 per litre respectively in Jaipur, the capital city of Rajasthan.
- For a majority of days in August, fuel rates were also constant in all cities in the state of Rajasthan.
- At the beginning and end of August, fuel rates were surged in sync with the market price of oil and the exchange rate of dollar against the rupee.
- Unlike July, the highest petrol rate was noticed at Rs.81.45 per litre at the end of the month. As fuel prices were not declined this month, the lowest rate was registered on 1 August 2018 at Rs.79.16 per litre.
- The growth rate worked out to be 2.69% this month. The trend was completely based on the overseas influencers.
Petrol Price Trend in Rajasthan in September 2018
- On the first and second of September, fuel retailed at a price of Rs.81.45 per litre. On 3 September, petrol rate in Jaipur, the capital city of Rajasthan, increased by 63 paise per litre.
- The fuel was marketed at a price of Rs.82.30 per litre on the 4th and 5th of September and Rs.82.99 per litre on the 7th, 8th and 9th of September.
- While fuel rates in the capital city of Rajasthan were up by 31 paise per litre on the 10th, they remained consistent at Rs.81.44 per litre on the 11th and 12th of the month.
- Similarly, the rate of petrol per litre remained unaltered at Rs.82.19 on the 15th and 16th, Rs.82.71 on the 18th and 19th, Rs.82.87 on the 21st and 22nd and Rs.83.39 on the 25th and 26th of the month in Jaipur.
- Needless to mention, the revision of the prices of petrol was done under the daily revision system from 1 September to 30 September.
- Since the State Government of Rajasthan has cut its Value-added Tax by 4%, the growth rate this time was close to 3%. (the formula to compute the growth rate is: Closing date price – Opening date price / Opening date price X 100)
- The growth rate in other states was over 6% in September 2018.
Quarterly Petrol Price in Rajasthan Between April and June 2018
|Opening date price||Rs.76.44 per litre||Rs.77.32 per litre||Rs.81.11 per litre|
|Closing date price||Rs.77.32 per litre||Rs.81.17 per litre||Rs.78.27 per litre|
|Highest price||Rs.77.36 per litre recorded on 24th||Rs.81.26 per litre recorded on 29th||Rs.81.11 per litre recorded on 1st|
|Lowest price||Rs.76.44 per litre recorded on 1st||Rs.77.32 per litre recorded from 1st to 11th||Rs.78.27 per litre recorded from 27th to 30th|
Petrol Price Trend in Rajasthan in April 2018
- On 1 April 2018, the petrol price in Jaipur, the capital of Rajasthan, stood at Rs.76.44 per litre - the lowest for the month.
- Fuel prices in India are revised on a daily basis under the ‘Dynamic Fuel Pricing’ mechanism, where State-owned Oil Marketing Companies (OMCs) include the preceding day’s crude oil and the currency exchange rate to the final selling price of petrol.
- During the first and second week, petrol prices in Rajasthan remained steady with slight variations due to the fluctuations in the global crude oil price.
- The global crude oil price continued to incline over the third and fourth week with the highest petrol price of month recorded at Rs.77.36 per litre on 24 April 2018.
- However, from the 25th onwards, fuel companies kept fuel prices unchanged until the end of the month.
- During the month, petrol prices in Rajasthan grew by 1.16% largely due to the marginal increase in the global crude oil prices.
Petrol Price Trend in Rajasthan in May 2018
- Fuel companies didn’t revise petrol prices in Rajasthan until 11 May 2018 due to the steady rate of crude oil in the international market.
- Petrol prices till the 11th stood at Rs.77.32 per litre, which is also the lowest cost of petrol in the month.
- However, post 11th the petrol price rose sharply in tandem with the significant rise in oil prices in the global market.
- The incline in crude oil prices is attributed to the geopolitical tensions between the US and China on possible trade war between the two nations.
- Crude oil prices rose to stand at $80 per barrel, which led petrol prices in Rajasthan and other states to record an all-time high of Rs.81.26 per on the 29th.
- The reason behind the considerable rise in crude oil rates was influenced by external factors such as the crude oil rate and the currency exchange value of the US dollar over rupee.
- Domestic factors such as taxes or other operational costs of fuel companies were not the reason for the rise in fuel prices as they were left untouched.
- Overall, the petrol price trend in Rajasthan in May 2018 reflected an upward trend of 4.98% mainly due to the significant rise in the global crude oil rate.
Petrol Price Trend in Rajasthan in June 2018
- On the opening day of June 2018, petrol was sold at Rs.81.11 per litre in Rajasthan, also the lowest petrol price in the State.
- With crude oil rate on the rise and its impact on the common man, the Organisation of Petroleum Exporting Countries (OPEC) and its ally Russia decided to meet on 22 June 2018 to discuss ways to address the concern of high fuel prices across the globe.
- Meanwhile, petrol prices in Rajasthan continued to remain steady during the first week; however, during the second and third week, fuel prices including that of petrol started showing a slight decline in prices.
- By 15 June 2018, petrol prices in Rajasthan had dropped by Rs.1.98 per litre compared to the opening day’s price.
- The OPEC and Russia met on the 22nd and agreed to increase production to counter the rising fuel prices across the globe.
- By the end of the month, petrol prices in Rajasthan fell sharply largely due to the increase in production and the easing of geopolitical tensions in the country.
- The lowest petrol price in Rajasthan during May 2018 was recorded at Rs.78.27 per litre on 27th and continued with the same cost till the 30th of the month.
- Petrol prices in Rajasthan during the month of June 2018 fell by 3.51% attributed to the significant rise on the global crude oil rate.
How are Petrol Prices in Rajasthan Computed?
Different components of the price breakup of petrol in Rajasthan include the followings:
Free On Board Price (FOB): The price at which petrol is bought is called as FOB. In other words, it is the price paid by Indian oil marketing companies in order to buy crude oil from overseas companies.
Freight: Indian oil marketing companies import oil from overseas oil companies. The price, which is paid to a transporter, is called as ocean freight. When ocean freight is added to free on board price, we get resultant as cost and freight price.
Import Charges: Import charges consist three charges, which include insurance charges, port dues, and ocean losses. The insurance premium paid to an insurance service provider for the insurance cover is called as insurance charges. Fort duties are the fees paid instead of using the facilities of a port.
Customs Duty: Customs duty is a tax imposed by the government of India on the imported crude oil. As on the latest date, it was 2.5% of the cost and freight price.
Import Parity Price: Import parity price (IPP) is the price of petrol remitted by Indian oil marketing companies at an Indian port. In other words, IPP is the sum of import charges, customs duty, and cost and freight price.
Refinery Transfer Price: Refinery transfer price is the price remitted by oil marketing companies to refineries for buying petrol.
Inland Freight: Inland freight is the price paid by oil marketing companies for transporting petrol from refineries to retail outlets.
Depot Price: Depot price is the price paid by retail petrol owners to buy petrol from oil marketing companies.
Excise Duty: The tax that is imposed by the central government on petrol. The excise duty will remain the same throughout the country.
VAT: Value-added tax (VAT) is the tax imposed by the state government on petrol. VAT varies from one state to another. As on 1 September 2017, the tax rate imposed on petrol was 32.91%.
Now, the retail selling price of petrol in Rajasthan is the sum of all the aforementioned cost components.
Factors affecting Petrol Prices in Rajasthan
The following factors affect petrol prices in Rajasthan:
- Crude Oil Price: If the cost of crude oil increases, then the retail selling price (RSP) of petrol will increase. If it falls, the final price of petrol will fall. The cost of crude oil is affected by many factors, which include seasonal variations, the supply and demand pattern, the currency conversion rate, the pattern of global reserves and supplies etc.
- Exchange Rate: The currency of the US dollar is valued at the Indian rupees by the Reserve Bank of India, which is the central bank of India. If the USD gains against the INR on the date of purchase, then the cost of crude oil will increase; if the INR gains against the USD on the date of purchase, the cost of crude oil will decrease.
- Central Excise and VAT: The lower the percentage of tax imposed on petrol by the state government, the lower will be the cost of petrol. The higher the percentage of tax imposed on petrol by the state government, the higher will be the cost of petrol. Similarly, the central excise impacts the cost of petrol.
Impact of GST on Petrol Rates in Rajasthan
All types of goods and services are taxed by the GST regime under four tax slabs, which are 5%, 12%, 18%, and 28%. The highest rate fixed by the GST Council till date is 28% and the lowest rate is 5%. Including petrol, five petroleum products have been kept outside the regime of GST. Even though petrol is taxed at the highest rate, the revenue for the state and central governments will be adversely affected. Therefore, the GST system does not impact petrol prices in Rajasthan.
Diesel Costs vs petrol Costs in Rajasthan
As on 16 October 2017, the average price of petrol was Rs.70.86 whereas the average price of diesel was Rs.60.86. Petrol rates in the state may marginally increase over the next one or two months.
*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.
Also Check Petrol Price in NearBy Cities of Rajasthan
|Petrol Price in Jodhpur||Petrol Price in Kota||Petrol Price in Udaipur||Petrol Price in Jaipur|