Petrol Price in Ranchi

With the consumption of fuel on the rise in Ranchi, it's essential to understand how petrol is priced and what influences revision in petrol prices in the city. India imports more than 80% of the crude oil to fuel its transportation requirement. Petrol prices are revised on a daily basis across cities in India. But how do fuel companies compute the petrol rate? What factors determine the pricing of petrol? Let's break down each of these factors which determine the latest petrol price in Ranchi.

Factors Which Determine the Petrol Price in Ranchi

Petrol pricing in the country is made up of several components apart from the product price. Fuel is usually purchased in crude form from oil-producing countries in barrels for US dollars. Hence, the basic price of petrol mostly depends on the global crude oil rate and the exchange rate of the US dollar over rupee. Internal factors such as operational costs, transportation, and taxes form the remaining part of the pricing. Let's analyse each of these components in detail.

1. Crude Oil Rate: The crude or unrefined oil rate is dynamic and changes depending on the demand and supply, production cuts or geopolitical tensions. Since India depends majorly on imported crude oil, any change in the price of crude oil directly impacts the petrol price in Ranchi.
2. US Dollar Exchange Rate over Rupee: Trading of crude oil in the international market happens in US dollars and any fluctuation in the dollar value revises the petrol rates across the nation. The appreciation or the depreciation of the US dollar has a direct impact on the petrol price.
3. Profit Margins, Operational Costs & Dealer Commission: With 80% of crude oil being imported to India, oil-companies transport the oil via the sea, refine the crude oil and transport it to fuel stations across the country. The oil companies include their profit margins, operational costs and freight charges while pricing petrol in a city. Dealers or fuel station owners add their commission to the final retail price of petrol.
4. Tax on Petrol: Petrol in India attracts the Centre's excise duty and the respective state government's sales tax or Value Added Tax (VAT). While the Centre levies Rs.19.48 for a litre of petrol, the state government of Jharkhand charges VAT at 27.45%. Both the taxes form the biggest component in the petrol price.

Computation of Petrol Price in Ranchi

With several components determining the petrol price, let's break down the factors with an example of the petrol price recorded on 3 June 2018.

Why are Petrol Rates in Ranchi Revised Daily?

Until 16 June 2017, petrol prices were revised every fortnight i.e. on the 1st and the 16th of every month. The price was an average of the global crude oil rate and the US dollar exchange value. But, the fortnightly revision didn't let fuel companies increase or decrease petrol price if there's a sudden steep incline or decline in the crude oil price. To offset any losses incurred by the oil companies and to pass on the latest crude oil price to consumers, the 'dynamic fuel pricing' mechanism was introduced.

Under the new pricing mechanism, petrol prices are revised daily at 6 a.m. IST based on the previous day's crude oil price and the exchange rate of the US dollar. The current petrol price in Ranchi is the previous day's cost of crude oil per barrel and the US dollar value over the Rupee.

How to Track the Current Petrol Price in Ranchi?

With petrol prices revised on a daily basis, it can be a challenge to track the latest petrol price; however, oil companies have developed several methods to track the current petrol price.

1. Mobile Applications: Oil companies have launched mobile apps for consumers to track the petrol price on daily basis. Indian Oil has launched the 'Fuel@IOC' app, Bharat Petroleum consumers can utilise the 'SmartDrive' app, while Hindustan Petroleum customers can use the 'MY HPCL' app to track the current petrol price in Ranchi.
2. Services Through SMS: Consumers can take advantage of the SMS service offered by oil companies. The below-mentioned process helps in getting the latest fuel price in a city.
   1. Indian Oil: SMS RSPDealer Code to 9224992249.
   2. Bharat Petroleum: SMS RSPDealer code to 9223112222.
   3. Hindustan Petroleum: SMS HPPRICEDealer code to 9222201122.
3. Website: Oil companies update their respective website with the latest petrol in Ranchi as well as other cities across the nation.

Petrol Vs. Diesel Price in Ranchi

Petrol prices are higher compared to diesel in India. This is due to the fact that diesel is used extensively by public transportation and by commercial vehicles - which is one of the mainstays of the Indian economy. Additionally, taxes on the sale of petrol is higher compared to diesel. The excise duty on petrol is Rs.19.48 per litre, while diesel attracts Rs.15.33 a litre. The VAT levied by Jharkhand on petrol is 27.45%, while diesel is charged 23.33%.

During the month of April 2018, the average petrol rate in Ranchi was Rs.74.69 per litre, while diesel prices averaged at Rs.69.04 a litre. The average difference during the period stood at Rs.5.65 a litre.

Is GST Applicable on Petrol in Ranchi?

The Goods and Service Tax (GST) is a uniform tax structure applicable to trading of goods and services in the country. However, petroleum products have been exempted from the GST. The current taxes on petroleum products are higher compared to the highest tax slab in the GST. By bringing petrol inside the framework of the GST, the revenue earned by the Centre, and the State will reduce, hence, petrol has been kept outside the ambit of the GST.

*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.