Petrol Price in Ratlam
Petrol price in Ratlam, a city in the Indian state of Madhya Pradesh, is made up of various elements. To understand how petrol is priced in Ratlam, one must have a basic understanding of various components involved in its pricing. Further, to know why it changes every day, you must know about dynamic fuel pricing mechanism, which is a new pricing model that is implemented in India to bring more transparency in petrol pricing. Let’s drill down further to know various factors affecting petrol price in Ratlam on a daily basis.
Elements of Petrol Pricing in Ratlam
Broadly, there are two major elements that make-up petrol price in Ratlam. They are the international elements and domestic elements.
International factors include global crude oil prices, Indian rupee to US dollar exchange rate and domestic factors include state and central government taxes, oil companies’ profit margins and dealer’s commission. Let’s check each element in detail.
- Crude Oil Prices: With India importing over 70% of its unrefined petroleum necessities from the OPEC countries, the cost of raw petroleum in the worldwide market assumes a key part in evaluating oil price in India.
With the usage of dynamic fuel pricing model, petroleum costs in India are being adjusted to global crude oil prices on a daily basis. The unstable nature of crude oil price that changes dynamically impacts the cost of petrol in Ratlam.
To figure out oil cost in Ratlam today, the cost of crude oil in yesterday's market will be considered.
- Currency Exchange Rate: Indian oil marketing firms buy raw petroleum in US dollars. While figuring petroleum cost in Ratlam, every US dollar will be converted into Indian rupee, considering the currency exchange rate on the previous day. The fluctuating nature of dollar value thus affects petrol price on a daily basis. If Indian rupee falls against US dollar, oil costs in the country will increment and vice versa.
- Central Government Tax on Petrol: One of the local factors that influences oil cost in Ratlam is the excise duty collected by the central government on petroleum. Right now, the centre collects excise duty of Rs.19.48 per litre of petrol. The rate stays same across all the Indian states.
- Madhya Pradesh state Tax on Petrol: Madhya Pradesh state government charges 36.22% value added tax (VAT) on each litre of petrol sold in Ratlam. Whenever there is a revision in state taxes, petrol rate in Ratlam will be adjusted accordingly.
- Profit Margins of Oil Companies: The profit margins of oil companies influence petrol price in Ratlam. As the companies incur several expenses in transporting and refining the crude oil, they add all such expenses to the cost price of crude oil.
- Dealer’s Commission: The refined petrol will be acquired by oil merchants from the oil organizations. The merchants include their own costs, for example, oil transportation cost, station upkeep cost, and so on as merchants commission to the cost of oil. The commission is generally decided by the Indian oil organizations and will be revised once every year. Whenever there is an amendment to commission, petroleum cost will get influenced.
Tracking Latest Petrol Price in Ratlam using mobile apps
To make it easy for everyday consumers of petrol and diesel, oil companies have come up with mobile apps through which customers can get an update on the latest Petrol rate in Ratlam or in any other Indian city.
Customers just need to download the mobile application on their smartphone to view and track petrol rates in Ratlam. Hindustan Petroleum consumers can download My HPCL app, Indian Oil customers can download Fuel@IOC and Bharat Petroleum customers can use SmartDrive mobile application.
People without a smartphone can use the SMS facility provided by the same oil companies to know today’s petrol price in Ratlam.
- Indian Oil consumers can send an SMS in the format ‘RSP DEALER CODE’ to 9224992249.
- Bharat Petroleum consumers can get petrol price by sending an SMS – ‘RSP DEALER CODE’ to 9223112222
- Hindustan Petroleum customers can send an SMS in the format – ‘HPPRICE DEALER CODE’ to 9222201122
Dealer codes may vary from one petrol station to another. The next time you visit your nearest petrol station, note down the dealer code, which is typically displayed at the petrol pump. From next time, you don’t have to visit the pump to know the price. Simply, send an SMS using the dealer code, to know the current petrol price in Ratlam.
Frequently Asked Questions (FAQs) on Petrol Price in Ratlam
- Why does petrol cost in Ratlam change every day?
- Where do I get the cheapest Petrol in Ratlam?
- Why does petrol cost in Ratlam fluctuate from one petroleum pump to another?
- What is the impact of GST on Ratlam petrol price?
Petrol cost in Ratlam changes each day because of dynamic fuel pricing model. The pricing mechanism adjusts fuel price in the country to global unrefined petroleum costs every day. The changed cost will be refreshed at all the petrol stations in Ratlam by 6:00 a.m. every day. The dynamic pricing method is being executed to acquire more transparency in oil pricing and to counteract sudden increment or decay of oil costs in the nation.
Petrol cost across the city of Ratlam remains same except for a few minute differences. In any case, the state-owned fuel stations such as Indian Oil, Hindustan Petroleum, and Bharat Petroleum offer the best petrol price in Ratlam contrasted with private partners like Shell and Essar. Indian Oil offers the least expensive petrol in Ratlam among the state-owned companies.
Petroleum cost in Ratlam varies starting with one oil station then onto the next because of the difference in the dealer’s commision. Since merchants commission incorporates fuel transportation expenses and fuel station upkeep costs, fuel stations located near to oil refineries charge less compared to those located far from the refineries.
Ever since goods and services tax or GST has been implemented in India, there are a lot of apprehensions about how it affects petrol prices in India. While many expected that GST would drastically decrease petrol price, nothing has changed post the implementation. The reason – petrol, diesel and other fuel products are currently kept outside the purview of the new tax regime. Hence, they are being taxed as per the previous tax structure, which includes both state and central government taxes. Therefore, the effect of GST on petrol price in Ratlam and in other Indian cities is null for now.
*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.