Petrol Price in Sangli
The city of Sangli is located in the State of Maharashtra and is famous for its production and trade of turmeric. Apart from industries, the city’s economy is also driven by agriculture. Spread over an area of 45.63 sq.km the city has a population of over 5 lakh.
As of 2013, the vehicle population in Sangli was nearly 6 lakh and the number has been growing since then. The city’s transportation system includes public transport and private vehicles. The State-run buses and private taxis and auto rickshaws cater to the public transport, while two-wheelers and four-wheelers constitute the vehicular density of the city.
|Also Know: Petrol Price in Pune|
With increasing population of vehicles, the city depends mostly on fuel to aid its economy. State-owned oil marketing companies (OMCs) operate most of the petrol pumps in the city of Sangli. With India depending on overseas market to source crude oil to aid its transportation system, the fuel is invariably expensive compared to oil-producing countries.
Let’s look at various aspects of fuel pricing in India and what influences the petrol price in Sangli.
Calculation of the Retail Selling Price (RSP) of Petrol in Sangli
Petrol price in Sangli = Central Excise Duty + State Value Added Tax (VAT) + Crude Oil Expenses + Dealer Commission
The above calculation offers us the main components which form the retail selling price of petrol in the city. However, let’s analyse each of these components to understand how fuel price in Sangli is computed.
The Central Government levies excise duty on fuel such as petrol and diesel, while the State Government charges Value Added Tax (VAT). Currently, the excise duty on petrol stands at Rs.19.48 per litre and the VAT is charged at 38.93%, forming the biggest component of the petrol price.
The other major factor is the price for a barrel of crude or unrefined oil. Indian OMCs purchase crude oil from oil-producing countries in US dollars, which is then refined and sold to dealers across the country. The dealers charge a commission towards the storing and dispensing petrol at the fuel station.
All the above components are involved in pricing petrol in the city of Sangli as well as other cities in the country.
|Also Know: Diesel Price In Sangli|
Major Factors Which Influence the Petrol Price in Sangli
Now that we understand how the petrol price is calculated, here are the major factors which influence the petrol rate in Sangli. These factors are broadly categorised into two main aspects: international and domestic.
India purchases nearly 70% of its crude oil from the international market. Any fluctuations in the price of crude oil directly impact the petrol rate in Sangli as well as other cities in the country. Why does crude oil prices change? Any productions cuts by the oil-producing countries, geopolitical tensions, shortage in supply, etc leads to an increase in the crude oil cost. Also, since India buys crude oil in US dollars, any change in the exchange rate affects the petrol rate in Sangli. Both the crude oil price and dollar value constitute the international factors.
In India, all commodities and services come under the ambit of taxes. As mentioned, both the excise duty and VAT form the major domestic factor in influencing the petrol price in the city. Any changes by the Central Government or the State in the taxation influences the petrol rate. Apart from taxes, the OMCs add their profit margin for refining, freight and marketing costs before it’s sold to dealers. The dealer commission and the profit margin is one of the key factors which influence the petrol price in Sangli.
When is the Petrol Price in Sangli Revised?
Petrol prices are revised daily under the new ‘dynamic fuel pricing’ mechanism. The new mechanism came into effect from 16 July 2017 and is based on the exchange rate of the USD and the INR, and the price for a barrel of crude oil in the international market. Fuel rates are updated daily at 6 a.m. IST taking into account the previous day’s price of crude oil and the exchange rate of the US dollar.
Features of the Dynamic Fuel Pricing Mechanism
- Petrol price in Sangli is valued daily in sync with the global crude oil prices and the exchange rate.
- Avoids losses to OMCs incurred due to any hike in the crude oil prices or the exchange rate.
- Transparency in fuel pricing.
Methods to get the Current Petrol Price in Sangli
Since fuel prices are revised on a daily basis, it can become quite challenging to know the current petrol rate. OMCs have introduced several methods to track the petrol rate on a daily basis. These include smartphone mobile apps, SMS service and through their websites.
For those utilising the Indian Oil Corporation Limited (IOCL) fuel stations, one can download the Fuel@IOC app, Bharat Petroleum Corporation Limited (BPCL) can take advantage of the ‘SmartDrive’ app, while Hindustan Petroleum Corporation Limited (HPCL) consumers can utilise the ‘MY HPCL’ app to get the daily fuel rates of Sangli or other cities in the country.
Also, these OMCs offer the services of SMS to track the current petrol price in Sangli. Below is the process to send SMS and receive an update on the current petrol price.
- IOCL - SMS RSP
dealer code to 9224992249.
- BPCL: SMS RSP
dealer code to 9223112222.
- HPCL: SMS HPPRICE dealer code to 9222201122.
Petrol Price Vs. Diesel Price in Sangli
Like other cities in India, petrol prices are much higher when compared to the price of diesel. The same goes for the city of Sangli where petrol rates are higher than diesel. Why is the petrol price higher compared to diesel? The taxes levied on petrol is much higher compared to diesel since the latter is used extensively by commercial vehicles which aid the economy. Also, the refining process of petrol is complex compared to that of diesel. The average petrol price in Sangli during the month of April 2018 stood at Rs.81.91 per litre while that of diesel stood at Rs.68.28 per litre. The average price difference between petrol and diesel stood approximately at Rs.13.63 per litre.
The excise duty charged on petrol in Sangli is Rs.19.48 per litre and diesel is Rs.15.33 per litre. As for the VAT, the State Government levies the tax at 38.93% for petrol and 21.97% for diesel.
Impact of GST on the Petrol Price in Sangli
The Indian Government introduced the new taxation regime - the Goods and Service Tax (GST) - from 1 July 2017. All commodities and services come under the taxation system of the GST. However, the GST is not applicable on petroleum products such as petrol and diesel. Consumers continue to pay the excise duty and the VAT as taxes on purchases of petrol in Sangli. If Centre decides to bring petrol under the GST, the current tax will have to be replaced by the GST thereby reducing the cost of petrol in Sangli and other cities in the country.
Since the current tax on petrol is much higher compared to the highest GST slab, which is 28%, both the Centre and states will incur losses in their revenue. Therefore, the GST is not applicable on petrol or diesel in Sangli.
Also Check Petrol Price in NearBy Cities of Sangli
|Petrol Price In Pune||Petrol Price In Thane||Petrol Price In Mumbai||Petrol Price In Solapur|
|Petrol Price In Kolhapur||Petrol Price In Amravati||Petrol Price In Aurangabad||Petrol Price In Surat|
*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.