Petrol Price in Shimla
Are you observing the movement of petrol prices in Shimla? If yes, have you noticed the trend? What is the trend then? Is it a downward trend or an upward trend? Considering the present fuel market, it is tough to answer these questions. To some extent, market specialists can comprehend the future trend. Since petrol is not a tradable instrument, petrol buyers are not interested in understanding and predicting the trend. Still, it is an interesting subject.
On 01 January 2018, petrol price in Shimla was Rs.70.16 a litre at Indian Oil Company. Almost the same price range was provided by Hindustan Petroleum and Bharat Petroleum. After four months, the fuel rate in Shimla, the biggest and capital city of Himachal Pradesh, hiked to Rs.74.77 a litre. We can see a price rise of Rs.4.61 per litre. Is it not a big difference? It is! A multi-year high has been crossed in January 2018 in the city of Shimla owing to a 7% hike in the market value of unrefined oil. Metro cities such as Chennai, Delhi, Kolkata and Mumbai have also reported the same result.
Latest Petrol Price in Shimla – A Comparison Among Indian Cities
Petrol prices tend to fluctuate among Indian cities primarily because of two reasons: 1) commission for fuel suppliers and 2) Value-added Tax (VAT). Sometimes, the distance shuttled from refinery centers to fuel supply stations can make petrol prices to fluctuate from city to city. As of May 2018, on petrol, Value-added Tax (VAT) was enforced at 27%, 39.95% and 25.29% in Delhi, Maharashtra and West Bengal correspondingly. In Himachal Pradesh, it was 24.34%.
Revision of Petrol Rate in Shimla
We are in the era of dynamic fuel pricing today. It has been deployed by Indian Oil (IOCL), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL). These Oil Marketing Corporations are liable to define and redefine fuel rates. Like earlier, petrol is revalued based on the trends in the unrefined oil sector and the FX market. The frequency of revision is different under dynamic fuel pricing. Fuel rates in Shimla will no longer be restructured twice a month. In lieu of that, they will be reviewed regularly under the newly adopted fuel revision framework in all regions of India, including Shimla.
Prime Features of Dynamic Fuel Pricing
- Dynamic fuel pricing can be considered a streamlined version of the previous methodology.
- It combats the complexities, which were previously faced by fuel customers.
- At 06:00 a.m., the latest petrol price in Shimla will be made accessible to the public via offline and online modes.
- Prices are revised on a daily basis. Trends will determine whether to increase or decrease them. If there is no variation, they are not changed.
Merits of Dynamic Fuel Pricing
Unquestionably, dynamic fuel pricing provides several benefits to petrol buyers and the fuel marketing entities. Primarily, the fuel corporations can keep customers happy through supplying petrol uninterruptedly. This was not the case previously. Fuel pricing remains unaffected by political factors. Dynamic fuel pricing is believed to have been a big plus for the OMCs. It enables them to minimise the overall expenses necessitated to run the business. Moreover, the productivity of the OMCs is expected to grow reasonably under dynamic fuel pricing.
How can I get the Current Petrol Price in Shimla?
Despite the quantum of usage, every petrol user has to get the latest petrol rate in Shimla. It is important also. A price hike or a price downfall will impact the billing sum. Let’s presume you are buying 50 litres of petrol today at Hindustan Petroleum, which has declared a price fall of Rs.1 per litre. You can save Rs.50. If HPCL announces a price rise of Rs.1 a litre, you can plan the budget in advance. Hence, experts advise you to monitor changes. How?
If you are a customer of Indian Oil, do not forget to use the mobile app crafted by this company. The name of the mobile app is ‘Fuel@IOC.’ The customers of Hindustan Petroleum are recommended to make use of ‘My HPCL,’ which is customer-friendly and easy to access. SmartDrive, a mobile app released by Bharat Petroleum, is required to be downloaded if you a customer of this oil marketing brand. The latest fuel rate in Shimla can also be obtained using other sources as well.
How is the Petrol Price in Shimla Assessed?
Sellers have to define the price mark ultimately considering several elements. Prime cost centers of the Retail Selling price include central taxes, state taxes, crude oil rates, pollution cess, commission for retail fuel dealers, expenditures spent by the fuel companies etc. Recently, on petrol, excise duty was reported to be Rs.19.48 per litre in the city. It remains unaltered across India. Like mentioned in the earlier section, as of April 2018, the Government of Himachal Pradesh levied a 24.34% VAT. Similarly, crude oil prices were reported to be Rs.27 per litre.
Elements Affecting Petrol Rate in Shimla
Let’s consider the recent trends. Petrol accumulated its rate in January 2018 and March 2018 as well. But, in the month of February 2018, prices were down. The disparities were caused by crude oil expenditures. The exchange rate is equally important. It will affect the price ranges proportionately. If the Indian currency is reported to be weaker versus the dollar, the fuel loses it price. On the other hand, if the USD is reported to be stronger against the rupee, petrol is undervalued.
Current Fuel Price in Shimla versus Goods and Services Tax (GST)
Till date, GST is not applicable to petrol, diesel, petroleum derivatives etc. It has been executed on other commodities in the rage of 5%, 12%, 18% and 28%. The existing VAT and excise duty should be substituted if the Central Government intends to levy the GST tax slab on petrol. The insertion of petrol under GST is not a better option from the perspective of the State Government. Petrol price in Shimla will drop by 22-30% according to analysts.
*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.