Petrol Price in Shimoga
Shimoga is a city and a district in the state of Karnataka. The city is famous for its world-renowned Jog Falls attracting many tourists from across the country. Officially renamed as Shivamogga, the city is well connected through road, rail and air to some of the major cities in India.
Petrol is the main source of fuel for transportation in Shimoga and is well supported by state-owned oil marketing companies (OMCs) such as Indian Oil (IOCL), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL).
India relies mainly on oil-producing countries to supply crude oil to aid the transportation system in the country. The petrol price in Shimoga offered by the OMCs are relatively similar; however, there can be slight differences due to the transportation cost and the brand. How is the petrol price in Shimoga determined? When does the petrol price in Shimoga change? Let’s look at the influencers of the petrol price in Shimoga in detail and answer these queries.
Influencers of Petrol Price in Shimoga
The major influencers of the current petrol price in Shimoga are international and domestic in nature. While the crude oil is imported from oil-producing countries, taxes and other operational costs form the domestic component.
- International Factors: With India importing nearly 80% of crude oil from the international market, the petrol price in Shimoga and other cities depend on the global crude oil price. The global crude oil price is dynamic in nature and changes daily. The revision in the crude oil price is attributed to higher demand, production cut and geopolitical tensions. Also, India purchases crude oil in US dollars and any change in the exchange rate of the dollar directly impacts the petrol price in Shimoga.
- Domestic Factors: The petrol rate in Shimoga includes tax components levied by the central and the state government. While the centre’s excise duty on petrol is Rs.19.48 per litre, the state’s Value Added Tax (VAT) is charged at 28.31%. Any changes in the tax slab impacts or changes the petrol rate in the city. Apart from the taxes, OMCs add their profit margin and other operational costs before including the dealer (fuel station owner) commission. All of these domestic components add to the retail selling price of petrol in Shimoga.
Breakup of the Petrol Price in Shimoga
Now that we know what are the major influencers of the petrol rate, let’s break down the petrol price recorded on the 20th of May 2018.
|1||Global Crude or Unrefined Oil Price + Freight Charges||$72.50 per barrel = Rs.31.17/Litre (considering $1=68.36 and 1 barrel oil = 159 litres)|
|2||Profit margin of Oil Companies, transportation, refining, and freight charges||Rs.5.93/Ltr|
|3||Central Excise Duty||Rs.19.48/Ltr|
|5||Value Added Tax (VAT)||Rs.17.04/Ltr|
|Total||Retail selling price of petrol in Shimoga||Rs.77.25/Ltr|
When does the Petrol Price in Shimoga Change?
Until 16 July 2017, petrol prices in Shimoga were revised every fortnight by taking the average rate of crude oil and the US dollar exchange rate. However, this system did not let oil companies from hiking the petrol price in case there is an increase in the crude oil price leading to losses incurred by the OMCs. To avoid the losses, a new pricing mechanism was introduced called as the ‘dynamic fuel pricing’. Under this new fuel pricing mechanism, both petrol and diesel prices are revised on a daily basis.
The petrol price in Shimoga is updated daily at 6.00 a.m. by taking the previous day’s crude oil price and the US dollar exchange rate. Automated fuel stations across the country are updated automatically, while non-automated fuel stations are manually updated. Prices may vary from city to city due to the transportation cost and the brand.
How to Check the Current Petrol Price in Shimoga?
Since the petrol price is revised on a daily basis, it’s quite challenging to know the current petrol price in a city. OMCs have developed several methods to track the current petrol price in Shimoga. Methods such as mobile apps, SMS service and online portals offer the daily petrol price in a city.
For those looking to use the mobile app launched by OMCs, you can take advantage of the ‘Fuel@IOC’ app by IOC, the ‘SmartDrive’ app by BPCL or the ‘MY HPCL’ by HPCL to check the latest petrol price in Shimoga.
You can as also send SMS to retrieve the current fuel price in a city. The below process will help you to track the price for a litre of petrol in Shimoga.
- IOCL: Type RSP
dealer code to 9224992249.
- BPCL: Type RSP
dealer code to 9223112222.
- HPCL: Type HPPRICE
dealer code to 9222201122.
The other option is to visit the OMCs respective websites to track the daily petrol price in various cities in India.
Petrol Vs. Diesel Price in Shimoga
Petrol prices are comparatively higher compared to diesel prices. Due to the rate of taxes applicable to petrol and diesel, the latter is cheaper when compared to the price of petrol. During April 2018, the average petrol price in Shimoga stood at Rs.75.85 per litre, while diesel recorded Rs.66.72 per litre as an average. The average difference between the prices of petrol and diesel during the month stood at Rs.9.13 per litre in Shimoga.
What is the GST on Petrol in Shimoga?
India moved to a new taxation regime known as the Goods and Service Tax (GST) applicable to all goods and services rendered. However, petroleum products such as petrol and diesel have been exempted from the GST. Why? The highest tax slab in the GST is 28%, while the current taxes on petrol (excise duty and VAT) is much higher. By bringing petrol into the framework of the GST will reduce the revenue earned in selling petroleum products thereby affecting the centre’s and the state’s exchequer. That said, by including petrol under the ambit of the GST will decrease the retail selling price of the fuel.
Also Check Petrol Price in NearBy Cities of Shimoga
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*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.