Petrol Price in Surat
Petrol is a basic commodity used for transportation. Unfortunately, it cannot be produced indigenously because of shortages in crude oil resources. India relies on other countries and thus, petrol is turning out to be a costlier fuel. If you are a resident of Surat, a city in Gujarat, have you checked the latest fuel price? On 28 May 2018, Indian Oil Company offered a price tag of Rs.77.35 per litre. There shall be a minute fluctuation in the prices offered at HPCL and BPCL because of brand differences.
India has several states. Each state prices petrol differently. The average petrol price offered in the state of Gujarat is lower compared to Delhi. Likewise, the average petrol rate in Tamil Nadu is lower compared to Maharashtra. VAT makes the fuel rate vary from locality to locality. Each state has different regulations with regard to the execution of VAT on petrol. According to Petroleum Planning and Analysis Cell (PPAC), on petrol, VAT was collected at 25.44%, 27%, 28.31% and 25.29% in Gujarat, Delhi, Karnataka and Tamil Nadu respectively.
|Also Know: Diesel Price In Surat|
Analysis of Petrol Price in Surat
On 1 January 2018, petrol rate was Rs.69.23 per litre. The closing price was up Rs.3.03 to Rs.72.26 per litre. On 1 February 2018, the fuel was valued at Rs.72.39 per litre. The closing rate this month was down Rs.1.53 to Rs.70.86 per litre. For March 2018, the opening and closing date prices stood at Rs.70.99 per litre and Rs.72.45 per litre. In April 2018, petrol price in Surat was up 80 paise. Over the last four months, the highest price was reported at Rs.73.74 per litre and the lowest price at Rs.69.23 per litre. So far this year, the fuel has gained its price by Rs.3.90 per litre in the city of Surat. It is a big difference unquestionably.
|Also Check: Petrol Price in Gujarat|
Dynamic Fuel Pricing
Petrol was priced at Rs.76.91 per litre, Rs.77.05 per litre, Rs.77.20 per litre and Rs.77.35 per litre on 25th, 26th, 27th and 28th May 2018. Fuel price was up Rs.0.36 per litre on 25th, Rs.0.14 per litre on 26th, Rs.77.20 per litre on 27th and Rs.0.15 per litre on 25th. You can see a price variation every day because of the introduction of dynamic fuel pricing in our country. Under this model, state-run oil brands such as Hindustan Petroleum, Indian Oil and Bharat Petroleum will consider the performance of the USD/INR exchange rate and crude oil. For instance, if there is a fall in crude oil rates today, fuel rates will be adjusted accordingly tomorrow.
Why Dynamic Fuel Pricing?
Dynamic fuel pricing is useful to:
- Solve the existing problems and make fuel pricing transparent
- Reduce the quantum of working capital needed to maintain day-to-day business activities
- Fully computerised oil stations to minimise time required to revise fuel prices regularly
- Interlink our fuel industry to overseas crude oil markets
Trace Today’s Petrol Price in Surat via mobile applications
We use several types of mobile applications. Fuel consumers have three mobile applications designed by HPCL, BPCL and IOCL. Indian Oil company offers Fuel@IOC, a mobile applications designed for its customers to trace today’s petrol rate in Surat. Likewise, SmartDrive, a mobile application offered by BPCL, provides the same features. My HPCL, a mobile application developed by Hindustan Petroleum, also offers significant benefits to its users.
Computation of retail selling price of petrol in Surat
Petrol price in Surat = excise duty + VAT + crude oil expenses + commission
The Central Government collects excise duty on petrol and diesel. As of early May 2018, excise duty on petrol was Rs.19.48 per litre. On diesel, it was Rs.15.33 per litre. The government will impose excise duty universally. It can be changed based on current circumstances. We have discussed about Value-added Tax (VAT) in the previous section.
Crude oil is priced in international markets. Moreover, the crude oil produced in India is sold at international prices. The pricing of crude oil depends on many elements such as political conditions, production cuts, weather reports, etc. On 20 May 2018, the cost of a barrel of crude oil was $73. When converted into Indian rupees, the cost of a litre of crude oil worked out to be Rs.31.
Factors Impacting Fuel Prices in Surat
Opposition party leaders have started criticising the Central Government that has not declined excise duty recently. If the government decides to reduce excise duty, fuel rates in Surat will be reset accordingly. To make it clear, if the government drops excise duty by Rs.2 per litre, petrol price will fall by Rs.2 per litre. VAT was decreased in October 2017 in Gujarat. Put simply, variations in VAT and excise duty will directly affect fuel rates.
Crude oil is bought from overseas markets. It has to be priced in dollars. Therefore, the exchange rate is taken into consideration. The dollar and petrol rates have an inverse relationship. If the USD/INR exchange rate drops, fuel rates will proportionally increase. On the flipside, if the USD/INR exchange rate appreciates, oil marketing companies will decrease fuel rates. Crude oil prices also impact directly. If WTI and Brent crude oil prices drop, fuel rates will drop. If Brent and WTI crude oil prices increase, fuel rates are increased by fuel companies.
Impact of GST on Current Petrol Price in Surat
Goods and Services Tax (GST) is a multi-phase indirect tax, which was implemented in 2017. It is not applicable to petrol and diesel. So, the pricing of petrol is not affected by GST in India. Other commodities have been taxed at 18%, 12%, 5% and 28% respectively. Fuel consumers will pay excise duty and VAT currently. If the GST Committee accepts the proposal of implementing GST on petrol, the current tax slabs have to be replaced by GST. In that case, petrol rates in Surat will be cheaper. Thus, the government will incur losses.
Also Check Petrol Price in NearBy Cities of Surat
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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.