Petrol Prices in Tamil Nadu
Are you a petrol consumer from Tamil Nadu? If yes, what is the consumption pattern? How does the frequently changing petrol price affect your budget? Who are the petrol dealers in Tamil Nadu? Why does the petrol rate differ from one dealer to another? What is the trend in petrol rates in the entire state of Tamil Nadu? Let’s discuss these points in detail. Indian Oil, Hindustan Petroleum and Bharat Petroleum are the three premier oil marketing companies operating throughout the state. These companies account for at least 95% of petrol bunks.
How are Petrol Prices in Tamil Nadu Revised?
All petrol dealers across the state will use dynamic fuel pricing method to revise petrol rates. Dynamic fuel pricing is a newly introduced fuel pricing method that determines the price of petrol based on the exchange rate and overseas crude oil prices. The United States of America and Australia are also following the same fuel pricing method. In India, dynamic fuel pricing was implemented on 16 June 2017.
Dynamic Fuel Pricing is also called the daily revision. It is a streamlined version of the earlier fuel pricing method. The deployment of the daily revision method ensures transparency in fuel pricing. Petrol dealers will no longer face difficulties in stock management. Under the new method, petrol consumers can be aligned to market dynamics.
Like stock markets, petrol rates will change on a daily basis with the daily revision in place. The revision is done at 06:00 a.m. every day. Non-automated bunks in the state will manually update the petrol rate whereas automated bunks will do it automatically. All oil marketing companies have designed unique mobile applications, which can be downloaded to track the latest price.
Trends in Petrol Prices in Tamil Nadu
In Chennai, petrol prices were up by 2.01% in September 2017. The growth rate increased to 5.51% in August 2017. On the opening day of July, the cost of petrol per litre was Rs.65.46 in the city. On the closing day of the month, the rate increased to Rs.67.78. The highest petrol rate in September 2017 was Rs.73.25. In August 2017, it was Rs.71.66.
Coimbatore is another major city in Tamil Nadu. The average price of petrol per litre reduced to Rs.71.20 from Rs.73.23 between the first week and the last week of October 2017. It can be attributed to the recent reduction in the central excise duty on petrol. In Madurai, the third largest city in Tamil Nadu, petrol was sold at an average price of Rs.71.50 per litre in October 2017.
How are Petrol Prices in Tamil Nadu Computed?
Retail selling price of petrol = cost price of crude oil + OMC costs + price charged to dealers + fuel costs before VAT
Cost of crude oil is the price paid by oil marketing companies to purchase crude oil from transnational oil marketing companies. The cost of crude oil is divided by 159 to compute the cost of crude oil per litre. 1 barrel of crude oil is equivalent to 159 litres. Freight expenses are also included in the cost of crude oil. If the cost of crude oil is $50 and the value of the INR against the USD is Rs.62, then the cost of crude oil will be Rs.3,100.
The costs incurred by oil marketing companies (OMCs) include refinery processing, operational expenses, transportation expenses, freight charges, entry taxes and freight expenses. The price charged to dealers includes the central excise duty imposed on petrol by the central government. The price charged to end consumers includes the cost of crude oil, the expenses incurred by oil marketing companies, the price charged to dealers, pollution cess and the state VAT. As on 4 October 2017, the state VAT imposed on petrol in Tamil Nadu was 25%.
Quarterly Petrol Price Trend in Tamil Nadu Between October and December 2018
|Opening date price||Rs.87.13 a litre||Rs.82.51 a litre||Rs.75.34 a litre|
|Closing date price||Rs.82.70 a litre||Rs.75.71 a litre||Rs.71.38 a litre|
|Highest price||Rs.87.39 a litre booked on the 4 October 2018||Rs.82.51 a litre booked on the 1 November 2018||Rs.75.34 a litre booked on the 1 December 2018|
|Lowest Price||Rs.82.70 a litre booked on the 30 and 31 October 2018||Rs.75.71 a litre booked on the 30 November 2018||Rs.71.38 a litre booked on the 31 December 2018|
Petrol Price Trend in Tamil Nadu Between October and December 2018
- State-run Oil Marketing Companies (OMCs) revise petrol and diesel prices daily based on the ‘Dynamic Fuel Pricing’ mechanism which includes the 14-day average of crude oil prices and the exchange rate of the rupee over the US dollar.
- Based on this mechanism, the petrol price in Tamil Nadu on 1 October stood at Rs.87.13 per litre and rose to a monthly high of Rs.87.39 per litre on 4 October.
- The record high price of petrol and diesel was on the back of rising crude oil prices in the international market and the sharp fall in the Indian currency’s value.
- On 4 October, the Centre announced the reduction in excise duty of Rs.1.50 per litre and asked OMCs to further subsidise Rs.1 per litre to ease the customer’s burden.
- By the end of the month, prices were down to Rs.82.70 per litre, marking a 5.09% decline in petrol prices in Tamil Nadu mainly due to the fall in oil prices and the cut in excise duty.
- On 1 November, petrol prices in Tamil Nadu stood at Rs.82.51 per litre, which was also the highest price recorded in the month.
- During the month, petrol rates in Tamil Nadu continued to decline in the back of a reduction in crude oil prices and a slight incline in the rupee’s value.
- On 30 November, petrol registered its lowest price of the month at Rs.75.71 per litre attributed by the fall in oil prices.
- Overall, the petrol price trend in Tamil Nadu in November fell by 8.24% influenced by the steep decline in oil prices in the global market coupled with the appreciation of the rupee over the US dollar.
- Petrol opened at Rs.75.34 per litre on 1 December in keeping with the daily revision of petrol prices in the country. This was also the highest price recorded in the month.
- Rates continued to drop during the month as the global crude prices started to ease as geopolitical tensions between the US and China declined.
- The crude oil prices dropped to $56 per barrel from $80 per barrel early October which influenced the decline in petrol prices in the country.
- By the end of the month, prices were down to Rs.71.38 per – the lowest for the month – to record a decline of 5.26% mainly due to the significant drop in oil prices and the depreciation of the US dollar.
Quarterly Petrol Price Trend in Tamil Nadu Between July and September 2018
|Opening date price||Rs.78.40 a litre||Rs.79.26 a litre||Rs.81.81 a litre|
|Closing date price||Rs.79.31 a litre||Rs.81.63 a litre||Rs.86.80 a litre|
|Highest price||Rs.79.93 a litre recorded on the 14th||Rs.81.63 a litre recorded on the 31st||Rs.86.80 a litre recorded on the 30th|
|Lowest Price||Rs.78.40 a litre recorded on the 1st||Rs.79.26 a litre recorded on the 1st||Rs.81.81 a litre recorded on the 1st|
Petrol Price Trend in Tamil Nadu in July 2018
- Petrol and diesel rates are revised by State-run oil marketing companies daily based on the dynamic fuel pricing mechanism.
- Based on the daily revision of fuel price, the petrol price in Chennai - the state capital of Tamil Nadu - on the 1st of July stood at Rs.78.40 per litre.
- Oil companies kept the petrol price in Tamil Nadu unchanged until the 5th of the month only to increase it on the 6th when a litre of petrol in Tamil Nadu sold at Rs.78.57, up by 17 paise.
- From the 6th onwards, prices of petrol inclined to touch the highest price of Rs.79.93 per litre on the 14th of the month.
- Prices declined over the course of third and fourth weeks; however, it didn’t breach the opening price of the month.
- On the 31st, a litre of petrol in Tamil Nadu was available at Rs.79.31 influenced by the slight rise in the global crude oil prices.
- For the month, petrol prices inclined by 1.15% attributed to the increase in oil prices in the global market.
Petrol Price in Tamil Nadu in August 2018
- Oil companies base the retail selling price of petrol on the global crude oil price and the exchange rate of rupee over the U.S. dollar, making them the most important factor while pricing fuel in the country.
- The petrol price in Tamil Nadu on the 1st of August stood at Rs.79.26 per litre, down by 5 paise compared to the previous day’s cost, this is also the lowest price for the month.
- The price of petrol in the State continued to rise in the first and second week to touch Rs.80.23 per litre on the 11th before it was cut by 9 paise to retail at Rs.80.14 per litre on the 13th.
- However, it hikes were back with petrol prices in Tamil Nadu during the month of August continued to move upwards.
- Despite rising petrol prices, taxes levied on the sale of fuel by states or the Centre were kept untouched offering to respite to consumers.
- By the end of the month, the petrol price in the state had grown to touch Rs.81.63 per litre on the 31st.
- Overall, the petrol price trend in Tamil Nadu in August moved upwards by 2.90% influenced by the significant rise in global crude oil prices.
Petrol Price Trend in Tamil Nadu in September 2018
- A litre of petrol was being sold at Rs.81.81 in Tamil Nadu on the 1st of September, up by 18 paise as against the previous day’s price.
- With a possibility of lower oil output from Iran coupled with the trade war between the U.S. and China led the global crude oil prices to soar.
- Oil companies continued to hike petrol prices in Tamil Nadu and other states in tandem with the incline in oil prices in the international market.
- By mid-September, the global crude oil price was touching a four-year high of $80 per barrel prompted oil companies to hike petrol prices across the country.
- Along with the rising oil prices, the rupee fell to its record low of 72 over the U.S. dollar which led fuel prices across the country to increase considerably.
- On the 31st of the month, the highest petrol price was recorded for the month when a litre of petrol in Tamil Nadu stood at Rs.86.80.
- The trend in petrol price during the month was upwards which inclined by 5.75% primarily impacted by the two main factors of the rise in oil price and the significant fall in the exchange rate of the Indian currency.
Quarterly Petrol Price Trend in Tamil Nadu Between April and June 2018
|Opening date price||Rs.76.48 per litre||Rs.77.43 per litre||Rs.81.32 per litre|
|Closing date price||Rs.77.43 per litre||Rs.81.39 per litre||Rs.78.40 per litre|
|Highest price||Rs.77.47 per litre recorded on 24th||Rs.81.47 per litre recorded on 29th||Rs.81.32 per litre recorded on 1st|
|Lowest price||Rs.76.48 per litre recorded on 1st||Rs.77.43 per litre recorded from 1st to 11th||Rs.78.40 per litre recorded from 27th to 30th|
Petrol Price Trend in Tamil Nadu in April 2018
- On the 1st of the month, petrol was retailed at Rs.76.48 per litre in Chennai, the capital of Tamil Nadu. Incidentally, this is also the lowest petrol price in the month in the State.
- Petrol prices remained steady with slight variations during the first week. The marginal rise or fall in the petrol price is attributed to the fluctuations in the global crude oil rate.
- The revision in petrol prices was not influenced by domestic factors such as the excise duty or Value Added Tax (VAT) as both the Centre or the State didn’t revise the taxes on the fuel.
- The highest petrol price in Tamil Nadu in April 2018 stood at Rs.77.47 per litre on the 24th.
- The petrol price trend in Tamil Nadu during the month was in an upward trajectory of 1.24% largely due to the slight revisions in the crude oil price.
Petrol Price Trend in Tamil Nadu in May 2018
- The opening date price of petrol stood at Rs.77.43 per litre in Tamil Nadu for the month. This price remained same till the 11th due to the 2018 Karnataka Assembly Elections was scheduled to be held on the 11th.
- The petrol price of Rs.77.43 per litre is also the lowest price recorded for the month.
- With the elections concluded, State-owned oil companies began revising fuel prices under the ‘Dynamic Fuel Pricing’ methodology.
- While petrol prices during the second and third week rose marginally, the cost of petrol during the last week inclined significantly due to the rising crude oil prices in the global market.
- Petrol prices reached an all-time high of Rs.81.47 per litre on the 29th as the global crude oil price touched $80 per barrel.
- Overall, petrol prices in Tamil Nadu and other states were considerably higher due to the high cost of crude oil.
Petrol Price Trend in Tamil Nadu in June 2018
- On the first day, the petrol price in Tamil Nadu stood at Rs.81.32 per litre. Despite touching an all-time high in May 2018, prices began declining but not significantly. This price is also the lowest petrol price in Tamil Nadu in June 2018.
- By the end of the second week, petrol prices were down by nearly Rs.2 in the backdrop of the fall in the global crude oil rate.
- The Organisation of Petroleum Exporting Countries (OPEC) decided to meet on the 22nd to discuss strategies to counter the rising crude oil rates in the international market.
- The OPEC agreed to increase the production of crude oil to arrest the incline in petrol prices across the globe.
- With the OPEC agreeing to increase output, crude oil rates started to decline which led to the fall in petrol prices across the country.
- The lowest petrol price in Tamil Nadu for the month of June 2018 stood at Rs.78.40 per litre which remained the same till the end of the month.
- The petrol price trend in Tamil Nadu in June 2018 reflected a downward trajectory of 3.59% attributed to the fall in crude oil prices as the OPEC and its key ally Russia decided to increase the output.
Quarterly Petrol Price Trend In Tamil Nadu Between January 2018 And March 2018
|Opening date price||Rs.72.53 per litre||Rs.75.75 per litre||Rs.74.26 per litre|
|Closing date price||Rs.75.63 per litre||Rs.74.13 per litre||Rs.76.29 per litre|
|Highest price||Rs.75.63 per litre recorded on 31||Rs.76.09 per litre recorded on 6||Rs.76.29 per litre recorded on 31|
|Lowest price||Rs.72.53 per litre recorded on 1, 2, 3 & 4||Rs.74.13 per litre recorded on 27 & 28||Rs.74.26 per litre recorded on 1|
Trend in petrol price in Tamil Nadu in January 2018
- Petrol price in Chennai stood at Rs.72.53 per litre, which is also the lowest price of petrol in January 2018. The price of petrol in Coimbatore stood at Rs.72.95 per litre, while other main cities of Tamil Nadu witnessed similar trend in petrol prices, including Madurai and Tiruchirapalli.
- In January 2018, petrol prices in Tamil Nadu witnessed an upward trend with the lowest petrol price recorded at the beginning of the month and gradually increasing towards the end of the month.
- Due to a considerable increase in the Indian Crude Oil Basket price, state-owned oil companies declared a hike of 1.73% in petrol prices in major cities in the first 15 days of January 2018.
- While petrol prices remained steady in the first week of the month, by mid-January 2018, prices of petrol increased due to the decline in the value of USD against INR, as it fell from Rs.63.704 to Rs.63.624, a reduction of 0.13%.
- During the next 15 days, petrol prices continued to increase with the highest petrol price in January 2018 recorded at Rs.75.63 per litre on the last day of the month.
- Prices of petrol in January witnessed a 4.10% increase in Tamil Nadu owing to a hike in international crude oil prices by Rs.5.
Trend in petrol price in Tamil Nadu in February 2018
- Petrol prices in Tamil Nadu in February 2018 continued to increase in the first 15 days of the month recording the highest petrol price of Rs.76.09 per litre on February 6, 2018. Petrol price in Chennai on the opening date stood at Rs.75.75 per litre.
- Despite the Union Budget, which was presented on February 1, 2018, the state-owned oil companies neither increased nor decreased the petrol price.
- Beginning February 11, petrol prices in Tamil Nadu decreased by nearly a rupee owing to gain in USD/INR conversion rate.
- Petrol prices in Tamil Nadu continued to spiral downwards from 21 and dropped further over the end of the month with the lowest petrol price recorded on 27 at Rs.74.13 per litre.
- Prices of petrol in Tamil Nadu in February 2018 recorded a 2.18% downward trend. Overall, February petrol prices in Tamil Nadu was a mixed bag influenced by inconsistent international crude oil prices. Also, domestic influencers such as Value Added Tax (VAT) and the excise duty remained unchanged.
Trend in Petrol Prices In Tamil Nadu In March 2018
- Petrol price in Tamil Nadu averaged Rs.75.17 per litre in March 2018 with the lowest price recorded at Rs.74.26 per litre on 1.
- Fuel prices increased from March 5 to 16 owing to a slight decline in the USD/INR conversion rate.
- In the following days, petrol prices continued to increase in the backdrop of declining value of the USD. Prices of petrol were recorded at Rs.75.61, Rs.75.85, Rs.76.10 and Rs.76.29 on 28, 29, 30 and 31, respectively.
- While the lowest price of petrol in Tamil Nadu stood at Rs.74.26 per litre in March 2018, the highest price was recorded at Rs.76.29 per litre on 31.
- Overall, petrol price in Tamil Nadu in March 2018 witnessed an upward trend of 2.73%.
Factors Impacting Petrol Prices in Tamil Nadu
The Retail Selling Price of Petrol Increases if:
- The value of the INR falls against the USD.
- The cost of crude oil goes up.
- The central excise duty on petrol increases.
- The state VAT increases.
The Retail Selling Price of Petrol Decreases if:
- The state VAT decreases.
- The central excise duty decreases.
- The value of the USD falls against the INR.
- The cost of crude oil decreases.
The Reserve Bank of India, the central bank, defines the value of the USD against the INR. The exchange rate is influenced by inflations, interest rates, public debt, political stability, terms of trade and economic performance. As discussed in the earlier section, the retail selling price (RSP) of petrol replicates the fluctuations in the exchange rate.
How does GST Impact Petrol Prices in Tamil Nadu?
The Goods and Services Tax (GST) is a consolidated indirect tax platform. It was introduced in India in July 2017. Since petrol has not been covered under the GST regime, petrol prices remain unaffected by GST. Currently, all types of goods and services are taxed under four slabs: 5%, 12%, 18% and 28%.
If GST is imposed on petrol at 12%, the cost of petrol in Tamil Nadu will be less than Rs.40. If petrol is taxed at 18% under the GST regime, then the petrol cost will be less than Rs.42. If petrol is taxed at 28% (the highest rate), then the petrol rate in Tamil Nadu will be less than Rs.45 per litre.
Also Check Petrol Price in NearBy Cities of Tamil Nadu
|Petrol Price in Coimbatore||Petrol Price in Madurai||Petrol Price in Salem||Petrol Price in Trichy|
|Petrol Price in Erode||Petrol Price in Tirunelveli||Petrol Price in Vellore||Petrol Price in Tuticorin|
*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.