Petrol Price in Trivandrum
The metropolis of Trivandrum is the largest and the capital city of the State of Kerala. Trivandrum is fast becoming a major Information Technology (IT) hub of the country. Currently, the city contributes more than 50% of the State’s software exports. Home to several temples and educational institutions, the city’s population has grown tremendously in the recent past.
The city is well connected by road, rail and air to some of the major cities of the countries. Majority of the public transportation system in the city is operated by State-owned buses as well as private buses. Other popular public transportations are auto rickshaws and taxis. However, two-wheelers and four-wheelers have become a major means of transport in the city. With the increasing population and the migrants to the city, Trivandrum depends on fuel to aid its economy and its transportation system.
|Also Know: Petrol Price in Kerala|
State-owned oil marketing companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum operate most of the fuel stations in Trivandrum. The petrol price in Trivandrum is revised on a daily basis and its essential to understand how the petrol price is computed. The below analysis offers insights into the various factors which affect the price of petrol in the city.
|Also Know: Diesel Price In Trivandrum|
Factors Affecting the Petrol Price in Trivandrum
India relies on oil-producing countries to supply crude oil for its transportation requirement. Nearly 70% of crude or unrefined oil is bought from the Organisation of the Petroleum Exporting Countries (OPEC), which is then refined and sold in the country. Here are some of the biggest influencers which affect the pricing of petrol.
- Revision in the International Crude Oil Price: As mentioned, India purchases crude oil from oil-producing countries hence any changes in the cost of crude oil in the global market impacts the petrol price in Trivandrum. The revision in the international crude oil happens when there’s a shortage of supply, production cuts, geopolitical tensions, etc. For example, when there’s an increase in demand for crude oil, there could be an instance of a shortage of supply, hence, Oil-Marketing Companies (OMCs) will have to bid higher to purchase the unrefined oil, this increases the petrol price in the city.
- Change in USD/ INR Exchange Rate: Since OMCs purchase crude oil in US dollars, any appreciation or depreciation of the dollar value influences the petrol price. Any appreciation in the dollar value will proportionally increase the price of petrol in Trivandrum as well as other cities.
- Taxes on Petrol: The other major factor which determines the petrol price are the taxes. While the Central Government levies excise duty, the states charge Value Added Tax (VAT) on fuel such as petrol and diesel. The excise duty on petrol is Rs.19.48 for a litre, while the State Government of Kerala charges VAT at 32.03%. Any revision of these taxes will affect the pricing of petrol in the city.
- Profit Margin & Dealer Commission: With the OMCs purchasing and refining the crude oil before selling it in the market, these companies add their profit margins along with other operational costs and sell it to dealers across the country. Dealers or petrol pump owners, dispense and maintain the fuel station for which they take a cut before the petrol is sold to the end consumer.
What is the Pricing Mechanism of Petrol in Trivandrum?
The petrol price in Trivandrum is revised under the new mechanism of ‘dynamic fuel pricing’. Previously, petrol prices were revised every fortnight; however, this pricing mechanism didn’t allow OMCs to revise the price in tandem with any changes in the crude oil price. Therefore, the petrol price in Trivandrum is revised on a daily basis under the new pricing mechanism. This helps OMCs to offset any changes in the global crude oil price.
The current petrol price in Trivandrum is influenced by the previous day’s crude oil price and the US dollar’s exchange rate. Petrol prices are revised every day at 6 a.m. IST.
Calculation of the Petrol Price
The below table is a breakdown of the pricing of petrol and how it’s calculated before it’s sold at the Retail Selling Price (RSP) to the consumers. The rates are as on 20 May 2018.
|1||International Crude 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 OMCs, transportation, refining and freight charges||Rs.5.93/Ltr|
|3||Central Excise Duty||Rs.19.48/Ltr|
|5||Value Added Tax (VAT)||Rs.19.28/Ltr|
|Total||Retail selling price of petrol in Trivandrum||Rs.79.48/Ltr|
How to get the Daily Petrol Price in Trivandrum?
With the petrol price revised daily, it becomes challenging to track or get the rate of petrol in a particular city. OMCs have developed several methods to track the price for a litre of petrol through mobile apps, SMS service and via their respective website. The below process will help you get the daily petrol price in Trivandrum.
- Mobile Apps: OMCs have launched smartphone mobile apps which offer the current fuel price of a city. Indian Oil customers can download and install the ‘Fuel@IOC’ app, Bharat Petroleum consumers can take advantage of the ‘SmartDrive’ app, while Hindustan Petroleum users can utilise the ‘MY HPCL’ app to track the current fuel price.
SMS Service: For those who like to use the SMS service, the below process will get you the current petrol price in Trivandrum.
- Indian Oil: SMS RSP
dealer code to 9224992249.
- Bharat Petroleum: SMS RSP
dealer code to 9223112222.
- Hindustan Petroleum: SMS HPPRICE dealer code to 9222201122.
- Indian Oil: SMS RSP
- Website: Consumers can also visit the respective OMCs website to track the daily petrol prices as well as the previous day’s cost for a litre of petrol.
Is GST Applicable on Petrol?
The Goods and Service Tax (GST) is the new taxation system for all commodities and services in India. However, petroleum products have been exempted from the GST. Petrol and diesel continue to attract the Centre’s excise duty and the State’s VAT as taxes. Since the highest tax slab under the GST is much lower than the excise duty and VAT put together, any reduction in the revenue to the Centre or the State will impact the exchequer. Hence, the GST is not applicable on petrol.
Also Check Petrol Price in NearBy Cities of Trivandrum
|Petrol Price in Madurai||Petrol Price in Coimbatore||Petrol Price in Trichy|
|Petrol Price in Salem||Petrol Price in Mysore|
*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.