Petrol Price in Udupi
How is the petrol price in Udupi moving? Do you observe a big lapse or a small lapse? Be noted that you cannot anticipate the petrol rate to be the same like before. It has been floating every day because of the introduction of the daily fuel revision framework. Market analysts advise the petrol customers from Udupi, a city in Karnataka, to make a note of daily changing fuel rates. It is just to keep yourselves informed about the latest price changes.
Interpretation of Fuel Prices in Udupi
Petrol is not a tradable commodity, but many fuel buyers are willing to understand the trend in petrol rates in Udupi. Comprehending the trend is a complicated task. There are no precise sources to study the actual trend as well. Let’s now take a glance at historical prices. In January 2018, the opening day price was Rs.70.72 per litre and the closing day price was Rs.70.72 per litre. The highest and lowest prices stood at Rs.73.63 a litre and Rs.70.72 a litre respectively.
In February 2018, the opening day and closing day prices were Rs.73.77 a litre and Rs.72.19 a litre respectively in the city. The lowest price was Rs.72.19 a litre and the highest price was Rs.74.10 a litre during the month. In March, petrol rate in Udupi accelerated to Rs.74.11 a litre from Rs.72.33 a litre at a growth rate of 1.78%. At Rs.74.11 a litre, the highest rate was booked, and at Rs.72.33 a litre, the lowest rate was registered during the month.
Introduction to Dynamic Fuel Pricing
Dynamic fuel pricing is basically a streamlined methodology used for the revision of both diesel and petrol rates. India has been following the same methodology for the last 9 months. It is not only India, other advanced nations such as Japan, Australia and the United States of America (USA) also follow dynamic fuel pricing. It is instrumental not only to fuel retailers but also to petrol buyers. Put simply, the problems associated with the previous fortnightly-based revision can now be addressed.
Fuel retailers in India, including Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOL), will offer the revised petrol rate based on the current value of the Indian currency against the USD. Even regular fluctuations in the cost of crude oil are accounted for. The revised price is made available to the public via offline and online methods. The same can be obtained by fuel consumers in the city of Udupi.
Trace Today’s Petrol Price in Udupi Using Mobile apps
The following are the three types of mobile apps that can be downloaded to get today’s petrol price in Udupi:
- My HPCL: My HPCL is provided by Hindustan Petroleum. This application offers key features such as mileage calculator, insurance renewals, tire pressure chart etc.
- SmartDrive: SmartDrive is provided by Bharat Petroleum. Like My HPCL, even this application offers key benefits to end users.
- Fuel@IOC: It is a personalized mobile app for petrol buyers of Indian Oil Company and provides features such as electronic bills and RO locators.
What is RSP of Petrol in Udupi? How is that assessed?
RSP stands for the Retail Selling Price. In other words, it is the price remitted by consumers in the end. According to calculations, a consumer pays more than 50% of the RSP in the form of taxes, which include VAT and excise duty. To understand the pricing of petrol, you should know the role of every industry participant. Oil Marketing Companies (OMCs) will import crude oil, convert crude oil into usable commodities such as petrol and diesel, and finally supply them to users through supply centers. The Central Government and local government will levy taxes. The computation of the petrol price in Udupi is done in the following phases:
Phase 1: The cost of crude oil per litre is computed first. If a barrel of unrefined oil costs $65 in today’s market and the exchange rate of the INR against the greenback is Rs.65, then the market price of a litre of crude oil will be Rs.26.57.
Phase 2: OMCs spend a host of costs such as import levies, entry levies, administration overheads etc. The overheads spent by OMCs have been estimated to be Rs.8 on petrol per litre.
Phase 3: Taxes are added to the cost of crude oil. According to a report announced in March 2018, in Karnataka, on petrol per litre, excise duty was Rs.19.48. Value-added Tax (VAT) was 28.31%. They may be modified whenever needed.
Phase 4: Fuel suppliers work for a commission. On petrol per litre, the commission charged by dealers was Rs.3.23 in March 2018.
Factors Impacting Fuel Prices in Udupi
Petrol price in Udupi is less compared to Mumbai and Chennai. Why? It is due to VAT. Petrol price in India is higher compared neighboring countries such as Sri Lanka and Pakistan. Why? It is because of excise duty and state-level taxes. What will happen if oil-producing nations reduce the production of crude oil? In overseas markets, crude oil costs increase. Eventually, in local markets, the fuel cost will also increase. What will happen if the weather does not support the extraction of unrefined oil? The global supply is affected. Thus, fuel rates in Udupi will rise.
GST vs Petrol Price in Udupi
As you know, GST is a complete tax system introduced by the Central Government last year. It has been deployed in India to make the tax system simpler after making a deep research and analysis. Many people do not know that petrol does not fall under the framework of GST. The GST Committee has kept it aside to make sure the Central Government will not incur losses. As on date, the highest GST tax slab will be 28%. What will happen if GST is charged on petrol at this highest tax slab? The current petrol rate in Udupi drops by 31-34% according to market analysts. This is not a better move from the perspective of both the State Government of Karnataka and the Central Government.
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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.