Petrol Price in Varanasi
Are you a petrol user from the city of Varanasi? If yes, have you noticed the latest updates with regard to fuel prices? In India, the fuel retailing sector has witnessed several changes, including the introduction of dynamic fuel pricing system last year. What is that? It is a fuel revision method currently used by Indian Oil Marketing companies to fix the price of petrol in Varanasi. Fuel prices have to be revised every day. Once revised at 06:00 a.m., the latest fuel prices in Varanasi should be released.
Features of the newly introduced Fuel Pricing Mechanism
- You will get a new price for petrol each day in Varanasi. The fuel is priced on the basis of the currency exchange ratio. The price of crude oil is also taken into account.
- The updated petrol prices are uploaded onto the websites of oil marketing companies, which include Shell Oil, Indian Oil, Bharat Petroleum and Hindustan Petroleum.
- There are two types of fuel retailers in India: automated and non-automated. Under the new fuel revision methodology, the petrol price in Varanasi is automatically revised by automated fuel stations. Non-automated petrol stations shall manually revise the petrol rate in the city.
- No government forces can influence the fuel pricing in Varanasi. In other words, dynamic fuel pricing assures 100% transparency in the fuel price revision.
- Maintaining stocks is not a complicated task for oil marketing agencies, which can also keep a track on working capital.
- Fuel buyers shall be interlinked to real-time market conditions and performances.
Tips for obtaining the Petrol Price in Varanasi
Today’s petrol price in Varanasi can be obtained online or through downloading mobile applications. Indian Oil, Bharat Petroleum and Hindustan Petroleum will offer tailor-made mobile applications. If you use a smartphone, tracing the current petrol price in Varanasi will be easier. If you are willing to download the mobile application of Indian Oil, Fuel@IOC is the mobile application’s name. If you are willing to download the mobile application of Bharat Petroleum, the name of the mobile application is SmartDrive. If you are willing to download the mobile application of Hindustan Petroleum, the mobile application’s name is My HPCL.
Oil marketing entities will also provide SMS services. You just have to send an SMS request. Type RSP and send the dealer code to 9224992249. This is the number provided by Indian Oil. The number provided by Hindustan Petroleum is 9222201122. You just have to type RSP and send the dealer code to the number. Similarly, type RSP and send the dealer code to 9223112222. This is the number offered by Bharat Petroleum. This is how you can get the current petrol price in Varanasi.
Petrol Price in Varanasi
As of 27 February 2018, the petrol price in Varanasi was Rs.73.51 per litre. This includes an excise duty of Rs.19.48 per litre. The fuel was sold at a price of Rs.69.46 per litre on the first day of April 2017. It sold at Rs.70.87 per litre on the first day of May 2017. On the opening day of June 2017, the price of the fuel fell to Rs.69.99 per litre. In July 2017, the fuel was priced at Rs.66.65 per litre. On the opening day of August 2017, the price of the fuel was Rs.68.75 per litre. In November and December 2017, the average price of petrol in Varanasi was Rs.71.71 per litre.
A comparison of Value-added Tax (VAT) among Indian states
Petroleum Planning and Analysis Cell has released the data related to Value-added Tax in various Indian states on 4 October 2017. In Uttar Pradesh, the VAT on petrol was 32.90%. In Karnataka, it was 30%. Similarly, the VAT on petrol was 28.96% in Gujarat whereas in Haryana it was 26.25%. The higher the VAT, the higher will the petrol price. The lower the VAT, the lower will the petrol price. Since the VAT rate in Maharashtra is comparatively high, petrol is expensive in Maharashtra.
Why have Petrol Prices in Varanasi increased over the last one year?
Petrol prices in Varanasi have increased since the price of crude oil has increased from $45 per barrel to $63 per barrel. Retail fuel stations have also increased their commission by Rs.1 per litre on petrol. Besides, the profit margin of oil marketing companies (OMCs) has been increased. Because of these reasons, the fuel rates in Varanasi have accelerated.
How is the current petrol price computed?
The following cost elements are added to arrive at the Retail Selling Price of petrol in Varanasi:
- Cost of Crude Oil: As of 3 February 2018, the cost of crude oil per barrel was Rs.26.42 per litre.
- OMC costs: The expenses, which are incurred by oil marketing companies, are estimated to be Rs.8.10 per litre. These include refinery processing charges, entry levies, operational overheads, freights, carriage, etc.
- Excise Duty: As of 3 February 2018, the Central Government levies an excise duty of Rs.19.48 per litre on petrol.
- Dealer commission: As of 3 February 2018, fuel retailers impose a commission of Rs.3.59 per litre on petrol.
- VAT: The retail selling price of petrol in Varanasi includes a Value-added Tax of Rs.18.93 per litre.
Elements affecting the Petrol Price in Varanasi
The petrol rate in Varanasi is affected by the exchange rate, the buying price of unrefined oil, the central tax and the VAT. As crude oil is transacted in global markets, the exchange rate makes a huge difference to the buying cost of unrefined oil. Any ups and downs in the INR/USD conversion rate shall be replicated in the petrol price in Varanasi. For example, when the value of the Indian currency depreciates against the value of the currency of the USA, crude oil rates in global markets are expected to increase. Similarly, when the value of the USD depreciates against the value of the Indian currency, crude oil prices are envisioned to fall.
GST vs Petrol Price in Varanasi
The Goods and Services Tax (GST) is not applicable to petrol since it has been outside the regime of the GST framework. Once the GST is executed on petrol, the petrol price will fall. The oil ministry had urged the GST Council to tax petrol under the GST framework, but the final decision should be taken by the GST Council.
*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.