Petrol Price in Visakhapatnam
Visakhapatnam is situated along the east coast region of India and is considered to be the financial capital of the State of Andhra Pradesh. The port city is also the headquarters of the Eastern Naval Command of the Indian Navy. Visakhapatnam or Vizag as it’s popularly referred to is the most populous city in the State. The city, with a population of over 20 lakh, is the 9th largest contributor to the country’s overall Gross Domestic Product (GDP) recorded as of 2016.
Visakhapatnam has a rich heritage and its history dates back to the 6th century BCE, the present day Visakhapatnam has grown to become a cosmopolitan metropolis. With a burgeoning number of people migrating, Vizag has witnessed an increase in private vehicles such as two-wheelers and four-wheelers. The public transportation in Visakhapatnam constitutes state-run buses, private taxis and auto rickshaws.
|Also Know: Diesel Price In Visakhapatnam|
Fuel consumption has surged in tandem with the city’s vehicle population, especially petrol with the rise in private vehicle density. The city has several petrol pump stations largely operated by state-owned oil companies such as Indian Oil, Hindustan Petroleum and Bharat Petroleum. With the petrol price in Visakhapatnam changing every day, let’s analyse the main aspects which determine the fuel price in Visakhapatnam.
|Also Check: Petrol Price in Andhra Pradesh|
How are Petrol Prices in Visakhapatnam Updated?
India follows the daily fuel price revision, which was introduced from 16 June 2017, where every petrol pump or fuel stations operated and owned by the country’s oil companies such as IOCL, BPCL, and HPCL update the petrol price in Visakhapatnam every day at 6 a.m. IST.
The new pricing method is known as the ‘dynamic fuel pricing’ mechanism where fuels are priced in sync with the global crude oil price and the exchange rate between the US dollar and the INR. Consumers will now purchase petrol in market-determined prices irrespective of any increase or decrease in the international crude oil price.
How are Petrol Prices in Visakhapatnam Computed?
Consumers pay the retail selling price (RSP) for a litre of petrol, which is the final price of the commodity. What are the components of RSP? The components or the computation of the petrol price includes the price of crude oil and freight charges, the refinery transfer price (RTP), dealer commission, excise duty levied by the Central Government, the Value Added Tax (VAT) charged by the State Government which constitutes the RSP of petrol in Visakhapatnam.
The below table offers the breakdown of the petrol price in Visakhapatnam and how it’s calculated based on the price for a barrel of crude oil. Please note, the price is calculated based on the 20th May 2018 pricing.
|1||Global 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.21.74/Ltr|
|Total||Retail selling price of diesel in Karur||Rs.81.94/Ltr|
How to track Petrol Prices in Visakhapatnam?
With fuel prices in Visakhapatnam revised every day, it’s essential to know how to track the current petrol price in the city. Consumers have multiple options to get the daily petrol price in Visakhapatnam.
- Through Smartphone Mobile App: Consumers can download and install mobile apps which offer the petrol rate in a city. IOCL customers can make use of the ‘Fuel@IOC’ app, BPCL consumers can install the ‘SmartDrive’ app, while those filling fuel in HPCL fuel stations can take advantage of the ‘MY HPCL’ app to get the current petrol price in Visakhapatnam.
Via SMS Service: For those who prefer the SMS service, below is the process to get daily fuel rates.
- IOCL: SMS RSP Dealer Code to 9224992249.
- BPCL: SMS RSP Dealer Code to 9223112222.
- HPCL: SMS HPPRICE Dealer Code and SMS to 9222201122.
- Oil Companies’ Website: Oil companies update their respective website with the current fuel price in Visakhapatnam as well as other cities in the country.
Components Influencing the Petrol Price in Visakhapatnam
Now that we know how the petrol price is computed, let’s look at what are the main components which influence the petrol price.
- International Factor: As mentioned, the global crude oil price forms the base price for a litre of petrol in cities across India. Any changes in the price for a barrel of crude oil directly influences the petrol price in Visakhapatnam. Oil-Marketing Companies (OMCs) purchase crude or unrefined oil from oil-producing countries in the global market and refine it. However, the crude oil price is not constant and keeps increasing or decreasing based on the demand, any production cut or due to geopolitical reasons. Also, India purchases crude oil in US dollars, hence any changes in the exchange value impacts the petrol price.
- Domestic Factor: While there are several domestic factors which influence the petrol price in Visakhapatnam, the main factor are the taxes it attracts. While the Central Government levies the excise duty, the State Government charges the Value Added Tax (VAT). The excise duty on petrol in Visakhapatnam is Rs.19.48 per litre, while the VAT is 36.12% for a litre of petrol sold in the city. Apart from taxes, the petrol rate in the city is also influenced by the profit margin of the OMCs and the dealer commission, who dispense and store fuel as well as maintain fuel stations.
Petrol Price Vs. Diesel Price in Visakhapatnam
Similar to other cities, the petrol price is higher compared to the diesel rate in Visakhapatnam. This is due to the cost of the refining process as well as other operational costs. Additionally, the taxes levied on petrol is much higher than that of diesel. In April 2018, the average difference between petrol and diesel price in Visakhapatnam is approximately Rs.9 per litre. While the average petrol rates in the month stood at Rs.79.30 per litre, while diesel stood at Rs.71.64 per litre.
The excise duty levied on petrol by the Centre stands at Rs.19.48 for a litre, while diesel attracts Rs.15.33. As for the VAT, the State of Andhra Pradesh charges 36.12% for a litre of petrol, while diesel is charged at 28.60%.
GST on Petrol in Visakhapatnam
All commodities and services come under the new taxation system known as the Goods and Service Tax (GST) in India. The new taxation system came into effect from July 2017. However, petroleum products have been kept away from attracting GST. The oil and natural gas industry do not come under the framework of the GST. If the Indian Government brings petroleum products under the GST, it will lead to double compliance in expenses as all the stakeholders, including the oil industry, will have to adhere to the new taxation regime and the GST tax slabs.
Since the current taxes on petrol is much higher than the highest tax slab under the GST, it will have a huge impact on the revenue of both the Centre and the State. Hence, GST on petrol in Visakhapatnam is not applicable currently.
Also Check Petrol Price in NearBy Cities of Visakhapatnam
*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.