Petrol and Diesel prices are changed daily at 6 am across India. To help consumers, Sify.com brings you the updated petrol rates of various cities and state capitals daily. Here is a table of prices:
Applicable from 6:00 a.m. on 29-02-2020
|State Capitals||Current |
Who fixes the price of Petrol in India?
Until 2017, fuel prices were fixed by the Central government. With India having adopted a dynamic fuel price method, the government has allowed Oil Marketing Companies to fix the retail prices of petrol and diesel.
How is Petrol price decided in India?
The daily price majorly factors in cost of crude oil in international markets, freight and refining expenses. Further OMCs also add other costs such as margins, dealer's commission, Central duties such as Excise, and state duties such as VAT, surcharge and other taxes to arrive at the final fuel-rate. Why do petrol and diesel prices change rates every day in India? Oil Marketing Companies such as HPCL, BPCL, and Indian Oil Corporation decided to convert to the daily revision regime from 16th June 2017. OMCs said that doing so would ensure a reflection of global price trends and it would also minimize sudden price volatility.
How much petrol and Diesel does India consume daily on average?
According to the Petroleum Planning & Analysis Cell (PPAC), India's consumption of Motor Spirit that is Petrol has been reported at 28,284 TMT (thousand metric tonnes) for the fiscal year 2018-19 (April-March). HSD (High Speed Diesel) saw a total consumption of 83,520 TMT during the same period.
How does the state government affect Petrol prices?
The rates decided by the Oil Marketing Companies subsumes several taxes including VAT and state taxes. The daily price has the component of central government levied excise duty and state-taxes. While the central government imposed duty remains constant, state taxes differ. For example, the rate of VAT in Delhi applied on Petrol/Diesel is 27% while in Goa it is 15% VAT plus 0.5% Green Cess. The VAT structure differs across various states. This is the reason why Petrol and Diesel are priced differently across various states. Many consumers and activists have opined that the tax-rates are way too high, but individual states have supported their tax-rates saying this revenue is much needed.
Is there a subsidy on petrol and diesel?
The onus of pricing Petrol and Diesel is upon OMCs. So, there is no question of direct subsidies. In fact, subsidies are offered on LPG. However, in extreme cases, the Central government can suggest OMCs to take a hit in order to contain spiraling prices. The government may ask OMCs to take a direct hit or ask for the component of excise duty to be reduced. The last time such an extremity was observed was during October 2018 when Petrol and Diesel rates peaked to an all-time high. The government asked OMCs to adjust Rs 1.50 from the excise duty and also absorb another Rs 1 from the final cost as a direct hit. This resulted in rates cooling by Rs 2.50 per litre for both petrol and diesel.
What will be the impact of GST on Petrol prices?
Various government officials have reportedly been in favor of bringing petroleum products within the GST regime. The industry has been demanding GST in order to claim benefits under the Input Tax Credit scheme. Various industry agencies believe that following GST may lead to simpler compliance and thereby cost-savings. Even refiners say that the tax computations for petroleum products involve a combination of the new and old tax structures. On the consumer side, the highest GST slab of 28% is smaller than the tax-incidence of 45-50% (non-GST era). This suggests that rates could come down if fuel rates are subsumed under GST. Also, OMCs availing input tax credit may pass-on such benefits to customers. However the analogy would hold true only if OMCs passed-on the benefits of credits to customers in the true sense.
What is the highest ever Petrol price has gone in India?
Fuel rates were the highest ever in the month of October 2018. The Indian rupee was not faring well and global crude producers including OPEC cut down on supplies creating an artificial demand. The month of October '18 saw huge swings in fuel rates. Rates of Petrol were the most costliest on 4th Oct 2018. Price of Petrol in Mumbai on this day was Rs 91.34 per litre. Rates were Rs 84 in Delhi, Rs 87.33 in Chennai, and Rs 85.8 in Kolkata.
How to predict the Petrol or diesel price?
An accurate forecast of rates for a given day could be next to impossible. However, it may not be a challenge guessing the direction of rate-swings based on trends and news reports. The basic component for determining petrol and diesel rates is the international crude rate. A higher international crude rate or reserve price would naturally make Petrol/Diesel costlier. The second component integral in determining Petrol rates are the exchange rate. A weaker rupee makes buying fuel an expensive affair.
How should consumers go about in validating the daily price change of fuel?
OMCs update price change every day morning at 6 AM. Although individual OMCs update rates on their websites, the prices mentioned are usually indicative and may vary from outlet to outlet within a city/town/sales area. Sify.com collects updates these rates daily and presents it to readers in an easy to understand manner. However, users should understand that the rates mentioned on Petrol pumps are the most accurate ones to rely on. In case you do not have smartphone access or want to get information via SMS or seek information on a call you can do the following: 1. For SMS: You can SMS "RSP DEALER CODE" to 92249-92249. This is the SMS to get price details of rates at pumps of Indian Oil Corporation. Dealer code is mentioned prominently on all pumps. But we have made the dealer codes handy for you. Here are dealer codes of IOCL pumps of top 8 cities:
For Bharat Petroleum: Send SMS: RSP 9223112222
For HPCL: SMS HPPRICE 9222201122
2. To find rates over a phone call or to reach to customer service of OMCs, you can try using the following numbers:
HPCL: 1800-233-3777 / 1800-233-3555
Source for prices: Indian Oil Corporation
With this daily price revision, India has joined the band of select nations like the US and Australia where Petrol prices are changed daily.
The three state-owned oil marketing companies - Indian Oil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation - rolled-out the daily dynamic pricing mechanism for petrol and diesel from June 16.
A 'proud' Petroleum and Natural Gas Minister Pradhan had taken to twitter to share the news: "Proud to share that India is first country to switch to dynamic fuel pricing on such a large scale in one go."