Understanding daily petrol and fuel is essential to saving money. With rising crude prices and volatile currency fluctuations, readers can use this tool to plan and understand their fuel requirements.
Sify.com presents accurate fuel rates for several cities and state capitals by collecting them from Oil Marketing Companies.
Applicable from 6:00 a.m. on 21-10-2020
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Rates mentioned on this page are sourced from Indian Oil Corporation Limited and is in sync with rate revisions updated by Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, and Shell Oil.
Starting from June 16, three major state-owned OMCs – IOCL, BPCL and HPCL commenced daily rate revision process. With this, India joined band of nations such as the US and Australia where petrol prices are changed daily.
Rates for mentioned cities may differ marginally since dealers may add unaccounted expenses incurred towards logistics and local taxes to the final retail price.
For more information on Commodities, Financial and economic indicators follow Sify Finance. Sify.com also features insights on impact of Covid-19.
Based on queries received from our readers, here are a few interesting questions and answers.
What has been the impact of Covid-19 to the petroleum industry?
Covid-19 has dented both consumption and supply. On the consumption side, sales have been abysmally low owing to lockdown. On the supply side, international crude markets have been rattled owing to lower consumption and production. Sectors ancillary to the petroleum products such as automotive and technology too have taken a beating owing to lockdown.
Why is Petrol costly despite cheaper Crude prices?
In International markets, Crude prices or Paper crude in futures markets turned negative in April. Physical deliveries of Crude to importing countries such as India has also been hit owing to the Covid-impact. Tax hikes have been the recourse for state and Union governments keen on meeting their collection targets.
Did Petrol touch the highest in India during Covid season?
Covid-season saw rates head north to levels of Rs 85 per litre yet remain lower than Oct’18 levels. If rates in Delhi were to be calculated, the historic moment was diesel surpassing diesel rates, creating a furore. In Jul’20, rates across Southern cities touched their individual all-time highs despite poor demand from consumers.
Not many would remember the peak of fuel rates on 4th Oct 2018. Price of petrol in Mumbai on this day was Rs 91.34 per litre, rates hovered at Rs 84 in Delhi, while it touched Rs 87.33 in Chennai, and Rs 85.8 in Kolkata. The reasons for costlier petrol in Oct'18 were weaker Indian rupee and higher Crude prices owing to OPEC (Oil Producing & Exporting Countries) and allied members threatening a production cut.
Why are rates in Sri Lanka and even Pakistan cheaper than India’s rates? Is India the highest fuel-tax imposer?
The usual comparison when it comes to Petrol and Diesel rates in the country is with that of neighbouring countries. The reason is simple – India has the highest tax incidence on petroleum products. Hence, not only are petrol and diesel costly, even Aviation Turbine Fuel and petroleum products such as wax, engine oil and motor lubricants are expensive in the country.
India ranks 5th when it comes to tax imposition on fuel. According to a 2020 EY report, taxes on Petrol and Diesel reflects barely 34-35% actual fuel rate while the rest is tax. The report tallies this on the Delhi rates and not for cities such as Chennai, Bengaluru, Ahmedabad, Mumbai and other metropolitan cities where fuel rates are usually the highest. Other countries with high tax incidences are United Kingdom, Italy, France and Germany. The countries that have the lowest taxes are Spain, Canada, Japan, and the United States (levied 23 percent tax for Jun'20).
Why hasn’t GST helped bring down taxes on petroleum products?
Although GST has been rolled out country-wide as of midnight of 1 July’17, it remains to be introduced for petroleum industry. Producers, refiners and countless consumers are still waiting for the full benefits of One Nation, One Tax system. The industry has been demanding GST in order to claim benefits under the Input Tax Credit scheme while other agencies await the benefits of simpler compliance to reduce costs. On compliance, refiners and industries have pointed out that tax computations on petroleum products currently involves a complicated procedure involving pre and post GST tax rules.
For consumers, GST could be a great booster since the actual tax could be 28 percent at the highest slab while current tax incidence remains a whopping 60 percent and above. Reduced tax rates could be a boon for logistics, retail and consumer specific industries. For instance, the cost of transporting onions could get cheaper and so would the cost of petroleum products such as ATF or motorcycle engine oil. Also, OMCs could pass on ITC credits to consumers to inculcate loyalty. While the analogy on loyalty is hypothetical, we hope you understand the abundant benefits from GST on petroleum products.
How much fuel does India consume daily on average?
Industry data for Mar'20 showed only LPG consumption improving even as sales for Petrol, Diesel and ATF crashed in double-digit figures. India's overall fuel-consumption in the month of Mar'20 dwindled to 16.08 million tonnes, down by 17.79 percent.
The consumption in Covid season is reported as one-third of India's regular fuel-consumption pattern. For instance, India consumed 2.4 million tonnes of petrol, 7.3 million tonnes of Diesel and 6,45,000 tonnes of ATF in Apr'19.
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.
Why do petrol rates differ across Indian cities?
Although rates decided by OMCs subsumes several taxes such as VAT and state taxes and the Union government has a standard tax rate, taxes imposed by state governments are varied. For instance, 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?
There is no question of direct subsidies since OMCs are pricing Petrol and Diesel. However, there exists subsidies on LPG for low-income households. In extreme cases, the Central government can always suggest OMCs to take a financial-impact to restrict spiraling fuel prices. The government also has powers to request OMCs to drop excise duties, however that can adversely impact state finances. Such a measure was observed in Oct'18 when fuel rates peaked. 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 does the daily price revision comprise of?
Until 2017, fuel prices were fixed by the Central government. India moved to a dynamic fuel price method that allows Oil Marketing Companies to fix retail rates for petrol and diesel. The onus to fix price is not on OMCs completely, since respective state governments and the centre have a leeway in suggesting their tax needs.
One would think that the daily price would factor the cost of crude oil, freight and refining expenses. That’s not all, OMCs add other costs such as their 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.
How to predict the Petrol or diesel price?
An accurate forecast of rates for a given day is next to impossible considering the change in logistics, crude rates and taxes. It certainly is not 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 naturally makes Petrol/Diesel costlier. The second component integral in determining petrol rates are exchange rates. A weaker rupee makes buying fuel an expensive affair.
How valid are these rates?
These rates have been sourced from Indian Oil Corporation, which has been entrusted with the objective of leading the daily-rate revision process. Although Sify updates these rates in the morning to benefit readers, OMCs call them as prescriptive rates. As such these indicative rates may vary at outlets within the same city/town/sales To get the most accurate rates, users can reach out to respective OMCs or individual petrol pumps. To get accurate rates via SMS, do the following:
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
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
Sify.com updates this page for readers to understand the daily price updates. 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. The page is maintained with the sole objective of imparting credible information to readers.