Petrol Price In Aurangabad Today

Since 16 June 2017, all oil marketing companies (OMCs) - Indian Oil, Shell Oil, Bharat Petroleum and Hindustan Petroleum - have been reviewing the petrol price in Aurangabad under the new system called dynamic fuel pricing. This new system has been in use in a few advanced countries such as Japan, Russia, Australia and the United States of America (USA). The dynamic fuel pricing mechanism considers the INR/USD exchange rate and overseas crude oil rates to revise the fuel price. It instantly transits the variations in the currency conversion rate and crude oil prices to end customers. This is the reason why the fuel is priced differently everyday in Aurangabad.

Dynamic Fuel Pricing from the Stance of Oil Marketing Companies

Of course, the new system fosters the automation drive of petrol pumps in the city. All automated petrol bunks can automatically revise the fuel price whereas non-automated bunks have to do it manually. Everyday, the fuel price is revised at 06:00 a.m. and the revised price shall be displayed for the benefit of consumers. The latest petrol price in Aurangabad can be traced using both online and offline modes. How? All oil marketing entities have developed the unique mobile applications for tracking the latest petrol rate in Aurangabad. If you are a smartphone user, these tailor-made mobile applications can be downloaded. If not, you can check online by visiting the websites of OMCs.

Benefits of Dynamic Fuel Pricing

The Dynamic Fuel Pricing system offers the following benefits to OMCs:

1. Inventory management can be easier.
2. The Indian fuel retailing sector can be interlinked to overseas markets.
3. Consumers can be aligned to market dynamics.
4. OMCs can effectively manage working capital, the net difference between current assets and current liabilities.

The current petrol price in Aurangabad is hovering around Rs.78.09 per litre. The price includes the tax imposed by both the central and state governments and crude oil prices majorly. These tax components are subject to change. The government recently revised the excise duty on fuel rates in October 2017. Moreover, a few states have also revised the component of Value-added Tax (VAT) recently.

The price paid by end consumers is the retail selling price, also called as the final price. How is that assessed? Or, what are the components of the final price? As mentioned earlier, the fuel price is computed in sync with the exchange rate and crude oil rates, which are highly volatile in nature. They change everyday. The exchange rate is a base, but not a price determinant.

The retail selling price includes the excise duty, the VAT component, the cost of crude oil, the overheads incurred by OMCs, the profit margin of OMCs and the commission charged by dealers. The excise duty on petrol was recently reduced to Rs.19.43 per litre in October 2017 by the central government and the VAT was reduced by Rs.2 per litre in the same month by the state government of Maharashtra.

Also check : Today's Gold Price in Aurangabad

Factors affecting the Petrol Price in Aurangabad

The Fuel's Price is affected by the following factors:

Exchange Rate: The exchange rate of the USD against the INR is very crucial. The USD is the base currency for overseas transactions. The exchange rate is determined on the basis of monetary policy, interest rates, public debt, the overall performance of a nation and inflation. When the value of the USD appreciates against the INR, the price of crude oil increases. When the value of the INR gains against the USD, the price of the crude oil falls. Ultimately, the final fuel price shall be impacted.

Global Crude Oil Prices: Crude oil is a global commodity and is always bought in the USD. Needless to say, the variations in crude oil prices shall impact the price of petrol in Aurangabad. As on 09 January 2018, US Crude was priced at $62.92 per barrel whereas Brent Crude oil was priced at $67.68 per barrel. The cost of crude oil shall vary on the basis of the supply and demand pattern, global economics and politics, seasonal conditions and many other factors.

Excise and VAT: Excise is levied on both petrol and diesel by the central government whereas the VAT is imposed by state governments. Any variations in these two tax elements will proportionately impact the fuel price in Aurangabad. As on the latest date, the excise duty was Rs.19.48 per litre on petrol per litre whereas the VAT was 47.94% in Maharashtra.

Petrol Price in Aurangabad vs GST

Does the new tax system impact the current petrol price in Aurangabad? It does not! Since both petrol and diesel have been kept outside the purview of the GST system, fuel consumers continue to pay the similar price. The imposition of the GST on petrol and diesel at the current tax rate shall harm the revenue source for the government. The current GST rates should be readjusted to impose on petrol and diesel. It can be a reality soon.

*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.