Petrol Price In Ghaziabad Today

With petrol being used extensively in the city, any revision in the petrol price in Ghaziabad affects the city's economy as well as commuters monthly budget. So, what makes the petrol price increase or decrease? What are the main aspects of the petrol price? Let's look at each of these components in detail.

State-owned oil-marketing companies (OMCs) operate nearly 90% of the fuel stations across the city. These OMCs such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) purchase crude or unrefined oil from oil-producing countries before refining the crude oil to petrol and diesel.

What are the Factors that can Fluctuate the Petrol Price in Ghaziabad?

Two main factors affect the petrol price in Ghaziabad - international and domestic. While international factor include the global crude oil price, the domestic factors include taxes, operational costs and commissions. Here's a detailed analysis on each of these factors.

1. International Factor: As mentioned OMCs purchase crude oil in barrels and each of these barrel are priced on a daily basis. The daily price revision is attributed to a higher demand, shortage in supply, production cuts or increase in output or geopolitical tensions which lead to change on the petrol price in the city. As India requires more than 70% of crude oil, any incline or decline in the global crude oil impacts the petrol price of a city in India. Also, since each of these barrels are purchased in US dollars, any change in the exchange rate impacts the petrol rate.
2. Domestic Factor: Taxes form the biggest component in the petrol price. While the Centre levies excise duty, the State levies Value Added Tax (VAT). The current excise duty on petrol is Rs.19.48 per litre, while the VAT is charged at 28.68%. Therefore, any changes in the tax slab lead to the revision in the price for a litre of petrol. Apart from taxes, OMCs add their operational cost and dealer commission to the crude oil price before customers pay the retail selling price (RSP).

Now that we know the factors which impact the petrol price, let's break down the components with an example of the petrol price recorded on 3 June, 2018 in Ghaziabad.

Why does the Petrol Price in Ghaziabad Change Daily?

The current petrol price in Ghaziabad might not necessarily be similar to the previous day's price. This is due to the new pricing mechanism introduced by the Centre called the 'dynamic fuel pricing'. Under this new mechanism, petrol prices are revised daily in tandem with the global crude oil price and the exchange rate of the US dollar. Hence, any fluctuations in the crude oil cost affects the latest petrol price in a city.

Prior to the new pricing mechanism, petrol prices were revised every fortnight; however, any spike in the global crude oil price did not translate to a change in the petrol price. By revising the petrol rate daily, the pricing is tandem with any change in the crude oil rate. Therefore, any increase in the international crude oil price led to an incline in the petrol price.

How to Check the Latest Petrol Price in Ghaziabad?

Since fuel prices are revised daily, it's essential to know the current petrol price in Ghaziabad or any other cities. OMCs offer services through multiple methods such as smartphone apps, SMS service and online portals.

1. Smartphone Apps: With new technologies being developed, OMCs have launched their version of mobile apps which offer the latest petrol price in Ghaziabad. While IOCL consumers can download the 'Fuel@IOC' app, BPCL customers can utilise the 'SmartDrive' app and HPCL has launched the 'MY HPCL' app to track the current petrol price.
2. SMS: For those customers looking to take advantage of the SMS service, one can send an SMS with the dealer code to get today's petrol price.
   1. IOCL: SMS RSP Dealer Code to 9224992249.
   2. HPCL: SMS HPPRICE Dealer code to 9222201122.
   3. BPCL: SMS RSP Dealer code to 9223112222.
3. Online Portal: Consumers can visit the respective OMCs' website to get the current petrol price in Ghaziabad as well as other cities.

Petrol Vs. Diesel Price in Ghaziabad

Petrol prices are relatively higher compared to that of diesel. This is due to the taxes each of these commodities attract. While the excise duty remains universal throughout the country, the VAT differs from state to state. In Ghaziabad, petrol attracts VAT at 28.68%, diesel is charged at 16.99%. During the month of April 2018, the average petrol price stood at Rs.75.44 per litre, while the diesel price stood at Rs.65.40 per litre, a difference of Rs.10.04 per litre.

So, why is diesel cheaper than petrol in India? It's believed that diesel is largely used by farmers and trucks as well as state-owned bus fleets. Besides, petrol powered cars and bikes is still considered luxury vehicles and hence they attract higher taxes.

Does Petrol Attract GST in Ghaziabad?

Effective 1 July 2017, India moved to a new taxation regime known as the Goods and Service Tax (GST). All goods and services rendered attract the GST in India, but petroleum products have been exempted from the new tax regime. Why is the GST not applicable on petrol in India? Sale of petrol brings a huge revenue to the Centre and the State as the taxes are higher compared to the highest tax slab in the GST. That said, by bringing petroleum products into the ambit of the GST will certainly reduce the cost of petrol in Ghaziabad.

*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.