Today's Petrol Price in Gujarat

You may not have noticed that petrol prices across the state are revised on a daily basis. The daily revision is also called 'dynamic fuel pricing'. The new system combats the drawbacks of the earlier revision. For instance, in the earlier system, there was no transparency with respect to fuel pricing. Petrol dealers were facing issues related to stock management.

Under the daily revision, the current petrol rate is marked to market dynamics. If prices of crude oil fall today, the petrol rate will fall tomorrow. Similarly, if the USD gains against the Indian currency, the cost of petrol will gain. In simple words, any changes in overseas crude oil prices and the currency conversion rate of the USD to the INR will directly affect the final price of petrol in Gujarat, and so does with other states.

Fuel rates will be automatically revised by automated petrol pumps and manually by non-automated bunks. For the reference of fuel consumers like you, each petrol station will display price updates at 06:00 a.m. every day. The daily revision is in practice since the last four months and has been well-received by consumers and dealers.

Trends in Petrol Prices in Gujarat

The first four days of the daily revision have seen a declining trend. Since 21 June 2017 until 3 October 2017, there was an increasing trend in prices. As we know, the cost of petrol shall vary marginally from one brand to another. In all prime cities of Gujarat including Ahmadabad, the petrol price was comparatively cheaper at Hindustan Petroleum followed by Indian Oil, Bharat Petroleum, and Shell Oil as on the latest date.

Comparison between Petrol Price in Gujarat and other States

The latest price that was offered at Indian Oil was Rs.67.66. At Bharat Petroleum, it was Rs.67.72. It was Rs.68.8 at Shell Oil. At Hindustan Petroleum, it was Rs.67.62 as on the latest date, which is 12 October 2017. This is applicable to the entire state of Gujarat. In Karnataka, the price of petrol is costlier at Shell Oil followed by Bharat Petroleum, Hindustan Petroleum, and Indian Oil. In Maharashtra, the average price for the last ten was Rs.77.28 until 12 October 2017.

How are Petrol Rates in Gujarat Computed?

The following formula is used to compute the final price petrol, which is charged to consumers from all cities of Gujarat:

The final price of petrol = cost of unrefined oil (including freights) + refinery transfer price + profit margin of oil marketing companies + VAT + customs duty + excise duty + commission charged by petrol dealers + pollution cess

The cost of crude oil is the price charged by transnational oil companies to oil marketing companies in India. A barrel of crude oil, which is equivalent to 159 litres, costs $50 currently. Freight charges are the expenses incurred by oil marketing companies for shifting crude oil from overseas ports to Indian ports. The refinery transfer price is remitted again by oil marketing entities.

The price, which is charged to dealers, comes with a profit margin added by OMCs. Excise duty is the tax component imposed by the Indian government. Currently, it is Rs.19.48 a litre. Petrol is taxed at 28.96% by the state government of Gujarat. Excise duty remains the same across the country, but VAT changes from state to state. The commission charged by dealers will fluctuate from one dealer to another within all cities of Gujarat.

Factors affecting Petrol Prices in Gujarat

Why is petrol priced differently at different time zones? It is due to variations in domestic factors and international factors. Prices of crude oil in global markets, the exchange rate, and the tax element have a direct impact on retail selling price of petrol in Gujarat. Needless to say, if any of these components goes up, the petrol cost will increase. In the same way, if any of these components slashes, the petrol rate will dampen.

Let's understand what impacts the cost of crude oil, which is imported by Indian oil companies from foreign oil companies. The primary influencers include changes in the currency conversion rate, climate conditions, political events in oil-producing countries, and the quantum of demand for oil from evolving nations. For instance, during the rainy season, all activities related to crude oil extraction are likely to be adversely affected.

How does GST Impact Petrol Prices in Gujarat?

Goods and Services Tax (GST) is a consolidated indirect tax platform. It is applicable to all types of services and goods that are transacted. Petrol and petroleum products do not fall under the regime of GST. However, all industry participants continue to pay the existing tax slab. If petrol is brought under the regime of GST, petrol prices will be cheaper for consumers, but the state and central governments stand to lose their revenues drastically.

Petrol Costs vs. Diesel Cost in Gujarat

As on the latest date, the average price of petrol was Rs.69.68. The average price of diesel was Rs.61.02 in Gujarat. The state government of Gujarat has cut VAT on petrol by 4% recently. With this reduction, the price of petrol was reduced by Rs.2.72 in the state. The government of Gujarat stands to lose 2,000 crore with this move.

*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.