Petrol Price in Andhra Pradesh Today

Taxes: The tax imposed on petrol is classified into two categories: 1) the central excise duty and 2) the state VAT. The central government imposes the excise duty, which remains constant throughout the country. The central excise duty on petrol was Rs.19.48 per litre as on 4 October 2017. Petrol is also taxed by state governments. In Andhra Pradesh, the state VAT imposed on petrol was 38.93% as on 4 October 2017. Almost 50% of the Retail Selling Price of petrol is formed by taxes.

Expenses incurred by OMCs: The expenses incurred by oil marketing companies include the refinery transfer price, entry taxes, marketing expenses, operational costs and freight charges. The refinery transfer price is charged by refineries in India. Freight charges are included in the cost of crude oil. The profit margin of oil marketing companies is added to the costs incurred by them. Other elements of the price structure of petrol include the commission charged by dealers.

Factors Affecting Petrol Costs in Andhra Pradesh

Petrol prices in Andhra Pradesh are affected by three factors, which include the cost of crude oil, the exchange rate and taxes. The exchange rate of INR/USD expresses the value of the Indian currency against the USD. Ups and downs in the exchange rate will equally impact the cost of crude oil that in turn affects the retail selling price of petrol. The INR/USD is a commonly traded currency pair in the foreign exchange market. The Reserve Bank of India determines the exchange rate of INR/USD.

The exchange rate is influenced by interest rates and the overall performance of the nation. As we all know, crude oil is a global commodity. It is affected by many factors. The most common influencers include seasonal variations, weather conditions, global surpluses and global political trends. The petrol rate increases when the tax imposed on petrol goes up. The rate decreases when the tax levied on petrol decreases.

GST Impact on Petrol Prices in Andhra Pradesh

GST, a new tax platform, has been adopted in India. The new tax platform replaces the various types of indirect taxes. Being a common platform, GST covers all categories of goods and services, which are sold within the country. GST has no impact on petrol rates because petrol has been kept outside the GST system.

*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.