Petrol Price In Faridabad Today

Petrol prices are not static and keeps changing on a daily basis. Why? There are several components which affect the petrol price in Faridabad and in across cities in India. Each of these components is external and internal in nature. Let's analyse each of these components in detail and how the petrol price is derived before it's sold in the Retail Selling Price (RSP).

Major Components of the Petrol Price in Faridabad

India depends on oil-producing countries to supply petrol in the country. Nearly 80% of petrol, in its crude form, is imported which makes it an expensive product. State-owned oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum import crude or unrefined oil which is then refined and sold in the country. While the crude oil rate and the exchange rate of the US dollar are the external components, operational costs, taxes and dealer commission form the internal factors.

1. Crude Oil Prices: Oil-producing countries sell crude oil in the international market and factors such as production cuts, shortage of supply, higher demand and geopolitical tensions lead to an increase in the crude oil prices. However, instances of an increase in production, ease of geopolitical tensions reduce the crude oil price in the global market. The price of crude oil forms the base of the petrol price and any change in the cost impacts the price we pay for a litre of petrol in Faridabad.
2. US Dollar Exchange Rate: Crude oil is purchased in US dollars and any fluctuations in its value over other currencies influences the crude oil rate. Since India buys crude oil in US dollars, an appreciation of the dollar over rupee increases the prices of the crude oil and vice versa. Therefore, any change in the US dollar rate has a direct impact on the price of petrol in the city.
3. Profit Margin & Operational Costs: Since Oil-Marketing Companies (OMCs) purchase crude oil and transport it from oil-producing countries, this is then refined and transported to various petrol stations across the country. OMCs, add their profit margin and operational costs to the petrol before it's sold to the consumer.
4. Petrol Taxes: Currently, petrol attracts excise duty by the Central government and local sales tax or Value Added Tax (VAT) by the State is included in the petrol price. In India, the excise duty on petrol is similar across cities which is currently charged at Rs.19.48 for a litre of petrol. The state of Haryana charges 26.25% on a litre of petrol as VAT. Taxes on petrol are the largest components in the petrol price.
5. Dealer Commission: State oil companies fix the dealer commission which is based on the increase or decrease in operating costs like wages and electricity as well as working capital and investment returns.

Petrol Price Breakup:

Let's look at an example to understand the breakup of the petrol price. The table below offers the petrol price recorded on 3 June 2018.

Why do Petrol Prices Change Daily?

India moved to a new pricing mechanism known as the 'dynamic fuel pricing'. Under the new pricing mechanism, petrol prices are revised daily at 6 a.m. taking into account the previous day's crude oil rate and the US dollar exchange rate. This lets the oil companies pass on the changes, either an increase or decrease, to the end consumer.

Prior to the daily petrol price revision, India followed the fortnight revision in petrol prices. Under this previous method, oil companies fix the petrol price based on the average fortnight crude oil rate and the exchange rate of the US dollar. However, this did not let oil companies revise the petrol price in case of a steep incline or decline in the global crude oil price leading to losses. This prompted to change the fortnight pricing mechanism to the daily revision method.

Ways to Track the Current Petrol Price in Faridabad

Since petrol prices are revised on a daily basis, it might be a challenge to know the latest petrol price in a city. To address this concern, oil companies have launched several ways to track the current petrol price.

1. Smartphone Applications: With an increased use of smartphones by customers, oil companies have developed and launched mobile apps to track the petrol price in Faridabad and in across cities in India. Indian Oil has launched the 'Fuel@IOC' app, Bharat Petroleum has the 'SmartDrive' app, while the Hindustan Petroleum 'MY HPCL' app can help you track the current petrol price of a city.
2. Services via SMS: Consumers can track the current petrol rate via SMS service offered by oil companies. The process below will help you to find the latest fuel price in a city.
   1. IOC: SMS RSP Dealer Code to 9224992249.
   2. HPCL: SMS HPPRICE Dealer code to 9222201122.
   3. BPCL: SMS RSP Dealer code to 9223112222.
3. Oil Companies' Website: Oil companies update the latest petrol price in their respective website on a daily basis. The website offers the petrol price of Faridabad and in across cities in India.

Trading of goods and service come under the new taxation regime known as the Goods and Service Tax (GST). However, petroleum products such as petrol and diesel are exempted from the GST. The revenue generated by the Centre and the State by taxing fuel is higher; however, the highest tax slab in the GST is lower compared to the current taxes on fuel. Hence, by bringing petrol under the GST, it will drastically impact the government's exchequer.

*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.