Today's Petrol Price in Jharkhand

On the first day of October 2017, the fuel price in Ranchi was Rs.71.95. On the closing day of the month, the fuel price diminished to Rs.70.67. The highest fuel price was Rs.70.05 and the lowest fuel price was Rs.69.99 in the month. The price has fallen by 1.81% in October 2017. In September 2017, the highest petrol price was Rs.71.87 and the lowest price was Rs.70.77. The petrol price was up by 1.53% in the month. In August 2017, the highest rate was Rs.70.69 and the lowest price was Rs.69.99. The price was down by 1.81%.

Petrol Prices in Jamshedpur and Dhanbad (per litre)

Between 4 September 2017 and 11 September 2017, the fuel rate in Jamshedpur increased to Rs.71.62 from Rs.71.08. The fuel price reduced to Rs.71.71 from Rs.71.79 between 19 September 2017 and 25 September 2017. In Dhanbad, between 04 September 2017 and 11 September 2017, the petrol rate increased to Rs.71.56 from Rs.71.01. The fuel price then decreased to Rs.71.64 from Rs.71.73 in the city between 19 September 2017 and 25 September 2017. The fuel rate in all the cities in Jharkhand was more or less the same.

How are Petrol Prices in Jharkhand Revised?

Dynamic fuel pricing has been adopted in India after running a 40-day pilot in five Indian cities. Since 16 June 2017, all petrol stations across the state have been revising fuel prices (petrol and diesel rates) on a daily basis. Dynamic fuel pricing is alternatively referred to as the daily revision. The United States of America, Japan, Australia and Germany also follow the daily revision system. India joins these countries with the introduction of dynamic fuel pricing.

The fuel pricing is done in sync with global crude oil prices and the INR/USD conversion rate on a daily basis. Therefore, daily variations in the INR/USD exchange rate and crude oil prices can be instantly shifted to end consumers. In the earlier fortnightly revision, the fuel pricing was based on the average price of crude oil rates and the exchange rate. This is how dynamic fuel pricing differs from the fortnightly revision.

Since the daily revision encourages the automation drive of petrol bunks, all automated petrol stations in Jharkhand can automatically revise fuel prices. On the other hand, non-automated petrol stations will revise petrol prices manually. After the daily revision at 06:00 a.m., revised petrol prices will be displayed by each petrol bunk for the benefit of customers.

Additional Features of Dynamic Fuel Pricing

1. The best stock management principles can be adopted.
2. Consumers can be aligned to market dynamics.
3. The Indian fuel retailing segment can be aligned to global markets.
4. Oil marketing companies and dealers can better manage working capital.

How are Petrol Costs in Jharkhand Computed?

The final price paid by consumers is called the retail selling price of petrol. There are many cost elements to be taken into account in order to compute the retail selling price of petrol. The cost of crude oil is the fundamental cost element. It is paid in the USD since crude oil is a global commodity. As on 3 November 2017, the cost of WTI Crude Oil was around $54 per barrel. The cost of crude oil also includes freight charges.

Tax is the biggest cost element in the price structure of petrol. As we all know, a petrol consumer is taxed by the state and central governments. The state VAT imposed on petrol by the government of Jharkhand was 27% as on 04 August 2017. The central excise duty was 19.48 per litre on the same date. The petrol price charged to end consumers includes these two types of taxes.

Other cost elements of the retail selling price of petrol include the expenses incurred by oil marketing companies such as entry costs, refinery transfer price, marketing costs and operational costs. The commission charged by dealers is also added. As on 4 October 2017, dealer commission per litre was Rs.2.30. Finally, pollution cess is added.

Factors Affecting Petrol Prices in Jharkhand

Petrol prices in Jharkhand are affected by the INR/USD exchange rate, crude oil prices and taxes. The INR/USD is the most preferred and traded currency pair. The exchange rate is fixed by the Reserve Bank of India, which is also called the Central Bank of India. It fluctuates regularly. The exchange rate is influenced by interest rates, the balance of payment, export and import ratio and the overall performance of the country.

If the cost of crude oil increases in global markets, the cost price of petrol goes up; if the cost of crude oil comes down, the cost price of petrol decreases. Crude oil is a global derivative. It is impacted by so many factors. The most common influencers include seasonal variations, weather conditions, the demand for oil from emerging countries and global surpluses.

Does GST Affect Petrol Rates in Jharkhand?

Petrol prices in Jharkhand are not affected by GST, which is unified tax reform in India. Petrol has not been covered under the GST regime. Therefore, GST rates have no impact on petrol prices. GST is applicable to all kinds of goods and services, which are sold in India. GST may be imposed on petrol in the future. At present, GST is imposed at 5%, 12%, 18% and 28%.

*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.