Petrol Price In Kozhikode Today

The petrol consumption in Kozhikode is likely to increase in the near future and with the petrol price moving upwards it's essential we understand how the petrol price in Kozhikode is determined before it's sold to the end consumer. Below is an overview of how the pricing of petrol is influenced by various factors.

How are Petrol Prices in Kozhikode Assessed?

The cost of the crude oil forms the base rate of the petrol price, while other operational costs such as freight and profit margins are added before it's sold to the consumers. With petrol prices changing every day, it's important we understand how the petrol price is influenced. Let's break down each of these factors to understand why petrol prices are revised regularly.

1. Crude Oil: India imports more than 70% of its crude oil from the Organisation of the Petroleum Exporting Countries (OPEC). Any fluctuations in the cost of the crude or unrefined oil impacts the price we pay for a litre of petrol, be it Kozhikode or other cities in India. The fluctuations of the crude oil price are due to any production cuts - declared by the oil-producing countries, change in the exchange rate of the base currency, shortage in supply, higher demand, etc.
2. Exchange Rate of the Base Currency: Oil-Marketing Companies (OMCs) purchase a barrel of crude oil in US dollars, therefore, any changes in the value of the dollar, the petrol price is affected. If there's an appreciation in the US dollar value, the petrol price increases accordingly and vice versa.
3. Taxes on Petrol in India: Petrol in India attract taxes charged by the Central Government and the State Government. While the excise duty, levied by the Centre, on petrol is Rs.19.48 per litre, the Value Added Tax (VAT) implied by the State of Kerala is 32.03%. Both these taxes form the biggest component of the petrol price.
4. Profit Margins & Dealer Commission on Petrol: Oil companies such as Indian Oil, Bharat Petroleum and Hindustan Petroleum operate more than 90% of fuel stations across Kozhikode. Before the petrol is sold to the consumer, the fuel is refined by the oil companies to which they add their profit margin. Once the refined oil is sold, the dealer or the fuel station owners add their commision to the final retail price of petrol.

Computation of the Petrol Price in Kozhikode

To make it easier to understand the different component which determines the petrol price in Kozhikode, below is a table with the breakup of the cost. The price breakup of petrol is as of 20 May 2018. Please note, the price might differ between oil companies due to transportation costs and the brand.

Diesel Vs. Petrol Price in Kozhikode

Similar to other cities in the country, petrol prices are higher compared to diesel. While both petrol and diesel are refined from the same crude oil, the refining process is complex in petrol. Hence, the petrol rate in Kozhikode is different from the cost for a litre of diesel.

Also, the taxes levied on both the fuel is different. The excise duty changed on petrol is Rs.19.48 per litre, while diesel attracts Rs.15.33 for a litre, while the VAT levied on petrol is 32.33%, diesel is charged at 25.60%. The big difference in taxes makes the petrol expensive over diesel.

How Often Petrol Prices in Kozhikode Revised?

With the implementation of the 'dynamic fuel pricing' mechanism, petrol rates in Kozhikode are revised on a daily basis effective from 16 June 2017. Prior to the new pricing mechanism, petrol prices in the city were revised every fortnight, i.e., on the 1st and the 16th of every month. However, with the dynamic fuel pricing system, people of Kozhikode and other cities in India have to pay a different petrol price every day.

As per the new regulations, petrol prices are updated daily at 6 a.m. IST based on the previous day's crude oil price and the exchange rate of the US dollar over the INR.

How to get the Daily Petrol Rate in Kozhikode?

With petrol rates changing every day, it's a challenge to track the current petrol price in Kozhikode or other cities in the country. However, OMCs have developed several customer-friendly options to get the daily petrol rate. Below are the various means of tracking the current petrol price.

1. Mobile Apps: With smartphones becoming one of the most used gadgets to acquire information, OMCs have launched their respective mobile apps to track the daily petrol price. Indian Oil consumers can download and install the 'Fuel@IOC', Bharat Petroleum users can make use of the 'SmartDrive' app, while those utilising fuel stations of Hindustan Petroleum can install the 'MY HPCL' app to track the petrol price.
2. SMS Service: The OMCs also offer services through SMS to track the daily petrol rates in several cities in the country. Below is the process to send the SMS to retrieve the fuel rate.
   1. Indian Oil - Type RSPdealer code and send the SMS to 9224992249.
   2. Bharat Petroleum - Type RSPdealer code and send the SMS to 9223112222.
   3. Hindustan Petroleum - Type HPPRICEdealer code and send the SMS to 9222201122.
3. Online Portal: For those looking to check petrol rates through the online method, OMCs update their respective websites with the current petrol price in Kozhikode as well as other cities of the country.

GST on Petrol in Kozhikode

Effective July 2017, all goods and services rendered attract the new Goods and Service Tax (GST). However, petroleum products such as petrol and diesel have been exempted from the GST. Why is the GST not applicable on petrol? The highest tax slab of the GST is 28%; however, the excise duty and the VAT levied on petrol currently are comparatively much higher. So, by bringing petrol into the framework of the GST will hamper the revenue generated by selling petrol in the country. That said, if petrol comes under the ambit of the GST, it will certainly bring the price down.

*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.