Petrol Price In Mangalore Today

India joins the United States of America, Australia, Japan and Russia by introducing this new system for petrol pricing and revising. The dynamic fuel pricing mechanism was tested before implementing in the entire country. The mechanism revises the petrol price on a daily basis in tandem with the INR/USD exchange rate and global crude oil rates. So, all petrol pumps across the city of Mangalore are presently revising the petrol price under the new mechanism. How is the price revision done? The price revision is done in two ways: automatically and manually. Since dynamic fuel pricing fosters the automation drive, all automated petrol bunks will revise the petrol price in Mangalore automatically whereas non-automated petrol bunks will do it manually. Upon revising the price, it shall be made available to end consumers through offline and online modes. How? Smartphone users can download the mobile applications designed by oil marketing companies (OMCs) to trace the current petrol price in Mangalore. If not, fuel consumers can also visit the websites of OMCs also.

Dynamic Fuel Pricing System from the Stance of Consumers

The latest fuel revision mechanism has been well-received by consumers across the nation. The variations in the price determinants - the exchange rate and crude oil prices - can be instantly transmitted to end petrol users. More importantly, price variations can be transparent and consistent.

Excise Duty and VAT

Petrol generates the revenue for both central and state governments. The central government imposes the excise duty whereas state governments impose Value-added Tax (VAT). Recently, the excise duty was revised to Rs.19.43 per litre in October 2017. The VAT levied on petrol was 30% in Karnataka as on 04 October 2017. These two tax components are subject to change from time to time. In October 2017, VAT was reduced in Maharashtra, Uttar Pradesh and Gujarat.

Petrol Price in Mangalore - How is that assessed?

Petrol Price Today in Mangalore includes the following cost elements:

1. Crude oil prices
2. Excise Duty and VAT
3. Refinery transfer price (RTP)
4. Dealer Commission
5. Profit Margin of OMCs
6. Pollution Cess
7. Expenses incurred by oil marketing companies

The cost of crude oil is determined globally and changes based market dynamics.

The commission charged by dealers varies from one place to another.

The expenses incurred by OMCs include freight charges, landing expenses and operational expenses.

Refinery transfer price is the price remitted by OMCs to refineries for converting crude oil into petrol.

Excise duty imposed on petrol in Mangalore is 19.43 per litre on as 3 October 2017.

Value-added Tax (VAT) was 30% as on 04 September 2017 in Karnataka.

Determinants of the Petrol Price in Mangalore

The Petrol Rate in Mangalore increases when:

1. The cost of crude oil goes up
2. The tax rates increases
3. The USD falls against the INR

On the other hand, the Petrol Rate in Mangalore decreases when:

1. The cost of crude oil falls down.
2. The tax rates decrease
3. The USD gains against the INR

The cost of crude oil is based on global demand and supply, economics of oil producing companies, weather conditions, seasonal variations and global politics. On the other hand, the exchange rate is based on interest rates, inflation rates, Gross Domestic Product (GDP) and global economics.

Petrol Price in Mangalore vs GST

As we all know, we are all paying taxes under the new tax regime called GST, which stands for Goods and Services Tax (GST). Unlike other products, petrol and diesel have not been brought under the GST purview. As a result, the current petrol price in Mangalore remains unaffected by the GST regime. The imposition of GST system on petrol at the current tax structures will negatively affect the revenue source for the government.