Today's Petrol Price in Rajasthan

In Jodhpur, the petrol price on 2 January 2017 was Rs.73.05. It was decreased to Rs.69.22 on 1 April 2017. On 1 June 2017, the petrol price was further reduced to Rs.69.81. On the opening day of July 2017, the petrol rate in the city was Rs.65.70. In Kota, the petrol rate was Rs.72.78 on 2 January 2017 and was further dropped to Rs.68.96 on 1 April 2017. Between August 2017 and October 2017, the petrol rate in the city has grown to Rs.73.06 from Rs.67.60. There is no noticeable difference in petrol prices among the three major cities of the state.

Petrol Prices in Rajasthan and other States

Let's make a comparative study of four states. Petrol rates in Mumbai became the highest in the nation after the government of Maharashtra increased the value-added tax on petrol. After the revision, the cost price of petrol was decreased to Rs.75.43 per litre. In Kerala, the average price of petrol was Rs.72.11. In Karnataka, the average cost of petrol was Rs.69.46 as on the latest date.

How frequently are Petrol Prices in Rajasthan Computed?

The government of India has rolled out a new fuel pricing model called dynamic fuel pricing on 16 June 2017. Since then, all state-owned oil marketing companies including Indian Oil, Shell India, Bharat Petroleum, and Hindustan Petroleum have been revising petrol prices on a daily basis across the state. The daily revision of petrol immensely benefits consumers and dealers by bringing transparency in fuel pricing and avoiding the interference of governments and political parties in fixing the price of fuels.

The primary distinction between the daily revision and the fortnight-based revision is the frequency of revision. Like the fortnightly-based revision, the daily revision also takes into account worldwide crude oil prices and the currency conversion rate. Currencies are traded in the foreign exchange market, which is highly volatile in nature. Crude oil prices will vary based on international market dynamics. Therefore, the daily revision seems to be a feasible fuel pricing model.

Petrol prices change every day. Tracking daily changes is easy as all oil marketing companies offer an SMS service and a customer care service. Petrol prices in Kerala can be checked online by visiting the website of respective oil marketing companies. All oil marketing companies have specific mobile applications that can be downloaded to track the latest updates.

How are Petrol Prices in Rajasthan Computed?

Different components of the price breakup of petrol in Rajasthan include the followings:

Free On Board Price (FOB): The price at which petrol is bought is called as FOB. In other words, it is the price paid by Indian oil marketing companies in order to buy crude oil from overseas companies.

Freight: Indian oil marketing companies import oil from overseas oil companies. The price, which is paid to a transporter, is called as ocean freight. When ocean freight is added to free on board price, we get resultant as cost and freight price.

Import Charges: Import charges consist three charges, which include insurance charges, port dues, and ocean losses. The insurance premium paid to an insurance service provider for the insurance cover is called as insurance charges. Fort duties are the fees paid instead of using the facilities of a port.

Customs Duty: Customs duty is a tax imposed by the government of India on the imported crude oil. As on the latest date, it was 2.5% of the cost and freight price.

Import Parity Price: Import parity price (IPP) is the price of petrol remitted by Indian oil marketing companies at an Indian port. In other words, IPP is the sum of import charges, customs duty, and cost and freight price.

Refinery Transfer Price: Refinery transfer price is the price remitted by oil marketing companies to refineries for buying petrol.

Inland Freight: Inland freight is the price paid by oil marketing companies for transporting petrol from refineries to retail outlets.

Depot Price: Depot price is the price paid by retail petrol owners to buy petrol from oil marketing companies.

Excise Duty: The tax that is imposed by the central government on petrol. The excise duty will remain the same throughout the country.

VAT: Value-added tax (VAT) is the tax imposed by the state government on petrol. VAT varies from one state to another. As on 1 September 2017, the tax rate imposed on petrol was 32.91%.

Now, the retail selling price of petrol in Rajasthan is the sum of all the aforementioned cost components.

Factors affecting Petrol Prices in Rajasthan

The following factors affect petrol prices in Rajasthan:

1. Crude Oil Price: If the cost of crude oil increases, then the retail selling price (RSP) of petrol will increase. If it falls, the final price of petrol will fall. The cost of crude oil is affected by many factors, which include seasonal variations, the supply and demand pattern, the currency conversion rate, the pattern of global reserves and supplies etc.
2. Exchange Rate: The currency of the US dollar is valued at the Indian rupees by the Reserve Bank of India, which is the central bank of India. If the USD gains against the INR on the date of purchase, then the cost of crude oil will increase; if the INR gains against the USD on the date of purchase, the cost of crude oil will decrease.
3. Central Excise and VAT: The lower the percentage of tax imposed on petrol by the state government, the lower will be the cost of petrol. The higher the percentage of tax imposed on petrol by the state government, the higher will be the cost of petrol. Similarly, the central excise impacts the cost of petrol.

Impact of GST on Petrol Rates in Rajasthan

All types of goods and services are taxed by the GST regime under four tax slabs, which are 5%, 12%, 18%, and 28%. The highest rate fixed by the GST Council till date is 28% and the lowest rate is 5%. Including petrol, five petroleum products have been kept outside the regime of GST. Even though petrol is taxed at the highest rate, the revenue for the state and central governments will be adversely affected. Therefore, the GST system does not impact petrol prices in Rajasthan.

Diesel Costs vs petrol Costs in Rajasthan

As on 16 October 2017, the average price of petrol was Rs.70.86 whereas the average price of diesel was Rs.60.86. Petrol rates in the state may marginally increase over the next one or two months.

*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.