Petrol Price In Rajkot Today

Source: The data has been sourced from Petroleum Planning and Analysis Cell.

How are Petrol Prices in Rajkot Revised?

We have already discussed dynamic fuel pricing in the earlier section. Let's discuss in detail. Dynamic fuel pricing, also known as the daily revision, has replaced the earlier fortnightly revision. Oil marketing companies have adopted the dynamic fuel pricing system in June 2017. Therefore, all petrol stations owned by Indian Oil, Hindustan Petroleum, Bharat Petroleum and Shell Oil in Rajkot have been revising the fuel rate regularly based on the cost of crude oil and the exchange rate.

In the previous method, the average price of crude oil and the exchange rate used to be considered to revise the petrol price twice a month, which is on the first and sixteenth of every month. Since fuel rates are revised on a daily basis, the fluctuations in crude oil rates and the INR/USD conversion rate are easily transmitted to consumers. In other words, consumers will pay the price, which is completely based on market conditions.

Be advised to check the daily price by downloading the mobile applications created by all oil marketing entities. Consumers can download the mobile application of their choice if they are using smartphones. Non-smartphone users can make use of SMS services or customer care services offered by these companies. The current petrol price in Rajkot can be checked online as well. After the daily revision, petrol stations will display the revised price for the public.

Additional Features of Dynamic Fuel Pricing

1. Dealers can better manage their working capital and inventory.
2. Transparency can be brought into fuel pricing.
3. Cash inflows and outflows can be managed effectively.
4. The Indian fuel retailing sector can be aligned with global markets.

How are Petrol Prices in Rajkot Computed?

Do you the components of the final price? How much tax do you pay? More than 50% of the final price paid by you goes towards taxes. Every petrol user in Rajkot will pay two kinds of taxes: a) the central excise and b) the local tax. In October 2017, the central government reduced the excise duty on petrol to Rs.19.48 per litre from Rs.21.48 per litre. The local tax levied by the government of Gujarat was 28.96% as on 04 October 2017.

The RSP includes the expenses incurred by OMCs such as entry taxes, operational expenses, marketing expenses, refinery transfer price, freight and crude oil prices. Other cost components include the commission charged by dealers, the profit margin of oil marketing companies and pollution cess. This is the price structure of petrol in Rajkot.

Influencers of Petrol Prices in Rajkot

The government of Gujarat reduced the local tax on petrol in October 2017. The excise duty was also reduced in the same month. Any variations in the local and central taxes will equally impact the petrol price in Rajkot. The cost of crude oil is another biggest influencer. It is reliant on the demand for oil, the capabilities of refinery centers, seasonal variations, global reserves and surpluses, weather conditions and political moves in oil-producing nations.

If the cost of crude oil goes up in global markets, the fuel price goes up and vice versa. As we all know, crude oil is not a domestic commodity. It is bought by Indian oil marketing companies. If the USD appreciates against the INR, the cost of crude oil goes up and thus, the fuel price goes up. If the USD depreciates against the INR, the cost of crude oil comes down and thus, the fuel price falls down.

GST and Petrol Prices in Rajkot

The Goods and Services Tax (GST) has no effect on petrol prices in Rajkot since petrol has not been brought under the regime of GST. It is a new tax system, which has been imposed on all types of commodities and services. Currently, GST is taxed at 5%, 12%, 18% and 28%. The highest rate is 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.