Petrol Price In Srinagar Today

Oil-Marketing Companies (OMCs) such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) operate in Srinagar. The petrol price in Srinagar sold by the OMCs is similar except that they can differ depending on the brand and the transportation costs.

Let us understand what are the major components which affect the petrol price in Srinagar.

Components Affecting The Petrol Price in Srinagar

Apart from the international crude oil price and the currency exchange rate, there are several other components which contribute to the petrol price in Srinagar. The current petrol price in Srinagar includes both international and domestic factors in determining the fuel price. Domestic factors which affect the petrol price are the Central Government's excise duty, the State's Value Added Tax (VAT), OMCs profit margins and dealer commision. Let's look into each of these components in detail.

1. Global Crude Oil Price: India purchases crude oil in the international market and imports them by paying the Indian Basket price, which is an index of the crude oil import price in India. The Indian Basket or the Indian Crude Basket price is essentially the price which OMCs buy crude oil from oil-producing countries. India imports more than 70% of its crude oil which is refined and transported to dealers across the country.
2. Taxes: All commodities and services come under the ambit of taxes, this includes both the Central and the State Governments'. The Central Government levies excise duty on petrol, while the State levies the VAT. The state of Jammu and Kashmir levies 27.60% as VAT, while the Government of India charges Rs.19.48 as excise duty charges for a litre of petrol in Srinagar. Both the excise duty and the VAT form one of the biggest components in determining the petrol price in the city.
3. Imbalance In The Demand & Supply Of Crude Oil: Instances of a shortage of crude oil because of issues in the refinery, lagging imports or shortage of inventory of fuel leads to an increase in fuel prices. With India largely dependant on fuel for its transportation requirements, any imbalance in demand and supply of fuel leads to revision in the petrol prices. If the supply of oil is low, OMCs have to bid at a higher amount to purchase the crude oil which leads to the increase in fuel prices in India.
4. USD/ INR Exchange Rate: India purchases crude oil through the US dollar, so any fluctuation in the exchange rate with the INR can lead to an increase or decrease of the petrol price in Srinagar and other cities in the country.
5. OMCs Profit Margin & Dealer Commission: The crude oil is purchased and refined by the State-owned oil-marketing companies such as IOC, BPCL and HPCL. The OMCs refine, store and transport the refined oil to dealers across India, hence, they include their profit margin before the fuel is sold to the dealer. As for the dealers, they store and dispense petrol to end consumers as well as maintain the petrol pumps for which they charge a commission on the petrol price.

How Is The Current Petrol Price in Srinagar Determined?

The Indian Government introduced the dynamic fuel pricing mechanism in 2017. Dynamic fuel pricing mechanism is a mechanism where the petrol price for a city is fixed on a daily basis. Petrol prices are revised daily to offset any changes in the price for a barrel of crude oil in the global market, this helps OMCs avoid any losses if there's an increase in the crude oil price. Before the dynamic fuel pricing mechanism came into effect, petrol prices were revised every fortnight. However, this prevented OMCs to change the fuel price if there was any sudden hike in the crude oil price. The daily revision in the petrol price is updated automatically in automated fuel stations, while it's manually changed in non-automated fuel stations.

Methods To Track Daily Petrol Price in Srinagar

Since petrol price in Srinagar is revised on a daily basis, it's essential to know what is the current fuel price in the city.  There are several methods to find out the petrol price in Srinagar on a daily basis. OMCs offer several ways to find out the petrol price such as mobile apps, SMS service, and through their respective website. The below process will help you track the petrol price on a daily basis:

1. Mobile App: With smartphones and technology at the forefront to help us make everyday life easier, OMCs have launched their respective mobile apps. While IOC customers can download the Fuel@IOC app, HPCL customers can make use of MYHPCL mobile app and BPCL customers can download the SmartDrive app to track the daily petrol price in Srinagar.
2. SMS Facility: For those who do not have the access to download mobile apps, they can utilise the SMS service to know the daily petrol price. Below is the SMS format for your reference:
   1. IOC: SMS RSP dealer code to 9224992249.
   2. HPCL: SMS HPPRICE dealer code to 9222201122.
   3. BPCL: SMS RSP dealer code to 9223112222.
3. Website of OMCs: Oil-Marketing Companies update daily petrol prices on their respective website where consumers can track the current petrol price in cities such as Srinagar.

Is GST on Petrol Price Applicable in Srinagar?

India moved to a new taxation system known as the Goods and Service Tax (GST) for all commodities and services rendered by consumers. However, the GST has been kept away from some of the goods and services including petrol and diesel. The highest GST slab is 28% which is lower than current taxes levied on fuel, by bringing fuel under the ambit of GST will impact the revenue of the government, hence GST is not applicable on fuel currently.

*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.