Today's Petrol Price in Telangana

Let's take the three major cities in Telangana in order to make a comprehensive study. In Hyderabad, the capital city of Telangana, the fuel was sold more than Rs.73.30 per litre since the beginning of November 2017. In the previous month, which is October 2017, the fuel was sold at the highest rate of Rs.75.06 per litre whereas the lowest price was Rs.72.28 per litre.

Petrol Prices in Warangal and Karimnagar

Warangal is the second largest city in Telangana. After the daily revision on 6 November 2017, the petrol price in the city was Rs.73.54 per litre. On 24 October 2017, the fuel price was Rs.72.76 per litre that increased to Rs.72.76 on 30 October 2017. On 16 October 2017, the fuel was sold at Rs.71.93 per litre whereas on 24 October 2017 the fuel was priced at Rs.72.26 per litre. In Karimnagar, the fifth largest city, the fuel was Rs.73.93 per litre on 6 November 2017 after the daily revision. In all the three major cities in Telangana, the fuel rate was almost the same.

State Levies on Petrol

Petroleum Planning and Analysis Cell has recently released data on 04 October 2017. According to reports, the state VAT levied on petrol was 35.20% in Telangana. In Karnataka, it was 30%. In Tamil Nadu, it was 34%. Similarly, the state VAT levied on the fuel was 26.87% in West Bengal. In Uttar Pradesh, it was 32.90%. In Maharashtra, the state VAT was 47.94%, which was the highest.

How are Petrol Rates in Telangana Revised?

Since the introduction of dynamic fuel pricing on 16 June 2017, fuel rates (diesel and petrol) are revised at 06:00 a.m. every day in all cities in Telangana. It is advisable to check for a change in petrol prices. The daily revision of fuel rates will only for a few paise. If your fuel consumption is more, a minute variation can also mean a lot. The petrol price is revised largely based on the currency conversion rate and worldwide crude oil prices.

Advantages of Dynamic Fuel Pricing

Dynamic Fuel Pricing offers the following benefits:

1. The mechanism ensures 100% fuel pricing.
2. Dealers can effectively and efficiently manage stocks.
3. The Indian fuel retailing sector can be interlinked to global fuel markets.
4. Daily movements in the exchange rate and crude oil rates can be easily transferred to end consumers like you.
5. Dealers and oil marketing companies can manage their working capital effectively and efficiently.

Why do Petrol Rates in Telangana Change Every Day?

Petrol prices in Telangana are varying every day due to the variations in global crude oil prices. Petrol is not a domestic commodity. India imports crude oil from foreign companies. Depending upon several factors such as importing charges, the demand for crude oil and export expense, the petrol rate in all parts of Telangana is determined. The demand for petrol is growing day by day with a growing number of petrol-run vehicles. Premier oil marketing companies consider charges and duties and offer a new price every day. The price will be slightly different because of various charges and tolls.

How can you Trace the Current Petrol Price in Telangana?

Indian oil marketing companies, which include Indian Oil, Bharat Petroleum and Hindustan Petroleum, have introduced many ways to track petrol prices daily at 06:00 a.m. Petrol consumers can trace the petrol price through mobile applications designed by oil marketing entities, SMS alerts, toll-free customer care numbers and websites. Fuel@IOC is the mobile application of Indian Oil, SmartDrive is the mobile application of Bharat Petroleum and My HPCL is the mobile application of Hindustan Petroleum.

How are Petrol Prices in Telangana Computed?

The Retail Selling Price of Petrol Consists of the following factors:

Taxes: How much is petrol taxed currently in Telangana? The tax imposed on petrol by the local government is subject to vary. Recently, Maharashtra and Gujarat have diminished the state VAT. In Telangana, petrol was taxed at 35.20% as on 4 October 2017. The central excise duty was Rs.19.48 per litre as on the same date.

Crude Oil Rates: Crude oil is bought from foreign oil marketing companies on a contractual basis. On 6 November, WTI Crude Oil was priced at 57.35 per barrel, which is equivalent to 159 litres.

Refinery transfer price (RTP): Refinery transfer price is paid by oil marketing companies. It is paid to convert crude oil into petrol.

Expenses incurred by OMCs: Entry taxes, operational expenses, marketing expenses and freight charges are the expenses incurred by oil marketing companies.

Therefore, the final price of petrol paid by end consumers includes all the aforesaid components. Pollution cess and the commission charged by dealers are also included in the retail selling price of petrol.

Factors Affecting Petrol Prices in Telangana

If the INR, the Indian currency, falls against the USD, the currency of the United States of America; the cost price of crude oil increases, and thus the retail selling price goes up. If the INR appreciates against the USD; the cost price of petrol decreases, and thus the retail selling price comes down. Crude oil prices and taxes are other factors affecting petrol prices in Telangana. The excise duty was reduced to Rs.19.48 per litre. Therefore, petrol prices were down in Telangana in October 2017.

Effect of GST on Petrol Prices in Telangana

The Goods and Services Tax (GST) is a united tax system introduced in India in July 2017. Unlike other commodities, petrol has been kept outside the scope of GST. So, GST has no impact on petrol prices. In a bigger picture, the oil and natural gas industry does not fall under the GST regime. If GST is levied, the cost of compliance will increase for industry participants and the petrol cost will decrease by 35-40%. The current GST rates should be reworked in order to apply GST on petrol.