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Petrol price in India is revised every day after adapting to dynamic pricing mechanism. Get today’s latest updated petrol price in Petrol Price In Ahmedabad
04 April 2020
₹ 67.15 /L
₹ 67.30 /L
₹ 67.41 /L
₹ 67.54 /L
₹ 67.68 /L
₹ 68.11 /L
Ahmedabad is the capital city of Gujarat, which is growing by leaps and
bounds in the business space. It is considered second only to the financial
capital Mumbai in terms of investments and employment. With the growing
employment, the disposable income has gradually increased. Aspirational
buys have increased due to increase in disposable income, easy availability
of finance, lower costs of vehicles etc.
The transport infrastructure is quite well developed in Ahmedabad. Gujarat
is acknowledged as one of the well-developed states. The city is well
connected with public transport and there is considerable connectivity from
the city to various parts of the state. The city is also a hub for trading
activity which indicates that there is considerable movement of large
Statistics indicate that until the late ‘90s, the number of cars were
considerably high in Ahmedabad, but the advent of 2000 there has been
considerable increase in two wheelers. As per the transport department of
Ahmedabad, the number of vehicles registered with the local RTO (Regional
transport office) were 2.9 Lakh of which 2.09 lakh were two wheelers while
~58,000 were cars.
The motor vehicle population has been on the rise consistently, between
2004 – 2016, one saw the increase fast catching up with the improved per
capita of the city. In 2018, the number of vehicles (all vehicles on road)
was approximately 4.3 million.
Ahmedabad like all other cities in India adapted to the dynamic fuel
pricing which was introduced in June 2017. Until this time, the petrol
prices were revised 2 times in a month, the dynamic fuel pricing led to
daily revision of petrol and other fuel prices. The earlier method of
fortnightly revision of petrol prices was not considered ideal and lacked
the required transparency. This method of fuel pricing eliminates the
intervention of the Government to reduce the losses incurred by the oil
marketing companies who were unable to revise the prices in accordance to
the cost squeeze they experienced on a daily basis.
The petrol prices in Ahmedabad are affected by local and global
macro-economic factors. The factors which influence the petrol prices are
listed below –
Crude oil prices
Crude oil is the primary raw material for petrol and other fuels. In recent
times, the price of crude oil has been on the rise, citing the production
cuts by the OPEC nations. Crude is one of the main imports for India, the
demand for fuel has been ever increasing, but with the raw material supply
crunch, the prices are bound to head northward.
The strengthening US dollar is another key reason for the increase in
procurement costs for oil marketing companies. Crude oil is an imported
commodity and the settlement of the deal has to be done in USD (US
dollars). The rupee depreciation has only led to a sharp squeeze in the
gross profit margins for the oil marketing companies.
Logistics and operating costs
The logistics of transporting the raw materials from the procurement area
to the respective treatment cells and petrol pumps and other operating
costs including escalating labor costs are creating an impact on the
overall price of petrol.
R&D, Marketing costs
The increase in competition has led to OMCs investing in research and
development. Many innovative products have been introduced to attract
customers. The cost of replacement from one vendor to another is almost
nil, hence, the customer loyalty cannot be established in a concrete
manner. The investment in research and development has increased, also the
cost to market these innovative products is increasing.
Commission charged by dealers
The petrol and diesel dealers charge a commission of 7% on a litre of
petrol. This is typically added to the cost of crude oil procurement and
other operating costs that the OMC incurs.
Excise duty by Central Government
Apart from the above factors, there are taxes applicable on the procurement
and distribution of petrol. The Central Government excise duty is
consistent across all States, hence, does not have any specific impact on
individual State or city. The excise duty is applied at Rs. 19.48 per
Value added tax
The value added tax is determined by the State Government, hence, this
could create a disparity in the petrol prices from one State to another.
Petrol in Gujarat is taxed at 26.96%, the same is applicable on diesel as
The cumulation of the above factors and margins as determined by the OMC
would give the petrol price in Ahmedabad.
The petrol price in Ahmedabad as of 18th October, 2018 was Rs.
79.62 per litre. The prices have remained around these levels (+/- Rs. 1)
over the past 15 sessions. The Government had intervened in the past and
reduced the petrol prices by Rs. 2 per liter providing relief to the common
man who was otherwise plagued by the ever increasing fuel costs. The entire
year has (since January, 2018) has seen a steady increase in petrol prices.
Around the same time last year, the prices were a moderate Rs. 65 – Rs. 68,
the impact of the increase in crude oil prices and currency depreciation
has snowballed into increase in petrol prices in Ahmedabad.
The price of petrol in Ahmedabad is neither too high nor too low, compared
to other cities in the west. Maharashtra quotes the highest petrol prices
in India and it is cheapest in Delhi. In the month of September, 2018,
Parbhani in Maharashtra recorded the highest petrol price of Rs. 89.97 per
litre. The petrol prices have tapered off with the Government intervention
over the current month.
There are multiple ways in which fuel prices in Ahmedabad can be tracked.
The OMCs will publish the petrol and other fuel prices on a daily basis in
their website. The same information is collated across various OMCs and
many reliable websites publish the information. The fuel prices are
typically available for public consumption at 6 a.m. everyday as per the
dynamic fuel pricing norms.
The customer can send an SMS to OMCs from your mobile phone and the latest
petrol price will be sent in response.
Most of the OMCs have mobile application, the customer can download the
respective mobile application and use the current petrol or diesel price
menu option to view the latest price. Further, there are other fuel price
aggregators who have launched mobile applications, they too provide the
Goods and services tax (GST) were introduced for all the goods and services
traded or exchanged in India. However, fuel was kept out of this method of
taxation. Introduction of GST in fuel pricing will create uniformity in
petrol pricing across various States within India. The overall costs would
also come down in many States and Cities. The highest rate at which GST is
currently being levied is 28% which is similar to the VAT that is currently
levied. The elimination of excise duty and VAT to bring in GST will bring
down the petrol prices in Ahmedabad considerably and benefit the consumer.
1.What are the local aspects which impact the petrol prices
The operating cost including labor costs, logistics or transportation cost
for distribution across petrol pumps, VAT which is levied by the State
Government are some of the local factors which impact the petrol prices in
2. How has the petrol price moved over the past 1 month in Ahmedabad?
The petrol price as of 18thSeptember 2018 was Rs. 81.43 per
litre and the average price for September 2018 was Rs. 80.67 per litre. The
petrol prices for the month of October, 2018 have hovered around Rs. 79 per
litre. The fall may be attributed to the price reduction by Government in
the wake of sharp escalation in petrol prices without any relief over the
past few months.
3. How much VAT does the State Government levy on petrol and
The State Government levies VAT at 26.96% on petrol and diesel prices.
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