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Petrol Price In Ahmedabad

04 April 2020

Date

Petrol Prices

Change

  • 2020-04-04

    ₹ 67.15 /L

  • 2020-04-03

    ₹ 67.15 /L

  • 2020-04-02

    ₹ 67.15 /L

  • 2020-04-01

    ₹ 67.15 /L

  • 2020-03-31

    ₹ 67.15 /L

  • 2020-03-30

    ₹ 67.15 /L

  • 2020-03-29

    ₹ 67.15 /L

  • 2020-03-28

    ₹ 67.15 /L

  • 2020-03-27

    ₹ 67.15 /L

  • 2020-03-26

    ₹ 67.15 /L

  • 2020-03-25

    ₹ 67.15 /L

  • 2020-03-24

    ₹ 67.15 /L

  • 2020-03-23

    ₹ 67.15 /L

  • 2020-03-22

    ₹ 67.15 /L

  • 2020-03-21

    ₹ 67.15 /L

  • 2020-03-20

    ₹ 67.15 /L

  • 2020-03-19

    ₹ 67.15 /L

  • 2020-03-18

    ₹ 67.15 /L

  • 2020-03-17

    ₹ 67.15 /L

  • 2020-03-16

    ₹ 67.15 /L

  • 2020-03-15

    ₹ 67.30 /L

  • 2020-03-14

    ₹ 67.41 /L

  • 2020-03-13

    ₹ 67.54 /L

  • 2020-03-12

    ₹ 67.68 /L

  • 2020-03-11

    ₹ 68.11 /L

Petrol price in Ahmedabad

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.

Petrol price in Ahmedabad

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 commercial vehicles.

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.

Pricing mechanism of petrol in India

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.

Components that affect petrol prices in Ahmedabad

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.

Currency depreciation

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 litre.

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 well.

The cumulation of the above factors and margins as determined by the OMC would give the petrol price in Ahmedabad.

Petrol prices trend 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.

Tracking fuel prices in Ahmedabad

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 required data.

GST and petrol prices in Ahmedabad

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.

Frequently asked questions about petrol prices in Ahmedabad

1.What are the local aspects which impact the petrol prices in Ahmedabad?

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 Ahmedabad.

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 diesel prices?

The State Government levies VAT at 26.96% on petrol and diesel prices.

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