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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 Guwahati
08 April 2020
₹ 71.59 /L
Guwahati is located in the state of Assam in India. It is the largest city in the state spanning over 328 square kilometres. This city has many ancient temples and is thus called “the city of temples”. Guwahati lies between the banks of the Brahmaputra River and the foothills of the Shillong plateau, with LGB International Airport to the West and the town of Narengi to the East.
As of 2011, there were said to be 9.57 lakhs of people residing in the city of Guwahati. It is said to be one of the fastest growing cities in North India. Petroleum manufacturing is an important economic activity in the city. The Guwahati Refinery is the most important manufacturing industry in the city.
The city of Guwahati has a well-developed public transportation. The primary mode of transportation in the city is by bus which are provided and owned by the Assam State Transport Corporation (ASTC) and other private operators as well. Taxis and cabs are also widely used in this city and Ola is becoming increasingly popular. Prime Cabz, Pristine cabs and other cab services are used locally. Autorickshaws and cycle rickshaws are also very widely used.
The cost of fuel in Guwahati has increased drastically. The price of petrol is now around Rs.76.87 per litre which is lesser than its record high of 80.55 on the 1st of June 2018.
The sudden rise in fuel rates are because of certain reasons.
Pricing for any product is determined by the forces of demand and supply. However, these are not the only factors that impact price. Let us take a look at other factors that impact the price of petrol in India.
The retail selling price (RSP) of petrol is computed based on import parity and export parity. Put simply this means that the retail price, the price per litre you pay to buy petrol is determined by the ratio of crude oil imported to that of crude oil exported. Currently the ratio stands at 80:20 which means 80% import parity and 20% export parity.
Import Parity Price (IPP) is the price that the importers of crude oil pay for having crude oil in their depots. It comprises of the price of crude oil, the ocean freight, shipping insurance, custom duties, and dock charges. It also includes transportation from the dock to the depot.
Export Parity Price (EPP) is the price that oil companies receive for petroleum products. It includes the free on boarding price which comprises of ocean freight, freight insurance, custom duties, and dock charges as well as the advance license benefit for duty free import of crude oil.
Critics argue against this method claiming that since the de-control of petrol price in 2010, the prices should be based on market forces of demand and supply as well as pricing structure of those involved in the production of petrol. This includes refineries, petrol retailers, logistics companies, and others. The pricing according to those against the parity system should be based on cost + profit margin.
The pricing of petrol in Guwahati is made up of different components, which are:
International price of crude oil: The demand and supply of crude oil in the international market is highly volatile. The frequent fluctuations in the price of oil, which is the raw material for production of petrol, directly impacts the price of petrol.
Currency Exchange Rate: Since crude oil must be imported from the OPEC, the rate of currency exchange which changes every day also impacts the price of petrol.
Taxes: Both central and state taxes are levied on petrol. VAT in Coimbatore has remained constant for a long time as has excise duty. These two liens are imposed on the price of petrol in Coimbatore.
Custom Duty and Dock Charges: Custom duty and port charges further add to the price of petrol. These charges vary from port to port.
Refineries Administrative Cost: After crude oil is received at the refinery it is processed to produce petrol. The refinery incurs some expenses to do this which includes not just the cost of the equipment and machinery required but also the administrative cost of running an office. They also add their profit margin to the price of petrol when sending it to the dealer or pump station.
Dealer’s commission: Every dealer adds his own profit margin to the price at which he purchases the petrol from the refinery. If there is a distributor involved, the price is further loaded by the distributor’s commission.
The price of petrol in Guwahati is low as compared to other major Indian cities, primarily because of the low percentage of VAT still levied in the state of Tamil Nadu. The state authorities have not revised the VAT for a considerable time. Mumbai has the highest per litre price of petrol, followed closely by Delhi. Chandigarh claims to have the lowest per litre price of petrol.
Earlier prices of petrol were computed every fortnight all over the country. Government owned companies like IOL and HPCL followed this fortnightly pricing model. Every alternate week, the factors that impact the price of petrol were added up to determine the per litre cost of the fuel. Petrol was then sold to retailers and distributors at this new price. Since 2016, the government has adopted the dynamic pricing model under which the price computation is done on a daily basis. Each oil company is required to declare the newly computed price of petrol on its website at 6 AM every day.
This model was adopted to pass on the benefit or loss due to fluctuation in the price of crude oil to the end user immediately. The new model has also brought about transparency in the pricing discouraging malpractices such as hoarding and hidden costs. You can determine the daily price of petrol either on the internet or through one of the following channels -
1) Mobile Application
Most oil companies have their own mobile app so if you favour one or the other, simply download the app on your Android, iOS, or Windows phone and check the price in the app.
2) SMS Services
Send an SMS to the designated number of your favourite oil company – type in RSP Dealer Code – to get the latest price as an SMS on your phone. Dealer codes are prominently displayed at all pumping stations. If you cannot find it, just ask.
3) Online Portals
As mentioned earlier, every oil company posts the price of petrol on their website every day at 6 AM. You can simply visit the official website of any company to see the petrol price per litre for the day.
Note: Petrol prices may vary slightly from company to company and dealer to dealer because of varying commissions and profit margins.
The dynamic fuel pricing method has certain distinct advantages –
As of today, fuel and fuel-based products are not taxed as per GST rates. Experts state that existing taxes one of the main reasons why petrol prices are so high in Guwahati. Even though the Government has slashed the excise duty on petrol according to the Budget 2018, there has been no reduction in the petrol prices. This is also attributable to the introduction of Rs. 8 per litre as Road Cess.
Therefore, there is increased clamour for inclusion of fuel prices under the GST. However, according to a Government source, fuel and fuel-based products may be partially included under the GST. As a result of which the highest slab of GST at 28% and state-applicable VAT, both may be levied on petrol, making it even more costly. Experts state that this is how GST is levied on petrol in other parts of the world as well. This is a political call and the Centre and State Government must unanimously decide on the best course of action. We can only anticipate reduction in petrol prices in the future.
Diesel prices in Guwahati
While the petrol prices in Guwahati stands at Rs 76.87 per litre, the diesel price in Guwahati stands at Rs. 72.26 per litre. So, both petrol and diesel prices have been moving upwards.
Cashbacks on fuel cards
Some credit cards and debit cards can help with the rising prices of fuel. They can offer cashbacks up to 5% at leading fuel stations as well as fuel surcharge waivers. The cashbacks on credit/ debit card on fuel purchase gained momentum after the demonetization. These specialised credit cards are called fuel cards and it is aimed to help you save money every time you refill your vehicle at the fuel station.
There are many banks who offer co-branded fuel credit cards in collaboration with oil companies. The benefits that you receive on your fuel purchase can be in the form of reward points, cashbacks, discount or a combination of all three. Some examples of fuel cards in India are ICICI Bank HPCL Credit Card, BPCL SBI Credit card, Standard Chartered Super Value Titanium Credit Card and HDFC All Miles Credit Card.
There are plenty of other ways also in which you can save petrol costs:
Use of Public Transport: Most Indian cities have a well-developed public transport system. There is also a network of busses and trains that ply from one city to another and one state to another. Using these facilities is much less expensive than using your own vehicle. It is also less exhausting.
Car Pooling: A lot of fuel cost and fuel emission can be saved if there is carpooling option exercised. If you are travelling to work, then travel along with few of your colleagues, you can plan to take turns and do carpooling. Not only does it save time, but it also lessens the burden on your pocket. Carpooling is a single solution to multiple problems like pollution, traffic and rising fuel costs.
Cycle to work: Many cities have companies promoting the cycle to work concept. There are specialised cycles which are not only swift but trendy and sporty as well. Cycling to work will reduce your dependence on fuel emitted cars, reduce pollution and it is also a very good way to maintain your health as well. It can keep you fit.
Ride sharing: Most of cabs operating in India like OLA and Uber have share cab options. This is an on-demand service and can be booked instantaneously through iOS or Android app. This service allows commuters in same direction to share a ride. They are also cheaper when compared to normal cab rides.
(1) Do we have Dynamic Fuel Pricing Mechanism in Guwahati?
Yes. Like the rest of the country, Guwahati too follows the dynamic pricing model to determine the price of petrol.
(2) What is the best way through which I can check the daily rates of petrol?
Oil marketing companies flash the daily price of petrol on their respective apps and website. You can also send an SMS to the designated number of any oil marketing company to get the per litre price of petrol.
(4) Why is petrol costlier than diesel?
The Indian Government offers better subsidy on diesel to uplift the lower strata of society. It is for this reason that the price of diesel is comparatively less than that of petrol although both are made from crude oil.
(4) What will be the impact of GST on petrol prices?
Petrol prices are outside the scope of GST. However, it may be included in it in future along with the VAT.
(5) How can I save money on petrol?
There are various ways to save money on petrol such as using fuel credit cards which offer cashbacks and waivers on fuel surcharge, or opting for alternative travelling methods like public transport, carpooling, electric cars or cycling to work.
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